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Kinetiko Energy Ltd. (AU:KKO)
ASX:KKO
Australian Market

Kinetiko Energy Ltd. (KKO) AI Stock Analysis

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AU:KKO

Kinetiko Energy Ltd.

(Sydney:KKO)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
AU$0.07
▲(5.71% Upside)
The score is held down primarily by the lack of revenue, persistent losses, and ongoing cash burn (funding risk). A low-leverage balance sheet provides some financial flexibility, while technical indicators are only mildly constructive and valuation metrics offer limited support due to negative earnings and no dividend.
Positive Factors
Low leverage
Very low debt reduces structural financial risk and gives the company flexibility to fund exploration schedules or absorb delays without immediate solvency pressure. This improves bargaining power with potential farm-in partners and lowers the probability of forced asset sales under stress.
Stronger equity base
A larger equity and asset base provides a durable buffer against continued operating losses, extending runway for appraisal and drilling programs. That capital cushion supports capital allocation to value-driving exploration activities and makes the company a more credible counterparty for joint ventures.
Clear monetisation routes
As an early-stage gas explorer, the company has structural, capital-efficient paths to value creation—farm-outs, asset sales or partner-funded development. These long-lived routes let Kinetiko advance projects with limited sole funding, sharing technical and funding risk with partners.
Negative Factors
No revenue
Absence of operating revenue is a durable constraint: until projects reach commercial production or a monetisation transaction occurs, the business cannot self-fund operations. Persistent reliance on external capital increases dilution and execution risk over the medium term.
Negative operating / free cash flow
Consistent negative operating and free cash flow means the company consumes capital to progress assets. Rising cash burn in 2025 heightens financing needs, increasing the likelihood of dilutive raises or partner concessions and potentially slowing project timelines if funding gaps emerge.
Negative returns on equity
Ongoing net losses that generate negative ROE are structurally dilutive to shareholder value if prolonged. Over months this trend erodes the equity buffer, complicates capital sourcing on favourable terms, and can weaken negotiating leverage with potential farm-in or offtake partners.

Kinetiko Energy Ltd. (KKO) vs. iShares MSCI Australia ETF (EWA)

Kinetiko Energy Ltd. Business Overview & Revenue Model

Company DescriptionKinetiko Energy Limited explores for gas and coal bed methane. Its flagship property is the Amersfoort project located in South Africa. The company was incorporated in 2010 and is based in Subiaco, Australia.
How the Company Makes MoneyKinetiko Energy Ltd. generates revenue primarily through the exploration and development of coal bed methane gas projects. The company monetizes its gas reserves by extracting and selling natural gas to local and regional energy markets. It may also enter into joint ventures or partnerships with other energy companies to share resources and expertise, which can lead to shared revenue streams. Additionally, Kinetiko's operations are supported by funding from investors and government incentives aimed at promoting clean energy projects. The company's success in converting its exploration activities into commercial production is a key factor contributing to its earnings.

Kinetiko Energy Ltd. Financial Statement Overview

Summary
Income statement and cash flow are weak: no revenue, persistent and worsening losses, and ongoing negative operating/free cash flow with increasing cash burn in 2025. The main offset is a relatively solid balance sheet with very low leverage and higher equity/assets in recent years, which provides some resilience but does not solve the funding/execution risk.
Income Statement
12
Very Negative
The company continues to report no revenue across the annual periods provided, while losses remain sizable and persistent. Operating performance is consistently negative (gross profit, EBIT/EBITDA and net income all loss-making), with net losses worsening from 2024 to 2025. Overall, the income statement reflects an early-stage/asset-development profile with limited visibility to near-term profitability.
Balance Sheet
72
Positive
Leverage is very low, with debt-to-equity near zero in 2025 and substantially below 1x throughout the period, which reduces financial risk. Equity and total assets are also meaningfully higher in 2024–2025 versus earlier years, supporting balance sheet resilience. The key weakness is continued negative returns on equity driven by ongoing net losses, which can erode capital over time if sustained.
Cash Flow
18
Very Negative
Operating cash flow and free cash flow are negative in every year shown, indicating the business is consuming cash rather than generating it from operations. Cash burn increased in 2025 versus 2024, and free cash flow remains worse than net income in absolute terms (losses accompanied by additional cash outflow). While reported free cash flow growth is volatile, the underlying pattern is continued funding needs until revenues and operating cash generation emerge.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-146.24K-146.24K-784.46K-46.86K-21.94K-5.58K
EBITDA-1.70M-5.70M-3.98M-4.22M-3.93M-1.78M
Net Income-1.69M-5.56M-5.32M-4.34M-5.82M-1.70M
Balance Sheet
Total Assets72.74M72.74M74.96M13.22M9.86M7.84M
Cash, Cash Equivalents and Short-Term Investments1.89M1.89M7.21M3.56M1.35M190.86K
Total Debt109.98K109.98K1.47M250.00K250.00K0.00
Total Liabilities841.40K841.40K2.73M999.42K720.62K298.91K
Stockholders Equity71.79M71.79M72.14M12.22M9.14M7.54M
Cash Flow
Free Cash Flow-5.72K-5.46M-3.78M-3.99M-3.83M-1.97M
Operating Cash Flow-5.02K-5.02M-3.75M-3.86M-3.64M-1.96M
Investing Cash Flow-698.54K-698.54K-4.03M-1.73M-1.24M-234.53K
Financing Cash Flow394.93K394.93K11.44M7.81M6.04M1.27M

