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Desert Metals Ltd. (AU:DM1)
ASX:DM1
Australian Market

Desert Metals Ltd. (DM1) AI Stock Analysis

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AU

Desert Metals Ltd.

(Sydney:DM1)

Rating:37Underperform
Price Target:
Desert Metals Ltd. faces significant financial challenges with ongoing losses and reliance on external financing. The technical indicators show bearish trends, and the negative P/E ratio suggests valuation concerns. The combination of these factors results in a low overall stock score.

Desert Metals Ltd. (DM1) vs. iShares MSCI Australia ETF (EWA)

Desert Metals Ltd. Business Overview & Revenue Model

Company DescriptionDesert Metals Limited explores for mineral properties in Australia. The company primarily explores for nickel, copper, gold, lead, zinc, chrome, rare earth elements, and platinum group elements. It holds interest in the Narryer project that includes nine granted exploration licenses covering an area of approximately 1,600 square kilometers located on the northwest margin of the Yilgarn Craton in Western Australia; a 100% interest in Innouendy project; Irrida Hill Nickel project; Dingo Pass; Opal Bore Gold project; Hooper project; and Belele project. The company was incorporated in 2017 and is based in Perth, Australia.
How the Company Makes MoneyDesert Metals Ltd. generates revenue through the exploration and development of mineral resources, which involves identifying and acquiring mineral-rich land areas. Once a viable resource is confirmed, the company may either develop the site into a mining operation or sell exploration rights to larger mining companies. Additional revenue streams include partnering with other mining firms or investors for joint ventures, where costs and profits are shared. The company may also earn income from royalties or licensing fees if its exploration projects are successfully commercialized by third parties. Key factors influencing earnings include commodity prices, exploration success rates, and strategic partnerships with other entities in the mining sector.

Desert Metals Ltd. Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
47.68K22.63K8.18K0.000.00
Gross Profit
47.68K-2.12K-23.10K-9.00K-435.00
EBIT
-1.27M-879.65K-727.59K-1.17M-44.26K
EBITDA
-1.27M-553.77K-443.44K-1.07M-42.48K
Net Income Common Stockholders
-9.84M-706.37K-567.26K-1.20M-44.26K
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.67M1.97M3.01M3.71M5.74M
Total Assets
6.78M9.48M7.69M5.72M5.75M
Total Debt
0.000.000.000.000.00
Net Debt
-2.67M-1.97M-3.01M-3.71M-5.74M
Total Liabilities
377.00K282.50K184.42K274.33K187.56K
Stockholders Equity
6.40M9.20M7.50M5.45M5.56M
Cash FlowFree Cash Flow
-3.13M-3.42M-3.23M-2.17M-67.06K
Operating Cash Flow
-1.40M-604.76K-486.41K-478.57K-33.56K
Investing Cash Flow
-1.39M-2.82M-2.75M-1.70M-33.50K
Financing Cash Flow
3.48M2.38M2.54M5.59M250.00K

Desert Metals Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.02
Price Trends
50DMA
0.02
Negative
100DMA
0.02
Negative
200DMA
0.02
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
36.66
Neutral
STOCH
61.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DM1, the sentiment is Negative. The current price of 0.02 is equal to the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.66 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DM1.

Desert Metals Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$2.02B-1.19-21.37%3.64%2.88%-30.57%
AUDM1
37
Underperform
AU$9.73M-137.14%-417.70%
$126.34B10.8126.20%5.16%
$2.07B1,408.33-36.53%6.27%
$100.60B9.9121.04%8.19%
$3.50B40.215.11%
AUWDS
74
Outperform
AU$43.51B8.0310.07%8.15%0.71%120.95%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DM1
Desert Metals Ltd.
0.02
0.00
0.00%
BHPLF
BHP Group Ltd
25.30
-3.12
-10.98%
IPGDF
IGO
2.75
-1.63
-37.21%
RTNTF
Rio Tinto Limited
71.13
-7.02
-8.98%
SFRRF
Sandfire Resources Limited
7.66
1.78
30.27%
AU:WDS
Woodside Energy Group
23.09
-2.07
-8.23%

Desert Metals Ltd. Corporate Events

Desert Metals Advances Gold Exploration in Côte d’Ivoire
Apr 29, 2025

Desert Metals Ltd. has initiated an extensive drilling program at its Tengrela South gold permit in northern Côte d’Ivoire, aiming to explore previously untested gold anomalies. The company is also conducting a geophysical survey and auger drilling at the Adzope project, with diamond drilling scheduled to commence in May 2025. These efforts are part of Desert Metals’ strategy to concentrate on its most promising projects, having divested from other joint ventures. Additionally, the company has raised $3.25 million through a placement to accelerate exploration activities, indicating a strong commitment to advancing its gold projects in the region.

