Pre-revenue ProfileLack of operating revenue means the company has not demonstrated project economics or recurring cash generation. This necessitates ongoing external funding, raises execution risk for advancing projects to production, and leaves valuation and viability contingent on exploration success.
Consistent Negative Cash FlowPersistent negative operating and free cash flows force reliance on equity raises or partner funding, increasing dilution and execution risk. Over the medium term, continued cash burn constrains exploration pace and limits ability to fund follow-on drilling or development without external support.
Eroding Equity BaseA declining equity base reflects cumulative losses and reduces the balance-sheet buffer available for setbacks. This weakens negotiating leverage with partners, can heighten future financing costs or dilution, and limits strategic options if additional capital is required to advance projects.