Alpha Exploration Ltd. (ALEX) AI Stock Analysis

• Market Cap: C$23.48M
• Dividend Yield: N/A
• Average Volume (3M): 16.50K
• Price to Earnings (P/E): 49.0
• Beta (1Y): 0.81
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Other Precious Metals
• EPS (TTM): >-0.01
• Shares Outstanding: 46,963,160
• 10 Day Avg. Volume: 13,903
• 30 Day Avg. Volume: 16,497
• PEG Ratio: 1.78
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.75
• 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: 49 Neutral
• Price Target: C$0.55 ▲(11.63% Upside)

The score is held back primarily by weak fundamentals (no revenue, ongoing cash burn, and earnings quality concerns) and bearish technicals (below key moving averages with negative MACD). A strong, low-debt balance sheet and positive exploration/leadership corporate updates provide support but do not yet offset the operating and cash flow risks.

Positive Factors

Low leverage / strong balance sheet

A virtually debt-free balance sheet materially lowers financial risk for an exploration company, preserving optionality to fund drilling or acquisitions. This structural strength supports multi-quarter project development and reduces default or refinancing pressure during cash burn periods.

Positive exploration results and leadership changes

Meaningful drilling success combined with new senior leadership represents a structural catalysts set: resource de‑risking can unlock project value while experienced management improves capital allocation and execution, boosting the likelihood of sustainable progress over multiple quarters.

Improved returns on equity (TTM)

A shift to positive ROE indicates improving accounting performance and capital efficiency vs. prior periods. While not yet revenue-backed, this trend can enhance access to capital and investor confidence, providing a more durable foundation for funding continued exploration activity.

Negative Factors

No revenue / exploration-stage model

Lack of operating revenue is a core structural risk: the business remains entirely exploration-driven with no cash-producing operations. Over 2–6 months this implies continued project risk, limited self-funding ability, and persistent reliance on external financing to advance assets.

Negative operating and free cash flow

Sustained negative operating and free cash flow demonstrates ongoing cash burn that will require external financing to continue exploration. This structural cash deficit can force dilution, delay project timelines, and constrain strategic options absent meaningful capital raises.

Earnings quality concerns (non-operating gains)

A mismatch where reported net income improves while operating cash flow remains negative signals earnings are driven by non‑operating items. This undermines the durability of reported profits and complicates forecasting, making credit and capital providers more cautious over time.

Alpha Exploration Ltd. Business Overview & Revenue Model

Company Description

Alpha Exploration Limited engages in the acquisition, exploration, and development of mineral resource properties. It explores for gold and base metals. The company's flagship project is the Kerkasha property consisting of 21 contiguous exploration licenses located in Eritrea. Alpha Exploration Limited was incorporated in 2011 and is headquartered in Geneva, Switzerland.

How the Company Makes Money

Alpha Exploration Ltd. makes money through the discovery and development of mineral resources, which are then either sold or developed into mining operations. The company's primary revenue streams include the sale of mineral properties or stakes in such properties to larger mining companies, as well as potentially earning royalties or minority interests from these projects. ALEX also engages in strategic partnerships and joint ventures to co-develop mining sites, which can provide additional revenue through shared exploration costs and profit sharing. The company's ability to generate revenue is significantly influenced by the global demand for precious metals, commodity prices, and successful exploration results.

Alpha Exploration Ltd. Financial Statement Overview

Summary

Exploration-stage profile with no revenue and persistent operating losses, plus negative operating and free cash flow indicating ongoing funding needs. Offsetting this, the balance sheet is strong with effectively no debt and growing equity, providing financial flexibility despite weak earnings quality (positive TTM net income alongside negative operating cash flow).

Income Statement

The company reports no revenue across the historical periods provided, consistent with an early-stage exploration profile. Profitability is weak at the operating line with persistent operating losses (EBIT negative in every period, including TTM (Trailing-Twelve-Months)). A key positive is that TTM (Trailing-Twelve-Months) net income turned positive versus losses in prior annual periods, but this improvement is not supported by revenue and appears non-operating in nature, making earnings quality less durable.

Balance Sheet

The balance sheet is a clear strength: total debt is effectively zero in recent periods and debt-to-equity is near zero, limiting financial risk. Equity has grown materially from 2020 to TTM (Trailing-Twelve-Months), and total assets have increased as well, indicating ongoing funding support. Returns on equity were negative in prior years but improved to positive in TTM (Trailing-Twelve-Months), though the lack of operating profitability and revenue means returns could remain volatile.

Cash Flow

Cash generation remains pressured, with negative operating cash flow and negative free cash flow in TTM (Trailing-Twelve-Months) and most annual periods, reflecting ongoing cash burn. While the cash burn rate improved versus 2024 (operating and free cash flow losses narrowed), free cash flow is still deeply negative, implying continued dependence on external financing. The relationship between cash flow and reported earnings is weak (positive net income alongside negative operating cash flow in TTM (Trailing-Twelve-Months)), which raises earnings quality concerns.

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	0.00	0.00	0.00
EBITDA	175.85K	0.00	0.00	-689.00K	-918.00K	-1.80M
Net Income	659.20K	-391.00K	-759.00K	-388.00K	-776.00K	-1.87M
Balance Sheet
Total Assets	18.36M	16.70M	15.91M	9.99M	8.56M	6.36M
Cash, Cash Equivalents and Short-Term Investments	1.70M	1.13M	3.23M	100.46K	894.81K	1.89M
Total Debt	0.00	0.00	0.00	80.27K	0.00	0.00
Total Liabilities	395.82K	720.93K	1.15M	780.02K	1.26M	1.36M
Stockholders Equity	17.97M	15.98M	14.77M	9.21M	7.30M	4.99M
Cash Flow
Free Cash Flow	-2.32M	-4.00M	-3.11M	-3.13M	-3.64M	-1.64M
Operating Cash Flow	-696.25K	-1.06M	-461.02K	-1.06M	-948.01K	88.53K
Investing Cash Flow	-1.62M	-2.94M	-2.65M	-2.07M	-2.69M	-1.73M
Financing Cash Flow	2.12M	1.90M	6.24M	2.33M	2.64M	3.36M

Alpha Exploration Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.49
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALEX, the sentiment is Negative. The current price of 0.49 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.50, and below the 200-day MA of 0.60, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 22.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ALEX.

Alpha Exploration Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SAE	53 Neutral	C$25.58M	1.17	289.73%	―	―	―
AIR	53 Neutral	C$21.30M	-15.18	-4.21%	―	―	66.86%
ALEX	49 Neutral	C$23.48M	49.02	4.00%	―	―	―
DIAM	47 Neutral	C$30.92M	-4.60	-79.06%	―	―	2.25%
ARU	46 Neutral	C$25.13M	-1.42	―	―	―	-6.12%

Alpha Exploration Ltd. Corporate Events

Alpha Exploration Strengthens Leadership with CEO’s Board Appointment

Alpha Exploration Ltd. has appointed its CEO, John Wilton, to the Board of Directors, enhancing its leadership team with his extensive experience in gold and copper exploration in Africa. This strategic move is expected to add significant shareholder value and strengthen the company’s position in advancing its exploration projects.

Alpha Exploration Unveils Promising Drilling Results at Aburna Gold Project

Alpha Exploration Ltd. has announced promising drilling results from its 2025 exploration program at the Aburna Gold Project in Eritrea. The results highlight significant gold mineralization, particularly in the Hill 52 and Central areas, with substantial portions of the project area remaining unexplored. These findings could enhance Alpha’s position in the mining industry and offer potential growth opportunities for stakeholders.