MEC Resources Ltd (MMR) AI Stock Analysis

• Market Cap: $9.16M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: N/A
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: -0.37
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.64
• 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

• Rating: 33 Underperform
• Price Target: ―

MEC Resources Ltd's overall stock score reflects severe financial challenges, including zero revenue, persistent losses, and negative cash flows. The lack of technical and valuation metrics further compounds concerns, making it difficult to find positive aspects to highlight for potential investors. The financial stability provided by low leverage is overshadowed by declining assets and equity, posing significant risks to long-term viability.

MEC Resources Ltd Business Overview & Revenue Model

Company Description

MEC Resources Limited, through its subsidiaries, operates as an oil and gas exploration and development company in Australia. It holds 100% interests in the EP386 and RL1 permit located in the onshore Bonaparte basin in the Western Australia and Northern Territory respectively; and an 85% interest in the PEP11 petroleum exploration permit located in the offshore Sydney basin. The company was incorporated in 2005 and is headquartered in South Perth, Australia.

How the Company Makes Money

MEC Resources Ltd makes money primarily through its strategic investments in early-stage companies within the oil, gas, and mineral exploration sectors. The company generates revenue by acquiring equity in these ventures, and its earnings potential is tied to the value appreciation of these investments as the companies mature and develop their resource assets. Additionally, MEC Resources Ltd may receive dividends from its investments if the portfolio companies achieve profitability. Key partnerships with exploration firms and industry stakeholders can also contribute to the company's revenue growth, as successful resource discoveries and developments can lead to increased investment value.

MEC Resources Ltd Financial Statement Overview

Summary

MEC Resources Ltd faces significant financial challenges, marked by consistent losses, zero revenue generation, and negative cash flows. The company maintains a low leverage ratio, suggesting some stability in capital structure, but declining asset and equity values are worrying. The ongoing inability to generate operational cash flow could threaten long-term viability unless the business model is adjusted or external conditions improve.

Income Statement

The company has consistently reported zero revenue over the years, indicative of challenges in generating sales. Persistent losses as evidenced by negative net income and EBIT margins further highlight operational inefficiencies. The lack of revenue growth and poor profitability metrics are concerning for future financial stability.

Balance Sheet

The debt-to-equity ratio has remained relatively low, suggesting a conservative approach to leveraging. However, declining total assets and stockholders' equity over the years indicate potential asset management issues. The equity ratio remains strong, highlighting a solid capital structure despite shrinking asset base.

Cash Flow

The company has struggled with negative operating cash flow and free cash flow, which raises concerns about liquidity and the ability to finance operations without external funding. The absence of positive free cash flow growth and reliance on financing activities for cash inflow are significant areas of concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	-1.54K	-446.00	0.00
EBITDA	-143.01K	-523.42K	-229.93K	-362.74K	-712.00K	-995.81K
Net Income	593.00K	207.49K	-492.53K	-480.44K	-1.24M	-1.03M
Balance Sheet
Total Assets	11.71M	11.71M	8.23M	18.85M	20.59M	9.00M
Cash, Cash Equivalents and Short-Term Investments	2.04M	2.04M	221.36K	1.61M	2.42M	130.52K
Total Debt	0.00	0.00	498.84K	7.24M	8.30M	872.74K
Total Liabilities	554.38K	554.38K	1.14M	8.46M	9.79M	1.72M
Stockholders Equity	11.16M	11.16M	7.08M	10.39M	10.80M	7.28M
Cash Flow
Free Cash Flow	-507.00K	-794.54K	-159.45K	1.98M	-3.55M	-350.58K
Operating Cash Flow	-507.00K	-794.54K	-159.45K	-166.91K	-219.27K	-350.58K
Investing Cash Flow	-750.00K	-750.00K	0.00	1.90K	-3.33M	42.76K
Financing Cash Flow	296.84K	3.36M	157.30K	377.15K	5.12M	0.00

MEC Resources Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GAS	48 Neutral	AU$10.61M	―	-7.92%	―	―	16.52%
QEM	39 Underperform	AU$4.96M	―	-147.07%	―	―	-36.92%
GGE	38 Underperform	AU$8.46M	―	-4.05%	―	12.37%	66.67%
TEG	34 Underperform	$6.57M	―	―	―	―	―
MMR	33 Underperform	$9.16M	―	2.27%	―	―	―

MEC Resources Ltd Corporate Events

MEC Resources Ltd Finalizes Debt Conversion and Explores New Energy Opportunities

MEC Resources Ltd has finalized a settlement agreement with Advent Energy Pty Ltd and Asset Energy Pty Ltd, converting $835,498 of debt into equity, thereby improving its balance sheet. The company continues to explore new investment opportunities within its Pooled Development Fund mandate, focusing on energy solutions and the transition to low-carbon emissions, while maintaining a significant interest in Advent Energy Ltd.

MEC Resources’ Investee Advent Energy Engages in Federal Court Proceedings Over PEP 11

MEC Resources Ltd announced that its investee company, Advent Energy Ltd, is involved in legal proceedings concerning the PEP 11 Joint Venture. The Federal Court of Australia has set a schedule for the judicial review of a decision by the Commonwealth-New South Wales Offshore Petroleum Joint Authority, which refused applications made by the joint venture. This legal action may impact the operations and future prospects of the PEP 11 Joint Venture, potentially affecting stakeholders such as Bounty Oil and Gas Limited and Asset Energy Pty Ltd.

MEC Resources Reports Revenue Surge Amid Rising Losses

MEC Resources Ltd, an investment company, reported a significant increase in revenue by 939% to $27.59 million for the half-year ended December 31, 2024. Despite this revenue growth, the company experienced a 158% increase in net loss, amounting to $385.5 thousand, indicating financial challenges that may impact stakeholders and its market position.

MEC Resources’ Investee Advent Energy Seeks Judicial Review on PEP-11 Permit Decision

MEC Resources Ltd announced that its investee company, Advent Energy Ltd, is seeking a judicial review of a Federal Government decision regarding the PEP-11 Permit. The decision in question involves the refusal to extend and modify conditions of the PEP-11 Permit, which could impact Advent’s offshore exploration activities. Advent, through its subsidiary Asset Energy Pty Ltd, has applied to the Federal Court to overturn the decision, aiming to have the applications reconsidered by the Joint Authority. This legal move highlights the ongoing challenges in the regulatory landscape for offshore petroleum exploration and may influence the company’s future operations and relationships with stakeholders.