No Revenue And Persistent Net LossesThe absence of operating revenue and recurring net losses means the business cannot self-fund exploration or development. Over months this forces dependence on external capital, increasing dilution or restrictive financing terms and limiting the firm's ability to advance projects independently.
Consistent Negative Operating & Free Cash FlowSustained negative operating and free cash flow depletes resources and creates recurring funding needs. Over several months this constrains program continuity, raises financing frequency, increases cost of capital, and can force project cutbacks if markets or funding channels tighten.
Deteriorated Balance Sheet: Negative Equity, Rising DebtAccumulated losses producing negative equity and higher debt reduce financial flexibility and bargaining power with partners or lenders. Over the medium term this elevates refinancing and covenant risk, and increases probability of dilutive equity raises or unfavorable deal terms.