Karnalyte Resources (KRN) AI Stock Analysis

• Market Cap: C$12.26M
• Dividend Yield: N/A
• Average Volume (3M): 23.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: N/A
• EPS Growth: 39.56%
• Country: CA
• Employees: 1
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.01
• Shares Outstanding: 53,283,980
• 10 Day Avg. Volume: 38,672
• 30 Day Avg. Volume: 23,034
• PEG Ratio: -0.20
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.32
• 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: 51 Neutral
• Price Target: C$0.26 ▼(-3.33% Downside)

The score is primarily held back by weak financial performance (pre-revenue, recurring losses, and ongoing free-cash-flow burn), partially offset by favorable technical momentum with the stock trading above major moving averages. Valuation is constrained by lack of profitability and no dividend support.

Positive Factors

Strategic Developments

These strategic steps can enhance operational efficiency and strengthen management, positioning the company for future growth.

Market Demand

Sustained demand for potash driven by geopolitical factors supports long-term revenue potential for Karnalyte's core products.

Debt-Free Position

A debt-free balance sheet provides financial flexibility and reduces risk, allowing the company to focus on strategic investments.

Negative Factors

Revenue Challenges

The absence of revenue indicates operational challenges and raises concerns about the company's ability to achieve profitability.

Cash Flow Issues

Persistent negative cash flow strains financial resources, limiting the company's ability to invest in growth and sustain operations.

Declining Assets

Decreasing asset levels may impact the company's financial stability and ability to support future operational needs.

Karnalyte Resources Business Overview & Revenue Model

Company Description

Karnalyte Resources Inc. explores for and develops agricultural and industrial potash, nitrogen, and magnesium products in Canada. The company owns 100% interests in Subsurface Mineral Leases KLSA 010, KL 247A, and KL 246 totaling 367 km2 of mineral rights. It also holds interests in the Wynyard potash project located in Wynyard, Saskatchewan; and Proteos nitrogen project located in Central Saskatchewan. Karnalyte Resources Inc. was incorporated in 2007 and is headquartered in Saskatoon, Canada.

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 significant financial challenges with no revenue generation and persistent losses. The company has a strong equity position due to no debt, but declining assets and cash flow issues pose risks to financial stability. The lack of revenue and decreasing cash reserves raise concerns about the company's ability to sustain operations and invest in growth.

Income Statement

Karnalyte Resources has consistently reported zero revenue, indicating ongoing operational challenges. The company shows persistent net losses, with negative EBIT and EBITDA margins, reflecting a lack of profitability. The gross profit margin remains negative due to the absence of revenue, and the continued decline in gross profit.

Balance Sheet

The balance sheet shows a strong equity position with no debt, leading to a favorable debt-to-equity ratio of zero. However, the equity ratio is decreasing, and the total assets have been declining over the years, suggesting potential liquidity concerns. Stockholders' equity is also decreasing, indicating reduced financial stability.

Cash Flow

Negative operating cash flow and free cash flow highlight cash management issues, with free cash flow deteriorating significantly over the years. The operating cash flow to net income ratio is negative, showing inefficiency in converting net income to cash. The company struggles with financing cash flows, with no inflow from financing activities.

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	-49.00K	-55.00K	-56.00K	-51.00K	-80.00K	-92.00K
EBITDA	-891.00K	-1.60M	-1.37M	-1.68M	-1.61M	-3.34M
Net Income	-954.00K	-1.66M	-1.42M	-2.70M	-2.48M	-3.54M
Balance Sheet
Total Assets	6.29M	6.88M	8.38M	9.88M	8.39M	11.24M
Cash, Cash Equivalents and Short-Term Investments	605.00K	870.00K	2.30M	3.68M	1.80M	4.82M
Total Debt	0.00	0.00	0.00	0.00	0.00	39.00K
Total Liabilities	2.25M	2.01M	1.89M	2.01M	2.63M	3.31M
Stockholders Equity	4.04M	4.87M	6.49M	7.88M	5.76M	7.93M
Cash Flow
Free Cash Flow	-1.83M	-1.69M	-546.84K	-2.20M	-3.08M	-2.66M
Operating Cash Flow	-967.00K	-955.00K	-839.00	-1.17M	-2.56M	-1.60M
Investing Cash Flow	548.00K	-471.00K	-546.00	-754.00K	-422.00K	-1.05M
Financing Cash Flow	0.00	0.00	0.00	3.80K	-39.00K	-32.00K

Karnalyte Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KRN, the sentiment is Neutral. The current price of 0.27 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.18, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:KRN.

Karnalyte Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTR	75 Outperform	$40.08B	16.22	7.22%	3.52%	2.67%	154.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KRN	51 Neutral	C$12.26M	-12.04	-21.94%	―	―	39.56%
NPK	50 Neutral	C$69.52M	-6.25	-37.27%	―	-36.30%	10.13%
NCP	36 Underperform	C$24.29M	-17.36	-7.87%	―	―	33.49%

Karnalyte Resources Corporate Events

Karnalyte Files Updated Feasibility Study Confirming Strong Economics for Wynyard Potash Project

Karnalyte Resources has filed an NI 43-101 Technical Report on the updated feasibility study for its flagship Wynyard Project, confirming robust project fundamentals including a projected 70-year mine life, attractive after-tax economics with an NPV of $2.04 billion at an 8% discount rate and a 12.5% IRR, and planned annual output of 2.175 million tonnes of potash plus 104,000 tonnes of hydromagnesite. The filing marks a critical step toward project development, underpinning Karnalyte’s strategic positioning in the potash market by demonstrating long-term production potential and partially de-risked cash flows through an existing offtake agreement, which collectively strengthen the company’s investment case as it seeks the financing needed to advance construction.

The most recent analyst rating on (TSE:KRN) stock is a Hold with a C$0.26 price target. To see the full list of analyst forecasts on Karnalyte Resources stock, see the TSE:KRN Stock Forecast page.

Karnalyte Resources Reports Q3 2025 Results and Strategic Progress

Karnalyte Resources Inc. reported its third-quarter results for 2025, highlighting progress on its NI 43-101 compliant technical report, which is crucial for advancing mine development and corporate opportunities. The company is also reviewing its development strategy to expand magnesium chloride production alongside potash, aiming to unlock additional value. Despite financial challenges, with a net loss reported, Karnalyte remains focused on optimizing operations, seeking partnerships, and ensuring sustainable growth.