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Burgundy Diamond Mines Ltd (AU:BDM)
ASX:BDM
US Market

Burgundy Diamond Mines Ltd (BDM) AI Stock Analysis

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AU:BDM

Burgundy Diamond Mines Ltd

(Sydney:BDM)

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Underperform 38 (OpenAI - 4o)
Rating:38Underperform
Price Target:
AU$0.02
▼(-20.00% Downside)
Burgundy Diamond Mines Ltd faces significant financial challenges, with profitability and cash flow issues being the most critical. The technical analysis indicates a bearish trend, and the valuation metrics are unfavorable due to the negative P/E ratio and lack of dividend yield. These factors contribute to a low overall stock score.
Positive Factors
Revenue Growth
The substantial revenue growth indicates strong demand for BDM's products and successful market penetration, which can support long-term business expansion and competitive positioning.
Ethical Sourcing
BDM's focus on ethical sourcing aligns with growing consumer demand for responsibly sourced products, potentially enhancing brand reputation and customer loyalty over time.
Market Position
By targeting leadership in the ethical diamond sector, BDM can capitalize on industry trends and differentiate itself from competitors, supporting long-term strategic growth.
Negative Factors
Profitability Challenges
Ongoing profitability issues suggest difficulties in cost management and revenue conversion, which could hinder financial sustainability and growth prospects if not addressed.
High Leverage
A high debt-to-equity ratio indicates reliance on debt financing, which can increase financial risk and limit flexibility in pursuing growth opportunities or weathering downturns.
Cash Flow Issues
Negative free cash flow growth highlights cash management challenges, potentially impacting BDM's ability to invest in growth initiatives and maintain operational stability.

Burgundy Diamond Mines Ltd (BDM) vs. iShares MSCI Australia ETF (EWA)

Burgundy Diamond Mines Ltd Business Overview & Revenue Model

Company DescriptionBurgundy Diamond Mines Limited, a diamond exploration company, focuses on developing diamond projects. The company is also engaged in diamond cutting and polishing activities, as well as sells diamonds under the brand Maison Mazerea. It holds 100% interest in the Nanuk Diamond project comprising 625 mineral claims and covering an area of approximately 274 square kilometers located at East of the Ungava Bay in Northern Quebec. The company also holds an 18% interest in the La Victoria Gold-Silver project covering an area of approximately 80 square kilometers located in Peru. In addition, it has an option to acquire interests in the Naujaat Diamond project located in Canada; and the Ellendale Diamond project located in the West Kimberley region of Western Australia, as well as an exploration alliance agreement in Botswana. The company was formerly known as EHR Resources Limited and changed its name to Burgundy Diamond Mines Limited in November 2020. Burgundy Diamond Mines Limited was incorporated in 2012 and is based in Perth, Australia.
How the Company Makes MoneyBurgundy Diamond Mines Ltd generates revenue primarily through the sale of diamonds extracted from its mining operations. The company engages in the exploration, development, and production of diamond resources, with a focus on high-value deposits. Key revenue streams include the direct sale of rough and polished diamonds to retailers and wholesalers in the luxury market, as well as potential partnerships with jewelry manufacturers. Additionally, BDM may benefit from strategic collaborations with other mining companies or industry stakeholders, which can enhance its market reach and operational efficiencies. Factors contributing to its earnings also include market demand for ethically sourced diamonds and the company's ability to maintain low operational costs through efficient mining techniques and sustainable practices.

