Pre-revenue OperationsThe company has no revenue and reports ongoing net losses, meaning intrinsic cash generation is absent. Structurally, this forces reliance on capital markets and exploration success to continue operations, increasing dilution risk and making long-term viability contingent on discovery or external funding.
Equity Erosion And Dilution RiskSharp drop in shareholders' equity over several years reflects cumulative losses and likely financing dilution. This reduces the balance-sheet buffer, raises the probability of further equity raises, increases financing cost and dilutive risk for existing holders, and constrains strategic flexibility.
Negative Cash Flows / Cash BurnConsistently negative operating and free cash flows require recurring external funding. Persistent cash burn limits the company's ability to fund drilling and project advancement sustainably, increases vulnerability to market funding conditions, and can force delays, asset sales, or unfavorable financings.