Materially Higher LeverageA large rise in debt materially reduces financial flexibility and raises interest and covenant risk. If profitability or metal prices weaken, servicing and refinancing this load could constrain capital allocation, limit exploration or optimization projects, and increase default or dilution risk over the medium term.
Negative Free Cash Flow RecentlySustained negative free cash flow driven by heavy capex or working-capital demands increases funding needs. With net losses in recent periods, the company may need external financing to sustain growth or capex, raising execution and dilution risk and putting pressure on balance-sheet stability.
Weak, Volatile ProfitabilityVolatile moves from profit to loss and deeply negative EPS growth undermine predictability of earnings and returns. This weak profitability elevates the risk that operating cash flow and margins reverse under stress, making debt servicing and reinvestment plans more vulnerable in the medium term.