No Operating RevenueAbsence of operating revenue means intrinsic value depends on successful project advancement rather than current cash generation. Persistent operating losses erode equity over time, increase reliance on external funding, and raise execution risk if exploration or permitting timelines lengthen.
Chronic Negative Cash FlowSustained negative operating and free cash flow create a structural funding gap for a pre-production company. Rising cash burn shortens runway, forces recurring capital raises, and diverts management time to financing rather than project execution, increasing dilution and delaying development timelines.
Negative Returns & Equity ErosionNegative ROE and a declining equity base indicate past capital deployment has not generated shareholder value and that dilution has occurred. Structurally, this heightens the risk that future financings will be dilutive, complicating long-term investor returns and potentially constraining alternative funding options.