Karnalyte Resources (KRN) AI Stock Analysis

• Market Cap: C$12.79M
• Dividend Yield: N/A
• Average Volume (3M): 11.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: N/A
• EPS Growth: -16.48%
• Country: CA
• Employees: 1
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Agricultural Inputs
• EPS (TTM): -0.03
• Shares Outstanding: 53,283,980
• 10 Day Avg. Volume: 18,383
• 30 Day Avg. Volume: 11,834
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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

Karnalyte Resources struggles with significant financial challenges, including no revenue and persistent losses, impacting its overall stock score negatively. However, technical indicators suggest some positive price momentum, and corporate events indicate strategic steps toward improvement. The negative valuation metrics, due to a lack of profitability, further weigh down the score.

Karnalyte Resources Business Overview & Revenue Model

Company Description

Karnalyte Resources Inc. is a Canada-based company primarily engaged in the exploration and development of agricultural and industrial potash. The company focuses on producing high-quality potash and magnesium products, which are essential for fertilizer production and various industrial applications. Karnalyte's flagship project is the Wynyard Potash Project, located in Saskatchewan, Canada, which aims to produce sustainable and environmentally friendly potash to meet the increasing global demand for fertilizers.

How the Company Makes Money

Karnalyte Resources generates revenue through the exploration, development, and eventual production of potash and magnesium products. The company's primary revenue stream is expected to come from the sale of potash, which is used as a key ingredient in fertilizers. As the global agricultural industry grows, the demand for fertilizers increases, driving potential sales for Karnalyte. Additionally, the company may engage in strategic partnerships and off-take agreements that provide upfront capital or guaranteed sales channels, further contributing to its revenue. However, as of now, Karnalyte is in the development stage, and its earnings depend on successfully bringing its projects into production.

Karnalyte Resources Financial Statement Overview

Summary

Karnalyte Resources faces severe financial challenges with no revenue and continuous losses. While the absence of debt is a positive, the company's negative cash flows and weakening balance sheet are concerning. The lack of revenue generation is a critical issue that needs immediate attention.

Income Statement

Karnalyte Resources has reported zero revenue consistently, leading to negative profitability metrics such as gross profit, EBIT, and net income. The lack of revenue growth and high net losses indicate significant financial challenges.

Balance Sheet

The company reports no debt, which is a positive sign of low leverage. However, the declining asset base and decreasing stockholders' equity reflect a weakening financial position. The equity ratio remains high, but the lack of revenue and profitability are concerning.

Cash Flow

Karnalyte Resources faces negative operating and free cash flows, indicating poor cash generation. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. Although capital expenditures are controlled, the company struggles with liquidity.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-56.00K	-51.00K	-80.00K	-92.00K	-86.00K
	EBIT
-1.93M	-721.00K	-1.66M	-2.31M	-2.08M
	EBITDA
-1.37M	-1.68M	-1.61M	-3.34M	-3.00M
	Net Income Common Stockholders
-1.42M	-2.70M	-2.48M	-3.54M	-3.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.30M	3.68M	1.80M	4.82M	7.52M
	Total Assets
8.38M	9.88M	8.39M	11.24M	13.88M
	Total Debt
0.00	0.00	0.00	39.00K	71.00K
	Net Debt
-2.30M	-3.68M	-1.80M	-4.78M	-7.45M
	Total Liabilities
1.89M	2.01M	2.63M	3.31M	2.55M
	Stockholders Equity
6.49M	7.88M	5.76M	7.93M	11.33M
Cash Flow		Free Cash Flow
-546.84K	-2.20M	-3.08M	-2.66M	-3.05M
	Operating Cash Flow
-839.00	-1.17M	-2.56M	-1.60M	-2.23M
	Investing Cash Flow
-546.00	-754.00K	-422.00K	-1.05M	-827.00K
	Financing Cash Flow
0.00	3.80K	-39.00K	-32.00K	71.00K

Karnalyte Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KRN, the sentiment is Positive. The current price of 0.24 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.15, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 66.41 is Neutral, neither overbought nor oversold. The STOCH value of 63.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:KRN.

Karnalyte Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IFOS	76 Outperform	C$433.05M	3.58	28.95%	―	7.14%	2344.75%
NTR	67 Neutral	$38.36B	42.02	2.72%	3.83%	-9.23%	-45.29%
MGRO	57 Neutral	$56.80M	―	-124.27%	―	-91.55%	-495.60%
Sector *	49 Neutral	$1.95B	-1.27	-21.38%	3.72%	0.83%	-29.30%
KRN	43 Neutral	C$12.79M	―	-29.25%	―	―	-16.48%
ERTH	40 Underperform	$9.93M	―	-1.40%	―	-47.01%	95.62%
NPK	39 Underperform	C$24.75M	―	-33.12%	―	-42.96%	-110.04%

Karnalyte Resources Corporate Events

Karnalyte Resources Reports 2024 Progress and Strategic Developments

Karnalyte Resources Inc. announced its 2024 year-end financial results, highlighting significant progress in its Wynyard Potash Project. The company focused on cost-saving measures and strategic asset sales, while also strengthening its leadership team. Market conditions for potash improved, with strong demand expected to continue due to geopolitical factors. Karnalyte is also exploring the potential for increased magnesium chloride production, recognizing its importance in clean technologies. The completion of the NI 43-101 technical report is anticipated in 2025, which will open new corporate development opportunities.