No Revenue / Persistent UnprofitabilityAbsence of operating revenue means the business cannot self-fund exploration or convert fixed costs into margin; ongoing losses are structural until a discovery is monetised or commercial operations begin. This elevates execution risk and extends reliance on external capital.
Chronic Negative Cash Flow And Cash BurnConsistent negative operating and free cash flow forces repeated financing or asset sales. Over a multi-month horizon, this makes the company vulnerable to periodic funding market volatility and increases probability of dilutive equity raises or constrained exploration programs.
Negative Returns And Dilution RiskPersistently negative ROE signals the company is destroying shareholder value absent a material discovery or transaction. To sustain operations it will likely need capital raises, which creates dilution risk and makes long-term investor returns contingent on high-impact exploration outcomes.