K2 Gold (KTO) AI Stock Analysis

• Market Cap: C$143.10M
• Dividend Yield: N/A
• Average Volume (3M): 340.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: N/A
• EPS Growth: -62.50%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 190,803,590
• 10 Day Avg. Volume: 249,604
• 30 Day Avg. Volume: 340,560
• PEG Ratio: 0.45
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.55
• 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: 59 Neutral
• Price Target: C$0.73 ▼(-10.73% Downside)

The score is driven by strong technical momentum and favorable corporate de-risking/permitting progress, but capped by weak financial performance (no revenue, persistent losses and cash burn) and limited valuation support due to a negative P/E and no dividend.

Positive Factors

Conservative Balance Sheet

Essentially zero debt and a materially larger equity base provide durable financial flexibility for multi-stage exploration. This reduces bankruptcy and interest-rate risk, allows the company to fund permitting/drilling or negotiate earn-ins, and supports strategic optionality over the next 2–6 months.

Permitting and Asset Control

Owning key projects outright plus achieving a Final EIS at Mojave materially lowers regulatory and partner-risk. These structural de‑risking steps enable funded drill programs, JV/option negotiations, or property disposition discussions, improving odds of value realization over the medium term.

Flexible Monetization Model

As a pure explorer, the company has multiple lasting paths to extract value—sales, earn‑ins, JVs, or royalties—without needing to finance a mine. That structural model lets K2 pursue discoveries while transferring capital-intensive development risk to partners, preserving optionality.

Negative Factors

No Revenue / Persistent Losses

Lack of operating revenue and recurring losses are fundamental constraints: until a discovery is monetized or a partner steps in, the company cannot self-sustain exploration. Persistent operating deficits increase reliance on capital markets and raise the risk that progress stalls if financing becomes less available.

Negative Operating Cash Flow

Ongoing negative operating and free cash flow means the business is funding exploration via external capital. Over 2–6 months this creates dilution or forces option/JV deals to keep programs running, limiting management's control over project timelines and potentially slowing sustained advancement.

Negative Return on Equity

A negative ROE indicates the company is eroding shareholder equity rather than creating value. If losses persist, book value and investor confidence may decline, making it harder to attract favorable financing or partners and increasing the likelihood of dilutive raises or less-advantageous deals.

K2 Gold Business Overview & Revenue Model

Company Description

K2 Gold Corporation, a junior mineral exploration company, acquires, explores for, and evaluates gold exploration projects in Canada and the United States. The company's flagship property is the Mojave Gold project that covers an area of approximately 5,780 hectares located in California. It also holds interest in The Wels property comprising 350 contiguous quartz claims covering an area of 7200 hectares located in the southwestern Yukon. In addition, it holds an option agreement to acquire 100% interest in the Cerro Gordo Gold Project, which consists of 59 lode claims and 5 patented claims covering approximately 360 hectares; and Si2 Gold Project that consists of 65 bureau of land management lode claims covering 543 hectares. The company was formerly known as West Melville Metals Inc. and changed its name to K2 Gold Corporation in November 2016. K2 Gold Corporation was incorporated in 2011 and is headquartered in Vancouver, Canada.

How the Company Makes Money

K2 Gold makes money through its exploration activities, which aim to discover economically viable gold deposits. The company's primary revenue streams include the sale of gold resources or assets, joint ventures, and partnerships with other mining companies. K2 Gold may also earn income through option agreements, where they allow other companies the right to explore or develop their properties in exchange for payments, shares, or royalties. These partnerships and agreements are crucial for financing exploration activities and advancing projects without incurring excessive capital costs.

K2 Gold Financial Statement Overview

Summary

Mixed early-stage profile: no revenue and ongoing losses/cash burn (weak income statement and cash flow), partially offset by a conservatively levered balance sheet with essentially no debt and a stronger equity base.

Income Statement

TTM (Trailing-Twelve-Months) results show no revenue and continued operating losses (EBIT about -$1.75M; net loss about -$1.72M). Losses have persisted across the annual periods shown, with 2024 improving versus 2023 but deterioration again in TTM. With no revenue base, margins are not meaningful and the path to profitability remains unclear near-term.

