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Karnalyte Res J (TSE:KRN)
TSX:KRN
Canadian Market
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Karnalyte Resources (KRN) AI Stock Analysis

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Karnalyte Resources

(TSX:KRN)

Rating:43Neutral
Price Target:
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 (KRN) vs. iShares MSCI Canada ETF (EWC)

Karnalyte Resources Business Overview & Revenue Model

Company DescriptionKarnalyte 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 MoneyKarnalyte 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
20
Very Negative
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
30
Negative
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
25
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.00
Gross Profit-55.00K-56.00K-51.00K-80.00K-92.00K
EBITDA-1.60M-1.37M-1.68M-1.61M-3.34M
Net Income-1.66M-1.42M-2.70M-2.48M-3.54M
Balance Sheet
Total Assets6.88M8.38M9.88M8.39M11.24M
Cash, Cash Equivalents and Short-Term Investments870.00K2.30M3.68M1.80M4.82M
Total Debt0.000.000.000.0039.00K
Total Liabilities2.01M1.89M2.01M2.63M3.31M
Stockholders Equity4.87M6.49M7.88M5.76M7.93M
Cash Flow
Free Cash Flow-1.69M-546.84K-2.20M-3.08M-2.66M
Operating Cash Flow-955.00K-839.00-1.17M-2.56M-1.60M
Investing Cash Flow-471.00K-546.00-754.00K-422.00K-1.05M
Financing Cash Flow0.000.003.80K-39.00K-32.00K

Karnalyte Resources Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.14
Price Trends
50DMA
0.15
Negative
100DMA
0.15
Negative
200DMA
0.14
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
48.31
Neutral
STOCH
22.22
Neutral
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 0.14 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.15, and above the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.31 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:KRN.

Karnalyte Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSNPK
48
Neutral
C$33.18M-32.62%-39.06%-9.07%
44
Neutral
C$967.00M-6.65-13.73%2.47%17.55%-32.57%
TSKRN
43
Neutral
C$7.09M-35.90%-16.48%
NTNTR
$28.40B54.682.15%3.73%
$414.71M4.1530.22%
$8.26M-32.32%
$31.76M-201.16%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:KRN
Karnalyte Resources
0.14
0.00
0.00%
TSE:NPK
Verde Agritech
0.59
-0.29
-32.95%
NTR
Nutrien
58.32
9.96
20.60%
ITFS
Itafos
2.16
1.19
122.68%
VVIVF
EarthRenew
0.06
0.03
100.00%
MGROF
MustGrow Biologics
0.62
0.10
19.23%

Karnalyte Resources Corporate Events

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Karnalyte Resources Reports 2024 Progress and Strategic Developments
Positive
Mar 22, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 01, 2025