Weak Cash ConversionLow FCF-to-net-income (~16%) and tight OCF conversion mean reported profits translate poorly into discretionary cash. Over months this limits ability to self-fund expansions, increases reliance on external financing, and reduces buffers against operational setbacks.
Rising Debt ExposureMaterial increase in debt raises refinancing and interest-rate sensitivity. If copper prices or production slip, higher leverage can pressure liquidity and force asset sales or cutbacks, making the company more vulnerable across the commodity cycle.
Earnings Volatility & Commodity SensitivityHistoric swings from strong profits to losses highlight dependence on copper prices and operating performance. Such structural volatility complicates planning, raises capital cost, and can delay multi-year projects when cyclical downturns hit operations or investment timelines.