Africa Energy (AFE) AI Stock Analysis

• Market Cap: C$64.69M
• Dividend Yield: N/A
• Average Volume (3M): 13.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.49
• Revenue Growth: N/A
• EPS Growth: 98.92%
• Country: CA
• Employees: 3
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 479,162,450
• 10 Day Avg. Volume: 26,821
• 30 Day Avg. Volume: 13,611
• PEG Ratio: 0.07
• Price to Book (P/B): 4.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -131.84
• 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: 45 Neutral
• Price Target: C$0.15 ▲(32.73% Upside)

The score is primarily weighed down by weak financial performance: no revenue, persistent losses, and ongoing cash burn alongside equity/asset contraction. Technicals provide only modest support with short-term strength but a still-weak longer-term trend, while valuation remains constrained by negative earnings and no dividend data.

Positive Factors

Monetization-focused business model

A model focused on selling or farming out equity in exploration assets lets the company capture upside from discoveries without operating producing fields. Over 2–6 months this preserves capital intensity and offers asymmetric returns if partners fund appraisal or buy stakes.

Moderate leverage

Relatively low reported debt reduces near-term financial strain and gives the company flexibility to pursue farm-outs or negotiate partner-funded programs. Moderate leverage supports resilience to commodity swings and lessens immediate liquidity risk versus highly leveraged peers.

Improving cash burn trend

Reduction in negative operating and free cash flow signals better cost control or lower exploration spend, extending runway and reducing immediate external funding needs. If sustained, this improvement enhances execution capacity for farm-outs or selective appraisal activity.

Negative Factors

No revenue and persistent losses

Absent recurring revenue and ongoing operating losses mean the company cannot self-fund activity from cash flow. Over months this structural loss profile heightens dependence on capital markets or partner funding, amplifying dilution and execution risk for exploration programs.

Sharp erosion of equity and assets

Material reductions in equity and asset bases suggest impairments or write-downs that erode shareholder value and reduce collateral for financing. This weakens balance-sheet flexibility, increases refinancing risk, and can constrain the company’s ability to participate in larger farm-ins or deals.

Structurally negative cash generation

Consistent negative operating and free cash flow creates an ongoing need for equity raises, asset sales, or partner funding. Over the medium term this dependence can cause dilution, limit strategic optionality, and make project timelines contingent on volatile capital markets or JV partner decisions.

Africa Energy Business Overview & Revenue Model

Company Description

Africa Energy Corp. operates as an oil and gas exploration and production company in South Africa and Namibia. It holds a 27.5% participating interest in the Exploration Right for Block 2B offshore that covers an area of 3,062 square kilometers located in the west coast of South Africa; 43.85% interest in the Petroleum Exploration License 37 covering an area of 17,295 square kilometers located in the northern Namibian offshore region; and 49% interest in the Exploration Right for Block 11B/12B covering an area of approximately 19,000 square kilometers located in the Outeniqua Basin off the southern coast of South Africa. The company was formerly known as Horn Petroleum Corporation and changed its name to Africa Energy Corp. in March 2015. Africa Energy Corp. was incorporated in 2010 and is headquartered in Vancouver, Canada.

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 performance is hindered by continuous losses, negative cash flows, and declining assets. Despite manageable leverage, the company's absence of revenue and liquidity issues pose significant challenges to financial stability.

Income Statement

Income Statement analysis reveals persistent losses with no revenue generation in recent years, leading to negative profit margins. The TTM (Trailing-Twelve-Months) data shows worsening performance with a significant net loss, indicating challenges in achieving profitability.

Balance Sheet

Balance Sheet analysis highlights a moderate debt-to-equity ratio, suggesting manageable leverage. However, a decreasing equity base and declining total assets over time raise concerns about financial stability. Equity ratio remains adequate but declining assets need attention.

Cash Flow

Cash Flow analysis shows negative operating and free cash flows, indicating cash outflows are exceeding inflows. This trend is concerning, as it suggests ongoing liquidity issues. Despite positive financing cash flow, reliance on external funding is not sustainable long-term.

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	-14.00K	-32.00K	-32.00K
EBITDA	-28.93M	-1.85M	-4.63M	-5.81M	-5.17M	-4.12M
Net Income	-30.01M	-100.61M	-119.78M	-35.48M	21.56M	-4.12M
Balance Sheet
Total Assets	44.66M	42.58M	138.83M	257.42M	267.24M	244.03M
Cash, Cash Equivalents and Short-Term Investments	4.06M	2.31M	1.71M	6.79M	10.85M	19.64M
Total Debt	0.00	10.36M	6.83M	5.00M	2.00K	19.00K
Total Liabilities	299.00K	10.65M	6.99M	8.39M	1.68M	1.80M
Stockholders Equity	44.36M	31.92M	131.85M	249.03M	265.56M	242.24M
Cash Flow
Free Cash Flow	-1.64M	-1.11M	-2.13M	-11.26M	-4.24M	-3.50M
Operating Cash Flow	-1.64M	-1.11M	-2.13M	-3.02M	-4.04M	-3.35M
Investing Cash Flow	-771.00K	-582.00K	-3.95M	-7.22M	-5.00M	-32.00M
Financing Cash Flow	4.27M	2.30M	1.00M	6.22M	287.00K	52.59M

Africa Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 0.11 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.13, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 85.19 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
AXL	73 Outperform	C$71.47M	7.37	12.74%	―	22.88%	2321.43%
ROK	67 Neutral	C$41.38M	-7.42	-5.42%	―	-13.32%	-811.11%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CNE	59 Neutral	C$52.20M	0.95	10.62%	―	-7.68%	79.37%
EOG	51 Neutral	C$163.92M	-46.43	-11.95%	―	―	86.19%
NSE	49 Neutral	C$65.10M	-4.68	-467.35%	―	―	-63.05%
AFE	45 Neutral	C$64.69M	-12.05	-6.81%	―	―	98.92%

Africa Energy Corporate Events

Africa Energy Corp. Pauses ESIA Amid Legal Changes, Reports Improved Financials

Africa Energy Corp. announced its third-quarter 2025 results and corporate update, highlighting a strategic pause in its Environmental and Social Impact Assessment (ESIA) for Block 11B/12B offshore South Africa due to recent legal changes. Despite challenges, the company remains optimistic about the commercial development of its significant natural gas discoveries, which could play a crucial role in South Africa’s energy transition. Financially, the company reported improved cash and working capital positions, with no debt, compared to the previous year.