Desert Metals Ltd. (DM1) AI Stock Analysis

• Market Cap: AU$5.22M
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: N/A
• EPS Growth: 91.79%
• Country: AU
• Employees: N/A
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 522,446,100
• 10 Day Avg. Volume: 416,670
• 30 Day Avg. Volume: 1,500,707
• PEG Ratio: 0.04
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 58.34
• P/FCF Ratio: -1.55
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: AU$0.01 ▲(0.00% Upside)

The score is primarily constrained by weak financial performance: ongoing losses and continued cash burn outweigh improving year-over-year results. A debt-free balance sheet helps reduce financial risk, but valuation is hindered by negative earnings and technical signals cannot be assessed due to missing indicator data.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and enhances flexibility, allowing the company to focus on exploration without the burden of interest payments.

Promising Gold Discoveries

The discovery of high-grade gold at the Adzope project enhances Desert Metals' asset base and potential future revenue, strengthening its position in the gold exploration sector.

Successful AGM Resolutions

Passing all AGM resolutions supports strategic initiatives and governance, potentially boosting stakeholder confidence and aligning management with shareholder interests.

Negative Factors

Ongoing Cash Burn

Persistent negative cash flow indicates reliance on external funding, which could strain resources and limit operational flexibility if not addressed.

Unprofitability

Continued unprofitability suggests challenges in scaling operations to cover costs, which may hinder long-term sustainability and growth prospects.

Capital Raising Trading Halt

The need for capital raising indicates potential liquidity constraints, highlighting reliance on external funding to sustain operations and exploration activities.

Desert Metals Ltd. Business Overview & Revenue Model

Company Description

Desert 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 Money

Desert 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

Desert Metals Ltd. is facing a challenging financial situation with significant net losses and negative cash flows. Despite revenue growth and a strong equity base with no debt, the company struggles with profitability and operational efficiency, relying heavily on external funding.

Income Statement

Desert Metals Ltd. has shown a significant increase in total revenue from 2023 to 2024. However, the company continues to face significant net losses, leading to a negative net profit margin. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies.

Balance Sheet

The company has no debt, which is a positive aspect for financial stability. However, the return on equity is negative due to ongoing net losses. The equity ratio is high, reflecting a strong equity base relative to total assets.

Cash Flow

The operating cash flow is negative, indicating challenges in generating cash from core operations. Free cash flow is also negative but has shown slight improvement. The company relies heavily on external financing for cash flow needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	100.42K	100.42K	47.68K	22.63K	8.18K	0.00
Gross Profit	100.42K	100.42K	47.68K	-2.12K	-23.10K	-9.00K
EBITDA	-1.50M	-1.50M	-9.82M	-681.63K	-535.98K	-1.19M
Net Income	-1.59M	-1.59M	-9.84M	-706.37K	-567.26K	-1.20M
Balance Sheet
Total Assets	8.50M	8.50M	6.78M	9.48M	7.69M	5.72M
Cash, Cash Equivalents and Short-Term Investments	1.92M	1.92M	2.67M	1.97M	3.01M	3.71M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	331.00K	331.00K	377.00K	282.50K	184.42K	274.33K
Stockholders Equity	8.27M	8.27M	6.40M	9.20M	7.50M	5.45M
Cash Flow
Free Cash Flow	-3.78M	-3.78M	-3.13M	-3.42M	-3.23M	-2.17M
Operating Cash Flow	-1.23M	-1.23M	-1.40M	-604.76K	-486.41K	-478.57K
Investing Cash Flow	-2.52M	-2.52M	-1.39M	-2.82M	-2.75M	-1.70M
Financing Cash Flow	3.01M	3.01M	3.48M	2.38M	2.54M	5.59M

Desert Metals Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.58 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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

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%
BMG	53 Neutral	AU$28.90M	-20.00	-7.48%	―	―	87.39%
SRK	46 Neutral	AU$10.78M	-3.96	-54.84%	―	―	-474.07%
DM1	45 Neutral	AU$5.22M	-1.96	-21.73%	―	―	91.79%
CAZ	43 Neutral	AU$18.58M	-2.46	-45.16%	―	―	-563.16%
CR1	42 Neutral	AU$14.87M	-3.40	-213.82%	―	―	-32.39%
SRN	37 Underperform	AU$8.05M	―	-26.26%	―	―	78.57%

