K2 Gold (KTO) AI Stock Analysis

• Market Cap: C$152.64M
• Dividend Yield: N/A
• Average Volume (3M): 340.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• 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$0.83 ▲(0.73% Upside)

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

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability, enabling K2 Gold to withstand economic fluctuations and invest in growth opportunities.

Successful Financing

The successful financing enhances K2 Gold's financial position, allowing for continued development of the Mojave project, which could improve market position and stakeholder value.

Project Development

Investment in the Mojave project supports long-term growth by potentially increasing resource base and future revenue streams, strengthening K2 Gold's market presence.

Negative Factors

No Revenue Generation

The lack of revenue generation poses a significant challenge, as it limits the company's ability to fund operations internally and achieve profitability, impacting long-term sustainability.

Consistent Losses

Ongoing losses highlight operational inefficiencies and the need for strategic changes to achieve profitability, which is crucial for long-term viability and investor confidence.

Negative Cash Flow

Negative cash flow indicates cash management issues, which can strain financial resources and limit the company's ability to invest in growth, affecting long-term operational capacity.

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

K2 Gold's financial performance is weak due to the absence of revenue generation and consistent net losses. The balance sheet is strong with low leverage, but profitability is a concern. Negative operating and free cash flows indicate cash management issues. The company needs to boost revenue streams and address operational inefficiencies.

Income Statement

K2 Gold has consistently reported zero total revenue over the assessed periods, leading to no gross profit margin. The net income has been negative, indicating persistent losses. The EBIT and EBITDA margins are both negative due to the lack of revenue. No revenue growth rate can be calculated, highlighting the company's struggle in generating income.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, as seen by the substantial stockholders' equity relative to its total assets. The debt-to-equity ratio is favorable with minimal debt, reflecting low leverage. However, the return on equity is negative, aligning with the company's ongoing losses, which is a concern for profitability and investor returns.

Cash Flow

Negative operating cash flow and free cash flow are evident, indicating potential cash management issues. The free cash flow to net income ratio is negative, consistent with operational losses. While there has been significant cash flow from financing activities, this reliance may not be sustainable long-term without revenue generation.

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 0.77, above the 50-day MA of 0.61, and above the 200-day MA of 0.41, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 65.57 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 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
GG	72 Outperform	C$199.21M	18.66	14.01%	―	145.27%	―
OGN	69 Neutral	C$237.44M	47.67	9.02%	―	39.37%	―
XTG	64 Neutral	C$142.37M	32.51	23.36%	―	―	379.90%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KTO	59 Neutral	C$152.64M	-64.10	-7.04%	―	―	-62.50%
WVM	59 Neutral	C$139.19M	-51.55	-6.60%	―	―	-35.33%

K2 Gold Corporate Events

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.