Negative Stockholders' EquityPersistently negative equity constrains financial flexibility, reducing access to traditional debt markets and increasing dependence on dilutive equity or onerous financing. Over the medium term this raises funding and solvency risk for resource development and project execution.
Top-line DeteriorationA sharply deteriorating top line and negative revenue undermine the company’s ability to reach operational breakeven and monetize assets. Over several months this weakens cash generation prospects, hinders reinvestment into exploration, and raises questions about the asset portfolio's economic viability.
Sustained Operating LossesMaterial and persistent operating losses indicate the core business is not generating earnings from operations. This erodes capital reserves, increases reliance on external funding, and limits the company's ability to self-fund development, raising medium-term dilution or restructuring risk.