Desert Metals Ltd. (DM1) AI Stock Analysis

• Market Cap: AU$5.86M
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• 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: 650,753,800
• 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: 44 Neutral
• Price Target: AU$0.01 ▲(10.00% Upside)

The score is primarily held back by ongoing unprofitability and sustained cash burn despite improving results, which increases funding and execution risk. Technical indicators also point to weak momentum, while valuation is constrained by negative earnings and no dividend support.

Positive Factors

Debt-free balance sheet

A debt-free balance sheet materially lowers refinancing and solvency risk for an exploration company. It gives Desert Metals runway to fund exploration programs, negotiate farm-outs from a position of strength, and survive commodity cycles without near-term interest or covenant pressure.

Improving revenue and narrowing losses

Sustained revenue growth and narrower losses indicate operational progress and improving project economics. Over 2-6 months this trend supports better partner interest, reduces the quantum of funding needed per advancement step, and improves the chance of moving projects toward JV or sale outcomes.

Positive gross profit trend

Two years of positive gross profit point to improving underlying project-level economics and cost control. For an explorer, this suggests assays, recoveries or resource definitions are improving, which sustainably reduces per-unit cash burn and enhances asset attractiveness to partners or acquirers.

Negative Factors

Persistent negative operating and free cash flow

Consistent negative operating and free cash flow signals ongoing cash burn that cannot be covered by operations. Over time this forces reliance on external capital, increases dilution risk, and constrains the ability to execute multi-stage exploration programs without securing new financing or partners.

Structural unprofitability

A persistent net loss profile (-16% in 2025) shows costs well ahead of revenue scale. Without a clear path to sustained profitability or monetization of assets, continued losses will erode equity cushions and make long-term project advancement contingent on successful funding or asset disposals.

Reliance on external funding and asset deals

As an exploration-stage company, Desert Metals depends structurally on equity raises, farm-ins, or divestments to fund operations. This exposes the business to capital-market cycles and partner appetite; failure to secure deals can delay programs, increase dilution, or force asset write-downs.

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

Revenue is growing and losses narrowed in 2025, but the business remains unprofitable with negative net margins and persistent cash burn. The debt-free balance sheet is a key strength, yet ongoing negative operating and free cash flow indicate continued reliance on external funding until scale improves.

Income Statement

Revenue is growing off a small base (2025 revenue up ~16% YoY), and gross profit is positive in the last two years after earlier weakness. However, the business remains structurally unprofitable with sizable operating and net losses (2025 net margin roughly -16%; 2024 was far worse), indicating costs are still far ahead of the current revenue scale. Losses narrowed meaningfully versus 2024, but profitability and earnings stability remain a key weakness.

Balance Sheet

The balance sheet is conservatively financed with no debt reported across all periods, which reduces refinancing and solvency risk. Equity remains positive and sizable relative to assets, providing a cushion for an early-stage company. The main weakness is consistently negative returns on equity (improving in 2025 versus 2024), reflecting ongoing losses that can pressure the equity base over time if sustained.

Cash Flow

Cash generation is a clear weak point: operating cash flow is negative every year shown, and free cash flow is deeply negative (2025 free cash flow about -3.8m), implying continued cash burn to fund operations and investment. While free cash flow improved versus 2024 and accounting losses narrowed, cash flow still does not self-fund the business, raising execution and funding-risk sensitivity.

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 above 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 neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.58 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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	52 Neutral	AU$35.33M	-24.29	-7.48%	―	―	87.39%
SRK	46 Neutral	AU$12.20M	-4.26	-54.84%	―	―	-474.07%
DM1	44 Neutral	AU$5.86M	-1.96	-21.73%	―	―	91.79%
CR1	44 Neutral	AU$12.06M	-3.19	-213.82%	―	―	-32.39%
CAZ	43 Neutral	AU$15.10M	-2.14	-45.16%	―	―	-563.16%
SRN	37 Underperform	AU$6.04M	―	-26.26%	―	―	78.57%

Desert Metals Ltd. Corporate Events

Desert Metals Seeks ASX Quotation for Over 128 Million New Shares

Desert Metals Ltd has applied to the ASX for quotation of 128,307,692 new fully paid ordinary shares under the code DM1, with an issue date of 27 January 2026. The move increases the company’s quoted capital base and reflects the formal listing of securities previously flagged to the market, potentially enhancing liquidity for investors and providing Desert Metals with a broader platform to support future corporate and capital management initiatives.

The most recent analyst rating on (AU:DM1) stock is a Sell 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 Raises $1.25m Through Completed Share Placement

Desert Metals Limited has completed the second tranche of its previously announced capital raising, issuing 128.3 million new shares at $0.0065 each to institutional, sophisticated and existing investors, bringing total proceeds from the placement to $1.25 million before costs. As part of the transaction, the company has also granted 45 million options exercisable at $0.013 and expiring on 30 June 2027 to CPS Capital Group and its nominees as compensation for lead manager and brokerage services, with the share and option issues approved at a recent general meeting and accompanied by a cleansing notice to ensure the new securities can trade freely under Australian corporate law, providing Desert Metals with additional funding flexibility to advance its West African gold exploration portfolio.

The most recent analyst rating on (AU:DM1) stock is a Sell 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 Shareholders Back Capital-Raising Resolutions at General Meeting

Desert Metals Limited has confirmed that all resolutions put to its 21 January 2026 general meeting were passed by the required majority on a poll. Shareholders ratified a prior issue of Tranche 1 placement shares, approved the issue of Tranche 2 placement shares, and backed the issue of broker options to CPS Capital, cementing shareholder support for the company’s recent capital-raising initiatives and associated advisory arrangements, which are expected to underpin funding for its ongoing gold exploration activities in Côte d’Ivoire.

The most recent analyst rating on (AU:DM1) stock is a Sell 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 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.