Revenue And Profitability DeclineSteep revenue decline and large negative margins materially weaken the company’s internal funding ability. Persistent operating losses increase dependence on external capital, can delay project advancement, and weaken the company’s bargaining position in JV or option negotiations over the medium term.
Negative Operating Cash FlowOngoing negative operating and free cash flow indicate the core business consumes cash rather than generates it. This persistent cash burn forces reliance on capital markets or partners, raises dilution risk, and can interrupt continuous exploration programs if financing conditions tighten.
Reliance On Equity FinancingThe company depends on equity issuances and asset transactions to fund operations, a structural financing model for early-stage explorers. This reliance is durable risk: fundraising cycles are unpredictable and dilutive, complicating long-term planning and multi-year exploration programs.