Pre-revenue With Recurring LossesThe absence of revenue and repeated operating/net losses mean the company cannot self-fund operations or projects. Over a 2–6 month horizon this entrenches reliance on external financing, elevating dilution risk and making a credible path to sustainable profitability uncertain.
Consistent Negative Cash FlowMaterial and persistent operating and free cash outflows (roughly -£205k to -£280k historically) indicate the business consumes cash each period. Structurally this forces ongoing capital raises or cost cuts, constraining exploration activity and increasing funding and execution risk in the medium term.
Shrinking Equity And Asset BaseA declining equity and asset base reduces the company's capital buffer and collateral for financing, weakening balance-sheet resilience. Over months this erosion limits strategic options, raises counterparty concerns, and makes dilutive financing or asset disposals more likely to sustain operations.