Weak Cash ConversionLow FCF-to-net-income (~16%) and modest cash conversion mean reported profits do not fully translate into spendable cash. That constrains internal funding for growth or buffers against shocks, increasing reliance on external financing when capex or working capital needs rise.
Earnings CyclicalityEarnings are materially driven by copper prices and operational performance, producing large swings across years. This cyclicality reduces predictability of cash flows and capital allocation, complicating multi-quarter planning for expansion or shareholder returns.
Rising DebtA recent sharp rise in debt increases downside sensitivity: higher interest and refinancing needs can erode flexibility if revenues fall. Even with current leverage manageable, increased indebtedness raises risk during prolonged commodity downturns or operational setbacks.