Persistent Cash BurnSustained negative operating and free cash flow forces reliance on external funding, asset sales, or dilutive equity raises. This constrains the company's ability to fund costly exploration programs independently and reduces strategic flexibility over the medium term.
Ongoing Losses And Weak RevenueVery small, shrinking revenue and recurring net losses indicate the business has not established recurring cash generation. Value realization is therefore contingent on episodic events (successful drilling or asset sales), increasing execution and timing risk for shareholders.
Erosion Of Equity And AssetsDeclining equity and asset balances suggest capital erosion from losses, write-downs, or disposals. A shrinking asset base reduces collateral for partners/lenders, may raise the cost of future funding, and limits the company's optionality to pursue or farm-out larger exploration opportunities.