Large Operating Losses And Cash BurnReported net loss (~GBP 8.7m) and substantial negative operating and free cash flows reflect persistent cash burn far exceeding current revenue. For a non-producing explorer this creates structural funding pressure, increasing likelihood of dilutive raises or halted programs absent partner funding.
Weak Cash GenerationOperating and free cash flows are materially negative and deteriorated in 2024, indicating ongoing consumption of liquidity. Over a multi-month horizon this undermines the company’s ability to self-fund drilling or evaluation, increasing dependency on external financing and timing risk to value creation.
Erosion Of Shareholder Equity And ReturnsEquity fell materially year-over-year and return on equity is deeply negative (~-65%), a durable indicator of capital erosion. Persistent negative returns reduce investor confidence, heighten need for capital raises, and can limit the company’s bargaining power with partners over the medium term.