Desert Mountain Energy Corp (DME) AI Stock Analysis

• Market Cap: C$22.72M
• Dividend Yield: N/A
• Average Volume (3M): 57.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: -82.16%
• EPS Growth: 70.07%
• Country: CA
• Employees: N/A
• Sector: General
• Sector Strength: N/A
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 94,675,190
• 10 Day Avg. Volume: 25,792
• 30 Day Avg. Volume: 57,586
• PEG Ratio: 0.12
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 40.91
• P/FCF Ratio: -3.62
• 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): 0.07
• Revenue Forecast (FY): C$17.89M

• Rating: 42 Neutral
• Price Target: ―

Desert Mountain Energy Corp faces significant financial hurdles, with negative income and cash flow metrics being major concerns. The technical analysis suggests bearish trends, and the valuation is unattractive due to ongoing losses. However, recent corporate events, including strategic partnerships and legal victories, offer some optimism for future growth, but they are not yet sufficient to outweigh the financial challenges.

Positive Factors

Strategic Partnerships

The strategic agreement with Sustany Holdings ensures a long-term end user for DME’s natural gas and helium, enhancing market stability and demand.

Regulatory Advancements

The advancement of Arizona Senate Bill 1444 supports sustainable helium production, potentially improving regulatory conditions and operational certainty.

Legal Victory

The legal victory against the City of Flagstaff strengthens DME’s operational position and reduces legal uncertainties, supporting long-term stability.

Negative Factors

Negative Cash Flow

Negative cash flow indicates challenges in generating cash internally, which can strain resources and limit growth potential over time.

Volatile Income Statement

Volatile income and negative margins suggest unsustainable operations, impacting profitability and long-term financial health.

Revenue Decline

Significant revenue decline reflects market challenges and could hinder the company's ability to invest in growth and innovation.

Desert Mountain Energy Corp Business Overview & Revenue Model

Company Description

Desert Mountain Energy Corp. engages in the exploration and development of oil and gas, and mineral properties in the United States, Canada, and internationally. It holds interest in the Holbrook Basin helium project covering an area of 65,912 acres located in the Northern Arizona; the Kight Gilcrease Sand Unit oil and gas project comprising 7 wells covering an area of 883.7 acres located in the Seminole County, Oklahoma; and has acquired 8,510 acres in Navajo County, Arizona. The company was formerly known as African Queen Mines Ltd. and changed its name to Desert Mountain Energy Corp. in April 2018. The company was incorporated in 2008 and is based in Vancouver, Canada.

How the Company Makes Money

Desert Mountain Energy Corp makes money through the exploration, extraction, and sale of helium and potentially other noble gases and hydrogen. The company's revenue model is centered on identifying and developing resource-rich sites, extracting these valuable gases, and selling them to industries that rely on helium for applications such as medical imaging, electronics manufacturing, and scientific research. Key revenue streams include direct sales of extracted gases to industrial and commercial clients, as well as potential partnerships or joint ventures with companies requiring a reliable helium supply. Additionally, any future diversification into hydrogen or other noble gases could provide additional revenue opportunities, depending on market demand and resource availability.

Desert Mountain Energy Corp Financial Statement Overview

Summary

Desert Mountain Energy Corp faces significant financial challenges with negative profitability and cash flow metrics, although it has a strong balance sheet with no debt.

Income Statement

Desert Mountain Energy Corp shows a volatile income statement with negative margins across the board. Gross profit margin is significantly negative due to high costs relative to revenue. The net profit margin and EBIT margin are also negative, indicating unsustainable operations. Revenue has been inconsistent, showing no clear growth trajectory.

Balance Sheet

The company exhibits a strong balance sheet with no debt, resulting in a healthy debt-to-equity ratio of 0. However, the return on equity is negative due to persistent losses. The equity ratio is quite strong, indicating a solid capital structure with low liabilities. The absence of debt reduces financial risk, but profitability remains a concern.