Balance Sheet

The balance sheet is conservatively levered with essentially no debt (debt-to-equity ~0), which reduces financial risk and provides flexibility. Equity and assets increased materially in the latest period (equity ~ $31.0M TTM vs ~$18.3M in 2024), suggesting funding support. The key weakness is ongoing losses driving negative returns on equity (TTM return on equity roughly -7.5%), which can pressure book value over time if losses persist.

Cash Flow

Cash generation remains negative: TTM (Trailing-Twelve-Months) operating cash flow is about -$1.21M and free cash flow is also about -$1.21M, consistent with an exploration-stage profile. Free cash flow improved versus 2024 (positive growth rate in the dataset), but cash burn is still ongoing and funding-dependent. Cash flow tracks reported losses closely (free cash flow to net income ~1x), indicating limited non-cash offsets and continued cash usage to sustain operations.

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	-13.52K	-5.01K	0.00	0.00
EBITDA	-1.73M	-800.90K	0.00	-1.02M	-1.61M	-1.80M
Net Income	-1.72M	-800.90K	-1.08M	-1.24M	-1.82M	-1.80M
Balance Sheet
Total Assets	31.78M	18.46M	16.77M	13.03M	14.12M	15.42M
Cash, Cash Equivalents and Short-Term Investments	9.72M	132.79K	195.16K	313.22K	2.85M	7.40M
Total Debt	0.00	0.00	40.00K	40.00K	40.00K	40.00K
Total Liabilities	831.95K	110.44K	297.82K	216.53K	378.35K	357.71K
Stockholders Equity	30.95M	18.35M	16.47M	12.81M	13.74M	15.07M
Cash Flow
Free Cash Flow	-1.21M	-883.52K	-1.06M	-2.58M	-4.55M	-4.91M
Operating Cash Flow	-1.21M	-883.52K	-1.06M	-951.54K	-1.26M	-1.25M
Investing Cash Flow	-3.43M	-1.75M	-3.80M	-1.59M	-3.30M	-3.73M
Financing Cash Flow	14.19M	2.57M	4.75M	0.00	0.00	9.50M

K2 Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.82
• 50DMA: Positive
• 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:KTO, the sentiment is Positive. The current price of 0.82 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.73, and above the 200-day MA of 0.45, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:KTO.

K2 Gold Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGN	69 Neutral	C$197.67M	43.13	9.02%	―	39.37%	―
GG	67 Neutral	C$258.47M	25.49	14.01%	―	145.27%	―
XTG	64 Neutral	C$158.61M	36.81	23.36%	―	―	379.90%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KTO	59 Neutral	C$143.10M	-64.10	-7.04%	―	―	-62.50%
WVM	51 Neutral	C$118.60M	-45.24	-6.60%	―	―	-35.33%

K2 Gold Corporate Events

K2 Gold Seeks Up to C$15 Million to Advance Mojave and Si2 Projects

K2 Gold Corporation has launched a non-brokered private placement of up to 21.43 million common shares at C$0.70 per share to raise as much as C$15 million, using a listed issuer financing exemption in most Canadian jurisdictions outside Quebec. The company plans to direct the net proceeds toward exploration work at its Mojave and Si2 gold projects and for general corporate purposes, a move that could accelerate drilling and de-risk its U.S. exploration portfolio, subject to customary regulatory and stock exchange approvals.

The most recent analyst rating on (TSE:KTO) stock is a Hold with a C$0.75 price target. To see the full list of analyst forecasts on K2 Gold stock, see the TSE:KTO Stock Forecast page.

K2 Gold Begins Deep-Target Drilling at Si2 Project in Nevada

K2 Gold has commenced drilling at its 100%-owned Si2 Gold Project in Nevada’s Walker Lane Trend, marking the first test of deeper, newly defined structural targets in what the company now interprets as an intact low-sulphidation epithermal gold system. The program follows extensive technical work that has upgraded the geological model, shifting the focus from previously shallow drilling to deeper levels where stronger mineralization is expected, positioning Si2 as a second near-term discovery catalyst alongside Mojave and reinforcing K2’s strategy to build value through high-conviction exploration in prolific U.S. gold districts.

