Pre-revenue Business With Widening LossesThe company remains pre-revenue and reports growing net losses, which is a durable constraint on sustainability. Without operating income, Kestrel must depend on capital markets or partners to fund exploration; this structural gap elevates execution and financing risk over the next 2–6 months.
Consistent Negative Cash GenerationSustained negative operating and free cash flow forces reliance on external financing to maintain exploration and corporate costs. Over a medium-term horizon this increases odds of dilution, asset optioning, or delayed programs if capital markets are unfavourable, constraining strategic choices.
Eroding Capital Base (declining Equity/assets)Material decline in equity and assets signals cumulative drawdown from losses and/or dilution, shrinking the company's internal funding capacity. A smaller balance sheet reduces ability to self-fund exploration, making new financing or partner deals more likely and increasing medium-term execution risk.