Delta Lithium Limited (DLI) AI Stock Analysis

• Market Cap: AU$175.75M
• Dividend Yield: N/A
• Average Volume (3M): 872.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: N/A
• EPS Growth: 71.98%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): >-0.01
• Shares Outstanding: 717,363,040
• 10 Day Avg. Volume: 832,225
• 30 Day Avg. Volume: 872,494
• PEG Ratio: 0.41
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 78.60
• P/FCF Ratio: -3.51
• 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: AU$0.31
• Price Target Upside: 29.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.01
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: AU$0.23 ▼(-5.42% Downside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is primarily driven by weak profitability and ongoing cash burn, partially offset by a strong, low-leverage balance sheet. Technical indicators are mildly supportive, but valuation is constrained by continued losses and no dividend yield data.

Positive Factors

Low leverage / strong balance sheet

Very low leverage gives Delta Lithium structural resilience while in an exploration and early production phase. It reduces near-term refinancing risk and preserves flexibility to fund drilling and project studies, supporting the company's ability to advance assets without immediate solvency pressure.

Early revenue generation

Recording initial revenue and a positive gross profit in FY2025 marks a durable shift from pure cost-incurrence toward monetization of assets or services. If this trend scales, it reduces dependence on capital markets and begins to validate commercial potential of projects over the medium term.

Free cash flow improvement

Material improvement in free cash flow year-over-year indicates operational progress and early efficiency gains. Sustained improvement would lower funding needs, extend runway for exploration and project work, and signal management execution that can durabley reduce cash burn.

Negative Factors

Persistent negative cash flows

Consistent negative operating and free cash flow means the business requires ongoing external funding to continue exploration and development. Over the medium term this raises dilution risk, constrains ability to fund capital-intensive work, and forces prioritization of projects over time.

Ongoing losses

Sustained operating losses and negative net margins limit retained capital accumulation and indicate the company has not yet achieved profitable operations. This weakens long-term earnings sustainability, makes partnership or offtake negotiations harder, and increases reliance on external capital.

Negative returns on equity

Consistently negative ROE shows capital deployed has not generated shareholder returns, reducing capital efficiency. Over months this hampers the firm's ability to attract cheaper funding, increases the likelihood of dilutive raises, and constrains capacity to pursue or finance larger development stages.

Delta Lithium Limited Business Overview & Revenue Model

Company Description

Delta Lithium Limited explores for and develops lithium properties in Western Australia. Its flagship project is the Mt Ida lithium project that comprises of 30 tenements located to the north-west of Menzies in Western Australia. The company also holds interest in the Yinnetharra lithium project that comprises of 4 granted tenements and 3 pending tenements covering an area of 575 square kilometers located in the northeast of Gascoyne junction; the Eureka gold project located to the north of Kalgoorlie; and the Earaheedy basin project covering an area of 270 square kilometers located east of Wiluna in Western Australia. The company was formerly known as Red Dirt Metals Limited and changed its name to Delta Lithium Limited in April 2023. Delta Lithium Limited was incorporated in 2003 and is based in Subiaco, Australia.

How the Company Makes Money

Delta Lithium Limited makes money primarily through the exploration, extraction, and sale of lithium products. Its revenue model is centered on mining lithium-rich ores from its owned or partnered mining sites and processing these ores into lithium concentrates. These concentrates are then sold to battery manufacturers and other industrial clients who use lithium as a critical component in their products. Key revenue streams include direct sales of lithium products and potential royalties or licensing fees from partnerships with other mining or processing firms. The company's earnings can also be influenced by fluctuations in global lithium prices, which are driven by market demand for electric vehicles and energy storage systems.

Delta Lithium Limited Financial Statement Overview

Summary

Financial profile is mixed: a strong, low-debt balance sheet provides stability (Balance Sheet Score 78), but the business remains loss-making with negative operating profit/net income (Income Statement Score 18) and continued cash burn with negative operating and free cash flow (Cash Flow Score 22). FY2025 shows early progress (initial revenue and smaller losses), but sustainability is not yet demonstrated.

Income Statement

The company remains in a loss-making phase, with negative operating profit and net income across the period. FY2025 shows initial revenue generation (A$1.4m) and a positive gross profit, but profitability is still weak with a deeply negative net margin and sizable operating losses. While FY2025 net loss narrowed versus FY2024, the overall earnings profile is still volatile and not yet on a sustainable trajectory.

Balance Sheet

The balance sheet is a clear strength: leverage is very low (debt-to-equity near zero across years), and equity is substantial relative to total assets, which helps absorb ongoing losses. However, returns on equity are consistently negative, reflecting that capital is not yet generating profits and raising the risk of future dilution if losses persist.

Cash Flow

Cash flow quality is weak, with operating cash flow negative each year and free cash flow deeply negative, indicating continued cash burn. FY2025 free cash flow improved materially versus FY2024, but it remains significantly negative, consistent with an investment/exploration phase. With operating cash flow still negative, funding needs remain a key risk.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.41M	0.00	0.00	0.00	0.00
Gross Profit	1.41M	-365.62K	-113.54K	-63.19K	0.00
EBITDA	-7.03M	-12.75M	-9.25M	-7.99M	-703.69K
Net Income	-3.68M	-12.49M	-8.54M	-8.06M	-704.86K
Balance Sheet
Total Assets	245.29M	249.59M	194.62M	66.92M	20.55M
Cash, Cash Equivalents and Short-Term Investments	57.62M	87.71M	85.85M	23.58M	1.61M
Total Debt	579.15K	709.64K	117.56K	212.06K	0.00
Total Liabilities	6.36M	8.15M	20.28M	6.56M	651.53K
Stockholders Equity	238.93M	241.44M	174.34M	60.36M	19.90M
Cash Flow
Free Cash Flow	-31.58M	-67.59M	-40.58M	-14.59M	-4.00M
Operating Cash Flow	-785.52K	-4.83M	-4.36M	-1.21M	-740.44K
Investing Cash Flow	-28.07M	-62.76M	-34.17M	-24.14M	-3.19M
Financing Cash Flow	641.06K	69.96M	99.48M	47.10M	3.75M

Delta Lithium Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DLI, the sentiment is Positive. The current price of 0.24 is above the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.24, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.23 is Neutral, neither overbought nor oversold. The STOCH value of 69.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DLI.

