Persistent Operating Losses And Cash BurnChronic negative operating and free cash flow create continuous funding needs. Over a multi‑month horizon this forces reliance on external capital, risks program cutbacks if markets tighten, and increases likelihood of dilutive equity raises that can erode long‑term shareholder value.
Negative Shareholders' EquityNegative equity materially limits balance sheet flexibility: it reduces borrowing capacity, complicates counterparty trust in joint ventures, and increases the chance of urgent, dilutive funding. This structural weakness raises financing and continuity risk for ongoing exploration programs.
No Meaningful, Consistent Revenue BaseWith little to no operating revenue, Lodestar’s viability depends entirely on exploration success or external funding. This structural lack of cash‑generating operations elevates execution risk, limits internal funding for drilling programs, and makes strategic plans sensitive to capital markets conditions.