No Revenue BaseAbsence of operating revenue means the company's value and viability hinge entirely on successful project development and external funding. This elevates execution and financing risk over months: failure to hit technical or permitting milestones forces reliance on capital markets, increasing dilution risk.
Persistent Negative Cash FlowConsistent negative operating and free cash flow requires recurring external financing to sustain operations and advance the project. Over a 2–6 month horizon this constrains strategic options, raises fundraising risk, and can delay studies or permitting if capital access tightens, pressuring execution timelines.
Equity Erosion And Negative ROEDeclining equity and negative returns on capital show that reported losses are eroding shareholder value. Persisting this dynamic makes future capital raises more dilutive and costly, and signals limited internal capital generation to fund development, raising long-term refinancing and governance pressures.