Mkango Resources (MKA) AI Stock Analysis

• Market Cap: C$319.42M
• Dividend Yield: N/A
• Average Volume (3M): 143.48K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.60
• Revenue Growth: N/A
• EPS Growth: -341.26%
• Country: CA
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.05
• Shares Outstanding: 347,192,900
• 10 Day Avg. Volume: 132,613
• 30 Day Avg. Volume: 143,476
• PEG Ratio: 0.46
• Price to Book (P/B): 7.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.63
• 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: C$0.74
• Price Target Upside: -31.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ―

The overall stock score is driven primarily by the company's weak financial performance due to persistent losses and lack of revenue. While technical analysis indicates positive momentum, the valuation remains unattractive due to negative earnings and lack of dividends. The absence of earnings call details and corporate events leaves the financial and technical aspects as the primary influences on the score.

Mkango Resources Business Overview & Revenue Model

Company Description

Mkango Resources (MKA) is a mineral exploration and development company focused primarily on the rare earth elements sector. The company is engaged in the exploration of mineral properties, with its flagship project located in Malawi. Mkango's core operations involve the exploration, evaluation, and development of its primary asset, the Songwe Hill Rare Earth Project, which is aimed at supplying the growing demand for critical rare earth elements necessary for advanced technologies and clean energy applications.

How the Company Makes Money

Mkango Resources primarily generates revenue through the exploration and development of its mineral assets, specifically rare earth elements. The company aims to make money by advancing its flagship project, the Songwe Hill Rare Earth Project, towards commercial production. Revenue streams are expected to include the sale of extracted and processed rare earth oxides to global markets, especially as demand for these materials increases in sectors such as electronics, renewable energy, and electric vehicles. Additionally, Mkango's strategic partnerships and joint ventures, including those with technology companies focused on rare earth separation and processing, contribute to its potential earnings by enhancing project development and market reach.

Mkango Resources Financial Statement Overview

Summary

Mkango Resources is facing significant financial challenges, characterized by persistent losses and no revenue generation. While there are some improvements in balance sheet stability, the lack of operational cash flow and ongoing reliance on external financing underscore potential sustainability issues. The company needs strategic initiatives to improve revenue streams and operational efficiency.

Income Statement

The income statement shows consistent losses with no revenue generation. The company has negative EBIT and net income across all periods, indicating financial instability and lack of profitability. The absence of revenue growth and negative margins highlight significant challenges in achieving operational efficiency.

Balance Sheet

The balance sheet reflects a mixed scenario. The equity ratio has improved due to a reduction in liabilities, but the company continues to operate with no revenue, and accumulated losses are impacting equity levels. Positive cash reserves are a strength, but the overall financial health is weakened by ongoing liabilities.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, indicating the company is not generating sufficient cash from operations. The reliance on financing cash flows to support operations suggests potential liquidity risks. While there is a slight improvement in the latest TTM, overall cash management remains a concern.

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	0.00	0.00	0.00	0.00
EBITDA	-13.86M	-2.54M	-4.24M	-5.85M	-9.12M	-4.09M
Net Income	-14.93M	-786.00K	-4.06M	-5.99M	-6.40M	-2.25M
Balance Sheet
Total Assets	13.11M	10.71M	9.29M	1.53M	5.26M	5.78M
Cash, Cash Equivalents and Short-Term Investments	2.00M	1.16M	996.78K	493.70K	4.45M	4.92M
Total Debt	1.74M	1.19M	0.00	1.60M	0.00	0.00
Total Liabilities	14.80M	4.28M	4.73M	2.69M	1.26M	289.10K
Stockholders Equity	-4.58M	3.88M	2.55M	-1.17M	4.00M	10.21M
Cash Flow
Free Cash Flow	-6.37M	-2.85M	-4.56M	-5.33M	-7.14M	-4.22M
Operating Cash Flow	-4.48M	-2.14M	-3.56M	-5.14M	-7.14M	-4.22M
Investing Cash Flow	-1.89M	-715.74K	-2.04M	-196.37K	-7.58K	-641.93K
Financing Cash Flow	5.98M	2.95M	6.49M	1.83M	6.85M	106.90K

Mkango Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.07
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MKA, the sentiment is Positive. The current price of 1.07 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 1.00, and above the 200-day MA of 0.59, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 75.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MKA.

Mkango Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MKA	47 Neutral	C$319.42M	-14.58	―	―	―	-341.26%
GPH	45 Neutral	C$269.13M	-20.10	-12.80%	―	―	-15.48%
LITH	41 Neutral	C$118.31M	-230.43	-0.96%	―	―	-107.23%
UCU	37 Underperform	C$663.00M	-15.88	-75.16%	―	―	-58.77%
RCK	36 Underperform	C$83.04M	-6.44	-34.52%	―	―	36.48%
AHR	34 Underperform	C$279.41M	-99.20	-385.36%	―	―	-267.65%