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DMC Mining Ltd. (AU:DMM)
ASX:DMM
Australian Market

DMC Mining Ltd. (DMM) AI Stock Analysis

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AU

DMC Mining Ltd.

(Sydney:DMM)

Rating:31Underperform
Price Target:
DMC Mining Ltd. faces significant financial hurdles with no revenue, negative margins, and a weak balance sheet. Technical analysis shows no positive trend and suggests potential overvaluation. The negative P/E ratio highlights profitability issues, resulting in a low overall stock score.

DMC Mining Ltd. (DMM) vs. iShares MSCI Australia ETF (EWA)

DMC Mining Ltd. Business Overview & Revenue Model

Company DescriptionDMC Mining Ltd. (DMM) is a mining company that focuses on the exploration, development, and production of mineral resources. The company primarily operates in the mining sector, with a core emphasis on extracting and supplying essential minerals used in various industrial applications. DMC Mining Ltd. is committed to sustainable mining practices and strives to maintain a balance between resource development and environmental stewardship.
How the Company Makes MoneyDMC Mining Ltd. generates revenue through the extraction and sale of mineral resources. The company explores and develops mining sites to access valuable minerals, which are then extracted, processed, and sold to industries requiring raw materials. Key revenue streams include the sale of minerals such as iron ore, copper, and other metals essential for manufacturing and construction. Significant partnerships with industrial clients and supply chain agreements also contribute to the company's earnings by ensuring a steady demand for its products. Additionally, strategic investments in technology and efficient mining practices help optimize production costs and maximize profitability.

DMC Mining Ltd. Financial Statement Overview

Summary
DMC Mining Ltd. faces significant financial challenges with no revenue generation, negative margins, and negative equity, indicating potential solvency issues. The persistent cash flow deficits emphasize liquidity constraints, raising concerns about the company's ability to sustain operations without substantial changes or additional financing.
Income Statement
20
Very Negative
DMC Mining Ltd. has consistently reported zero revenue over the past two years, indicating challenges in revenue generation. The negative EBIT and net income margins reflect continued unprofitability, with EBIT margins at -100% due to zero revenue, signaling operational inefficiencies. The company has experienced declining financial performance with significant net losses, impacting its overall profitability.
Balance Sheet
15
Very Negative
The balance sheet shows negative stockholders' equity, indicating financial distress and potential solvency issues. Despite having no debt, the equity ratio is negative, reflecting a significant decrease in total assets and equity. The absence of liabilities provides some stability, but the negative equity poses a substantial risk to financial stability and future operations.
Cash Flow
25
Negative
The company exhibits significant negative operating cash flows, with free cash flow also consistently negative, highlighting cash flow management challenges. The lack of positive cash flow growth and reliance on financing activities for cash inflows suggest liquidity issues. The operating cash flow to net income ratio is unfavorable, indicating operational inefficiencies.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021
Income StatementTotal Revenue
0.000.000.00141.79K0.00
Gross Profit
0.000.000.00141.79K0.00
EBIT
-674.80K-1.25M-735.66K-550.16K-60.59K
EBITDA
-674.16K-1.25M-2.13M-550.16K-103.44K
Net Income Common Stockholders
-756.38K-2.79M-2.11M-549.82K-164.03K
Balance SheetCash, Cash Equivalents and Short-Term Investments
32.61K79.21K1.65M3.84M361.79K
Total Assets
91.11K136.45K2.68M4.91M367.87K
Total Debt
500.00K0.000.000.000.00
Net Debt
467.39K-79.21K-1.65M-3.84M-360.54K
Total Liabilities
1.55M495.64K89.52K201.00K2.21K
Stockholders Equity
-1.46M-359.19K2.59M4.70M365.66K
Cash FlowFree Cash Flow
-428.72K-1.41M-2.18M-1.04M-179.39K
Operating Cash Flow
-428.72K-1.41M-2.18M-953.77K-179.39K
Investing Cash Flow
-10.22K0.000.00-82.51K0.00
Financing Cash Flow
392.35K-166.28K0.004.51M1.26M

DMC Mining Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.06
Price Trends
50DMA
0.06
Negative
100DMA
0.06
Positive
200DMA
0.06
Negative
Market Momentum
MACD
>-0.01
Neutral
RSI
100.00
Negative
STOCH
80.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DMM, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DMM.

