Krakatoa Resources Ltd. (KTA) AI Stock Analysis

• Market Cap: AU$11.81M
• Dividend Yield: N/A
• Average Volume (3M): 9.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.04
• Revenue Growth: -100.00%
• EPS Growth: 36.11%
• Country: US
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 1,073,372,100
• 10 Day Avg. Volume: 18,091,044
• 30 Day Avg. Volume: 9,764,767
• PEG Ratio: 0.07
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 101.92
• P/FCF Ratio: -3.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: AU$0.01 ▲(20.00% Upside)

The score is driven down primarily by ongoing losses and continued cash burn (despite some improvement), which outweigh the benefit of a low-debt balance sheet. Technical indicators add a modestly negative tone (negative MACD and sub-50 RSI), while valuation is constrained by negative earnings and no dividend data.

Positive Factors

Low and improving leverage

A very low and falling debt load materially reduces financing risk and interest obligations, preserving flexibility to fund exploration or development. Over 2–6 months this structural conservatism supports runway and optionality for capital allocation without near-term solvency pressure.

Rebuilt equity base

A strengthened equity base provides a durable cushion against exploration write‑downs and reduces immediate refinancing pressure. This supports continued project investment and improves balance sheet credibility when seeking partner funding or project financing over the medium term.

Revenue rebound in 2025

An uptick in revenue suggests emerging commercial traction or project activity, indicating potential to scale operations. If sustained, this structural shift can help narrow losses and move operating cash flow toward break‑even, reducing longer‑term reliance on external capital.

Negative Factors

Persistent negative ROE and losses

Consistent negative ROE signals the company is not generating returns from invested capital, eroding shareholder value. Over months this undermines ability to attract non‑dilutive capital and suggests fundamental issues in converting exploration assets into profitable operations.

Chronic cash burn and negative free cash flow

Sustained negative operating and free cash flow forces recurrent fundraising, increasing dilution or credit reliance. Even with 2025 improvement, structural cash burn limits ability to advance projects independently and creates persistent execution and financing risk over the medium term.

Deeply negative profitability and margins

Deep and persistent negative margins indicate the business is not operating at commercial scale and is burdened by high overheads relative to revenue. Structurally, this impairs progress toward self‑sustaining operations and heightens dependence on external funding to continue exploration.

Krakatoa Resources Ltd. Business Overview & Revenue Model

Company Description

Krakatoa Resources Limited acquires and develops resource-based projects in Western Australia. It focuses on exploring gold, copper, lithium, rare earth, and other metals. The company holds interests in the Belgravia project that covers an area of 80 square kilometers located in the Lachlan Fold Belt, New South Wales; Turon project, which covers an area of 120 square kilometers located in the East Lachlan Fold Belt, New South Wales; the Rand Gold project that covers an area of 580 square kilometers located in the Central Lachlan Fold Belt, New South Wales; and the Mt Clere Rare Earth project comprising 8 tenement applications covering an area of approximately 1,800 square kilometers located in the Gascoyne Region of Western Australia. It also holds interests in the King Tamba project located in in Western Australia; and the Mac Well project covering an area of 66.9 square kilometers located in Western Australia. The company was incorporated in 2012 and is based in Perth, Australia.

How the Company Makes Money

Krakatoa Resources Ltd. generates revenue primarily through the exploration and development of mineral resources. The company makes money by identifying viable mineral deposits, which can either be developed into productive mining operations or sold to larger mining entities. Revenue streams include proceeds from the sale of mineral rights or assets, joint venture agreements with other mining companies, and potential royalties from developed projects. Additionally, the company's earnings may be influenced by market demand for minerals, commodity prices, and strategic partnerships that facilitate exploration and development activities.

Krakatoa Resources Ltd. Financial Statement Overview

Summary

Income statement and cash flow are very weak: profitability is deeply negative and free cash flow remains negative despite some improvement in 2025. The balance sheet is a relative strength with very low and improving leverage, but persistent losses (negative ROE) keep overall financial performance near the low end.

Income Statement

Revenue is small but has rebounded recently (2025 vs. 2024), following volatility over the period. Profitability remains very weak: EBIT and net income are deeply negative every year, though losses narrowed in 2025 versus 2024. Gross profit has improved versus 2023 (which showed negative gross profit), but overall margins are still heavily negative, indicating the business is not yet operating at scale or is burdened by high overheads relative to revenue.

