No Revenue And Sustained Operating LossesAbsent operating revenue, the company relies on external financing or asset transactions to fund operations. Persistent losses consume equity and increase execution risk; without demonstrable top-line progress, long-term project viability and ability to attract partner financing remain uncertain.
Negative Cash Generation And Free Cash Flow BurnOngoing negative operating and free cash flow forces reliance on equity raises or asset optioning to fund exploration. Over months this reduces financial flexibility, increases dilution risk, and can delay technical programs needed to advance resources toward development or partner interest.
Eroding Shareholder Equity And Deep Negative ROEPersistent equity erosion and a deeply negative ROE signal value destruction and ongoing capital consumption. Over a multi-month horizon this undermines investor confidence, makes raising non-dilutive capital harder, and pressures management to pursue dilutive financings or sell interests prematurely.