Cash Flow

Cash flow from operations is negative, and free cash flow is deteriorating, indicating challenges in generating cash internally. The company has been investing heavily, as seen from high capital expenditures, but the return is not yet evident. The free cash flow to net income ratio is unfavorable, reflecting the company's struggle to convert income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	257.97K	860.34K	1.74M	443.92K	0.00	0.00
Gross Profit	-688.00K	-410.00K	864.51K	244.42K	-5.06K	-1.60K
EBITDA	-3.28M	-3.98M	-6.22M	-6.56M	-7.89M	-1.63M
Net Income	-2.92M	-4.58M	-11.59M	-7.53M	-8.78M	-1.50M
Balance Sheet
Total Assets	50.06M	50.53M	59.45M	40.02M	34.52M	13.55M
Cash, Cash Equivalents and Short-Term Investments	376.41K	1.18M	12.09M	12.52M	26.82M	10.61M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	3.30M	3.30M	8.68M	2.71M	666.93K	75.72K
Stockholders Equity	46.76M	47.23M	50.77M	37.31M	33.85M	13.47M
Cash Flow
Free Cash Flow	-3.38M	-9.71M	-14.14M	-13.61M	-5.79M	-2.38M
Operating Cash Flow	-2.41M	-2.63M	-4.70M	-3.52M	-1.60M	-873.36K
Investing Cash Flow	-1.27M	-8.28M	-16.88M	-17.86M	-4.18M	-928.17K
Financing Cash Flow	903.54K	0.00	21.43M	7.00M	22.31M	11.85M

Desert Mountain Energy Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 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 TSE:DME, the sentiment is Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.30, and above the 200-day MA of 0.25, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 45.58 is Neutral, neither overbought nor oversold. The STOCH value of 76.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DME.

Desert Mountain Energy Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SOU	54 Neutral	C$25.43M	-1.18	-44.92%	―	3.01%	84.56%
WIL	48 Neutral	C$33.95M	-11.49	-276.15%	―	-3.67%	-26.40%
DME	42 Neutral	C$22.72M	-7.45	-6.13%	―	-82.16%	70.07%
AVN	42 Neutral	C$22.84M	-5.25	-15.60%	―	―	68.98%
PEI	41 Neutral	C$16.16M	-2.13	―	―	-0.63%	-47.75%
JEV	38 Underperform	C$27.36M	-2.45	-72.40%	―	-100.00%	3.67%

Desert Mountain Energy Corp Corporate Events

Desert Mountain Energy Joins U.S. Defense Supply Chain Talks, Extends Warrants to 2027

Desert Mountain Energy Corp. has been invited to participate in the U.S. government’s Acquisition Transformation Strategy and related sessions organized by the Office of the Assistant Secretary of War for Industrial Base Policy and the Defense Industrial Base, where it will contribute to discussions on potential helium off-take pathways. The company continues to work with U.S. National Laboratories on off-take agreements and end-use applications for helium-3 and helium-4, which it sees as aligned with national security priorities, while its engagement with NATO and the UK Ministry of Defence is expected to support its longer-term growth ambitions in Devon, UK. In parallel, Desert Mountain Energy plans, subject to TSX Venture Exchange approval, to extend the expiry date of 3,926,000 warrants issued in 2025 to a new common expiry of January 30, 2027, maintaining the original exercise price, a move that effectively lengthens the time frame for existing warrant holders to participate in potential equity upside without altering pricing terms.

Desert Mountain Energy to Establish SNC Battery Plant in New Mexico

Desert Mountain Energy Corp. has signed a non-binding Letter of Intent to form a joint venture for constructing a sodium-nickel-chloride battery manufacturing facility in Roswell, New Mexico. This initiative will utilize produced water from regional oil and gas wells, integrating with a planned AI data-center complex, thereby reducing water extraction and operating costs. The project is expected to create job opportunities and diversify revenue sources in Chaves County and New Mexico, aligning with energy-transition incentives. The company aims to leverage its natural-gas resources for local electricity generation, enhancing its strategic positioning in the industry.