Burgundy Diamond Mines Ltd (BDM) AI Stock Analysis

• Market Cap: AU$24.16M
• Dividend Yield: N/A
• Average Volume (3M): 654.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -28.16%
• EPS Growth: -1569.00%
• Country: AU
• Employees: 862
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Other Precious Metals
• EPS (TTM): -0.03
• Shares Outstanding: 1,421,332,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 654,295
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -6.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• 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 Business Overview & Revenue Model

Company Description

Burgundy 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 Money

Burgundy 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

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	344.13M	442.12M	775.83M	5.19M	0.00	0.00
Gross Profit	55.81M	442.12M	79.36M	-9.72M	-184.14K	-766.00
EBITDA	55.96M	-56.14M	168.93M	-20.27M	-16.29M	-11.95M
Net Income	-79.16M	-97.26M	-2.04M	-27.99M	-19.71M	-12.12M
Balance Sheet
Total Assets	461.79M	746.11M	977.48M	203.37M	36.85M	1.78M
Cash, Cash Equivalents and Short-Term Investments	25.14M	25.14M	138.38M	188.30M	21.51M	1.69M
Total Debt	90.90M	146.87M	179.16M	31.93M	29.58M	0.00
Total Liabilities	399.75M	645.87M	745.59M	37.50M	31.53M	350.99K
Stockholders Equity	62.04M	62.04M	231.89M	165.87M	5.32M	1.43M
Cash Flow
Free Cash Flow	-7.45M	-11.41M	83.37M	-18.67M	-28.83M	-10.13M
Operating Cash Flow	70.55M	87.08M	102.37M	-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	-46.31M	183.99M	48.65M	7.49M

Burgundy Diamond Mines Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BDM	38 Underperform	AU$24.16M	-0.12	-151.97%	―	-28.16%	-1569.00%

Burgundy Diamond Mines Ltd Corporate Events

Burgundy Diamond Mines Seeks Extension on Trading Suspension Amid Funding Efforts

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.

Burgundy Diamond Mines Seeks Extension on Trading Suspension Amid Funding Negotiations

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.

Burgundy Diamond Mines Seeks Extension on Trading Suspension Amid Funding Discussions

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.

Burgundy Diamond Mines Faces ASX Listing Rule Breach Over Financing Deal

Burgundy Diamond Mines Limited has announced a breach of ASX Listing Rule 10.1 due to a $24.9 million short-term financing deal with Choron Group, a related party. This transaction, secured by the sale of rough diamond inventories to Choron, did not receive the required shareholder approval. The company is currently in discussions with ASX and has suspended sales to Choron pending further decisions, while continuing sales to other customers. Burgundy plans to seek shareholder approval and an expert report to assess the fairness of the transaction.

Burgundy Diamond Mines Seeks CAD 150 Million Funding Amid Market Challenges

Burgundy Diamond Mines Limited has applied for up to CAD 150 million in funding from the Canada Enterprise Emergency Funding Corporation to ensure the financial viability of its operations at the Ekati mine amid challenging market conditions. The company has requested a suspension of trading in its securities until sufficient external funding is secured, as it faces revenue impacts from US tariffs on global diamond trade.

Burgundy Diamond Mines Suspends Trading Amid Critical Funding Negotiations

Burgundy Diamond Mines Limited has requested a voluntary suspension of its securities from trading on the ASX, effective immediately. This suspension is necessary as the company is in the process of securing an external funding package crucial for its financial viability. The company is actively engaged in discussions with third parties to finalize this funding, and the suspension will remain until an announcement is made or until October 16, 2025. This strategic move aims to prevent any material prejudice during ongoing funding negotiations, highlighting the critical nature of the funding for the company’s operations.

Burgundy Diamond Mines to Submit Quarterly Cash Flow Reports Amid Financial Uncertainty

Burgundy Diamond Mines Limited has been mandated by the ASX to submit quarterly cash flow reports due to material uncertainties in its financial statements regarding its ability to continue as a going concern. This requirement, starting with the quarter ending September 30, 2025, aims to enhance transparency and provide stakeholders with more frequent financial updates, potentially impacting the company’s market perception and operational strategies.