Weak Cash ConversionLow OCF/NI (0.35) and FCF/NI (0.18) indicate earnings convert poorly into cash, pointing to working-capital stress or timing differences. Persistently weak conversion limits reinvestment capacity, increases reliance on external financing, and elevates liquidity risk during downturns.
Low Profitability MarginsGross margin of 10% and net margin of 3.8% offer limited buffers against raw-material cost swings common in copper. Combined with episodes of negative EBIT, modest margins constrain the ability to fund growth, absorb input inflation, and sustain investment in efficiency or quality over cycles.
Revenue VolatilityMaterial revenue volatility undermines forecasting and long-term planning, increasing working-capital and capital-allocation uncertainty. For a producer of commodity inputs, swings in demand or price can quickly strain margins, supplier contracts, and liquidity, raising execution risk.