Weakened Balance SheetRising debt alongside a materially reduced equity base erodes the capital cushion, increasing leverage and financial fragility. This magnifies cyclicality, raises refinancing and covenant risk, and constrains the company’s ability to fund working capital, rebuild inventories, or pursue strategic capex without costly or dilutive financing.
Weak Cash GenerationPersistent negative operating and free cash flows show the business is not self‑funding and relies on lender advances. This limits reinvestment capacity, increases dependence on external financing for inventory and quick‑payback projects, and reduces resilience to prolonged price or demand downturns.
High U.S. Duties And CurtailmentsA sharply higher U.S. duty/tariff burden (45.16%) materially weakens export economics and drove curtailments and a large 2025 net loss. Structural trade barriers can sustain lower volumes, force higher per‑unit fixed costs, and limit the company’s ability to convert improved pricing into durable free cash flow.