No Revenue Across Multiple YearsA multi-year pre-revenue profile means operations rely entirely on capital markets rather than internal cash generation. Without a path to near-term production or monetizable assets, the business remains dependent on dilution or financing, raising structural financing and execution risk.
Persistent Negative Operating And Free Cash FlowContinued negative operating and free cash flow—even with improvement—signals ongoing cash burn. Structural negative cash conversion increases the probability of recurring external funding, which can dilute shareholders and constrain the firm's ability to sustain exploration cadence or advance projects independently.
Erosion Of Equity And Negative Returns On EquityDeclining equity and persistent negative ROE reflect cumulative losses eroding the capital base. Over months this reduces the company's margin for error, limits capacity to self-fund development, and heightens reliance on external capital that could be costly or dilutive if market conditions tighten.