No Revenue And Persistent Net LossesAbsence of operating revenue leaves the company reliant on financing or asset transactions for funding. Persistent net losses steadily erode equity and investor optionality, increasing dependency on successful project monetizations to justify continued capital support.
Negative Operating And Free Cash FlowConsistent operating cash burn and large negative free cash flow create structural funding needs. This forces reliance on external capital or asset sales, heightens dilution/refinancing risk, and constrains the firm’s ability to self-fund studies, permits, and development.
Rising Debt And Permitting/legal Execution RiskMaterial increase in debt raises refinancing and interest-service risk while losses persist. Coupled with legal challenges around KSM tunnel authorizations, this amplifies execution risk: higher leverage reduces flexibility to absorb permitting delays or fund costly remediation.