Africa Energy (AFE) AI Stock Analysis

• Market Cap: C$49.27M
• Dividend Yield: N/A
• Average Volume (3M): 42.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: N/A
• EPS Growth: 15.89%
• Country: CA
• Employees: 3
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.10
• Shares Outstanding: 1,407,812,300
• 10 Day Avg. Volume: 17,983
• 30 Day Avg. Volume: 42,002
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -21.40
• P/FCF Ratio: 0.00
• 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

Africa Energy's overall stock score is hindered by severe financial challenges, including persistent losses and liquidity issues. While technical analysis shows some momentum, the valuation remains poor with negative earnings. Recent corporate events have provided a temporary financial boost, but long-term strategies are needed to ensure stability.

Africa Energy Business Overview & Revenue Model

Company Description

Africa Energy Corp (AFE) is an oil and gas company focused on the exploration and development of energy resources on the African continent. The company is primarily engaged in the acquisition and development of upstream oil and gas assets, targeting high-impact exploration opportunities. Africa Energy operates primarily in proven hydrocarbon basins, with a strategic focus on leveraging partnerships to enhance its exploration and development capabilities.

How the Company Makes Money

Africa Energy makes money through its exploration and development activities in the oil and gas sector. The company generates revenue primarily by participating in exploration projects that lead to the discovery of commercially viable hydrocarbon reserves. Once these reserves are developed, Africa Energy can earn income through production sales, either through direct sales of crude oil and natural gas or by entering into production sharing agreements with host governments. Key revenue streams include the sale of equity stakes in its exploration assets, farm-out agreements, and potential future production revenues. The company's earnings are significantly influenced by its ability to successfully discover and develop oil and gas reserves, as well as its strategic partnerships with other energy companies and stakeholders in the regions where it operates.

Africa Energy Financial Statement Overview

Summary

Africa Energy's financial statements reflect significant challenges, including consistent losses and cash flow issues, compounded by a lack of revenue. While the balance sheet indicates relatively low leverage, the diminishing equity base poses a risk to long-term viability.

Income Statement

Africa Energy's income statement reveals significant financial strain, characterized by persistent negative EBIT and net income, with no revenue generation. The absence of revenue growth potential and negative profit margins highlight ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet shows a moderate level of stability with a low debt-to-equity ratio, indicating limited reliance on debt financing. However, the significant decrease in stockholders' equity from previous years raises concerns about financial sustainability.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, pointing to liquidity issues and potential difficulties in sustaining operations without external financing. The company needs to improve cash management to enhance financial resilience.

Breakdown
TTM	Dec 2022	Dec 2021	Dec 2020	Dec 2019	Dec 2018
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-1.00K	-14.00K	-32.00K	-32.00K	-16.00K	-20.00K
	EBIT
-1.93M	-6.05M	-32.55M	-4.39M	-4.68M	2.97M
	EBITDA
-29.44M	-6.04M	-32.52M	-4.36M	-4.66M	2.99M
	Net Income Common Stockholders
-215.12M	-35.48M	48.65M	-4.12M	-4.64M	-29.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.01M	6.79M	10.85M	19.64M	2.41M	3.01M
	Total Assets
44.30M	257.42M	267.24M	244.03M	41.91M	44.30M
	Total Debt
0.00	5.00M	2.00K	19.00K	51.00K	0.00
	Net Debt
-3.01M	-1.79M	-10.85M	-19.62M	-2.36M	-3.01M
	Total Liabilities
78.00K	8.39M	1.68M	1.80M	464.00K	78.00K
	Stockholders Equity
44.22M	249.03M	265.56M	242.24M	41.44M	44.22M
Cash Flow		Free Cash Flow
-967.00K	-11.26M	-4.24M	-3.50M	-2.96M	-4.43M
	Operating Cash Flow
-967.00K	-3.02M	-4.04M	-3.35M	-2.75M	-4.29M
	Investing Cash Flow
-352.00K	-7.22M	-5.00M	-32.00M	2.04M	-39.89M
	Financing Cash Flow
2.67M	6.22M	287.00K	52.59M	83.00K	44.09M

Africa Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AFE, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AFE.

Africa Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEI	74 Outperform	C$346.37M	14.00	10.02%	―	17.48%	-4.66%
Sector *	55 Neutral	$7.05B	3.40	-6.09%	6.09%	-0.43%	-51.04%
AOI	40 Underperform	$1.25B	―	-38.67%	4.79%	―	-438.52%
OYL	38 Underperform	C$28.78M	―	-4.12%	―	―	18.11%
EOG	34 Underperform	C$44.13M	―	-58.84%	―	―	-549.19%
AFE	31 Underperform	C$49.27M	―	-124.77%	―	―	15.89%

Africa Energy Corporate Events

Africa Energy Completes Private Placement and Debt Settlement

Africa Energy Corp. has successfully closed a non-brokered private placement and shares for debt transaction, raising significant funds to settle existing debts and support its operations. The transaction has resulted in Deepkloof Limited becoming a control person of the company, and a share consolidation is planned to align with TSX Venture Exchange policies, impacting the company’s share structure and market positioning.

Africa Energy Faces Financial Setbacks but Sees Potential in South African Gas Discoveries

Africa Energy Corp. reported a challenging financial year ending December 31, 2024, primarily due to a US$97.4 million non-cash loss from the revaluation of its investment in Block 11B/12B, following the withdrawal of key joint venture partners. Despite these setbacks, Africa Energy is restructuring its investment in Main Street 1549 to increase its direct interest in Block 11B/12B to 75%, subject to regulatory approval. The company remains optimistic about the commercial potential of the Brulpadda and Luiperd discoveries, which are among South Africa’s largest natural gas finds. The recent changes in joint venture dynamics and regulatory developments, including the Upstream Petroleum Resources Development Act, are expected to influence the company’s future operations and strategic positioning.

Africa Energy Corp. Updates Financial Strategy with Debt Conversion and Share Sale

Africa Energy Corp. has announced updates to its financial restructuring efforts, including a shares for debt transaction and a non-brokered private placement to settle approximately US$5.4 million of existing debt and raise an additional US$8.3 million. The initiatives involve issuing shares to debtholders like Deepkloof Limited and the Lorito Group and are aimed at addressing the company’s debt while supporting its strategic interests, such as the development of Block 11B/12B offshore South Africa. These actions are expected to result in Deepkloof becoming a significant control person in the company, necessitating shareholder approval as per TSXV policies.