Negative And Worsening ProfitabilitySustained negative margins indicate the business is not generating operating profits, reflecting high costs or low realized prices. Over months this erodes retained capital, limits reinvestment into mines, and pressures the company to cut costs or seek dilutive financing to sustain operations.
Negative Operating Cash FlowNegative operating cash flow is a structural concern for a mining developer: it undermines the ability to fund capital expenditures, sustain production, or advance projects internally. Persistent cash burn forces reliance on equity/debt raises or asset disposals, diluting stakeholders and slowing development.
Declining Revenue And Earnings CollapseMaterial revenue decline and a catastrophic EPS drop signal deteriorating operational performance or recognition of large losses. Over the medium term this impairs reinvestment capacity, weakens stakeholder confidence, and raises questions about management's ability to restore profitable production.