Recurring Operating LossesConsistent negative EBIT across multiple years shows the company is not generating operating profits from its activities. This structural unprofitability erodes equity, weakens creditworthiness, and forces reliance on asset sales or financing to sustain operations over months.
Rising LeverageRapidly increasing leverage reduces financial flexibility and raises refinancing risk, especially given negative cash flows. As debt grows relative to declining equity, interest and covenant pressures can constrain strategic choices like farm-outs or staged project funding.
Weak And Lumpy RevenueIrregular and minimal revenue means the company lacks stable operating cash generation. Dependence on one-off asset transactions makes funding timing uncertain and hampers long-term planning, increasing execution risk for project development and monetisation strategies.