Revenue DeclineA large revenue drop signals weakening sales volumes, realizations, or product mix. Reduced top-line scale pressures fixed-cost absorption, erodes gross-to-net conversion, and constrains reinvestment capacity. Prolonged declines can impair growth plans and competitive positioning.
Free Cash Flow CollapseA near-term collapse in free cash flow severely limits the company's ability to fund sustaining or growth capex, pay distributions, or build cash buffers. Persistently weak FCF raises dependence on external funding and reduces resilience to adverse commodity or operational shocks.
Weak ReturnsA low and falling ROE indicates the business is generating limited returns on invested capital. Over time this can constrain investor confidence and reinvestment efficiency, making it harder to finance expansion internally and reducing the payoff from capital deployed in mining projects.