Burgundy Diamond Mines Ltd Financial Statement Overview

Summary
Burgundy Diamond Mines Ltd is experiencing strong revenue growth but faces significant profitability and cash flow challenges. High leverage and negative returns on equity suggest financial instability. The company needs to improve its profitability and cash flow management to enhance its financial health.
Income Statement
45
Neutral
Burgundy Diamond Mines Ltd has shown significant revenue growth, with a 66.98% increase in the most recent year. However, profitability remains a concern, as indicated by a negative net profit margin of -21.99% and a negative EBIT margin of -24.28%. The company is struggling to convert revenue into profit, which is a critical issue.
Balance Sheet
40
Negative
The company's debt-to-equity ratio is relatively high at 1.47, indicating a significant reliance on debt financing. The return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is low, suggesting potential financial instability.
Cash Flow
30
Negative
Cash flow metrics reveal challenges, with a negative free cash flow growth rate of -122.32%. The operating cash flow to net income ratio is positive at 1.31, indicating some ability to generate cash from operations, but the free cash flow to net income ratio is negative, highlighting cash flow issues.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue344.13M442.12M775.83M5.19M0.000.00
Gross Profit55.81M442.12M79.36M-9.72M-184.14K-766.00
EBITDA55.96M-56.14M168.93M-20.27M-16.29M-11.95M
Net Income-79.16M-97.26M-2.04M-27.99M-19.71M-12.12M
Balance Sheet
Total Assets461.79M746.11M977.48M203.37M36.85M1.78M
Cash, Cash Equivalents and Short-Term Investments25.14M25.14M138.38M188.30M21.51M1.69M
Total Debt90.90M146.87M179.16M31.93M29.58M0.00
Total Liabilities399.75M645.87M745.59M37.50M31.53M350.99K
Stockholders Equity62.04M62.04M231.89M165.87M5.32M1.43M
Cash Flow
Free Cash Flow-7.45M-11.41M83.37M-18.67M-28.83M-10.13M
Operating Cash Flow70.55M87.08M102.37M-17.03M-25.59M-10.12M
Investing Cash Flow-162.59M-122.26M-102.38M-1.64M-3.24M-7.56K
Financing Cash Flow-46.75M-33.27M-46.31M183.99M48.65M7.49M

Burgundy Diamond Mines Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.02
Price Trends
50DMA
0.02
Positive
100DMA
0.02
Negative
200DMA
0.03
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
14.80
Positive
STOCH
200.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BDM, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 14.80 is Positive, neither overbought nor oversold. The STOCH value of 200.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BDM.

Burgundy Diamond Mines Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
38
Underperform
AU$24.16M-0.12-151.97%-28.16%-1569.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BDM
Burgundy Diamond Mines Ltd
0.02
-0.03
-63.04%
DE:PHO
Gibb River Diamonds Limited
0.03
<0.01
44.44%

Burgundy Diamond Mines Ltd Corporate Events

Burgundy Diamond Mines Plans Massive Tranche B Warrant Issue
Dec 19, 2025

Burgundy Diamond Mines Limited has notified the ASX of a proposed issue of up to 954,239,024 Tranche B warrants, each with an exercise price of 1.7 cents and an expiry date of 17 December 2035, as part of a placement or other type of security issue. The warrants, expected to be issued on 18 March 2026, represent a substantial potential source of future capital for the company and may lead to significant dilution for existing shareholders if fully exercised, underscoring the company’s ongoing efforts to strengthen its balance sheet and fund its strategic activities in the diamond industry.

The most recent analyst rating on (AU:BDM) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on Burgundy Diamond Mines Ltd stock, see the AU:BDM Stock Forecast page.

Burgundy Diamond Mines Issues 156 Million Long-Dated Warrants
Dec 19, 2025

Burgundy Diamond Mines has notified the market that it will issue 156,185,448 unquoted Tranche A Warrants, each with an exercise price of 1.7 cents and an expiry date of 17 December 2035. The substantial warrant issue, recorded on 18 December 2025, represents a significant potential source of future equity capital for the company and may lead to dilution for existing shareholders if exercised, while providing Burgundy with additional financial flexibility to support its strategic and operational plans.

The most recent analyst rating on (AU:BDM) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on Burgundy Diamond Mines Ltd stock, see the AU:BDM Stock Forecast page.

Burgundy Diamond Mines Secures C$115m Canadian Government Loan to Stabilise Ekati Operations
Dec 19, 2025

Burgundy Diamond Mines has secured a fully secured term loan facility of up to C$115 million from Canada’s Large Enterprise Tariff Loan program for its Arctic Canadian Diamond Company subsidiary, aimed at supporting Ekati’s operations amid rough market conditions driven in part by a 50% US tariff on diamond imports from India. The financing, senior to all other company debt and carrying a maximum seven-year term, will fund underground development, the restart of the Sable open pit, completion of the Fox wash plant and working capital, while also triggering a major balance sheet restructuring that subordinates and extends existing senior debt. As part of the package, Burgundy will issue more than 1.1 billion unlisted warrants to the federal funding vehicle CEEFC, and grant it certain investor rights, including a non-voting board observer, underscoring the Canadian government’s support for the northern diamond sector and the strategic importance of Ekati to regional Indigenous and territorial stakeholders.

