Persistent LossesSustained, large negative net margins erode shareholder equity and limit reinvestment capacity. For an exploration company, prolonged unprofitability increases reliance on external capital, risks dilution, and weakens the balance sheet if exploration outcomes take longer or cost more than planned.
Weak Cash GenerationOngoing negative operating and free cash flow signal that core activities do not self-fund. This structural cash deficit forces repeated financing, creates refinancing and liquidity risk, and can constrain the pace of drilling/appraisal activity critical to proving commercial helium resources.
Volatile, Inconsistent RevenueHighly variable revenue, including zero-revenue years, undermines predictability of project economics and complicates long-term planning. This volatility makes securing project finance or attractive farm-out terms harder and raises execution risk for transitioning from exploration to production.