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Reconnaissance Energy Africa
(RECO)
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Rating:43Neutral
Price Target:
C$0.73
▲(4.71% Upside)
Action:Reiterated
Date:08/19/26
The score is held down primarily by weak financial performance (zero revenue, ongoing losses, and material cash burn/free-cash-flow deficits), despite a low-debt balance sheet. Technicals also detract due to the stock trading below all major moving averages with negative MACD, even though RSI/Stoch indicate oversold conditions. Valuation provides limited support because the negative P/E reflects unprofitable operations and no dividend yield is available.
Positive Factors
Debt-free balance sheet
The absence of reported debt limits interest obligations and refinancing risk, giving RECO greater flexibility to fund exploration. This is particularly valuable for an early-stage company whose projects may require extended investment before generating operating cash flow.
Negative Factors
No operating revenue
RECO has not established a producing asset or recurring operating revenue stream, leaving value dependent on exploration success, asset monetization or future development. This makes financial performance highly uncertain and limits internal funding for ongoing activities.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
The absence of reported debt limits interest obligations and refinancing risk, giving RECO greater flexibility to fund exploration. This is particularly valuable for an early-stage company whose projects may require extended investment before generating operating cash flow.
Read all positive factors
Reconnaissance Energy Africa (RECO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$233.68M
Dividend YieldN/A
Average Volume (3M)467.24K
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue GrowthN/A
EPS Growth45.08%
CountryCA
Employees28
SectorGeneral
Sector StrengthN/A
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.04
Shares Outstanding379,973,200
10 Day Avg. Volume722,676
30 Day Avg. Volume467,244
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)1.39
Price to Sales (P/S)0.00
P/FCF Ratio-6.40
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. is a junior oil and gas company focused on the exploration and development of hydrocarbon potential within Namibia and Botswana. It holds a 90% interest in a petroleum exploration license in Namibia, encompassing ...
How the Company Makes Money
RECO’s potential revenue model is primarily tied to upstream oil and gas exploration and development economics: (1) exploration-led value creation—RECO conducts and funds exploration activities (e.g., seismic, stratigraphic and exploratory drillin...
Reconnaissance Energy Africa Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
66
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2026 | Jun 2024 | Mar 2024 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 305.14K | 4.97M | 2.19M |
| Gross Profit | -48.95K | -66.96K | -57.93K | -67.39K | -2.09M | 1.49M |
| EBITDA | -15.92M | -16.30M | -24.46M | -21.02M | -37.02M | -259.53M |
| Net Income | -15.32M | -15.81M | -26.05M | 41.11K | -58.36M | -263.41M |
Balance Sheet | ||||||
| Total Assets | 254.32M | 212.61M | 195.87M | 142.30M | 190.34M | 133.93M |
| Cash, Cash Equivalents and Short-Term Investments | 24.24M | 3.29M | 11.41M | 2.08M | 55.96M | 61.15M |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 94.95M | 41.01M |
| Total Liabilities | 6.34M | 4.67M | 4.84M | 5.45M | 107.02M | 48.70M |
| Stockholders Equity | 247.99M | 207.94M | 191.03M | 136.85M | 83.33M | 85.22M |
Cash Flow | ||||||
| Free Cash Flow | -39.70M | -45.07M | -61.19M | -31.65M | -79.17M | -47.35M |
| Operating Cash Flow | -12.77M | -10.31M | -19.83M | -14.54M | -27.86M | -11.71M |
| Investing Cash Flow | -39.25M | -34.75M | -31.41M | -17.38M | -51.30M | -21.32M |
| Financing Cash Flow | 58.89M | 36.93M | 55.58M | 8.57M | 47.25M | 87.40M |
Reconnaissance Energy Africa Technical Analysis
Negative
0.70
Price Trends
0.81
Negative
0.97
Negative
0.93
Negative
Market Momentum
-0.05
Positive
36.43
Neutral
7.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RECO, the sentiment is Negative. The current price of 0.7 is above the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.81, and below the 200-day MA of 0.93, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.43 is Neutral, neither overbought nor oversold. The STOCH value of 7.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RECO.
Reconnaissance Energy Africa Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$657.90M | 77.08 | 5.33% | 20.75% | 42.92% | ― | |
67 Neutral | C$263.50M | -113.55 | -0.66% | 6.82% | 25.52% | -126.16% | |
64 Neutral | C$506.18M | 24.04 | 2.93% | 15.24% | -27.27% | -79.93% | |
60 Neutral | C$502.39M | -37.85 | -3.81% | 5.94% | 78.72% | -219.22% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | C$190.16M | -25.60 | -27.35% | 2.83% | -7.67% | 60.90% | |
43 Neutral | C$233.68M | -13.70 | -6.71% | ― | ― | 45.08% |
* General Sector Average
TSE:RECO
Reconnaissance Energy Africa
0.62
-0.14
-18.00%
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0.53
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29.03%
TSE:TAL
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Reconnaissance Energy Africa Corporate Events
Business Operations and StrategyExecutive/Board Changes
ReconAfrica Issues New Stock Options and RSUs to Align Management with Shareholders
Neutral
Aug 27, 2026
Reconnaissance Energy Africa’s board has approved the grant of 7,715,900 stock options and 3,981,900 restricted share units to directors, officers, employees and consultants as part of its annual equity-based compensation program. The option...
Business Operations and StrategyFinancial Disclosures
ReconAfrica Advances African Exploration as Q2 2026 Cash Reaches $24.2 Million
Positive
Aug 18, 2026
ReconAfrica reported second-quarter 2026 results highlighting progress across its African exploration portfolio and a bolstered financial position. The company ended the quarter with a cash balance of $24.2 million and reduced its fully diluted sh...
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.