Significant Revenue DeclineA near 50% drop in revenue materially reduces scale and pricing leverage, constraining margins and absolute cash generation. Persistent top-line declines limit reinvestment capacity for mines and maintenance and increase exposure to prolonged commodity weakness and execution risk.
Deteriorating Profitability And MarginsSustained negative net and EBIT margins point to structural cost pressure or weak realized pricing. Falling gross margins undermine retained earnings, reduce ability to self-fund projects, and weaken resilience to iron-ore price volatility, harming long-term return generation.
Weak Free Cash Flow Conversion And ReturnsDeclining free cash flow growth and weaker FCF-to-net-income conversion indicate impaired cash conversion. Coupled with negative ROE, this suggests the company struggles to generate returns for shareholders despite equity strength, limiting capacity for dividends, buybacks or growth capex.