Earnings And Cash Flow VolatilityHistorical swings into losses and negative cash flow reduce confidence that current profitability is sustainable. Volatility makes planning and stress-testing harder, increasing the probability that a revenue or metal-price shock forces margin compression or capital raises within months.
Rising Leverage Versus Prior YearsModerate but rising leverage increases fixed obligations and reduces balance-sheet flexibility. If earnings revert or a liquidity need emerges, higher debt amplifies downside risk and could constrain investments, making operating volatility more damaging over the next several quarters.
Small Scale And Operational ConcentrationA very small team and modest trading volume imply limited operational scale and potential single-point dependencies across tech, compliance and custody relationships. Scaling or absorbing regulatory/operational shocks may require disproportionate investment, raising execution risk.