Pre-revenue With Persistent LossesBeing pre-revenue and loss-making means the business cannot self-fund operations and must rely on external capital. Continuous losses erode equity, increase dilution risk, and make the company vulnerable to capital market conditions, limiting long-term financial independence and execution certainty.
Elevated Leverage Relative To EquityA debt-to-equity ratio near 3.8x indicates pronounced leverage that amplifies solvency and refinancing risk. High leverage can constrain strategic flexibility, increase cost of capital, and force asset sales or dilutive financings if exploration timelines slip or market conditions tighten.
Negative Operating And Free Cash FlowPersistent negative operating and free cash flow creates an ongoing need for external funding. Dependence on financings or asset disposals raises execution and dilution risk, and can interrupt project schedules if capital is delayed, constraining long-term value creation potential.