Persistent Losses And Minimal RevenueSustained net losses and near-zero revenue undermine internal funding capacity and limit proof of commercial execution. Over months this constrains negotiating leverage with partners, increases reliance on external capital, and weakens long-term profitability prospects.
Negative Operating And Free Cash FlowChronic negative operating and free cash flow forces repeated financing and heightens dilution or creditor risk. This structural cash-burn pattern constrains multi-year exploration programs, raises funding uncertainty, and can delay or derail project advancement absent partner funding.
Eroding Shareholder EquityDeclining equity signals accumulated losses are eroding the balance sheet buffer, reducing capacity to absorb setbacks. Over the medium term this weakens credit standing, increases future dilution risk to raise capital, and narrows strategic options for monetizing assets.