The most recent analyst rating on (AU:BDM) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on Burgundy Diamond Mines Ltd stock, see the AU:BDM Stock Forecast page.

Burgundy Diamond Mines Announces New Securities Quotation
Dec 12, 2025

Burgundy Diamond Mines Limited has announced the application for quotation of new securities on the Australian Securities Exchange. This move involves the issuance of 369,713 ordinary fully paid securities, which are part of an employee incentive scheme. The announcement highlights the company’s efforts to enhance its financial structure and incentivize its workforce, potentially strengthening its market position and operational capabilities.

The most recent analyst rating on (AU:BDM) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on Burgundy Diamond Mines Ltd stock, see the AU:BDM Stock Forecast page.

Burgundy Diamond Mines Issues New Equity Securities as Part of Employee Incentive Scheme
Dec 12, 2025

Burgundy Diamond Mines Ltd announced the issuance of 23,168,750 unquoted equity securities in the form of options expiring on April 1, 2030, with an exercise price of $0.0516 per option. This issuance is part of an employee incentive scheme, indicating the company’s strategy to motivate and retain talent, potentially impacting its operational efficiency and market positioning positively.

The most recent analyst rating on (AU:BDM) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on Burgundy Diamond Mines Ltd stock, see the AU:BDM Stock Forecast page.

Burgundy Diamond Mines Extends Voluntary Suspension Amid Funding Efforts
Dec 10, 2025

Burgundy Diamond Mines Ltd has requested an extension of its voluntary suspension of securities trading until January 8, 2026, as it works to secure a critical external funding package. The company believes that continued trading could hinder its ability to finalize funding discussions, which are essential for its ongoing financial stability.

The most recent analyst rating on (AU:BDM) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on Burgundy Diamond Mines Ltd stock, see the AU:BDM Stock Forecast page.

Burgundy Diamond Mines Seeks Extension on Trading Suspension Amid Funding Efforts
Nov 21, 2025

Burgundy Diamond Mines Limited has requested an extension of its voluntary suspension of securities trading until December 11, 2025, as it seeks to finalize a critical external funding package. The company believes that continued trading could hinder its ability to secure the necessary funding, which is essential for its ongoing financial stability.

The most recent analyst rating on (AU:BDM) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Burgundy Diamond Mines Ltd stock, see the AU:BDM Stock Forecast page.

Burgundy Diamond Mines Seeks Extension on Trading Suspension Amid Funding Negotiations
Nov 6, 2025

Burgundy Diamond Mines Limited has requested an extension of its voluntary suspension of securities trading until November 20, 2025. This suspension is necessary to manage disclosure obligations while the company finalizes a critical funding package essential for its financial viability. The company is actively engaged in securing external funding, and continued trading could hinder these discussions. The suspension will remain until a funding announcement is made or normal trading resumes on the specified date.

The most recent analyst rating on (AU:BDM) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Burgundy Diamond Mines Ltd stock, see the AU:BDM Stock Forecast page.

Burgundy Diamond Mines Seeks Extension on Trading Suspension Amid Funding Discussions
Oct 16, 2025

Burgundy Diamond Mines Limited has requested an extension of its voluntary suspension of securities trading from October 16 to November 6, 2025. This suspension is deemed necessary to manage the company’s disclosure obligations while it finalizes a critical funding package essential for its financial viability. The company is actively engaged in discussions with third parties to secure external funding, which is crucial for its continued operations. The suspension aims to prevent any material prejudice to these discussions, with an announcement expected by November 6, 2025.

The most recent analyst rating on (AU:BDM) stock is a Hold with a A$0.04 price target. To see the full list of analyst forecasts on Burgundy Diamond Mines Ltd stock, see the AU:BDM Stock Forecast page.

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.Date of analysis: Oct 04, 2025