Persistent Cash BurnOngoing negative operating and free cash flow is a structural weakness: it forces reliance on external financing to fund operations or acquisitions, risks shareholder dilution, and limits the company's ability to organically scale its royalty portfolio. Continued cash burn undermines long-term financial flexibility.
Rising LeverageElevated and rising leverage increases financial risk for a company still running losses. Interest and principal obligations constrain capital allocation, reduce capacity for opportunistic royalty deals, and raise the chance of covenant pressures during weak commodity cycles, impairing strategic optionality.
Deep Net Losses And Negative ROEExtremely negative margins and ROE indicate current operations destroy shareholder value and require substantial margin improvement or scale to reverse. This structural profitability gap makes long-term sustainability dependent on sustained revenue growth and cost discipline; otherwise financing and dilution risks persist.