Karnalyte Resources (KRN) AI Stock Analysis

• Market Cap: C$10.12M
• Dividend Yield: N/A
• Average Volume (3M): 23.03K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.05
• 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: 44 Neutral
• Price Target: C$0.16 ▼(-40.74% Downside)

The score is held down primarily by weak financial performance (pre-revenue operations, recurring losses, and ongoing cash burn), with low leverage providing only partial offset. Technical indicators are broadly neutral with some near-term weakness, while valuation signals are limited due to negative earnings and no dividend data.

Positive Factors

Low financial leverage

Minimal debt materially lowers solvency risk for a development-stage miner. With little leverage the company has greater flexibility to pursue project financing, joint ventures, or staged capital programs without immediate default risk, supporting longer-term project optionality.

Strategic resource assets

Owning a potash project in Saskatchewan and exploring high-purity lithium brines provides exposure to two structurally supportive commodity markets (fertilizer and battery materials). This asset mix supports optionality to pursue whichever commodity offers stronger demand and financing windows.

Narrowing net losses

A reduction in annual net loss suggests management has begun stabilizing operating costs or improving efficiency, which can extend runway. If sustained, narrower losses reduce near-term financing pressure and improve the odds of advancing permitting and development milestones.

Negative Factors

Pre-revenue operations

Operating without commercial revenue leaves the company dependent on external financing to advance projects. Persistent negative gross profit and operating losses erode equity and increase the risk that future capital raises will dilute shareholders or delay development timelines.

Negative cash generation

Ongoing negative operating and free cash flow signal sustained cash burn to fund pre‑development activities. This reduces financial runway, elevates the need for dilutive financing or asset sales, and may hamper the company's ability to fund capital-intensive construction when needed.

Eroding equity and negative ROE

Declining equity and a materially negative ROE indicate cumulative value destruction to shareholders from ongoing losses. This trend limits access to favorable financing and increases the likelihood of corrective measures (dilution, asset disposals), weakening long-term investor returns.

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

Financials remain weak: TTM shows no revenue, negative gross profit, and ongoing net/EBIT losses. While leverage is low with essentially no debt, equity has declined over time and cash flow is a major pressure point with negative operating cash flow and worsening negative free cash flow, indicating continued cash burn.

Income Statement

TTM (Trailing-Twelve-Months) results show no revenue and continued losses (net loss of about $1.0M; EBIT loss about $1.3M), which indicates the business is not yet generating operating scale. Losses have narrowed versus 2024 (annual net loss about $1.7M), but profitability remains structurally weak with negative gross profit across periods.

Balance Sheet

The balance sheet is conservatively positioned with essentially no debt (debt-to-equity ~0), which lowers financial risk and provides flexibility. However, equity has trended down from 2022 to TTM (reflecting cumulative losses), and returns on equity remain negative (TTM roughly -22%), highlighting ongoing value erosion despite low leverage.

Cash Flow

Cash generation is a key pressure point: TTM (Trailing-Twelve-Months) operating cash flow is negative (about -$1.0M) and free cash flow is also negative (about -$1.8M), implying continued cash burn to sustain operations. Free cash flow burn is worse than 2024 (annual about -$1.7M), though cash burn has been volatile historically (notably an unusually small operating cash outflow in 2023 that did not persist).

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: Positive
• Last Price: 0.27
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 0.27 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.21, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 43.06 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
NTR	75 Outperform	$45.31B	18.25	7.22%	3.52%	2.67%	154.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NPK	53 Neutral	C$77.95M	-7.01	-37.27%	―	-36.30%	10.13%
KRN	44 Neutral	C$10.12M	-9.95	-21.94%	―	―	39.56%
NCP	36 Underperform	C$34.90M	-22.04	-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.