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Krakatoa Resources Ltd. (AU:KTA)
ASX:KTA
Australian Market

Krakatoa Resources Ltd. (KTA) AI Stock Analysis

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AU

Krakatoa Resources Ltd.

(Sydney:KTA)

43Neutral
Krakatoa Resources Ltd. faces challenges with profitability and cash flow generation, as reflected in the low financial performance score. The technical analysis shows a stable but stagnant stock price, with limited market momentum. Valuation is impacted negatively by the lack of earnings and no dividend yield, leading to a lower overall stock score.

Krakatoa Resources Ltd. (KTA) vs. S&P 500 (SPY)

Krakatoa Resources Ltd. Business Overview & Revenue Model

Company DescriptionKrakatoa Resources Ltd. (KTA) is an Australian-based mineral exploration company focused on the discovery and development of mineral resources. The company operates primarily in the mining sector, with a particular emphasis on exploring key mineral deposits such as gold, copper, rare earth elements, and other base metals. Krakatoa Resources is committed to advancing its projects in Australia to unlock potential resource value and contribute to the supply of essential minerals.
How the Company Makes MoneyKrakatoa Resources Ltd. generates revenue primarily through the exploration and development of mineral resources. The company makes money by identifying viable mineral deposits, which can either be developed into productive mining operations or sold to larger mining entities. Revenue streams include proceeds from the sale of mineral rights or assets, joint venture agreements with other mining companies, and potential royalties from developed projects. Additionally, the company's earnings may be influenced by market demand for minerals, commodity prices, and strategic partnerships that facilitate exploration and development activities.

Krakatoa Resources Ltd. Financial Statement Overview

Summary
Krakatoa Resources Ltd. has shown significant revenue growth, but persistent profitability issues, negative cash flows, and high operational expenses remain. The strong equity base and low debt reliance are positives, yet the company must improve profitability to bolster its financial standing.
Income Statement
35
Negative
Krakatoa Resources Ltd. has experienced inconsistent revenue growth with the latest annual increase from 2023 to 2024 being significant at 85%. However, the company continues to face challenges in profitability, reflected by negative net profit margins and EBIT margins over the years. The gross profit margin stands at 100% for 2024, indicating that all revenues contribute directly to gross profit, but the consistent recording of net losses indicates high operational expenses or other financial pressures.
Balance Sheet
55
Neutral
The company maintains a strong equity position with a high equity ratio of 90.1% in 2024, suggesting a solid financial cushion. The debt-to-equity ratio is low at 0.042, indicating minimal reliance on debt financing. However, the return on equity remains negative due to net losses, which points to inefficiencies in generating profits from shareholder investments.
Cash Flow
45
Neutral
Operating cash flow remains negative, reflecting ongoing cash outflows from operations. Despite this, the company has improved its free cash flow from 2023 to 2024, although it remains negative. The operating cash flow to net income ratio is close to 1, indicating that net income losses are closely mirrored by operational cash outflows.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
39.34K21.25K51.27K13.43K14.35K
Gross Profit
39.34K-18.93K46.93K13.43K14.35K
EBIT
-2.71M-3.48M-4.37M-3.73M-2.66M
EBITDA
-2.77M-3.42M-4.31M0.000.00
Net Income Common Stockholders
-3.21M-3.47M-4.32M-3.72M-2.65M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.31M951.70K4.22M2.34M686.17K
Total Assets
1.79M1.39M4.70M2.46M729.98K
Total Debt
67.97K95.58K0.000.000.00
Net Debt
-1.25M-856.12K-4.22M-2.34M-686.17K
Total Liabilities
177.66K501.48K878.41K261.53K251.00K
Stockholders Equity
1.62M885.87K3.83M2.20M478.99K
Cash FlowFree Cash Flow
-2.91M-3.77M-3.56M-2.65M-1.98M
Operating Cash Flow
-2.91M-3.69M-3.40M-2.65M-1.98M
Investing Cash Flow
0.00-78.35K-156.07K0.000.00
Financing Cash Flow
3.27M503.69K5.44M4.31M2.26M

Krakatoa Resources Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
49
Neutral
$1.95B-1.37-21.20%3.73%0.84%-29.84%
AUCHN
47
Neutral
€435.71M-16.63%57.93%
AUKTA
43
Neutral
AU$6.20M-103.26%-100.00%44.94%
AUCZR
43
Neutral
AU$60.37M4.38-89.23%-297.36%
AULEG
41
Neutral
AU$23.29M-10.22%-5.88%
AUARV
32
Underperform
$17.70M-53.93%-1133.33%
AUG88
28
Underperform
AU$5.99M-31.24%30.16%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:KTA
Krakatoa Resources Ltd.
0.01
-0.01
-50.00%
AU:LEG
Legend Mining Limited
0.01
0.00
0.00%
AU:ARV
Artemis Resources
0.01
>-0.01
-41.18%
AU:CHN
Chalice Mining
1.12
-0.05
-4.27%
AU:CZR
CZR Resources Ltd
0.26
-0.04
-13.33%
AU:G88
Golden Mile Resources Ltd.
0.01
0.00
0.00%

Krakatoa Resources Ltd. Corporate Events

Krakatoa Resources Advances Exploration Projects with Strategic Developments
Apr 28, 2025

Krakatoa Resources Limited has reported significant progress in its Zopkhito Antimony-Gold Project in Georgia, identifying potential extensions of the mineral resource and planning further exploration and economic assessments. Additionally, the company has received a grant from the Western Australian Government to support drilling at the Mt Clere Project, with drilling expected to commence mid-2025. These developments highlight Krakatoa’s strategic efforts to enhance its resource base and strengthen its position in the mining sector.

