Negative Shareholders' EquityNegative equity reflects accumulated losses that erode the company’s capital base and limit balance-sheet resilience. Over the medium term this constrains capacity to absorb setbacks, reduces borrowing options and can complicate negotiating farm-ins or project financing without equity support.
Ongoing Cash Burn And Funding ReliancePersistent negative operating and free cash flow means the business cannot self-fund exploration or studies. This exposes the company to capital-market access risk and recurring dilution if it must raise equity, or to project slowdowns if partners are not secured, affecting long-term development timelines.
Minimal Revenue And Widening Net LossesVery small revenue and growing net losses indicate lack of operating scale and poor earnings power. For a pre-production miner this durable weakness limits reinvestment capacity, increases dependence on external capital, and raises execution risk for advancing projects to production.