No Operating RevenueAbsence of operating revenue means the business cannot self-fund exploration or overhead, creating structural dependency on external capital. Over months this limits reinvestment flexibility, increases financing risk, and leaves project timelines subject to funding availability rather than economics.
Dependence On Capital MarketsReliance on equity financings and transactions to advance projects is a structural vulnerability: access to capital is cyclical and can be constrained. If markets tighten, exploration programs stall, forcing dilution, downgrades to activity, or distressed property sales, undermining long-term value creation.
Deep Negative Returns On EquitySustained deeply negative ROE indicates the company is destroying shareholder capital and not converting exploration spend to profitable outcomes. Over 2–6 months this signals poor capital efficiency and raises the likelihood of further equity raises or management changes if performance does not improve.