Significant Cash BurnPersistent negative operating and free cash flow drains reserves and forces repeated external financing. Over months this erodes runway, increases dilution risk, and constrains funding for exploration drill programs or permitting, making sustained project advancement dependent on successful capital raises or partners.
Continued Operating LossesOngoing negative EBIT and net margins indicate the business cannot self-fund operations. Without a credible path to sustained revenue growth or cost reduction, losses undermine returns and make long-term viability contingent on external capital or successful asset monetization rather than internally generated cash flow.
Material Decline In Equity BaseA steep fall in shareholders' equity reduces the capital cushion against exploration setbacks and heightens dependence on external funding. This weaker balance sheet amplifies dilution risk, limits negotiating leverage with partners, and increases vulnerability to adverse financing conditions over the medium term.