Pre-revenue Business ModelBeing pre-revenue means the business lacks internally generated cash from operations and depends on capital markets or partners to fund activities. Over months this elevates execution and funding risk, and value realization depends on lengthy, binary exploration outcomes.
Persistent Negative Cash FlowSustained negative operating and free cash flow creates an ongoing need for external financing to sustain exploration. Structural cash outflows that exceed accounting losses imply material project spend and working-capital drain, pressuring liquidity and strategic flexibility over time.
Dilution And Funding ReliancePersistent losses and cash burn increase the probability of additional equity raises or asset sales. Recurrent dilution erodes incumbent shareholder stakes and can shift governance or strategic priorities, a structural risk for long-term investors in exploration-stage companies.