The most recent analyst rating on (TSE:KTO) stock is a Hold with a C$0.77 price target. To see the full list of analyst forecasts on K2 Gold stock, see the TSE:KTO Stock Forecast page.

K2 Gold to Launch Deeper Drilling at Nevada’s Si2 Project Targeting High-Grade Epithermal Gold

K2 Gold Corporation plans to begin a fully funded drill program of up to 2,000 metres at its Si2 Project near Tonopah, Nevada, on or about January 21, 2026, following 2025 geological and geophysical studies that indicate the presence of an intact low-sulphidation epithermal gold system. Building on 2023 drilling that showed increasing gold grades with depth but stopped short of the interpreted boiling zone, the new 4–6 hole reverse circulation program will test deeper structural corridors aimed at the optimal boiling-zone horizon, with geological characteristics closely analogous to AngloGold Ashanti’s large Silicon (Arthur Gold) discovery nearby, potentially elevating Si2’s strategic significance within the Walker Lane Trend if higher-grade mineralization is confirmed at depth.

The most recent analyst rating on (TSE:KTO) stock is a Hold with a C$0.77 price target. To see the full list of analyst forecasts on K2 Gold stock, see the TSE:KTO Stock Forecast page.

K2 Gold Files NI 43-101 Technical Report for Mojave and Cerro Gordo Projects

K2 Gold Corporation has filed an independent NI 43-101 technical report for its Mojave and Cerro Gordo projects in Inyo County, California, providing an updated, regulator-compliant overview of project location, tenure, historical work, geology, and recent exploration activities, along with recommendations for future exploration programs. While the report does not yet include mineral resource or reserve estimates, its completion formalizes and consolidates the company’s technical understanding of these key assets, supporting K2 Gold’s ongoing exploration strategy and potentially strengthening its positioning and credibility with regulators, investors, and other stakeholders as it advances the Mojave project and its broader portfolio in North America.

The most recent analyst rating on (TSE:KTO) stock is a Hold with a C$0.80 price target. To see the full list of analyst forecasts on K2 Gold stock, see the TSE:KTO Stock Forecast page.

K2 Gold Sanctions $9.8 Million 2026 Exploration Budget to Advance Mojave and Si2 Projects

K2 Gold has approved a $9.8 million exploration budget for 2026 to accelerate drilling and project advancement across its portfolio, with a primary focus on the Mojave Project in California and new high-priority targets at the Si2 Project in Nevada. The funding is intended to capitalize on extensive high-grade gold and copper zones at Mojave, where multiple kilometres of mineralized corridors have been defined, while also enabling the first systematic drilling of newly interpreted boiling-zone targets at Si2 and supporting renewed work at the Wels Project in Yukon, collectively setting up multiple potential discovery catalysts and strengthening the company’s exploration-driven growth prospects.

The most recent analyst rating on (TSE:KTO) stock is a Hold with a C$0.83 price target. To see the full list of analyst forecasts on K2 Gold stock, see the TSE:KTO Stock Forecast page.

K2 Gold Caps ‘Transformational’ 2025 by De‑Risking Mojave and Expanding U.S. Project Ownership

K2 Gold reported a transformational 2025, marked by securing 100% ownership of both its flagship Mojave Project in California and the Si2 Project in Nevada, achieving a key federal permitting milestone at Mojave with the publication of the Final Environmental Impact Statement, and strengthening its financial position and shareholder base. These steps significantly de-risk Mojave, placing it among a small group of technically advanced, federally permitted U.S. exploration projects, and position the company for fully funded, high-impact drill programs in 2026 that could materially enhance its exploration profile and potential value for investors.

K2 Gold Unveils Promising New Insights for Si2 Project

K2 Gold Corporation has announced new geological studies that strengthen the potential of its Si2 Project as a significant low-sulphidation epithermal gold deposit. The studies reveal that previous drilling only reached the upper levels of a potentially larger system, suggesting that deeper drilling could access the productive boiling zone, where higher gold grades are expected. This development positions K2 Gold to potentially enhance its exploration success and industry standing by targeting deeper, high-priority zones.