Desert Metals Ltd. Corporate Events

Desert Metals Director’s Options Lapse After December Expiry

Desert Metals Limited has reported a change in director Patrick Flint’s interests in the company’s securities, following the expiry of 250,000 listed options exercisable at $0.06 on 31 December 2025. As a result of the option expiry, Flint’s holdings now comprise 4.5 million performance rights and 5.15 million ordinary fully paid shares, with no remaining listed options, and the company confirmed that no trading occurred during a closed period, indicating this was a routine administrative adjustment rather than a discretionary market transaction.

The most recent analyst rating on (AU:DM1) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Desert Metals Ltd. stock, see the AU:DM1 Stock Forecast page.

Desert Metals Options Expire, Removing 57.7 Million Potential Shares

Desert Metals Limited has notified the ASX that 57,692,308 securities with the code DM1O have ceased following the expiry of options or other convertible securities that were not exercised or converted. The cessation reduces the company’s pool of potential future equity arising from these instruments, simplifying its capital structure and potentially affecting dilution expectations for existing shareholders.

The most recent analyst rating on (AU:DM1) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Desert Metals Ltd. stock, see the AU:DM1 Stock Forecast page.

Desert Metals Moves to Digital Communications as It Convenes January General Meeting

Desert Metals Ltd has called a general meeting of shareholders to be held in person on 21 January 2026 in Mount Hawthorn, Western Australia, and will make the notice of meeting and related materials available online rather than posting hard copies, except where shareholders have specifically requested physical documents. The company is also formalising its shift toward electronic shareholder communications in line with recent legislative changes, encouraging investors to provide email addresses to receive faster, more secure, and environmentally friendly communications, while still allowing shareholders to elect their preferred format through the registry’s online portal.

Desert Metals Limited Announces Trading Halt for Capital Raising

Desert Metals Limited has requested a trading halt on its securities pending an announcement regarding a capital raising. The halt is expected to last until the commencement of trading on 8 December 2025 or until the announcement is made. This move indicates a strategic financial maneuver that could potentially impact the company’s operations and market positioning.

Desert Metals Ltd. Announces Expiry of Listed Options

Desert Metals Ltd. announced the upcoming expiration of 57,692,308 quoted options, exercisable at $0.06, on 31 December 2025. The options are currently out of the money, with the company’s shares trading at $0.0085, significantly below the exercise price. The expiration of these options could impact the company’s capital structure and shareholder value, particularly if the market price does not increase significantly before the expiry date.

Desert Metals Successfully Passes All AGM Resolutions

Desert Metals Limited announced that all resolutions at its annual general meeting were passed with the requisite majority, including a special resolution. This outcome supports the company’s strategic initiatives and governance, potentially strengthening its market position and stakeholder confidence.

Desert Metals Unveils Promising Gold Discoveries at Adzope Project

Desert Metals Ltd. has announced the completion of a successful diamond drilling program at the King Kong prospect within the Adzope gold project in southern Côte d’Ivoire. The drilling revealed multiple high-grade gold intercepts, confirming the potential for a significant gold system over a 1.2km strike length. The company plans further exploration activities, including advanced geophysical surveys and additional drilling, to expand the understanding of the mineralized zones. This development enhances Desert Metals’ position in the gold exploration sector and could have positive implications for stakeholders as the company continues to delineate valuable resources.

Desert Metals Ltd. Announces Upcoming AGM and Push for Paperless Communication

Desert Metals Ltd. has announced its Annual General Meeting scheduled for November 25, 2025, at their office in Mount Hawthorn, Western Australia. The company is encouraging shareholders to adopt electronic communications to reduce paper usage and improve efficiency, aligning with recent legislative changes that allow shareholders to choose their preferred method of receiving company documents. This move is expected to enhance shareholder engagement and streamline communication processes.