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Desoto Resources Ltd.
(Sydney:DES)
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Rating:43Neutral
Price Target:
AU$0.13
▼(-7.14% Downside)
Action:Reiterated
Date:06/16/26
The score is primarily held down by weak financial performance driven by widening losses and worsening cash burn, despite a low-debt balance sheet. Technicals add a modestly cautious view (negative MACD and longer-term downtrend with a short-term bounce). Valuation is constrained by a negative P/E and no stated dividend yield.
Positive Factors
Low leverage / strong balance sheet
Very low leverage and a meaningful increase in equity provide a durable liquidity cushion, lowering refinancing risk and supporting near-term funding for operations or investment. This conservative capital structure gives management flexibility while the business addresses profitability.
Negative Factors
Worsening cash burn
Operating cash flow deterioration to ~-2.71m signals persistent structural cash burn. Continued negative operating cash flow forces reliance on external financing or asset sales, increasing dilution risk and constraining the company's ability to invest in growth or weather market stress over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Very low leverage and a meaningful increase in equity provide a durable liquidity cushion, lowering refinancing risk and supporting near-term funding for operations or investment. This conservative capital structure gives management flexibility while the business addresses profitability.
Read all positive factors
Desoto Resources Ltd. (DES) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$40.13M
Dividend YieldN/A
Average Volume (3M)649.52K
Price to Earnings (P/E)―
Beta (1Y)0.21
Revenue GrowthN/A
EPS Growth-173.46%
CountryAU
Employees689
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)-0.04
Shares Outstanding276,785,580
10 Day Avg. Volume1,200,041
30 Day Avg. Volume649,518
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)1.09
Price to Sales (P/S)11495.81
P/FCF Ratio-3.91
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
Desoto Resources Ltd. Business Overview & Revenue Model
Company Description
DeSoto Resources Limited, a mineral exploration company, engages in the exploration and evaluation of mineral properties in Guinea and the Northern Territory, Australia. The company explores for gold, lithium, rare earth, and other base metal depo...
How the Company Makes Money
null...
Desoto Resources Ltd. Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
66
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.25K | 1.25K | 1.06K | 0.00 | 0.00 |
| Gross Profit | -32.96K | 1.25K | -64.85K | -66.55K | -4.73K |
| EBITDA | -7.43M | -2.93M | -1.62M | -1.39M | -149.18K |
| Net Income | -7.42M | -2.91M | -1.69M | -1.46M | -154.61K |
Balance Sheet | |||||
| Total Assets | 22.34M | 14.09M | 9.55M | 10.60M | 1.22M |
| Cash, Cash Equivalents and Short-Term Investments | 12.73M | 6.24M | 5.66M | 8.66M | 881.15K |
| Total Debt | 87.78K | 100.87K | 157.35K | 213.54K | 270.30K |
| Total Liabilities | 462.95K | 890.78K | 511.54K | 450.94K | 353.83K |
| Stockholders Equity | 21.88M | 13.20M | 9.04M | 10.15M | 868.04K |
Cash Flow | |||||
| Free Cash Flow | -6.90M | -3.68M | -3.10M | -1.78M | -141.50K |
| Operating Cash Flow | -7.00M | -2.71M | -1.56M | -1.19M | -128.54K |
| Investing Cash Flow | -2.53M | -1.23M | 536.26K | -2.59M | -12.96K |
| Financing Cash Flow | 18.09M | 4.52M | 18.30K | 9.56M | 1.02M |
Desoto Resources Ltd. Technical Analysis
Negative
0.14
Price Trends
0.13
Positive
0.13
Negative
0.15
Negative
Market Momentum
<0.01
Negative
51.57
Neutral
48.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DES, the sentiment is Negative. The current price of 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.13, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.57 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DES.
Desoto Resources Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
47 Neutral | AU$90.18M | -85.71 | -16.47% | ― | ― | 84.52% | |
44 Neutral | AU$32.15M | -15.00 | -14.34% | ― | ― | 15.79% | |
44 Neutral | AU$36.86M | -6.14 | -38.51% | ― | ― | 65.87% | |
43 Neutral | AU$40.13M | -3.04 | -42.31% | ― | ― | -173.46% | |
43 Neutral | AU$38.52M | -18.75 | -99.27% | ― | ― | 54.55% | |
38 Underperform | AU$34.68M | -0.92 | -28.53% | ― | ― | ― |
* Basic Materials Sector Average
AU:DES
Desoto Resources Ltd.
0.13
-0.07
-33.33%
AU:MRD
Mount Ridley Mines Limited
0.03
0.02
158.33%
AU:MRR
MinRex Resources Limited
0.02
<0.01
50.00%
AU:PL9
Arizona Lithium Limited
0.01
0.00
0.00%
AU:KLI
Killi Resources Limited
0.28
0.24
551.16%
AU:OD6
OD6 Metals Ltd.
0.14
0.07
110.94%
Desoto Resources Ltd. Corporate Events
DeSoto Advances Guinea Gold Exploration Amid Temporary Drilling Pause
Jul 28, 2026
DeSoto Resources has advanced its exploration activities in Guinea with a maiden 10,000-metre power auger drilling program at the Timbakouna Gold Project, targeting extensive artisanal gold workings and historic high-grade intercepts. The company ...
Desoto JV Moves on First Guinea Gold Portfolio in Siguiri Basin
Jul 7, 2026
Desoto Resources has taken a significant step in expanding its West African gold footprint, announcing that its joint venture vehicle High Guinea Gold SARLU has signed a Heads of Agreement to acquire up to seven gold exploration projects in Guinea...
DeSoto launches maiden 10,000m drill program at Timbakouna gold project
Jun 9, 2026
DeSoto Resources has launched a 10,000-metre maiden power auger drilling campaign at its Timbakouna Gold Project in Guinea, targeting a six-kilometre corridor of artisanal workings and soil anomalies, including zones associated with historic high-...
DeSoto flags new gold targets at Timbakouna in Guinea
May 21, 2026
DeSoto Resources has identified two priority target areas, labelled A and B, at its Timbakouna gold project in Guinea after reviewing regional 200m by 200m soil sampling data. The areas host three coherent soil anomalies up to 950 metres long, clo...
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.