No Revenue And Recurring LossesBeing pre-revenue with recurring operating losses means the company cannot self-fund operations and remains dependent on capital markets. Over a 2–6 month horizon this structural lack of cash generation increases dilution risk and constrains ability to advance projects without new funding.
Persistent Negative Operating And Free Cash FlowConsistent negative operating and free cash flow is a durable source of funding pressure. Even with no debt, ongoing cash burn raises liquidity risk, may force accelerated financing or asset disposals, and limits sustained investment in exploration and permitting over the medium term.
Negative ROE And Balance Sheet VolatilityPersistently negative ROE erodes equity value and signals that capital deployed hasn’t generated returns. Fluctuating assets and equity reduce balance sheet predictability and can make it harder to secure favorable partnerships or financing, raising long-term cost of capital and execution risk.