Diatreme Resources Limited (DRX) AI Stock Analysis

• Market Cap: AU$90.15M
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• 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 ▼(-10.00% 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

Balance Sheet Strength

Conservative leverage and a high equity ratio provide durable financial flexibility for a junior explorer. This reduces refinancing and solvency risk during prolonged project development cycles, supporting ability to fund exploration or secure partner joint ventures over months.

Improving Revenue Trend

Material year-over-year revenue growth signals early commercial traction, validating project-market fit for silica products. Sustained top-line improvement can underpin scale-up, justify additional investment, and help transition toward positive cash generation if sustained over subsequent quarters.

Focused Asset Strategy

A clear flagship (Clermont Silica) and concentration on silica/rare earths gives strategic focus. Targeting established industrial end-markets (glass, construction) improves off-take and commercialization prospects, enabling durable pathway from exploration to revenue if project milestones are met.

Negative Factors

Negative Cash Flow

Persistent negative operating and free cash flows create structural funding pressure for a development-focused miner. Continued cash burn raises reliance on external financing, increasing dilution and execution risk, and may constrain sustained project development absent stronger cash generation.

Sustained Profitability Deficit

Ongoing negative EBIT/EBITDA margins indicate that operations are not yet economically self-sustaining. Without clear margin improvement through cost control, scale or higher-margin product mix, the company risks prolonged losses that impair return on invested capital and investor support.

Limited Operational Scale

A very small headcount constrains internal execution capacity for exploration, permitting and project development. Reliance on contractors or partners increases coordination risk and may slow project delivery, making timely advancement to production and revenue scaling more uncertain.

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 200.00 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	51 Neutral	AU$353.53M	-16.37	-140.97%	―	―	―
ESR	46 Neutral	AU$79.40M	-35.45	-9.27%	―	―	35.29%
DRX	46 Neutral	AU$90.15M	―	-0.27%	―	―	-100.00%
EQR	44 Neutral	AU$490.17M	-6.67	-84.61%	―	149.43%	1.20%
FHE	44 Neutral	AU$125.71M	-6.58	-21.39%	―	―	-280.00%
ASM	43 Neutral	AU$201.04M	-5.46	-12.73%	―	2.00%	8.82%

Diatreme Resources Limited Corporate Events

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.

Diatreme Resources Announces Director’s Share Disposal

Diatreme Resources Limited announced a change in the director’s interest, specifically involving the disposal of 2,819,640 ordinary shares held indirectly by the director through a family member. This transaction, valued at $53,573, reflects a shift in the director’s investment position but does not alter the director’s holdings of unquoted options, which remain unchanged. The announcement may influence stakeholders’ perceptions of the company’s internal governance and director confidence.

Diatreme Resources Announces Shareholder Priority Offer in Moonlight IPO

Diatreme Resources Limited announced a corrected header for their shareholders’ priority offer in the Moonlight Resources IPO Prospectus. The offer, fully underwritten at $3.0 million, allows DRX shareholders to purchase Moonlight shares at $0.20 each, with an additional free option for every two shares acquired. This move follows Diatreme’s agreement to sell its shares in Chalcophile Resources Pty Ltd and PGE Minerals Pty Limited to Moonlight, receiving 16,250,000 Moonlight shares and $250,000 in cash. This transaction is expected to enhance Diatreme’s financial position and provide its shareholders with strategic investment opportunities.

Diatreme Sells Clermont Project to Focus on Silica Assets

Diatreme Resources Ltd has entered into a Share Sale Agreement with Moonlight Resources Limited to sell all outstanding shares in its subsidiaries, Chalcophile Resources Pty Ltd and PGE Minerals Pty Limited, which own the Clermont Project. As part of the transaction, Diatreme will receive 16,250,000 ordinary shares in Moonlight valued at $3,250,000 and a cash payment of A$250,000. Additionally, Diatreme shareholders are offered a priority share offer in Moonlight’s IPO, with incentives for participation. This move allows Diatreme to focus on its core silica assets while retaining an interest in the future development of the Clermont Project.

Lithium Plus Expands Gold Exposure Through Moonlight Resources Acquisition

Lithium Plus Minerals Ltd, a company focused on advancing its lithium portfolio and the Lei Development Project, announced that its 33.5% owned entity, Moonlight Resources Limited, has entered into a Share Sale Agreement with Diatreme Resources Ltd to acquire Chalcophile Resources Pty Ltd and PGE Minerals Pty Limited, which own the Clermont Gold Project. This acquisition provides Lithium Plus shareholders with exposure to gold assets while maintaining the company’s focus on lithium. Moonlight is offering a fully underwritten Priority Offer to Lithium Plus shareholders, allowing them to purchase shares at a discounted price with additional options, enhancing shareholder value and positioning Moonlight for future growth.

Diatreme Resources Advances Silica Project Amid Financial Improvements

Diatreme Resources Limited announced significant progress in its Northern Silica Project, receiving Major Project Status and advancing its Environmental Impact Statement to the final approval stages. The company reported a reduced net loss for the half year and secured a government tax rebate for its Cyclone Zircon Project. Diatreme maintains a strong cash position, with a total of $10.71 million, and continues to engage with investors through conferences and presentations.

Diatreme Resources Reports Enhanced Mineral Recoveries at Cyclone Project

Diatreme Resources Limited announced significant advancements in metallurgical testwork on its Cyclone project, showing improved recoveries of heavy minerals, zirconium dioxide, and titanium dioxide. The testwork, conducted by Mineral Technologies, aims to enhance mineral recoveries and optimize processing, potentially increasing shareholder value. The results, expected by November 2025, will inform the design of an improved processing flowsheet, with samples provided to potential customers for evaluation.