Negative Free Cash FlowNegative free cash flow despite operating improvements signals ongoing capex or working-capital demands, which can pressure liquidity and require external funding. Persistently negative FCF undermines the company’s ability to self-fund project advancement and increases financing and dilution risk.
Thin Net Margins And Earnings VolatilityA modest net margin and a recent large loss reflect that profitability is fragile and sensitive to operational hiccups or commodity swings. For a mining developer, narrow net returns increase the time and sensitivity of project economics, making long-term cash generation less certain.
Cash Conversion WeaknessOperating cash covering under half of reported earnings indicates earnings quality issues and potential non‑cash items inflating profit. Weak cash conversion reduces resilience to setbacks, elevates dependency on external capital, and can slow sustained investment in exploration and permitting.