K2 Gold (KTO) AI Stock Analysis

• Market Cap: C$41.50M
• Dividend Yield: N/A
• Average Volume (3M): 161.27K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.08
• Revenue Growth: N/A
• EPS Growth: 41.80%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 150,903,490
• 10 Day Avg. Volume: 129,244
• 30 Day Avg. Volume: 161,266
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

K2 Gold's overall score is driven by its strong technical indicators and positive corporate events, offset by poor financial performance and weak valuation metrics. The company faces significant challenges with no revenue and consistent losses, but recent financing provides some optimism for future project development.

K2 Gold Business Overview & Revenue Model

Company Description

K2 Gold (KTO) is a mineral exploration company focused on the discovery and development of gold deposits. Operating primarily within the mining sector, the company engages in exploration activities across North America, with a particular emphasis on identifying and acquiring promising gold projects. K2 Gold aims to enhance shareholder value by advancing its projects from exploration through to potential production.

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 faces significant challenges with no revenue generation and consistent net losses. The balance sheet shows a strong equity position with low leverage, but the lack of profitability and negative cash flows remain key concerns.

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
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
-13.52K	0.00	0.00	0.00	0.00
	EBIT
-1.33M	-1.26M	-1.52M	-1.19M	-1.06M
	EBITDA
0.00	-1.26M	-1.52M	-1.19M	-1.06M
	Net Income Common Stockholders
-1.08M	-1.24M	-1.82M	-1.80M	-1.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
195.16K	313.22K	2.85M	7.40M	2.94M
	Total Assets
16.77M	13.03M	14.12M	15.42M	7.11M
	Total Debt
40.00K	40.00K	40.00K	40.00K	0.00
	Net Debt
-155.16K	-273.22K	-2.81M	-7.36M	-2.88M
	Total Liabilities
297.82K	216.53K	378.35K	357.71K	271.22K
	Stockholders Equity
16.47M	12.81M	13.74M	15.07M	6.84M
Cash Flow		Free Cash Flow
-1.06M	-2.58M	-4.55M	-4.91M	-1.34M
	Operating Cash Flow
-1.06M	-951.54K	-1.26M	-1.25M	-553.28K
	Investing Cash Flow
-3.80M	-1.59M	-3.30M	-3.73M	-787.50K
	Financing Cash Flow
4.75M	0.00	0.00	9.50M	3.88M

K2 Gold Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.28 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.21, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 69.83 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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
KTO	54 Neutral	C$41.50M	―	-4.60%	―	―	41.80%
Sector *	49 Neutral	$1.96B	-1.23	-21.20%	3.72%	0.95%	-28.96%
MGM	47 Neutral	C$43.20M	―	-107.89%	―	―	42.51%
JG	42 Neutral	C$36.25M	―	-15.27%	―	―	-15.56%
ANK	40 Underperform	C$33.20M	―	-127.35%	―	―	9.23%
ABI	37 Underperform	C$36.29M	―		―	―	―
ECR	32 Underperform	C$41.93M	―	-26.84%	―	―	-550.00%

K2 Gold Corporate Events

K2 Gold Closes Oversubscribed Private Placement to Fund Mojave Project

K2 Gold Corporation has successfully closed an oversubscribed non-brokered private placement, raising gross proceeds of C$3,673,000. The funds will be used for exploration and permitting at the Mojave project and for general working capital. The offering included the issuance of units comprising common shares and warrants, with an acceleration clause for the warrants. The closing is subject to regulatory approvals, and all securities will be under a statutory hold period. This financing strengthens K2 Gold’s financial position, enabling further development of its key project, potentially enhancing its market position and stakeholder value.

K2 Gold Upsizes Private Placement to $3 Million for Mojave Project Expansion

K2 Gold Corporation has announced an increase in their private placement offering to raise up to CAD 3 million. The proceeds will be used for exploration and permitting at the Mojave project in California, as well as for general working capital. The offering includes units priced at CAD 0.15, each consisting of one common share and half a warrant, with possible acceleration of warrant expiry. This strategic move aims to enhance the company’s operational capacity and strengthen its position in the resource exploration sector.

K2 Gold Launches $2 Million Private Placement for Mojave Project

K2 Gold Corporation has announced a non-brokered private placement to raise CAD $2 million by issuing up to 13,333,333 units at CDN $0.15 per share. The funds will be used for exploration and permitting at the Mojave Gold project in California, as well as for general working capital. The Mojave project is notable for its significant oxide gold and base metal targets, with past successful drilling results. The offering is subject to regulatory approvals, and securities issued will be under a four-month hold period.