Balance Sheet

Leverage is low and improving, with total debt falling sharply from 2023/2024 to a very small level in 2025 and a very low debt-to-equity ratio. Equity has also rebuilt meaningfully since 2023, supporting the asset base. The key weakness is persistent negative returns on equity across all years, reflecting ongoing losses that continue to erode shareholder value despite the conservative capital structure.

Cash Flow

Cash generation is a clear pressure point: operating cash flow and free cash flow are negative in every year shown, implying ongoing cash burn. There is improvement in 2025 versus 2024 (less negative operating and free cash flow), but the company still requires funding to sustain operations. Free cash flow largely mirrors net losses, which reduces flexibility until the business can move toward positive operating cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	58.70K	58.70K	39.34K	21.25K	51.27K	13.43K
Gross Profit	58.70K	58.70K	39.34K	-18.93K	46.93K	13.43K
EBITDA	-2.18M	-2.18M	-2.77M	-3.42M	-4.31M	-3.72M
Net Income	-2.52M	-2.52M	-3.21M	-3.47M	-4.32M	-3.72M
Balance Sheet
Total Assets	2.32M	2.32M	1.79M	1.39M	4.70M	2.46M
Cash, Cash Equivalents and Short-Term Investments	1.54M	1.54M	1.31M	951.70K	4.22M	2.34M
Total Debt	5.69K	5.69K	67.97K	95.58K	0.00	0.00
Total Liabilities	356.39K	356.39K	177.66K	501.48K	878.41K	261.53K
Stockholders Equity	1.96M	1.96M	1.62M	885.87K	3.83M	2.20M
Cash Flow
Free Cash Flow	-1.97M	-1.97M	-2.91M	-3.77M	-3.56M	-2.65M
Operating Cash Flow	-1.97M	-1.97M	-2.91M	-3.69M	-3.40M	-2.65M
Investing Cash Flow	-349.96K	-349.96K	0.00	-78.35K	-156.07K	0.00
Financing Cash Flow	2.55M	2.55M	3.27M	503.69K	5.44M	4.31M

Krakatoa Resources Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ADG	45 Neutral	AU$28.24M	-7.33	-25.56%	―	―	50.00%
VKA	45 Neutral	AU$23.80M	-5.22	-41.19%	―	―	14.81%
KTA	43 Neutral	AU$11.81M	-2.39	-141.03%	―	-100.00%	36.11%
CDT	43 Neutral	AU$11.62M	-1.15	-390.08%	―	―	19.94%
FAU	37 Underperform	AU$26.21M	-27.50	-32.90%	―	―	42.86%

Krakatoa Resources Ltd. Corporate Events

Krakatoa Says No Undisclosed News Behind Share Price Spike

Krakatoa Resources has told the ASX it is not aware of any undisclosed information that could explain a sharp rise in the price and trading volume of its shares and listed options on 16 January 2026. In response to a price and volume query from the exchange, the company said it is in full compliance with its continuous disclosure obligations, including Listing Rule 3.1, and confirmed that its board has approved the response, signaling to investors that the recent trading activity is not driven by any known corporate developments.

The most recent analyst rating on (AU:KTA) stock is a Sell with a A$0.01 price target. To see the full list of analyst forecasts on Krakatoa Resources Ltd. stock, see the AU:KTA Stock Forecast page.

Krakatoa Resources Extends Zopkhito Project with Promising Drilling Results

Krakatoa Resources Limited has announced successful drilling results at its Zopkhito Antimony-Gold Project in Georgia, with visible antimony mineralization intersected in both underground adit and surface diamond drilling. The company has extended the project’s option period by 12 months, allowing for further resource definition and transaction milestones. This extension, along with pending assay results, positions Zopkhito as a significant high-grade antimony-gold opportunity in Europe’s critical minerals corridor, potentially enhancing Krakatoa’s market position and shareholder value.

Krakatoa Resources Updates Director’s Securities Holdings

Krakatoa Resources Limited has announced a change in the director’s interest, specifically for Colin Locke, who has acquired 1,000,000 options exercisable at $0.02 on or before September 29, 2028. This change was made as part of attaching options to Director Placement Shares, as approved by shareholders at a recent general meeting. The update reflects the company’s ongoing adjustments in director interests, which may influence its governance and strategic direction.

Krakatoa Resources Reveals Top 20 Option Holders

Krakatoa Resources Ltd. has announced the top 20 holders of its options exercisable at $0.02, expiring on September 29, 2028. This announcement provides transparency regarding the distribution of options among various stakeholders, potentially impacting investor confidence and market perceptions of the company’s strategic direction.

