Persistent LossesOngoing negative EBIT and EBITDA margins indicate the business is not generating operating profitability. Over months this reduces internal funding capacity, forces repeated capital raises, and increases the risk that projects stall if external funding conditions tighten.
Negative Cash Flow TrendsConsistently negative operating and free cash flows mean the company cannot self-finance exploration activity. This structural cash-flow gap raises reliance on equity or JV funding, heightens dilution risk for shareholders, and limits the pace at which projects can be advanced.
Negative Return On EquityA negative ROE implies the company is destroying shareholder capital rather than growing it. Over the medium term this signals management or project selection issues, reduces investor confidence in organic value creation, and increases pressure to secure transactional monetisation to prove value.