Sustained LossesMaterial and recurring net losses compress retained capital and create reliance on external financing or asset sales. Persistently negative margins impede reinvestment into exploration, lower ROE, and make it harder to self-fund project development or withstand prolonged commodity or deal-market weakness.
Negative Operating Cash FlowA return to negative operating and free cash flow introduces near-term funding risk and raises execution uncertainty for multi-year projects. Without consistent cash generation, the company must rely on equity, partners, or asset disposals, which can dilute economics or delay development timelines.
Transactional, Non-producing Business ModelRelying on one-off property sales, options, or JV earn-ins creates lumpy, unpredictable revenues and prolongs path to stable cash flow. This model magnifies execution and timing risk for project monetization, complicates multi-year planning, and can necessitate repeated capital raises.