Absence Of RevenueLack of recurring revenue means the business cannot self‑fund operations or demonstrate operating leverage. Persistent net losses erode equity over time and force reliance on capital markets, making long‑term project development contingent on external funding availability.
Negative Cash GenerationSustained negative operating and free cash flow indicate ongoing cash burn from exploration activities. This structural cash outflow pattern constrains project timelines, increases dilution risk from frequent raises, and limits ability to scale operations without fresh capital.
Dependence On External FinancingRegular recourse to equity financing ties the company’s pace of exploration to capital‑market access and creates dilution risk for shareholders. Dependence on placements may limit strategic flexibility if market conditions deteriorate, impacting long‑term project advancement.