Kinetiko Energy Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.07
Price Trends
50DMA
0.07
Positive
100DMA
0.07
Negative
200DMA
0.07
Positive
Market Momentum
MACD
<0.01
Positive
RSI
48.78
Neutral
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KKO, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.78 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:KKO.

Kinetiko Energy Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
AU$80.47M12.7810.27%13.04%10.44%-55.67%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
56
Neutral
AU$79.50M25.006.72%
49
Neutral
AU$34.04M-8.33-7.26%-220.00%
46
Neutral
AU$107.53M-17.95-7.73%17.02%
46
Neutral
AU$66.29M-50.00-18.71%33.33%
44
Neutral
AU$80.17M-16.13-3.58%22.50%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:KKO
Kinetiko Energy Ltd.
0.07
<0.01
11.11%
AU:CUE
Cue Energy Resources Limited
0.12
0.03
27.78%
AU:MAY
Melbana Energy Limited
0.01
-0.02
-62.96%
AU:ECH
New Zealand Oil & Gas Limited
0.36
-0.02
-5.59%
AU:PCL
Pancontinental Energy NL
0.01
>-0.01
-47.37%
AU:IVZ
Invictus Energy Limited
0.05
-0.02
-28.57%

Kinetiko Energy Ltd. Corporate Events

Kinetiko advances South African gas project with LNG JV, OTCQB listing and fresh capital
Jan 30, 2026

Kinetiko Energy reported a safe quarter with no health, safety or environmental incidents and over 3,750 person-hours worked without reportable events, while production test wells 271-KA03PT06 and 271-KA03PT10 at Brakfontein delivered sustained strong gas flows totalling nearly 8 million cubic feet, with methane content above 98.5%. The company advanced its Project Alpha gas development by signing a binding Joint Development Agreement with FFS Refiners to co-develop a pilot LNG plant at Brakfontein, securing an initial R6.2 million funding tranche towards a R28.656 million Phase 1a program that includes drilling additional wells, upgrading existing wells, testing gas and certifying reserves, and preparing an LNG business case and production-right application. Kinetiko also broadened its capital markets reach with the commencement of trading on the North American OTCQB market under ticker KKOBF to enhance visibility and liquidity among U.S. investors, and strengthened its balance sheet via a $3.15 million share placement, leaving it at 31 December 2025 debt-free with approximately $2.353 million in available funds to accelerate Project Alpha and additional exploration to grow resources and reserves.

The most recent analyst rating on (AU:KKO) stock is a Hold with a A$0.07 price target. To see the full list of analyst forecasts on Kinetiko Energy Ltd. stock, see the AU:KKO Stock Forecast page.

Kinetiko Energy Launches OTCQB Trading to Tap North American Investors
Dec 23, 2025

Kinetiko Energy has secured approval to commence trading on the North American OTCQB Market under the ticker KKOBF from 23 December 2025, complementing its existing ASX listing and providing North American investors with improved visibility, US dollar trading access and enhanced liquidity in the stock. The move is timed to coincide with key development milestones at its Brakfontein pilot gas project and a broader operational program in South Africa, and is expected to broaden the company’s investor base to include sector-focused North American funds and energy majors, potentially supporting future strategic partnerships and funding pathways without adding extra reporting burdens.

Kinetiko Energy Director Increases Stake with $1M Share Acquisition
Dec 3, 2025

Kinetiko Energy Ltd. has announced a change in the director’s interest, with Mxolisi Donal Mbuyisa Mgojo acquiring 15,384,615 ordinary fully paid shares through a participation in placement valued at $1,000,000. This change reflects a strategic move to strengthen the director’s stake in the company, potentially impacting its governance and signaling confidence in its future operations.

