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Diatreme Resources Limited (AU:DRX)
ASX:DRX
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Diatreme Resources Limited (DRX) AI Stock Analysis

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AU:DRX

Diatreme Resources Limited

(Sydney:DRX)

Rating:45Neutral
Price Target:
AU$0.00
▼(-100.00% Downside)
The most significant factor affecting Diatreme Resources Limited's stock score is its financial performance, which is hindered by profitability and cash flow issues despite revenue growth and a strong balance sheet. Technical indicators provide mixed signals, and the negative P/E ratio significantly impacts the valuation score.

Diatreme Resources Limited (DRX) vs. iShares MSCI Australia ETF (EWA)

Diatreme Resources Limited Business Overview & Revenue Model

Company DescriptionDiatreme 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 MoneyDiatreme Resources Limited generates revenue primarily through the exploration, extraction, and sale of mineral sands, such as zircon and silica. The company's key revenue streams include the sale of extracted minerals to industrial and manufacturing clients, who use these materials in various applications such as ceramics, glass production, and electronics. Diatreme's earnings are also influenced by strategic partnerships and joint ventures with other mining companies and investors, helping to fund project development and expand their operational capabilities. Additionally, fluctuations in global commodity prices and demand for industrial minerals significantly impact the company's revenue.

Diatreme Resources Limited Financial Statement Overview

Summary
Diatreme Resources Limited shows growth in revenue but struggles with profitability as indicated by negative EBIT and EBITDA margins. A strong balance sheet with low leverage is a positive, but cash flow issues pose significant challenges.
Income Statement
45
Neutral
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
60
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue886.46K468.51K110.14K23.94K21.28K
Gross Profit886.46K254.29K-61.14K-77.02K-50.22K
EBITDA-4.61M10.70M-2.94M-1.94M-795.89K
Net Income-439.53K10.37M4.98M-2.15M-1.04M
Balance Sheet
Total Assets95.45M66.53M55.33M33.14M25.62M
Cash, Cash Equivalents and Short-Term Investments5.19M10.77M13.64M6.50M5.79M
Total Debt1.20M1.75M1.54M1.61M1.64M
Total Liabilities2.51M2.96M2.59M2.37M2.40M
Stockholders Equity92.94M63.57M52.75M30.76M23.22M
Cash Flow
Free Cash Flow-7.71M-2.80M-9.57M-8.70M-4.24M
Operating Cash Flow-6.00M-2.32M-2.51M-2.15M-1.14M
Investing Cash Flow1.06M-462.49K-6.95M-6.57M-2.33M
Financing Cash Flow-643.79K-86.47K16.60M9.43M6.77M

Diatreme Resources Limited 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
33.98
Neutral
STOCH
66.67
Neutral
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 Negative momentum. The RSI at 33.98 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
C$4.11B-0.36-1.17%6.55%5.54%-67.49%
45
Neutral
AU$105.17M6.07-0.45%-103.57%
€61.97M-77.61%
55
Neutral
AU$105.59M-21.82%-525.27%
47
Neutral
AU$121.83M-15.33%-52.53%-27.29%
44
Neutral
AU$102.31M-141.59%562.03%-336.00%
37
Underperform
AU$80.19M-13.69%-100.00%-88.89%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DRX
Diatreme Resources Limited
0.02
0.00
0.00%
DE:8XJ
African Gold Ltd.
0.11
0.10
1000.00%
AU:EQR
EQ Resources Limited
0.03
-0.01
-25.00%
AU:ASM
Australian Strategic Materials Ltd
0.56
0.04
7.69%
AU:FHE
Frontier Energy Limited
0.20
-0.21
-51.22%
AU:ESR
Estrella Resources Limited
0.04
0.03
300.00%

Diatreme Resources Limited Corporate Events

Diatreme Resources Expands Silica Sand Holdings and Strengthens Financial Position
Jul 30, 2025

Diatreme Resources Limited held its Annual General Meeting in May 2025, where all resolutions were passed, highlighting significant corporate developments including the expansion of silica sand resources and the acquisition of Metallica Minerals Limited. The company also extended a $1 million debt facility and reported a robust cash position of $15.1 million as of June 2025, reflecting its strong financial health and operational progress.

Diatreme Resources and Gulaal People Sign Negotiation Protocol for Northern Silica Project
Jul 29, 2025

Diatreme Resources Limited has signed a negotiation protocol with the Gulaal People, establishing a framework for future negotiations regarding the Northern Silica Project (NSP). This agreement aims to maximize benefits for the Gulaal People, including economic, employment, and cultural preservation opportunities, while facilitating the project’s timely progress. The protocol signifies Diatreme’s commitment to building a strong, positive relationship with the Gulaal People and ensuring that the NSP contributes to their growth and development.

Diatreme Resources Maintains Steady Course Amid Market Challenges
Jul 23, 2025

Diatreme Resources Limited has confirmed that its resource estimates and production targets remain unchanged, with no new information affecting previous announcements. Despite the current silica price and market capitalization challenges, the company remains focused on the economic development of its projects, relying on detailed pre-feasibility studies and the potential for securing project finance and partners.

Diatreme Resources Boosts Silica Project with Major Resource Upgrade
Jun 23, 2025

Diatreme Resources Limited has announced a significant upgrade to its Mineral Resource Estimate for the Si2 Deposit in the Northern Silica Project, with a 278% increase in Measured Mineral Resource to 187.5Mt. This upgrade enhances the company’s geological confidence and supports its plans for a 25-year mining operation, positioning Diatreme as a key player in the photovoltaic silica market.

Diatreme’s Northern Silica Project Gains Major Project Status in Queensland
Jun 17, 2025

Diatreme Resources Limited’s Northern Silica Project (NSP) has been awarded Major Project Status by the Australian Government, marking it as the first project in Queensland to receive this designation. This status provides Diatreme with enhanced support for federal approvals and aligns with Australia’s Critical Minerals Strategy, highlighting the project’s potential for regional economic growth and its strategic importance in the clean energy sector. The NSP is expected to significantly contribute to the local economy, providing over 120 direct jobs and supporting regional infrastructure development, while also advancing through its final permitting and development phases.

Diatreme Resources Extends Debt Facility to Support Silica Sand Projects
May 29, 2025

Diatreme Resources Limited has announced the extension of its $1.0 million debt facility for an additional 12 months, now maturing on 30 May 2026. This extension, which maintains a 7.5% interest rate, is crucial for protecting shareholder value and supporting the development of Diatreme’s silica sand projects in Queensland. The extension reflects ongoing support from lender Ms. Jie Wu and reinforces Diatreme’s strategic positioning in the silica sand industry, with potential implications for stakeholders in terms of project development and financial stability.

Diatreme Resources Expands Silica Sands Dominance with Strategic Acquisition
May 22, 2025

Diatreme Resources Limited has strengthened its position as Australia’s leading silica sands miner through the successful acquisition of Metallica Minerals Limited, expanding its resource base to 463 million tonnes. The company is advancing its Northern Silica Project with regulatory approvals and has secured international partnerships, positioning itself to meet the growing demand from the global solar industry.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 02, 2025