Pre-revenue Business ModelAs an explorer with no revenues, Northstar lacks operating cash inflows to sustain activity and depends on external financing. This structural business-state elevates execution and financing risk: exploration outcomes must eventually translate to value or the firm will need repeated capital raises.
Weak Cash Generation And Rising Cash BurnConsistently negative operating and free cash flow drains liquidity and increases the frequency and quantum of financing required. Over a 2–6 month horizon this constrains operational flexibility, forces prioritization of projects, and raises dilution risk if capital markets are tapped.
Eroding Equity / Funding Dilution RiskFalling equity amid ongoing losses signals prior dilution or accumulated deficits. With continued cash burn and no revenue, the company faces structural funding pressure that can lead to further equity issuance, reducing existing holders' stakes and constraining long-term returns.