Reconnaissance Energy Africa (TSE:RECO)
:RECO
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Reconnaissance Energy Africa
(RECO)
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Rating:50Neutral
Price Target:
C$0.78
▼(-9.88% Downside)
Action:ReiteratedDate:01/15/26
The score is primarily held back by weak financial performance—minimal/zero revenue, persistent losses, and negative cash flow—despite the benefit of a debt-free balance sheet. Technicals are supportive due to strong upward trend and positive MACD, but overbought signals raise near-term risk. Valuation is constrained by negative earnings and no stated dividend yield.
Positive Factors
Debt-free balance sheet
A zero-debt position with a sizable equity base and assets provides structural financial flexibility for an exploration company. This reduces insolvency risk, permits continued funding of seismic and drilling programs, and improves bargaining power in farm-outs or partner negotiations over the next several quarters.
Negative Factors
Persistent negative cash flow
Ongoing and material cash burn means the business cannot self-fund exploration and appraisal, forcing reliance on capital markets, dilutive equity issuances, or partner funding. This constraint limits runway, increases financing risk, and can delay or scale back programs if markets tighten over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A zero-debt position with a sizable equity base and assets provides structural financial flexibility for an exploration company. This reduces insolvency risk, permits continued funding of seismic and drilling programs, and improves bargaining power in farm-outs or partner negotiations over the next several quarters.
Read all positive factors
Reconnaissance Energy Africa (RECO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$399.94M
Dividend YieldN/A
Average Volume (3M)794.88K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue GrowthN/A
EPS GrowthN/A
CountryCA
Employees27
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)N/A
Shares Outstanding373,778,600
10 Day Avg. Volume597,998
30 Day Avg. Volume794,885
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.35
Price to Sales (P/S)0.00
P/FCF Ratio-4.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Reconnaissance Energy Africa Business Overview & Revenue Model
Company Description
Reconnaissance Energy Africa Ltd., a junior oil and gas company, engages in exploration and development of oil and gas potential in Namibia and Botswana. It holds a 90% interest in a petroleum exploration license that covers an area of approximate...
How the Company Makes Money
Reconnaissance Energy Africa (RECO) generates revenue through the exploration and development of oil and gas resources. The company's primary revenue stream comes from the discovery and commercialization of hydrocarbon reserves in its licensed are...
Reconnaissance Energy Africa Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Jun 2024 | Mar 2024 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 305.14K | 4.97M | 2.19M | 0.00 |
| Gross Profit | -92.87K | -57.93K | -67.39K | -2.09M | 1.49M | 0.00 |
| EBITDA | -19.06M | -24.46M | -21.02M | -37.02M | -259.53M | -7.46M |
| Net Income | -20.36M | -26.05M | 41.11K | -58.36M | -263.41M | -7.50M |
Balance Sheet | ||||||
| Total Assets | 218.23M | 195.87M | 142.30M | 190.34M | 133.93M | 30.52M |
| Cash, Cash Equivalents and Short-Term Investments | 20.65M | 11.41M | 2.08M | 55.96M | 61.15M | 6.79M |
| Total Debt | 0.00 | 0.00 | 0.00 | 94.95M | 41.01M | 0.00 |
| Total Liabilities | 5.90M | 4.84M | 5.45M | 107.02M | 48.70M | 1.93M |
| Stockholders Equity | 212.34M | 191.03M | 136.85M | 83.33M | 85.22M | 28.59M |
Cash Flow | ||||||
| Free Cash Flow | -32.40M | -61.19M | -31.65M | -79.17M | -47.35M | -22.25M |
| Operating Cash Flow | -13.48M | -19.83M | -14.54M | -27.86M | -11.71M | -5.41M |
| Investing Cash Flow | -33.23M | -31.41M | -17.38M | -51.30M | -21.32M | -16.84M |
| Financing Cash Flow | 53.01M | 55.58M | 8.57M | 47.25M | 87.40M | 26.51M |
Reconnaissance Energy Africa Technical Analysis
Positive
0.86
Price Trends
0.89
Positive
0.84
Positive
0.67
Positive
Market Momentum
0.06
Negative
62.39
Neutral
77.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RECO, the sentiment is Positive. The current price of 0.86 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 0.89, and above the 200-day MA of 0.67, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 77.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RECO.
Reconnaissance Energy Africa Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$469.37M | 5.70 | 8.41% | 21.85% | -2.90% | -31.97% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | C$284.53M | 22.63 | 3.44% | 6.19% | -8.58% | -98.92% | |
58 Neutral | C$380.82M | -54.27 | -3.42% | ― | -15.50% | -58.23% | |
54 Neutral | C$235.01M | -24.06 | -43.41% | 3.16% | -6.56% | -42.28% | |
53 Neutral | C$470.31M | -38.65 | -2.22% | 12.70% | 53.79% | -126.63% | |
50 Neutral | C$399.94M | -8.00 | -10.39% | ― | ― | ― |
* Energy Sector Average
TSE:RECO
Reconnaissance Energy Africa
1.07
0.55
105.77%
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Reconnaissance Energy Africa Corporate Events
Business Operations and StrategyPrivate Placements and Financing
ReconAfrica Raises C$36.8 Million to Accelerate Kavango and Gabon Appraisal Programmes
Positive
Jan 19, 2026
Reconnaissance Energy Africa has closed a C$36.8 million underwritten unit offering, issuing 38.7 million units at C$0.95 each, to fund an accelerated 2026 capital program built around its Kavango West 1X discovery in Namibia and the Ngulu Block o...
Business Operations and StrategyShareholder Meetings
ReconAfrica Adopts Shareholder Rights Plan to Guard Against Hostile Bids
Neutral
Jan 9, 2026
Reconnaissance Energy Africa has adopted a shareholder rights plan, appointing Odyssey Trust Company as rights agent, in a move aligned with contemporary Canadian corporate governance practices and not prompted by any specific takeover attempt. Th...
Business Operations and StrategyPrivate Placements and Financing
ReconAfrica Raises C$20 Million to Accelerate Kavango Commercialization and Gabon, Angola Work
Positive
Jan 6, 2026
ReconAfrica has launched a C$20 million overnight marketed private placement of units priced at C$0.95, each comprising one common share and a half-warrant, to fund an ambitious 2026 capital program spanning its Namibian, Angolan and Gabonese asse...
Business Operations and Strategy
Reconnaissance Energy Africa Advances Key Projects in 2025
Positive
Dec 16, 2025
Reconnaissance Energy Africa Ltd. has made significant progress in its operations throughout 2025, including drilling a second well in the Damara Fold Belt, expanding into Angola, and advancing offshore projects in Gabon. The company is preparing ...
Business Operations and Strategy
ReconAfrica Unveils Promising Results at Kavango West 1X Well in Namibia
Positive
Dec 3, 2025
Reconnaissance Energy Africa Ltd. announced the results of the Kavango West 1X well in Namibia, revealing significant hydrocarbon pay in the Otavi carbonate section. The company plans to conduct a production test in early 2026 to evaluate the well...
Business Operations and Strategy
ReconAfrica Extends Drilling at Kavango West 1X Well Amid Promising Hydrocarbon Indications
Positive
Nov 12, 2025
Reconnaissance Energy Africa Ltd. has extended the drilling depth of its Kavango West 1X exploration well beyond the initially planned total depth due to promising indications of hydrocarbons. The company plans extensive wireline logging to verify...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.