Africa Energy (AFE) AI Stock Analysis

• Market Cap: C$57.50M
• Dividend Yield: N/A
• Average Volume (3M): 5.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: N/A
• EPS Growth: 15.89%
• Country: CA
• Employees: 3
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 479,162,450
• 10 Day Avg. Volume: 7,673
• 30 Day Avg. Volume: 5,746
• PEG Ratio: -0.02
• Price to Book (P/B): 3.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -37.49
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -49.74K
• Enterprise Value/Ebitda: -0.17
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 35 Underperform
• Price Target: ―

Africa Energy's overall stock score is primarily impacted by severe financial challenges, including persistent losses and liquidity issues. While technical indicators show some positive momentum, and recent corporate events are a positive note, the poor valuation reflects ongoing unprofitability. Strategic changes are essential to address these financial weaknesses and improve future prospects.

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 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	-14.00K	-32.00K	-32.00K
EBITDA	-1.85M	-4.63M	-6.04M	-5.46M	-4.24M
Net Income	-100.61M	-119.78M	-35.48M	48.65M	-4.12M
Balance Sheet
Total Assets	42.58M	138.83M	257.42M	267.24M	244.03M
Cash, Cash Equivalents and Short-Term Investments	2.31M	1.71M	6.79M	10.85M	19.64M
Total Debt	10.36M	6.83M	5.00M	2.00K	19.00K
Total Liabilities	10.65M	6.99M	8.39M	1.68M	1.80M
Stockholders Equity	31.92M	131.85M	249.03M	265.56M	242.24M
Cash Flow
Free Cash Flow	-1.11M	-2.13M	-11.26M	-4.24M	-3.50M
Operating Cash Flow	-1.11M	-2.13M	-3.02M	-4.04M	-3.35M
Investing Cash Flow	-582.00K	-3.95M	-7.22M	-5.00M	-32.00M
Financing Cash Flow	2.30M	1.00M	6.22M	287.00K	52.59M

Africa Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 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 0.12 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.16, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.54 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
Sector *	52 Neutral	C$2.95B	-1.54	-3.48%	6.65%	3.17%	-49.19%
PPR	44 Neutral	C$42.05M	―	57.68%	―	-42.06%	66.59%
EOG	41 Neutral	C$53.59M	―	-58.84%	―	―	-549.19%
TAO	39 Underperform	C$22.65M	―	-16.72%	―	―	―
OYL	39 Underperform	C$59.25M	―	-4.08%	―	―	18.11%
WIL	37 Underperform	C$42.28M	―	-683.57%	―	-15.33%	-31.45%
AFE	35 Underperform	C$57.50M	―	-100.64%	―	―	15.89%

Africa Energy Corporate Events

Africa Energy Corp. Strengthens Leadership with New Appointment

Africa Energy Corp. has announced the appointment of Dr. Phindile Masangane as Head of Strategy and Business Development, who will also join the Board of Directors. Dr. Masangane’s extensive experience in the energy sector, including her previous role as CEO of The Petroleum Agency of South Africa, is expected to significantly contribute to the company’s strategic direction, particularly in advancing the development of Block 11B/12B and bringing its gas and condensate discoveries to market. Additionally, the Board has approved the grant of 10 million incentive stock options to further align interests with stakeholders.

Spark’s Take on TSE:AFE Stock

According to Spark, TipRanks’ AI Analyst, TSE:AFE is a Underperform.

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.

To see Spark’s full report on TSE:AFE stock, click here.

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.