Zero Revenue In Recent YearsAbsence of revenue in two consecutive years indicates a non‑producing, exploration-stage profile that cannot self-fund operations. Structural dependence on external capital increases execution risk and ties progress to successful project development or commodity-driven monetization events.
Persistent Operating Cash BurnSustained negative operating cash flow erodes reserves and forces repeated external funding, raising dilution and financing risk. Over the medium term this constrains project advancement, increases cost of capital, and can divert management focus from value-creating activities to cash preservation.
Eroding Equity And Negative ReturnsA materially shrinking equity base and negative ROE reflect value erosion from losses or dilution, reducing the company's financial cushion. This weakens capacity to absorb shocks, limits financing options, and signals investor concern—raising the likelihood of further dilution or asset sales to fund operations.