Inconsistent Free Cash FlowLow FCF conversion and past negative free cash flows indicate reinvestment, capex, or working-capital needs can erode cash available for dividends or expansion. This structural inconsistency reduces predictability of capital returns and makes long-term planning and funding of new projects more challenging.
Earnings VolatilityHistorical swings from loss to profit highlight material operating volatility inherent in Serabi's business. Such volatility impairs consistent reinvestment and weakens the reliability of future earnings streams, complicating capital allocation and increasing the risk profile for multi-quarter planning.
Commodity Price ExposureRevenue and margins are structurally tied to gold prices and realized production, leaving company performance largely at the mercy of commodity cycles. This persistent external sensitivity creates ongoing top-line and margin risk independent of operational execution, limiting control over long-term growth.