Pre-revenue With Persistent Heavy LossesBeing pre-revenue means no operating cash inflows while development and corporate expenses accumulate. Large recurring net losses erode capital, delay internally funded construction, and increase reliance on external financing, which raises execution risk and can push timelines for achieving sustainable cash generation.
Deeply Negative Shareholders' EquityA significantly negative equity position reflects accumulated deficits and a weak capital base, limiting access to conventional debt and elevating the cost of capital. This often forces dilutive equity raises or expensive project terms, reducing shareholders' upside and complicating long-term financing for mine construction.
Small Asset Base Vs. Project Financing NeedsA limited asset base constrains available collateral and bargaining power with lenders and partners for large-scale mine development. For an open-pit project requiring substantial capex, this increases dependence on third-party project financing, joint ventures or equity dilution, raising execution and timing risk to reach production.