Keras Resources (KRS) AI Stock Analysis

• Market Cap: £2.27M
• Dividend Yield: N/A
• Average Volume (3M): 32.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 5
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 156,873,050
• 10 Day Avg. Volume: 49,090
• 30 Day Avg. Volume: 32,253
• PEG Ratio: -0.05
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 1.74
• P/FCF Ratio: -1.27
• 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: 44 Neutral
• Price Target: 1.50p ▲(15.38% Upside)

The score is weighed down primarily by weak financial performance (small/volatile revenue, ongoing losses, and sustained negative cash flow) and increased leverage risk in 2024. Technicals also remain bearish with the price below major moving averages and negative MACD, despite oversold readings. Valuation is constrained by negative earnings and the absence of a dividend yield.

Positive Factors

Product-based revenue model (manganese ore/concentrate sales)

Keras has a tangible, product-based revenue model anchored in producing and selling manganese ore/concentrate under sales/offtake arrangements. This provides a clear commercial pathway to monetize assets and scale production revenues as operations ramp, supporting a durable revenue foundation versus purely speculative exploration income.

Reasonable equity base provides balance-sheet cushion

The company's balance sheet includes a reasonable equity base relative to assets, offering a buffer against operating losses and commodity cyclicality. That structural cushion can extend runway, support negotiations with counterparties or lenders, and reduce immediate insolvency risk while management pursues operational improvement or asset monetisation.

Lean operating structure (very low employee count)

A very small headcount indicates a lean operating model, which can lower fixed costs and reduce cash burn relative to larger miners. Over the medium term this structural lightness helps preserve cash runway, allows capital to be directed to project work or production inputs, and improves flexibility when scaling activity.

Negative Factors

Persistent negative operating and free cash flow

Consistent negative operating and free cash flow is a structural weakness: it steadily erodes liquidity and forces reliance on external funding or asset disposals. Over 2–6 months this raises refinancing and dilution risk, limits capital for production scale-up or maintenance, and constrains strategic optionality if revenue recovery stalls.

Very small, volatile and declining revenue with shrinking gross margin

Small, volatile and ultimately declining revenues combined with a sharply lower gross margin undermine predictability and the path to profitability. Structurally this weakens cash generation potential, hampers investment planning, and makes the business sensitive to commodity price and grade swings, prolonging dependence on external funding.

Increased leverage in 2024 elevates funding and financial risk

A marked rise in leverage increases interest and refinancing risk while the company remains loss-making. With negative returns on equity, higher debt reduces financial flexibility, raises mandatory cash outflows, and heightens the likelihood that management will need to raise capital or sell assets—structural constraints on long-term strategy execution.

Keras Resources Business Overview & Revenue Model

Company Description

Keras Resources Plc, a mineral resource company, engages in the exploration, evaluation, and development of mineral properties in West Africa. It holds 100% interests in the Diamond Creek phosphate project located in Salt Lake City, Utah; and 85% interests in the Nayega manganese project, which covers an area of 19,903 hectares in northern Togo. The company was formerly known as Ferrex PLC and changed its name to Keras Resources Plc in December 2015. Keras Resources Plc was incorporated in 2010 and is based in London, the United Kingdom.

How the Company Makes Money

Keras Resources Financial Statement Overview

Summary

Financial statements indicate a loss-making business with very small, volatile revenue, persistent operating/net losses, and ongoing cash burn (negative operating and free cash flow). The balance sheet has a reasonable equity base, but 2024 leverage increased meaningfully, raising funding risk if losses persist.

Income Statement

Revenue remains very small and has been volatile, with 2024 revenue down materially versus 2023 after only modest growth in earlier years. Profitability is weak: gross margin fell sharply in 2024 versus 2022–2023, and the company continues to post operating losses and net losses (negative net margin in each year shown). The main positive is that the loss profile has improved versus the worst year (2022), but the business is still far from break-even.

Balance Sheet

The balance sheet shows a reasonable equity base relative to assets, which provides some cushion despite ongoing losses. However, leverage rose meaningfully in 2024 (debt-to-equity moved up versus prior years that were near-zero/low debt), increasing financial risk if losses persist. Returns on shareholders’ equity are consistently negative, highlighting that capital is not yet generating profits.

Cash Flow

Cash generation is a key weakness: operating cash flow is negative in every year provided, indicating the core business is consuming cash. Free cash flow is also consistently negative and deteriorated substantially in 2024 versus 2023, implying higher cash burn and/or investment needs. The one improvement is that operating cash outflow narrowed in 2024 versus 2023, but overall cash sustainability remains pressured.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.26M	1.12M	916.00K	994.00K	342.00K	0.00
Gross Profit	536.00K	294.00K	530.00K	731.00K	39.00K	-76.00K
EBITDA	-262.00K	-460.00K	-157.00K	-504.00K	-1.30M	-1.16M
Net Income	-774.50K	-753.00K	-475.00K	-1.08M	-880.00K	-1.18M
Balance Sheet
Total Assets	5.73M	6.15M	4.73M	6.68M	5.91M	3.48M
Cash, Cash Equivalents and Short-Term Investments	38.00K	249.00K	185.00K	207.00K	166.00K	438.00K
Total Debt	2.14M	2.00M	0.00	126.00K	219.00K	0.00
Total Liabilities	2.67M	3.20M	1.54M	2.90M	2.63M	467.00K
Stockholders Equity	3.06M	2.95M	3.18M	3.93M	3.05M	3.15M
Cash Flow
Free Cash Flow	-1.25M	-1.54M	-567.00K	-921.00K	-1.32M	-739.00K
Operating Cash Flow	-894.00K	-261.00K	-567.00K	-921.00K	-189.00K	-738.00K
Investing Cash Flow	-2.40M	-2.11M	1.01M	-286.00K	-1.58M	-939.00K
Financing Cash Flow	1.81M	2.46M	-468.00K	1.27M	1.48M	1.93M

Keras Resources 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%
GWMO	48 Neutral	£2.92M	-0.48	-18.92%	―	―	―
RRR	46 Neutral	£2.45M	-0.37	-39.69%	―	―	22.22%
KRS	44 Neutral	£2.27M	-2.20	-19.98%	―	―	―
CHF	43 Neutral	£1.97M	-1.91	-163.85%	―	―	―
BMV	43 Neutral	£3.02M	-0.58	-15.28%	―	―	―
SRES	41 Neutral	£2.34M	-1.50	-37.00%	―	―	-100.00%