Diatreme Resources Limited (DRX) AI Stock Analysis

• Market Cap: AU$87.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: N/A
• EPS Growth: -100.00%
• Country: AU
• Employees: 5
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 5,008,281,700
• 10 Day Avg. Volume: 2,234,875
• 30 Day Avg. Volume: 1,228,114
• PEG Ratio: 2.08
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 106.94
• P/FCF Ratio: -12.30
• 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: 46 Neutral
• Price Target: AU$0.02 ▼(-15.00% Downside)

The overall stock score is primarily influenced by financial performance challenges, particularly in profitability and cash flow management. Technical analysis indicates a lack of momentum, and the absence of valuation metrics further limits the stock's attractiveness.

Positive Factors

Conservative balance sheet

A strong equity base and low leverage provide durable financial flexibility for a development-stage miner. This reduces bankruptcy risk, supports multi-stage permitting and study work, and improves options to fund projects via JV, asset sales or modest debt rather than immediate heavy dilution.

Improving top-line trend

A material revenue uptick signals advancing project activity or commercial engagements. Sustained revenue growth through project de-risking supports progression to feasibility and enhances the company's ability to secure offtakes, partners or project finance over the medium term.

Clear industrial end-market focus

Targeting high-purity silica sand for glass and industrial users aligns the company with stable, structural demand. The stated monetization pathways (JV, farm-out, asset sale, offtake) allow capital-light development strategies, preserving balance sheet while accessing partner expertise and markets.

Negative Factors

Negative cash generation

Persistent negative operating and free cash flows indicate the business cannot self-fund development. Over months this raises refinancing or dilution risk, constrains exploration and permitting timelines, and increases dependence on external capital or partners to sustain project advancement.

Unprofitable operations

Ongoing negative operating margins show structural cost or scale issues typical of early-stage miners. Without a clear path to margin improvement through scale, processing or logistics gains, the company faces a prolonged timeframe to reach commercially sustainable profitability.

Volatile financial performance

Irregular revenue and inconsistent ROE undermine forecasting and make it harder to attract long-term capital or strategic partners. For a development company, this increases execution risk on permitting, financing and commercialization, potentially delaying project milestones.

Diatreme Resources Limited Business Overview & Revenue Model

Company Description

Diatreme Resources Limited engages in the exploration of heavy mineral sands, copper, gold, and base metals in Australia. The company's flagship property is the Galalar Silica Sand project located in North Queensland. Diatreme Resources Limited was incorporated in 1993 and is based in Coorparoo, Australia.

How the Company Makes Money

Diatreme Resources Limited generates revenue primarily through the exploration and potential development of its mineral projects, particularly in silica and rare earth elements. The company's revenue model is based on the sale of extracted mineral products once the projects reach production stage. Key revenue streams include the sale of silica products to industries such as glass manufacturing, construction, and other industrial applications. The company may also engage in partnerships or joint ventures with other mining firms to enhance its exploration capabilities and share development costs. Additionally, Diatreme could benefit from securing off-take agreements with buyers, ensuring a steady demand for its products once production commences.

Diatreme Resources Limited Financial Statement Overview

Summary

Diatreme Resources Limited shows revenue growth but struggles with profitability, as evidenced by negative EBIT and EBITDA margins. The balance sheet is strong with low leverage, but cash flow issues persist, with negative operating and free cash flows.

Income Statement

Diatreme Resources Limited has demonstrated volatile revenue growth, with a recent increase to $886,464 from $468,506 in 2023, indicating a significant positive trend. However, the company has consistently reported negative EBIT and EBITDA margins, reflecting operational challenges. The net profit margin has also been negative for most years, suggesting ongoing profitability issues.

Balance Sheet

The company maintains a strong equity base with a high equity ratio due to substantial stockholders' equity compared to total assets. The debt-to-equity ratio is relatively low, indicating conservative leverage. However, the return on equity has been inconsistent due to fluctuating net income, posing potential concerns regarding equity efficiency.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow, indicating cash generation challenges. The free cash flow to net income ratio is unfavorable, highlighting inefficiencies. Nevertheless, the company has managed to secure financing to support its operations, though this may not be sustainable long-term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00M	886.46K	468.51K	110.14K	23.94K	21.28K
Gross Profit	1.00M	886.46K	254.29K	-61.14K	-77.02K	-50.22K
EBITDA	-3.76M	-4.61M	10.70M	-2.94M	-1.94M	-795.89K
Net Income	45.75K	-439.53K	10.37M	4.98M	-2.15M	-1.04M
Balance Sheet
Total Assets	94.61M	95.45M	66.53M	55.33M	33.14M	25.62M
Cash, Cash Equivalents and Short-Term Investments	3.82M	5.19M	10.77M	13.64M	6.50M	5.79M
Total Debt	1.17M	1.20M	1.75M	1.54M	1.61M	1.64M
Total Liabilities	2.33M	2.51M	2.96M	2.59M	2.37M	2.40M
Stockholders Equity	92.27M	92.94M	63.57M	52.75M	30.76M	23.22M
Cash Flow
Free Cash Flow	-5.35M	-7.71M	-2.80M	-9.57M	-8.70M	-4.24M
Operating Cash Flow	-3.55M	-6.00M	-2.32M	-2.51M	-2.15M	-1.14M
Investing Cash Flow	-1.80M	1.06M	-462.49K	-6.95M	-6.57M	-2.33M
Financing Cash Flow	-139.71K	-643.79K	-86.47K	16.60M	9.43M	6.77M

Diatreme Resources Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Neutral
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DRX, the sentiment is Negative. The current price of 0.02 is below 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 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 300.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DRX.

