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Reconnaissance Energy Africa (RECO) AI Stock Analysis
Reconnaissance Energy Africa
(TSXV:RECO)
The overall stock score is primarily influenced by constrained financial performance due to lack of revenue and cash burn despite a solid balance sheet, along with weak technical momentum and unattractive valuation from negative earnings.
Reconnaissance Energy Africa (RECO) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 213.15M
- Dividend Yield
- ―
- Average Volume (3M)
- 410.22K
- Price to Earnings (P/E)
- -11.6
- Beta (1Y)
- 1.20
- Revenue Growth
- ―
- EPS Growth
- 45.08%
- Country
- Canada
- Employees
- 28
- Sector
- General
- Sector Strength
- 55
- Industry
- Oil & Gas Exploration & Production
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 app...
Reconnaissance Energy Africa Financial Statement Overview
Summary
Despite a strong debt-free balance sheet with over $247 million in equity, the financial performance is hampered by zero revenue, substantial net losses, and significant negative cash flows exceeding $39 million in free cash flow.
Income Statement
15Very NegativeBalance Sheet
85Very PositiveCash Flow
20Very Negative| Breakdown | TTM | Mar 2026 | Jun 2024 | Mar 2024 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0 | 0 | 0 | 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 | -36.93M | -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 | 0 | 0 | 0 | 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
Price Trends
Market Momentum
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 0.50 is below the 20-day moving average (MA) of 0.56, below the 50-day MA of 0.60, and below the 200-day MA of 0.88, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 35.03 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 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
Overall Rating
TSE:CVVY69Neutral
TSE:PRQ67Neutral
TSE:IPO60Neutral
TSE:TAL57Neutral
TSE:PNE47Neutral- TSE:RECO41Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:CVVY | 69Neutral | CAD 747.51M | 87.50 | 5.33% | ― | 42.92% | ― |
| TSE:PRQ | 67Neutral | CAD 262.00M | -112.90 | -0.66% | 6.86% | 25.52% | -126.16% |
| TSE:IPO | 60Neutral | CAD 565.71M | -42.63 | -3.81% | 5.28% | 78.72% | -219.22% |
| TSE:TAL | 57Neutral | CAD 533.79M | 25.59 | 2.93% | ― | -27.27% | -79.93% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TSE:PNE | 47Neutral | CAD 186.57M | -25.12 | -27.35% | 2.88% | -7.67% | 60.90% |
| TSE:RECO | 41Neutral | CAD 213.15M | -11.58 | -6.71% | ― | ― | 45.08% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:RECO | Reconnaissance Energy Africa Ltd. | 0.52 | -0.01 | -1.89% | |
| TSE:PNE | Pine Cliff Energy Ltd. | 0.52 | -0.23 | -30.85% | |
| TSE:CVVY | Cavvy Energy Ltd | 2.52 | 1.60 | 173.91% | |
| TSE:PRQ | Petrus Resources | 1.75 | 0.09 | 5.68% | |
| TSE:TAL | Petro Tal Corp | 0.58 | -0.08 | -12.12% | |
| TSE:IPO | InPlay Oil | 20.46 | 9.04 | 79.11% |
Reconnaissance Energy Africa Corporate Events
ReconAfrica Restarts Horizontal Drilling at Namibia’s KW1X Ahead of Year-End Flow Test
PositiveReconAfrica and its partners BW Energy and Namibia’s National Petroleum Corporation have restarted drilling operations at the Kavango West 1X well in Namibia after securing key environmental clearance and permitting for horizontal drilling and...
ReconAfrica Adds Veteran Energy Executive Ryan Kubik to Board as Independent Director
PositiveReconnaissance Energy Africa has appointed veteran Canadian energy executive Ryan Kubik as an independent director, adding more than three decades of experience in finance, corporate strategy and governance to its board at a pivotal stage of the comp...
ReconAfrica advances Namibian gas discovery while progressing exploration in Angola and Gabon
PositiveReconnaissance Energy Africa has resumed operations at its Kavango West 1X sidetrack well in Namibia after identifying thermogenic gas with liquids potential in vertical flow test samples from the Huttenberg and Elandshoek formations. The company pla...
ReconAfrica Files Prospectus for Upsized C$19 Million Equity Offering
PositiveReconnaissance Energy Africa has filed a prospectus supplement to its April 2026 base shelf prospectus with securities regulators across Canada, formalizing its previously announced upsized bought-deal public offering of units totaling C$19 million....
ReconAfrica Upsizes C$19 Million Financing to Advance Kavango West Testing
PositiveReconnaissance Energy Africa has upsized its previously announced bought-deal public offering to raise gross proceeds of C$19 million through the sale of 26,028,000 units at C$0.73 per unit, each consisting of one common share and half of a warrant e...
ReconAfrica Raises C$15 Million in Bought‑Deal to Advance Kavango West Testing
PositiveReconAfrica has launched a C$15 million bought‑deal public offering of 20,548,000 units at C$0.73 each, with each unit comprising one common share and one‑half warrant exercisable at C$0.93 for 36 months, and an over‑allotment optio...
ReconAfrica Issues New Stock Options and RSUs to Align Management with Shareholders
NeutralReconnaissance 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 options,...
ReconAfrica Advances African Exploration as Q2 2026 Cash Reaches $24.2 Million
PositiveReconAfrica 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 share...
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.
Date of analysis: Aug 19, 2026