Pre-revenue Cash BurnAs a pre-revenue developer with persistent negative EBIT and deeply negative free cash flow, NexGen remains dependent on external financing until production. Ongoing cash burn elevates dilution risk, constrains strategic flexibility, and increases vulnerability to funding-market cycles over the multi‑year development timeline.
Rising Financial LeverageA material increase in debt raises fixed obligations and refinancing exposure before revenue generation. Higher leverage can increase interest cost sensitivity, reduce headroom for overruns, and heighten covenant or liquidity risk if project schedules or commodity markets deteriorate during development.
Regulatory Approval DependencyThe Rook I project’s timeline and value realization hinge on federal approval. A delay, condition or denial would meaningfully extend reliance on financing, could disrupt contracting and permitting sequences, and represents a binary, long-lived execution risk that affects project viability and timing.