Megado Gold Ltd. (MEG) AI Stock Analysis

• Market Cap: AU$23.24M
• Dividend Yield: N/A
• Average Volume (3M): 691.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: N/A
• EPS Growth: -464.29%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 645,683,300
• 10 Day Avg. Volume: 419,585
• 30 Day Avg. Volume: 691,002
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.19
• 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: 46 Neutral
• Price Target: AU$0.03 ▲(13.33% Upside)

The score is primarily constrained by weak financial performance (no revenue, ongoing losses, negative cash flow, and declining equity), despite the benefit of no debt and some improvement in free cash flow. Technicals are supportive of an uptrend but are tempered by extremely overbought momentum, and valuation is limited by a negative P/E with no dividend support.

Positive Factors

Debt-free balance sheet

Having no debt materially reduces refinancing and interest burden risk for a pre-revenue exploration company. This structural flexibility supports funding of drilling/exploration via equity, partners or staged programs and improves survivability through commodity cycles over months.

Improved free cash flow (2024)

A marked improvement in free cash flow signals better cost control or reduced investing intensity, extending operational runway. If sustained, this structural improvement lowers near-term financing frequency and supports longer-term project evaluation and staged development plans.

Lower systematic volatility (beta)

A below‑market beta indicates lower equity sensitivity to broad market swings, reducing the likelihood of extreme financing-driven volatility. For a small explorer, this steadier risk profile can aid in negotiating joint ventures and planning multi-quarter exploration programs with less market disruption.

Negative Factors

Pre-revenue operating model

Being pre-commercial is a durable constraint: absence of operating revenue forces continual capital reliance and creates execution risk around discovery, permitting and development. Over 2–6 months this limits ability to de-risk projects and demonstrate sustainable cash generation.

Persistent and widening net losses

Material and recurring net losses erode shareholder equity and increase dilution risk from future raises. Structural unprofitability means management must prioritize financing over growth, constraining multi-quarter exploration programs and increasing the probability of downscaling if markets tighten.

Eroding equity and asset base

A shrinking equity and asset base signals that cash resources are being consumed without revenue replacement, reducing the company's financial buffer. Structurally this weakens capacity to fund larger drill programs or withstand adverse results without dilutive capital raises over the medium term.

Megado Gold Ltd. Business Overview & Revenue Model

Company Description

Megado Minerals Limited operates as a mineral exploration company in North America. It explores for rare earth elements and lithium. The company holds 100% interest in North Fork Rare Earth Project comprising 499 mining lode claims covering approximately 42 square kilometers in the Salmon-Challis National Forest in Lemhi County, Idaho. It also holds interests in the Cyclone lithium project comprising 304 claims covering 130 square kilometers located near the James Bay region in Quebec, Canada. The company was formerly known as Megado Gold Limited and changed its name to Megado Minerals Limited in July 2022. Megado Minerals Limited was incorporated in 2019 and is based in Perth, Australia.

How the Company Makes Money

Megado Gold Ltd. makes money through the exploration and development of gold mining projects. The primary revenue stream arises from the discovery and extraction of gold, which is then sold in the commodities market. The company may also engage in partnerships or joint ventures with other mining companies to share exploration costs and risks, and may earn income through the sale or optioning of its exploration properties to other interested parties. Additionally, the company might raise capital through equity financing, which it uses to fund its exploration activities, with the aim of increasing the value of its gold reserves and, subsequently, its share price.

Megado Gold Ltd. Financial Statement Overview

Summary

Financials reflect a pre-revenue profile with persistent losses and ongoing cash burn. Positives include a debt-free balance sheet and improved 2024 free cash flow versus 2023, but equity is shrinking and profitability remains structurally negative.

Income Statement

The company reports no revenue across the full period provided (2019–2024), indicating it is still pre-commercial. Losses are persistent every year, with net income worsening materially in 2022 and 2024 (2024 net loss of ~4.1M vs ~1.4M in 2023). While 2024 shows an improvement versus the unusually weak 2022 result, the business remains structurally unprofitable with no demonstrated operating scale.

Balance Sheet

The balance sheet shows no debt, which lowers financial risk and provides flexibility. However, equity has declined from ~9.0M (2023) to ~6.7M (2024), reflecting ongoing losses and dilution/burn over time; returns on equity are consistently negative and volatile (extremely negative in 2019). Asset levels have also trended down versus 2020–2021, suggesting the cash/resource base is being consumed without revenue replacement.

Cash Flow

Cash generation is weak, with operating cash flow negative every year (2024 ~-0.63M; 2023 ~-0.87M), signaling continued cash burn. A positive point is that 2024 free cash flow improved sharply versus 2023 (from ~-2.36M to ~-0.63M), indicating better cost control or reduced investing outflows. Still, free cash flow remains negative and losses are not being converted into sustainable cash performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00	0.00
EBITDA	-3.83M	-4.14M	-1.37M	-7.76M	-1.02M	-1.22M
Net Income	-3.83M	-4.14M	-1.37M	-7.76M	-1.02M	-1.22M
Balance Sheet
Total Assets	9.69M	6.81M	9.00M	4.92M	7.33M	8.98M
Cash, Cash Equivalents and Short-Term Investments	2.26M	2.12M	1.14M	853.12K	1.24M	5.02M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	89.41K	106.41K	47.37K	244.33K	164.62K	358.63K
Stockholders Equity	8.99M	6.71M	8.95M	4.67M	6.73M	8.07M
Cash Flow
Free Cash Flow	-332.49K	-630.02K	-2.36M	-2.69M	-3.77M	-1.56M
Operating Cash Flow	-332.14K	-630.02K	-874.49K	-968.31K	-1.00M	-1.10M
Investing Cash Flow	470.56K	-317.33K	-1.48M	-1.68M	-2.77M	-463.96K
Financing Cash Flow	2.21M	1.92M	2.65M	2.26M	0.00	6.36M

Megado Gold Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MEG, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 97.12 is Negative, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MEG.

Megado Gold 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%
VR8	48 Neutral	AU$14.37M	-5.11	-8.74%	―	―	-25.00%
MEG	46 Neutral	AU$23.24M	-2.28	-51.02%	―	―	-464.29%
OLY	46 Neutral	AU$7.78M	-1.37	-217.79%	―	―	43.46%
AKO	45 Neutral	AU$14.74M	-5.48	-14.33%	―	―	―
CR1	44 Neutral	AU$13.67M	-3.62	-213.82%	―	―	-32.39%

Megado Gold Ltd. Corporate Events

Megado Minerals Advances Iberian Copper Project as Canadian Lithium-Gold Assets Bolster Portfolio

Megado Minerals has outlined its December 2025 quarter activities, highlighting progress at its Iberian Copper Project in northern Spain, where it controls 12 permits over 956km² in a historically productive copper belt hosting at least 12 former copper mines and more than 50 copper and silver occurrences. The company expects key Investigation Permits to be awarded in the current quarter, enabling the launch of airborne geophysics across the project area followed by a maiden drilling program aimed at defining high-priority copper and silver targets, while ongoing geological mapping continues to refine multiple potential targets and support the view that the region could host several discrete projects. In parallel, Megado continues to hold 100% of its Cyclone Lithium and Gold Project and K Lithium Project in Quebec’s James Bay District, where proximity to high-grade discoveries and significant investment by third parties underscores the strategic value of its Canadian lithium and gold portfolio for future exploration and potential partnerships.

The most recent analyst rating on (AU:MEG) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Megado Gold Ltd. stock, see the AU:MEG Stock Forecast page.