Diatreme Resources 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%
A1G	49 Neutral	AU$472.01M	-20.36	-140.97%	―	―	―
ASM	47 Neutral	AU$470.44M	-11.59	-12.73%	―	2.00%	8.82%
ESR	46 Neutral	AU$70.58M	-29.09	-9.27%	―	―	35.29%
DRX	46 Neutral	AU$87.64M	―	-0.27%	―	―	-100.00%
FHE	44 Neutral	AU$126.58M	-6.14	-21.39%	―	―	-280.00%
EQR	43 Neutral	AU$975.70M	-11.21	-84.61%	―	149.43%	1.20%

Diatreme Resources Limited Corporate Events

Diatreme Bolsters Cash Position and JV Funding After Clermont Sale and R&D Rebate

Diatreme Resources has strengthened its financial position in the December 2025 quarter through the sale of its Clermont Copper/Gold Project to newly listed Moonlight Resources, in which it now holds a 16.76% stake. The transaction delivered $3.25 million in Moonlight shares and $250,000 in cash, while the company also received an R&D tax incentive refund of $226,894 related to its Cyclone Zircon Project and plans further claims for 2025 expenditure. Diatreme reported total cash and liquid assets of $7.7 million at 31 December 2025, including $5.4 million held within its silica project joint venture, providing additional funding runway as it advances its mineral sands and silica initiatives and continues investor engagement, including a CEO presentation at the Noosa Mining Investor Conference.

The most recent analyst rating on (AU:DRX) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on Diatreme Resources Limited stock, see the AU:DRX Stock Forecast page.

Diatreme Resources Advances Northern Silica Project with DEIS Submission

Diatreme Resources Limited has submitted the Draft Environmental Impact Statement (DEIS) for its Northern Silica Project to Queensland’s Office of the Coordinator-General. This submission marks a significant milestone in the project’s approval process, highlighting its potential to deliver economic benefits and support the clean energy transition. The DEIS, prepared after extensive investigations, outlines the project’s scope, potential impacts, and mitigation strategies, paving the way for public consultation and review in 2026. The project promises new employment and investment opportunities for the Hope Vale/Cooktown region while managing environmental and cultural impacts.

The most recent analyst rating on (AU:DRX) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Diatreme Resources Limited stock, see the AU:DRX Stock Forecast page.

Diatreme Resources’ Stake in Moonlight Resources Debuts on ASX

Diatreme Resources Limited announced that Moonlight Resources Ltd, where it holds a 16.8% stake, has been listed on the Australian Securities Exchange. This follows Moonlight’s acquisition of Chalcophile Resources Pty Ltd and PGE Minerals Pty Ltd, which own the Clermont Gold Project. Moonlight has commenced drilling at the project, aiming for a Mineral Resource Estimate with results expected in Q1 2026. The IPO raised A$10 million, with Diatreme receiving shares and cash, and retaining the right to appoint a director to Moonlight’s board.

The most recent analyst rating on (AU:DRX) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Diatreme Resources Limited stock, see the AU:DRX Stock Forecast page.

Diatreme Resources Finalizes Sale of Clermont Gold Project

Diatreme Resources Limited has completed the sale of its Clermont Gold Project to Moonlight Resources Limited, receiving $3.25 million in Moonlight shares and $250,000 in cash. This transaction makes Diatreme a significant shareholder in Moonlight, with the right to appoint a director to Moonlight’s board, and it aligns with Moonlight’s upcoming IPO and ASX listing.

The most recent analyst rating on (AU:DRX) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Diatreme Resources Limited stock, see the AU:DRX Stock Forecast page.

Diatreme Resources Maintains Steady Production Targets Amidst Global Silica Demand

Diatreme Resources Limited announced that their resource estimates and production targets remain unchanged as of June 2025, with no new information affecting previous announcements. The company emphasizes the importance of securing project development finance and attracting financial partners to meet production targets, highlighting the ongoing demand for high purity silica sand in the market.

Diatreme Resources Director Acquires Significant Shareholding

Diatreme Resources Limited announced a change in the director’s interest, with Karalyn Keys acquiring 2,546,253 ordinary shares through an on-market trade. This acquisition reflects a significant investment in the company, potentially indicating confidence in its future prospects and impacting its market positioning.