Limited Operating Track RecordSeveral years of losses and negative cash flow prior to 2025 mean the company's positive 2025 performance rests on limited historical evidence. That short operating track record raises execution risk around sustaining production, cost control, and cash generation through commodity cycles and expansion phases.
Low FCF Conversion Amid Heavy ReinvestmentSub‑50% free cash flow conversion implies substantial reinvestment, capex or working-capital demands despite nominal profits. That reduces distributable cash and means future growth or construction spending may still require outside financing if cash generation dips, constraining returns unless conversion improves.
Concentrated Project RiskConcentration on a single flagship development increases exposure to project-specific execution, permitting and geopolitical risks. Combined with elevated equity volatility (beta ~2.31), this concentration means company cashflows and valuation are highly sensitive to outcomes at Cordero and to silver price swings.