K2 Gold (KTO) AI Stock Analysis

• Market Cap: C$49.81M
• Dividend Yield: N/A
• Average Volume (3M): 122.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: N/A
• EPS Growth: 41.80%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 150,953,490
• 10 Day Avg. Volume: 85,943
• 30 Day Avg. Volume: 122,520
• PEG Ratio: -18.87
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -52.76
• 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

• Rating: 54 Neutral
• Price Target: ―

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 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	0.00	0.00	0.00
EBITDA	-858.21K	-800.90K	0.00	-1.26M	-1.52M	-1.19M
Net Income	-831.81K	-800.90K	-1.08M	-1.24M	-1.82M	-1.80M
Balance Sheet
Total Assets	21.64M	18.46M	16.77M	13.03M	14.12M	15.42M
Cash, Cash Equivalents and Short-Term Investments	2.95M	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	137.42K	110.44K	297.82K	216.53K	378.35K	357.71K
Stockholders Equity	21.50M	18.35M	16.47M	12.81M	13.74M	15.07M
Cash Flow
Free Cash Flow	-944.21K	-883.52K	-1.06M	-2.58M	-4.55M	-4.91M
Operating Cash Flow	-944.21K	-883.52K	-1.06M	-951.54K	-1.26M	-1.25M
Investing Cash Flow	-1.86M	-1.75M	-3.80M	-1.59M	-3.30M	-3.73M
Financing Cash Flow	5.04M	2.57M	4.75M	0.00	0.00	9.50M

K2 Gold Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KTO, the sentiment is Neutral. The current price of 0.32 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.34, and above the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$49.81M	―	-4.28%	―	―	41.80%
ABI	48 Neutral	C$49.53M	―		―	―	―
MGM	47 Neutral	C$36.48M	―	-168.28%	―	―	42.51%
Sector *	44 Neutral	C$969.59M	-6.68	-13.73%	2.50%	17.55%	-32.57%
JG	42 Neutral	C$25.10M	―	-18.43%	―	―	-15.56%
ANK	40 Underperform	C$33.52M	―	-791.49%	―	―	9.23%
ECR	32 Underperform	C$42.65M	―	-27.94%	―	―	-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.