Krakatoa Resources Announces Option Distribution Schedule

Krakatoa Resources Ltd. has announced a distribution schedule for its options exercisable at $0.02, set to expire on September 29, 2028. The distribution indicates that a total of 237,619,024 options are available, with the vast majority held by a small number of stakeholders, suggesting a concentrated ownership structure.

Krakatoa Resources Ltd. Announces Quotation of New Securities

Krakatoa Resources Ltd. has announced the application for the quotation of 237,619,024 new securities on the ASX, under the code KTAOD, set to expire on September 29, 2028. This move is part of previously announced transactions and could potentially enhance the company’s capital structure, offering more flexibility for future operations and growth opportunities.

Krakatoa Resources Announces Proposed Securities Issue to Boost Capital

Krakatoa Resources Ltd. announced a proposed issue of securities, planning to issue up to 237,619,024 options exercisable at $0.02 by September 2028. This move is part of the company’s strategy to raise capital, which could enhance its financial position and support ongoing and future exploration projects, potentially impacting its market standing and offering opportunities for stakeholders.

Krakatoa Resources Ltd. Announces New Options Prospectus

Krakatoa Resources Ltd. has announced a prospectus for the issuance of up to 147,619,024 New Options to participants in a Placement and 90,000,000 New Options to Joint Lead Managers. The company will not raise funds until these options are exercised, and the offers are not underwritten. This move is part of a strategic effort to enhance the company’s financial flexibility and market positioning, although it carries speculative risks for investors.

Krakatoa Resources Director Increases Shareholding

Krakatoa Resources Ltd. announced a change in the director’s interest, with Director David Palumbo acquiring an additional 2,000,000 fully paid ordinary shares, bringing his direct holdings to 4,400,000 shares. This acquisition, valued at $21,000, was part of a director placement approved by shareholders, potentially strengthening the director’s commitment and aligning interests with the company’s strategic goals.

Krakatoa Resources Issues Over 105 Million New Shares

Krakatoa Resources Limited has announced the issuance of 105,238,095 ordinary fully paid shares as of November 18, 2025. This issuance was conducted without disclosure under Part 6D.2, relying on Section 708A(5) of the Corporations Act. The company has confirmed compliance with relevant provisions of the Corporations Act and stated that there is no excluded information as of the notice date. This move is approved by the Board and may impact the company’s capital structure and investor relations.

Krakatoa Resources Ltd. Announces Quotation of New Securities

Krakatoa Resources Ltd. has announced the issuance of 105,238,095 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code KTA. This move is part of a previously announced transaction, potentially enhancing the company’s liquidity and providing additional capital for its operations, thereby strengthening its position in the mining sector.

Krakatoa Resources Advances Drilling at Zopkhito Project

Krakatoa Resources Limited has announced progress in its drilling activities at the Zopkhito Antimony-Gold Project in Georgia. The company has completed 18 diamond drill holes and 9 underground core sampling holes, with significant intersections of antimony mineralization. The drilling aims to validate historical resource estimates and support a maiden JORC-compliant Mineral Resource. The results are expected to enhance understanding of the mineral systems and contribute to the company’s strategic positioning in the antimony market.

Krakatoa Resources Secures Shareholder Approval for Key Resolutions

Krakatoa Resources Limited announced that all resolutions proposed at their General Meeting of Shareholders were passed by the required majority. This includes the ratification of prior share placements and the approval of new share and option issuances, reflecting strong shareholder support. The successful passing of these resolutions is expected to enhance Krakatoa’s financial flexibility and support its ongoing exploration and development activities, thereby potentially strengthening its position in the mining sector.

Krakatoa Resources Advances Zopkhito Project and Expands Rare Earth Prospects

Krakatoa Resources Limited has made significant progress in its Zopkhito Antimony-Gold Project in Georgia, launching a 7,000-10,000m diamond drilling campaign and an underground core sampling program. These efforts aim to convert and expand the project’s historical foreign resources into a JORC-compliant mineral resource estimate. The Zopkhito project is strategically positioned to provide rare exposure to antimony, a critical mineral largely controlled by China, thus supporting EU and US supply chain diversification. Additionally, Krakatoa has expanded its rare earth prospect area at the Mt Clere Project and secured $3.1 million through a two-tranche placement to fund its ongoing operations.