No Revenue GenerationThe absence of any revenue means the business is not self-funding and remains fully dependent on external capital. Over months this structural gap increases execution risk for exploration, limits reinvestment capacity, and heightens vulnerability to funding market conditions.
Consistent Negative Cash FlowPersistent operating and free cash outflows create an ongoing drain on resources and force recurring financing needs. Structurally, sustained negative cash flow raises dilution risk, constrains capital allocation to projects, and heightens dependence on investor sentiment for survival.
Declining Equity And AssetsA shrinking capital base and falling equity reduce financial resilience and the firm’s ability to fund exploration or secure favourable financing. Over a multi-month horizon this structural deterioration can limit growth options and increase the probability of dilutive raises or asset sales.