Pre-revenue OperationsZero revenue and recurring operating losses leave long‑term viability dependent on external financing. Without product or mining cashflows, the company faces structural valuation uncertainty, high dilution risk, and constrained strategic choices until revenue emerges.
Consistent Cash BurnSustained negative OCF/FCF and rising cash burn create ongoing funding needs and shorten the runway. Over months this elevates refinancing and dilution risk, forces tradeoffs on exploration spending, and can impair strategic flexibility if markets tighten.
Eroding Equity BaseA shrinking equity base reduces the capital cushion available to absorb future losses and increases sensitivity to adverse events. This structural deterioration amplifies the need for external capital, raising the probability of dilutive financings over the medium term.