Persistent Operating LossesConsistent negative EBIT across multiple years is a structural weakness: it erodes equity, prevents internally funded exploration or development, and makes the firm's survival dependent on external financing or asset disposals. This undermines long‑term sustainability absent a clear turnaround.
Weak, Consistently Negative Cash GenerationRepeatedly negative operating and free cash flow means the company cannot self‑fund operations or project advancement. That creates a persistent reliance on capital markets, partners, or asset sales, raising execution and timing risk for value realisation over the medium term.
Deteriorating Leverage TrendA rising debt‑to‑equity ratio over successive years signals worsening financial flexibility and higher servicing risk. If losses persist, leverage can accelerate, constraining the company’s ability to fund exploration, complete deals, or secure favorable partnership terms without dilutive equity raises.