Delta Lithium Limited 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%
DLI	56 Neutral	AU$175.75M	-48.04	-1.53%	―	―	71.98%
KAU	54 Neutral	AU$236.76M	-7.71	-43.66%	―	46.74%	-47.98%
CY5	53 Neutral	AU$223.58M	-19.44	-7.66%	―	―	―
VTM	51 Neutral	AU$178.57M	-41.85	-27.81%	―	―	-35.98%
IXR	51 Neutral	AU$94.70M	-6.25	-34.31%	―	―	52.94%
HRN	51 Neutral	AU$220.54M	-194.03	-2.97%	―	―	42.74%

Delta Lithium Limited Corporate Events

Delta Lithium Issues New Shares on Performance Rights Conversion

Delta Lithium Limited has issued 131,250 fully paid ordinary shares following the conversion of an equivalent number of performance rights, with the new shares placed without a prospectus under exemptions in the Corporations Act. The company confirmed it is compliant with its continuous disclosure and financial reporting obligations, and stated there is no excluded information, signalling routine equity-based compensation and a standard-cleansing step that maintains transparency for existing and potential shareholders.

The most recent analyst rating on (AU:DLI) stock is a Hold with a A$0.33 price target. To see the full list of analyst forecasts on Delta Lithium Limited stock, see the AU:DLI Stock Forecast page.

Delta Lithium Seeks ASX Quotation for 131,250 New Shares

Delta Lithium Limited has applied to the ASX for quotation of 131,250 new fully paid ordinary shares, following the exercise of options or conversion of other convertible securities, with an issue date of 26 January 2026. The additional share quotation modestly increases the company’s listed equity base, reflecting the utilisation of existing equity-linked instruments and signalling incremental shareholder dilution as Delta continues to structure its capital to support its ongoing activities in the fast-growing lithium market.

The most recent analyst rating on (AU:DLI) stock is a Hold with a A$0.33 price target. To see the full list of analyst forecasts on Delta Lithium Limited stock, see the AU:DLI Stock Forecast page.

Delta Lithium Boosts Mt Ida Confidence with High-Grade Hits and Battery-Grade Carbonate Test Success

Delta Lithium has reported further high-grade lithium drilling results from its advanced Mt Ida project, where an existing JORC mineral resource totals 14.8Mt at 1.2% Li2O with associated tantalum and rubidium, and downstream testwork has successfully produced 99.8% battery-grade lithium carbonate from a mica concentrate. At its Yinnetharra lithium and tantalum project, the company has defined a 21.9Mt resource at 1.0% Li2O and 39.4Mt at 102ppm Ta2O5, is more than halfway through a regional exploration program, and has intersected promising mineralisation at the Jameson prospect, while maintaining a strong funding position with $54 million in cash and substantial listed investments to support ongoing exploration and potential progression toward mining.

The most recent analyst rating on (AU:DLI) stock is a Hold with a A$0.29 price target. To see the full list of analyst forecasts on Delta Lithium Limited stock, see the AU:DLI Stock Forecast page.

Delta Lithium Boosts Mt Ida Resource and Unlocks Rubidium Upside as Cash Reserves Top $160m

Delta Lithium Limited reported a significant quarterly update highlighted by an upgraded Mineral Resource Estimate at its Mt Ida Lithium Project, now standing at 14.8 million tonnes at 1.21% Li2O with substantial tantalum and notably high-grade rubidium credits, including 7.7 million tonnes in the Measured and Indicated categories. The company has demonstrated that its whole-of-ore flotation flowsheet can recover about 90% of rubidium in the mica pre-float stage, positioning rubidium as a potential value-adding co-product that could materially enhance project economics amid rising global interest in the metal, which features on critical minerals lists in markets such as the United States and Japan. Mt Ida is fully permitted for both open pit and underground mining, and Delta is progressing downstream processing and vertical integration studies, while also benefitting from Ballard Mining’s intensive gold drilling at Mt Ida, which provides incremental lithium, tantalum and rubidium data at low cost and improves resource confidence. With a cash balance of $54 million and listed investments of around $108 million as at 31 December 2025, Delta says it is well positioned to advance Mt Ida, continue drilling at its Yinnetharra project to link and extend existing resources, and pursue further growth opportunities across its lithium portfolio.

The most recent analyst rating on (AU:DLI) stock is a Hold with a A$0.29 price target. To see the full list of analyst forecasts on Delta Lithium Limited stock, see the AU:DLI Stock Forecast page.

Delta Lithium Announces Director’s Change in Interest

Delta Lithium Limited has announced a change in the director’s interest, specifically regarding the issuance of performance rights. The company issued 1,300,000 performance rights to director James Croser under the Delta Lithium Employee Incentive Plan, following shareholder approval at the recent AGM. This change reflects the company’s ongoing efforts to align management incentives with shareholder interests.

The most recent analyst rating on (AU:DLI) stock is a Buy with a A$0.35 price target. To see the full list of analyst forecasts on Delta Lithium Limited stock, see the AU:DLI Stock Forecast page.