Negative Cash FlowSustained negative operating and free cash flows create a structural dependency on external financing for continued operations and exploration. Persistent cash burn increases dilution risk, pressures management to raise capital, and constrains long-term project advancement.
Pre-Revenue Business ModelWith no revenue base and ongoing net losses, the company lacks internal cash generation and visibility on transition to commercial production. This heightens execution risk, prolongs reliance on markets for funding, and makes returns contingent on successful discovery or asset sale.
Binary Exploration RiskAs an exploration-stage firm, long-term value is highly binary and dependent on discovery outcomes and lengthy permitting/development paths. This structural risk makes forward cash flows uncertain and increases the probability of prolonged capital raises or project divestitures.