Volatile Free Cash FlowIntermittent negative free cash flow in prior years shows cash generation can swing materially despite positive operating cash. This volatility complicates multi-quarter planning for sustaining capex, dividends, buybacks and debt paydown, and raises the risk of funding mismatches during development phases.
Higher Sustaining Capex NeedsIncremental sustaining capital to support Media Luna underground development increases ongoing cash outlays and reduces free cash flow conversion. Over the medium term, higher sustaining capex raises the breakeven cash generation needed to fund returns and growth, pressuring near-term liquidity deployment choices.
Gold-Price Linked Cost ExposureRoyalties and profit-sharing that scale with gold prices can erode incremental gains when prices rise, adding a counterintuitive cost exposure. Structurally, this reduces the net benefit of high gold realizations and complicates multi-quarter earnings and cashflow predictability tied to commodity moves.