Persistent Negative Operating And Free Cash FlowConsistent negative operating and free cash flow is a structural weakness: it steadily erodes liquidity and forces reliance on external funding or asset disposals. Over 2–6 months this raises refinancing and dilution risk, limits capital for production scale-up or maintenance, and constrains strategic optionality if revenue recovery stalls.
Very Small, Volatile And Declining Revenue With Shrinking Gross MarginSmall, volatile and ultimately declining revenues combined with a sharply lower gross margin undermine predictability and the path to profitability. Structurally this weakens cash generation potential, hampers investment planning, and makes the business sensitive to commodity price and grade swings, prolonging dependence on external funding.
Increased Leverage In 2024 Elevates Funding And Financial RiskA marked rise in leverage increases interest and refinancing risk while the company remains loss-making. With negative returns on equity, higher debt reduces financial flexibility, raises mandatory cash outflows, and heightens the likelihood that management will need to raise capital or sell assets—structural constraints on long-term strategy execution.