Kinetiko Energy Issues New Shares to Support Gas Exploration
Dec 3, 2025

Kinetiko Energy Limited has issued 15,384,615 new fully paid ordinary shares to Talent 10 Holdings, a related party of a company director, at an issue price of $0.065 per share. This issuance, part of a previously announced placement, allows the new shares to be tradeable immediately under the Corporations Act exemption. This strategic move is expected to enhance Kinetiko’s financial positioning, supporting its ongoing gas exploration and development activities in South Africa.

Kinetiko Energy Ltd Announces Quotation of New Securities on ASX
Dec 3, 2025

Kinetiko Energy Ltd has announced the quotation of 15,384,615 ordinary fully paid securities on the Australian Securities Exchange (ASX), marking a significant step in its financial operations. This move is expected to enhance the company’s market presence and provide additional resources for its ongoing projects, potentially impacting stakeholders positively by increasing the company’s capital base.

Kinetiko Energy Ltd Successfully Passes All AGM Resolutions
Nov 28, 2025

Kinetiko Energy Ltd announced the successful passage of all resolutions at its Annual General Meeting held on November 28, 2025. Notably, resolutions 6 and 7 were passed as special resolutions, indicating strong shareholder support for the company’s strategic initiatives, including the renewal of proportional takeover provisions and approval of a 10% placement facility. These developments are expected to enhance Kinetiko’s operational flexibility and position in the energy market.

Kinetiko Energy Issues New Shares to Boost Liquidity and Support South African Gas Projects
Nov 24, 2025

Kinetiko Energy Limited has issued 33,122,637 new fully paid ordinary shares to sophisticated and professional investors at $0.065 per share, as part of a previously announced placement. This issuance, under section 708A(5)(e) of the Corporations Act, allows the new shares to be tradeable immediately, enhancing the company’s liquidity and potentially strengthening its financial position. This strategic move could bolster Kinetiko’s operations and support its long-term energy projects in South Africa, aligning with its goal to contribute to the country’s energy transition.

Kinetiko Energy Ltd Announces Quotation of New Securities on ASX
Nov 24, 2025

Kinetiko Energy Ltd has announced the quotation of 33,122,637 ordinary fully paid securities on the Australian Securities Exchange, effective from November 21, 2025. This move is part of a previously announced transaction, potentially enhancing the company’s market presence and providing additional capital for its operations, which could impact stakeholders positively by increasing liquidity and investment opportunities.

Kinetiko Energy Ltd Announces Proposed Securities Issue
Nov 11, 2025

Kinetiko Energy Ltd has announced a proposed issue of securities, with a total of 48,507,262 ordinary fully paid securities set to be issued. This move is part of the company’s strategy to raise capital, potentially impacting its operational capabilities and market positioning by providing additional financial resources to support its growth initiatives.

Kinetiko Energy Initiates Trading Halt Ahead of Capital Raising Announcement
Nov 10, 2025

Kinetiko Energy Ltd, listed on the Australian Securities Exchange, has requested a trading halt on its securities pending an announcement regarding a successful capital raising. This trading halt is expected to last until the announcement is made or until normal trading resumes on November 12, 2025. The halt is a strategic move by Kinetiko Energy to manage the dissemination of information and maintain market stability, indicating a significant development in its financial operations that could impact its market positioning and stakeholder interests.

Kinetiko Energy Secures Funding to Boost LNG Production
Nov 5, 2025

Kinetiko Energy Ltd has received an initial funding tranche of R6,200,000 from FFS Refiners to accelerate the development of a pilot gas plant for LNG production at Brakfontein as part of Project Alpha. This funding is part of a Joint Development Agreement aimed at co-developing the project, which includes drilling additional wells, certifying gas reserves, and applying for production rights. The initiative is expected to support a 5,000tpa LNG plant and potentially expand production capacity significantly in future phases, enhancing Kinetiko’s industry positioning and offering growth opportunities for stakeholders.

Kinetiko Energy Advances Gas Production and Strategic Partnerships
Oct 31, 2025

Kinetiko Energy Ltd has reported significant progress in its gas production testing program at the Brakfontein site, with the 271-KA03PT06 well achieving a peak gas flow rate of 1,600 Mscfd, the highest recorded for the site. The company has also renewed exploration rights for key areas and entered into a joint development agreement with FFS Refiners to co-develop a pilot LNG plant. These developments are part of Kinetiko’s strategy to accelerate its gas commercialization efforts in South Africa, supported by a strong financial position and strategic board appointments.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025