No RevenueAbsence of operating revenue means the company cannot self-fund exploration or development; it remains fully reliant on external capital. Over time this dependence raises execution risk, increases dilution potential, and reduces visibility on progressing assets toward production.
Negative Cash GenerationSustained negative operating and free cash flow erodes reserves and forces recurring financing or asset sales. Persisting cash burn constrains the pace of exploration and technical studies, can delay milestones, and weakens negotiating leverage with partners over a multi-month horizon.
Eroding Equity & Negative ROEDeclining shareholder equity and deeply negative ROE signal that capital deployed is destroying value, which can deter strategic investors and partners. Over time this reduces funding options and could force more dilutive financing or unfavorable project transactions.