Desert Metals Director Increases Shareholding
Apr 16, 2025

Desert Metals Ltd. announced a change in the director’s interest, specifically for Patrick Flint, who acquired 750,000 ordinary fully paid shares. This acquisition followed shareholder approval and increased Flint’s total holdings to 5,150,000 shares, reflecting a strategic move that could strengthen his influence within the company.

Desert Metals Ltd. Issues Unlisted Options to Bolster Growth
Apr 16, 2025

Desert Metals Ltd. has announced the issuance of 26,500,000 unlisted options, exercisable at $0.035 and expiring on April 16, 2028. This move is part of previously announced transactions and is not intended to be quoted on the ASX, potentially impacting the company’s capital structure and providing strategic flexibility for future growth initiatives.

Desert Metals Ltd. Announces Quotation of New Securities on ASX
Apr 16, 2025

Desert Metals Ltd. has announced the quotation of 108,271,783 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of April 16, 2025. This move is part of previously announced transactions, potentially impacting the company’s liquidity and market presence by increasing its available securities for trading.

Desert Metals Completes $3.25 Million Placement to Advance Gold Projects
Apr 16, 2025

Desert Metals Limited has completed the second tranche of its placement, raising a total of $3.25 million before costs. This includes the allotment of over 108 million shares and the issuance of 26.5 million options to CPS Capital Group for their role as Lead Manager and Broker. The funds raised will support the company’s ongoing exploration activities, including drilling services at the King Kong prospect in Côte d’Ivoire. This strategic financial move is expected to bolster Desert Metals’ operations and strengthen its position in the gold exploration industry.

Desert Metals Ltd. Secures Shareholder Approval for Key Resolutions
Apr 8, 2025

Desert Metals Ltd. announced that all resolutions presented at their recent general meeting were passed with the required majority. This includes the ratification and approval of various share placements and options, which could enhance the company’s capital structure and support its ongoing projects in West Africa. The successful passing of these resolutions indicates strong shareholder support and positions the company for potential growth in its gold exploration ventures.

Desert Metals Advances Gold Exploration in Côte d’Ivoire
Mar 26, 2025

Desert Metals Ltd. has initiated an 86-hole aircore drilling program at the Tengrela South gold project in northern Côte d’Ivoire, aiming to explore untested gold anomalies at the Kakologo and Tiogo prospects. Concurrently, the company is advancing its exploration efforts at the Adzope gold project, with a focus on the King Kong prospect, where significant progress has been made in identifying drill targets. These initiatives are expected to enhance Desert Metals’ positioning in the gold mining sector, with results anticipated in the coming months.

Desert Metals Ltd. Releases Interim Financial Report for 2024
Mar 13, 2025

Desert Metals Ltd. has released its interim financial report for the half year ending 31 December 2024. The report provides insights into the company’s financial performance and operational updates during this period, which are crucial for stakeholders to assess the company’s market positioning and future prospects.

Desert Metals Completes Tranche 1 Placement, Plans for Tranche 2
Feb 27, 2025

Desert Metals Limited has successfully completed Tranche 1 of its share placement, raising $1,138,700 through the issuance of 58,394,884 ordinary shares to institutional, sophisticated, and existing investors. This move strengthens the company’s financial position and supports its ongoing exploration activities. A shareholder meeting is planned for April 2025 to approve Tranche 2, which aims to raise an additional $2,111,300. The completion of these placements is expected to enhance Desert Metals’ operational capabilities and market presence.

Desert Metals Advances Gold Exploration in Côte d’Ivoire
Feb 19, 2025

Desert Metals Ltd. has released a presentation regarding its ongoing gold exploration activities in Côte d’Ivoire as of February 2025. The announcement highlights the strategic importance of their exploration efforts, positioning the company to potentially enhance its market position within the mining sector. Stakeholders are advised of the inherent risks and uncertainties associated with such exploratory ventures, and the company emphasizes the need for independent evaluation of investment opportunities.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.