Declining Revenue And ProfitabilitySustained revenue declines and shrinking EBIT/EBITDA margins signal structural pressures on demand, price realization, or operational performance. Persisting top-line weakness undermines reinvestment capacity and long-term profit recovery prospects absent operational improvement or portfolio repositioning.
Rising Leverage And Weaker Equity BaseIncreased leverage alongside a falling equity ratio reduces financial flexibility and raises fixed obligations. Higher leverage magnifies downside risk during commodity downturns, limits ability to pursue growth projects without raising costly capital, and pressures credit metrics over the medium term.
High Exposure To Commodity, FX, And Regulatory SwingsThe business is structurally sensitive to volatile commodity prices, exchange-rate swings, royalties/taxes and joint-venture outcomes. These external factors can cause persistent earnings volatility, complicate cash flow forecasting, and constrain long-term strategic planning and capital allocation.