TSX-V

Reconnaissance Energy Africa Ltd.

RECO.V•Energy•Oil & Gas Exploration & Production
Current Price
$0.53
Today's Change
-3.64%
Market Cap
$201.39M
Volume
323.95K
🛢️

Commodity Exposure

Crude Oil

Current Price
$98.41/barrel
+1.30% today
💡

Industry Context

Energy companies are highly sensitive to oil prices. Every $10/barrel change can impact operating margins by 15-25%.

Price updated: Oct 22, 2026, 03:00 PM

💡 Quick Take

Reconnaissance Energy Africa Ltd. is a junior oil and gas company focused on exploring and developing hydrocarbon resources in Namibia and Botswana. While the company boasts a strong liquidity position with a current and quick ratio of 5.78 and zero debt, it faces concerns with negative return metrics, including a -1.7% ROE and -1.6% ROA. The stock's recent decline of 3.64% may reflect market skepticism about its growth potential, despite its significant exploration interests. Overall, the financial health score of 80/100 indicates solid fundamentals, but profitability remains a challenge.

Based on 22 data points⚠️Not financial advice

📊 Key Metrics

52 Week High$1.35
52 Week Low$0.42
Avg Volume412.86K
Beta-0.91
Shares Outstanding379.97M

🔥 Valuation

Market Cap$201.39M
Enterprise Value$188.07M
P/E Ratio-11.80
EV/EBITDA ⚠️-5.90x
Dividend Yield0.00%

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🚩 Red Flags

🟠

Significant Losses

Company posted a loss of $-15.3M over the last year, representing Infinity% of revenue.

🟠

Persistent Cash Burn

Operating cash flow has been negative for 3 consecutive quarters, burning $12.8M over the last year.

🌟 Opportunities

🚀

Debt-free balance sheet with a solid cash position, providing significant financial flexibility.

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Excellent liquidity with current ratio of 5.8x ensures operational stability.

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