DMC Mining Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUBHP
77
Outperform
$194.61B11.2626.20%5.01%-2.47%57.01%
AUFMG
76
Outperform
$47.73B8.0720.21%8.73%-11.33%-32.11%
AURIO
75
Outperform
$162.60B10.8421.04%7.54%-0.10%15.50%
AUMIN
60
Neutral
$4.66B50.78-33.95%4.54%2.22%-411.10%
AUS32
54
Neutral
£13.63B60.36-3.53%3.52%-19.74%
50
Neutral
$1.99B-1.06-21.34%3.71%2.03%-30.65%
AUDMM
31
Underperform
-912.15%-44.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DMM
DMC Mining Ltd.
0.06
0.00
0.00%
AU:BHP
BHP Group Ltd
38.35
-4.65
-10.82%
AU:S32
South32
3.03
-0.74
-19.52%
AU:MIN
Mineral Resources Limited
23.87
-51.23
-68.22%
AU:FMG
Fortescue Metals Group Ltd
15.51
-8.97
-36.63%
AU:RIO
Rio Tinto Limited
117.00
-7.75
-6.21%

DMC Mining Ltd. Corporate Events

DMC Mining Ltd. Reports Quarterly Cash Flow with Positive Financing Inflow
Apr 30, 2025

DMC Mining Ltd. released its quarterly cash flow report, showing a net cash outflow from operating activities of $56,000 and a net cash inflow from financing activities of $99,000. The company’s cash and cash equivalents increased to $73,000 by the end of the quarter, indicating a positive cash position despite the operating losses. This financial update suggests that DMC Mining is managing its cash flow effectively, which could support its ongoing exploration and development efforts.

DMC Mining Ltd. Faces Delays in Guinea Project Acquisitions
Apr 30, 2025

DMC Mining Ltd. has announced its progress in acquiring the Firawa Uranium-Rare Earth Element-Nb project and the Labé Uranium project in Guinea. The company has faced delays in obtaining exploration licenses due to a temporary closure of the cadastral system, impacting its ability to satisfy conditions for readmission to the ASX Official List. Despite these challenges, DMC Mining remains optimistic about the issuance of the licenses and has extended the public offer closing date to accommodate these delays.

DMC Mining Ltd. Releases Half-Year Financial Report
Mar 14, 2025

DMC Mining Ltd. has released its half-year financial report for the period ending December 31, 2024. The report highlights the company’s financial performance and operational activities, providing insights into its strategic direction and market positioning. The release of this report is significant for stakeholders as it reflects the company’s ongoing efforts to maintain transparency and align with regulatory requirements.

DMC Mining Ltd. Issues Supplementary Prospectus Amid Management Reshuffle
Feb 13, 2025

DMC Mining Ltd. has issued a Second Supplementary Prospectus to update stakeholders on its ongoing public offer and acquisition conditions. The company is facing delays in securing exploration permits for its Guinean projects, which are crucial for the completion of the proposed acquisitions and the public offer. The conditions for admission to quotation and minimum subscription have been extended, allowing existing applicants the option to withdraw their applications. Additionally, the company announced significant changes to its board and senior management, with the resignation of key personnel and new appointments, aiming to strengthen its leadership and expedite its re-listing efforts on the ASX.

DMC Mining Secures Shareholder Approval for Strategic Initiatives
Feb 10, 2025

DMC Mining Limited announced that all resolutions proposed at their General Meeting of Shareholders were approved by the required majority through a poll. This successful outcome indicates strong shareholder support for the company’s strategic initiatives, potentially enhancing its operational capabilities and strengthening its position in the critical metals exploration industry.

DMC Mining Extends Public Offer Amid Licensing Delays
Feb 7, 2025

DMC Mining Limited has announced an update regarding its public offer of shares, initially outlined in its 2024 prospectus. Due to delays in the granting of exploration licenses for its Firawa and Labé projects in Guinea, the company has extended the closing date for the public offer to May 8, 2025. This extension aims to accommodate the licensing delays and ensure compliance with required conditions. The company plans to lodge a second supplementary prospectus to extend deadlines for quotation and minimum subscription conditions, which could impact the company’s future operations and market positioning.

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.