Near-zero Shareholders' EquityEquity erosion to virtually zero with meaningful debt creates extremely high leverage and removes the customary solvency cushion. For a pre-revenue explorer this sharply elevates refinancing and insolvency risk, constraining strategic flexibility and increasing the likelihood of distressed or dilutive capital raises.
Persistent Negative Cash Flow And No RevenueThe company remains pre-revenue with recurring operating losses and negative free cash flow each year. This structural inability to self-fund operations means continued dependence on external capital, which can slow project timelines and increase dilution risk over the medium term.
Dependence On External Financing With Weakened Capital PositionWith ongoing cash burn and a depleted equity base, the company must access outside capital to advance projects. Market conditions or higher cost of capital could delay exploration, force dilutive financings, or compromise project timelines, making execution and value realization riskier.