Krakatoa Resources Ltd. Explores New Opportunities in Gold and Critical Metals
Apr 14, 2025

Krakatoa Resources Ltd. released an investor presentation highlighting its ongoing exploration activities and potential acquisitions in the gold and critical metals sector. The company is actively evaluating mineral resources and foreign exploration results, although these are not yet classified under the JORC Code 2012. The announcement underscores the company’s strategic focus on expanding its resource base, despite inherent risks and uncertainties in exploration and development activities.

Krakatoa Resources Director Increases Stake Significantly
Mar 25, 2025

Krakatoa Resources Limited has announced a significant change in the interests of its director, Colin Locke. On March 25, 2025, Locke acquired 4,000,000 Fully Paid Ordinary Shares and 20,000,000 Performance Rights, increasing his direct holdings to 5,015,000 shares and 20,000,000 performance rights. This acquisition was part of a director placement approved by shareholders, potentially strengthening Locke’s influence in the company and aligning his interests more closely with those of the shareholders.

Krakatoa Resources Issues 30 Million New Shares
Mar 25, 2025

Krakatoa Resources Ltd. has issued 30 million ordinary fully paid shares as of March 25, 2025, under Section 708A of the Corporations Act, without disclosure under Part 6D.2. This move indicates the company’s compliance with relevant provisions of the Corporations Act and suggests a strategic step in capital management, potentially impacting its financial structure and shareholder value.

Krakatoa Resources Issues New Performance Rights and Options
Mar 25, 2025

Krakatoa Resources Ltd. has announced the issuance of 45,000,000 performance rights and 20,000,000 options exercisable at $0.05 on or before March 25, 2027. This move is part of previously announced transactions and is not intended to be quoted on the ASX, potentially impacting the company’s capital structure and aligning with its strategic growth initiatives.

Krakatoa Resources Ltd. Releases Interim Financial Report for 2024 Half-Year
Mar 12, 2025

Krakatoa Resources Ltd. has released its interim financial report for the half-year ended December 31, 2024. The report provides a comprehensive overview of the company’s financial performance, including statements of profit or loss, financial position, changes in equity, and cash flows. This release is crucial for stakeholders to assess the company’s financial health and operational efficiency during this period.

Krakatoa Resources Announces General Meeting Details
Feb 18, 2025

Krakatoa Resources Limited will conduct its General Meeting on March 21, 2025, in Perth, Western Australia, encouraging shareholders to lodge proxy forms and submit questions in advance to facilitate efficient meeting preparations. The company is transitioning towards electronic communications, advising shareholders to update their details online to continue receiving updates and participate in voting processes electronically.

Krakatoa Resources Schedules General Meeting to Ratify Share Placements
Feb 18, 2025

Krakatoa Resources Limited is convening a General Meeting to be held at their offices in Perth, Western Australia, on March 21, 2025. The meeting will address key resolutions including the ratification of prior placement shares and approval for directors to participate in the placement. The resolutions aim to raise approximately $1.18 million and involve issuing shares to certain directors, reflecting strategic financial maneuvers to strengthen the company’s capital position.

Krakatoa Resources Unveils Zopkhito Antimony-Gold Project Insights
Feb 13, 2025

Krakatoa Resources Ltd. has released an investor presentation detailing its ongoing efforts and results in the Zopkhito Antimony-Gold Project. The presentation highlights exploration results and potential opportunities, while also acknowledging risks associated with the project’s development and market conditions. The company emphasizes the importance of these findings for future growth and strategic positioning within the mining sector.

Krakatoa Resources to Update on Zopkhito Project at Antimony Webinar
Feb 7, 2025

Krakatoa Resources Limited announced that its CEO, Mark Major, will present updates on the Zopkhito Project at the NWR Communications Antimony Webinar. The company is pursuing an 80% interest in the project, which boasts significant antimony and gold resources. Recent developments suggest potential extensions of these resources, aligning with Krakatoa’s commitment to complete a JORC standard mineral resource estimate and conduct a preliminary economic assessment. This strategic move could enhance Krakatoa’s market positioning and offer growth opportunities for stakeholders.

Krakatoa Resources Identifies Major Mineralization Extension at Zopkhito Project
Feb 4, 2025

Krakatoa Resources Limited has identified a significant extension of mineralization at its Zopkhito antimony-gold project in Georgia, following a successful induced polarization survey. The company plans to conduct drill testing in 2025 after data consolidation, with the aim of completing a JORC standard resource estimate and an economic assessment, potentially enhancing its market positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.