Negative Operating And Free Cash FlowPersistent negative operating and free cash flow despite reported profits signals weak cash conversion. Over months this erodes liquidity, forces reliance on external funding or asset sales, and constrains the firm’s ability to sustainably fund capex, dividends, or debt amortization.
Rising LeverageA near doubling of debt-to-equity in one year materially increases financial risk. Structurally higher leverage raises interest and refinancing exposure, reduces strategic flexibility, and magnifies downside in a commodity-cycle downturn or if cash conversion issues persist.
Volatile Operating MarginsFluctuating EBIT/EBITDA margins point to inconsistent operational efficiency or input-cost pass-through in the copper industry. Over a medium-term horizon this undermines earnings predictability, complicates planning and investment decisions, and can depress long-term return stability.