Africa Energy (AFE) AI Stock Analysis

• Market Cap: C$57.50M
• Dividend Yield: N/A
• Average Volume (3M): 13.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.50
• 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$0.12 ▲(6.36% 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

Asset-backed exploration monetization

Africa Energy’s business model focuses on holding equity in exploration/appraisal assets and monetizing via farm-outs or asset sales. This asset-backed approach can deliver material value upon successful wells or partner-funded appraisals, reducing direct capex needs and concentrating risk on discrete events.

Moderate leverage / modest debt

Reported moderate leverage and relatively modest absolute debt limit fixed financing burdens compared with highly leveraged peers. That balance-sheet posture can preserve flexibility to pursue farm-outs or structured financings and reduces near-term solvency pressure during extended exploration cycles.

Improving cash flow trend

A reduction in negative operating and free cash flow in 2024 versus 2023 signals early progress on cost control or funded activity shifts. If sustained, this trend can extend runway, lower external funding needs, and increase the chances of reaching a monetization event without excessive dilution.

Negative Factors

No recurring revenue

Absence of operating revenue reflects a pre-production exploration profile and means the firm lacks recurring cash inflows. Long-term sustainability therefore depends on intermittent monetization or partner funding, increasing volatility and the risk that financing gaps delay or prevent value realization.

Persistent negative cash generation

Consistent negative operating and free cash flow necessitate continual external funding to sustain operations. Over multi-year horizons this elevates dilution or debt risk, constrains strategic optionality, and makes the company vulnerable if capital markets tighten or partners delay commitments.

Equity erosion and negative returns

Material declines in equity and assets and persistently negative ROE indicate past capital has been eroded by write-downs or unsuccessful investments. This undermines investor confidence, limits ability to raise non-dilutive capital, and signals the company has struggled to generate positive returns from deployed capital.

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

Exploration-stage profile with no revenue, recurring negative EBIT/EBITDA, and consistent net losses (especially 2022–2024). Cash flow remains structurally negative with ongoing cash burn despite some improvement in 2024. Leverage is moderate, but equity/assets have contracted sharply and ROE is strongly negative, elevating financial risk.

Income Statement

The company reports no revenue across the period provided, consistent with a pre-production exploration profile. Profitability is weak: EBIT and EBITDA are negative every year shown, and net income is deeply negative in 2022–2024 (with a brief profit in 2021). Overall, results show persistent losses and high earnings volatility, which materially pressures the income-statement quality despite a smaller operating loss in 2024 versus 2023.

Balance Sheet

Leverage appears moderate in 2024 (debt-to-equity ~0.32), but the bigger concern is the sharp decline in equity and assets over time (equity down materially from 2021–2023 to 2024), which suggests significant value erosion and/or write-downs. While absolute debt remains relatively modest, returns on equity are strongly negative in 2022–2024, indicating the balance sheet is not currently generating shareholder value.

Cash Flow

Cash generation is weak: operating cash flow and free cash flow are negative in every year shown, indicating ongoing cash burn to sustain operations. There is some improvement in 2024 versus 2023 (less negative operating cash flow and free cash flow), but cash flow remains structurally negative and reliant on external funding over time.

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: Negative
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AFE, the sentiment is Negative. 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 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$100.05M	10.32	12.74%	―	22.88%	2321.43%
ROK	67 Neutral	C$45.73M	-8.20	-5.42%	―	-13.32%	-811.11%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
EOG	51 Neutral	C$211.21M	-59.82	-11.95%	―	―	86.19%
NSE	49 Neutral	C$64.43M	-4.63	-467.35%	―	―	-63.05%
AFE	45 Neutral	C$57.50M	-10.71	-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.