Africa Energy (AFE) AI Stock Analysis

• Market Cap: C$56.31M
• Dividend Yield: N/A
• Average Volume (3M): 40.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: N/A
• EPS Growth: -967.69%
• Country: CA
• Employees: 4
• Sector: Energy
• Sector Strength: 86
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.21
• Shares Outstanding: 1,407,812,300
• 10 Day Avg. Volume: 96,888
• 30 Day Avg. Volume: 40,573
• 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 reflects severe financial difficulties, including persistent losses and liquidity issues, which are compounded by a negative P/E ratio. Despite some positive short-term technical momentum, the stock's overbought condition poses a risk of correction. The lack of revenue generation and diminishing equity base remain major concerns for long-term viability.

Africa Energy Business Overview & Revenue Model

Company Description

Africa Energy (AFE) is a publicly-traded oil and gas exploration and production company focused on the African continent. The company primarily engages in the identification, acquisition, and development of oil and gas assets. Africa Energy operates in the upstream sector, concentrating on exploration activities to discover new hydrocarbon reserves and enhance its asset portfolio.

How the Company Makes Money

Africa Energy makes money through the successful exploration and development of oil and gas reserves. The company's revenue model primarily involves identifying promising oil and gas properties, conducting exploratory drilling, and developing discovered reserves into commercially viable production assets. Once these assets are operational, Africa Energy generates revenue through the sale of crude oil and natural gas. The company's earnings are influenced by factors such as oil and gas market prices, production volumes, and operational efficiency. Additionally, Africa Energy may engage in strategic partnerships or joint ventures with other energy companies to share risks and costs associated with exploration and development activities, further contributing to its revenue streams.

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: Negative
• 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 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative 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	78 Outperform	C$417.70M	16.88	10.02%	―	17.48%	-4.66%
Sector *	58 Neutral	$9.13B	5.45	-5.93%	7.45%	-0.05%	-64.91%
AOI	53 Neutral	$1.39B	―	-38.67%	3.44%	―	-438.52%
AFE	38 Underperform	C$56.31M	―	-155.16%	―	―	-967.69%
OYL	38 Underperform	C$42.32M	―	-4.12%	―	―	18.11%
EOG	34 Underperform	£50.44M	―	-58.84%	―	―	-549.19%

Africa Energy Corporate Events

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.

Africa Energy Restructures Investment with Arostyle

Africa Energy Corp. has announced a non-binding agreement with Arostyle Investments to restructure their joint investment in Main Street 1549, which has a 10% interest in Block 11B/12B offshore South Africa. This restructuring will potentially give Africa Energy a 75% direct interest in the block, while Arostyle will hold 25%, pending regulatory approvals.

Africa Energy Takes Charge of South African Block

Africa Energy Corp has taken over as the operator of Block 11B/12B offshore South Africa through its investment in Main Street 1549 Pty Ltd. The company is working on obtaining key data and completing the Environmental and Social Impact Report, expecting to submit it in early 2025. With regulatory approvals, Main Street aims to hold 100% interest in the block following the withdrawal of joint venture partners.

Africa Energy Faces Financial Challenges Amid Partner Exits

Africa Energy Corp. reported a significant financial hit in the third quarter of 2024 due to a US$97.4 million non-cash loss from revaluing its investment in Block 11B/12B. As major partners like TotalEnergies and QatarEnergy withdraw from the joint venture, the company faces changes in its South African operations. Meanwhile, South Africa is forming a new national petroleum company to enhance local refining capacity.