High LeverageMaterial leverage creates lasting financial vulnerability for a resource developer exposed to commodity cycles. High debt levels constrain capital allocation, increase interest burden, and raise refinancing risk, limiting the company’s flexibility to fund development or withstand commodity price downturns.
Persistent UnprofitabilityOngoing negative net and EBIT margins mean core operations do not yet generate sustainable profits. Persistent losses erode equity, hinder reinvestment and growth, and make the business dependent on external funding until margins and scale materially improve.
Weak Cash ConversionVery low conversion of accounting income into operating cash and continued negative FCF indicate working capital or non-cash charges problems. This reduces the company’s ability to self-fund operations and service debt, posing a durable constraint on financial stability.