Desert Mountain Energy Corp (DME) AI Stock Analysis

• Market Cap: C$19.86M
• Dividend Yield: N/A
• Average Volume (3M): 89.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -81.44%
• EPS Growth: 59.09%
• Country: CA
• Employees: N/A
• Sector: Energy
• Sector Strength: 72
• Industry: Fossil Fuels
• EPS (TTM): -0.05
• Shares Outstanding: 90,258,110
• 10 Day Avg. Volume: 71,290
• 30 Day Avg. Volume: 89,399
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 23.08
• Price to Cash Flow (P/CF): -5.90
• P/FCF Ratio: 0.00
• 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

Desert Mountain Energy Corp's overall stock score is low due to significant financial challenges, including negative profitability and cash flow issues. Technical indicators are bearish, showing weak market momentum. Valuation concerns arise from a negative P/E ratio and no dividend yield. However, recent positive corporate events provide some optimism for future improvement.

Desert Mountain Energy Corp Business Overview & Revenue Model

Company Description

Desert Mountain Energy Corp (DME) is a resource exploration and development company primarily focused on the discovery and development of helium, noble gases, and hydrogen resources in North America. The company operates in the energy and mining sectors, leveraging advanced technologies and geological expertise to identify high-potential sites for resource extraction. DME aims to become a leading supplier of helium, a critical component in various high-tech and medical applications.

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 across all verticals. The income statement highlights operational inefficiencies and a lack of profitability, while the balance sheet indicates a reduction in equity despite zero debt. Cash flow issues persist, with negative cash flow from operations and investments. The company needs to address these challenges to improve financial health and stability.

Income Statement

The income statement reveals significant challenges, primarily due to negative net income and declining revenue. The TTM data shows a drop in total revenue and worsening net income, indicating a negative trajectory. Despite some historical revenue growth, the company struggles to generate positive margins, with negative gross profit and EBIT margins, highlighting inefficiencies in operations.

Balance Sheet

The balance sheet shows a relatively strong equity position, as there is no debt, resulting in a favorable debt-to-equity ratio. However, the stockholders' equity has decreased over the years, and the company shows signs of financial strain. The equity ratio is stable, but the overall asset base has declined, indicating potential challenges in sustaining growth.

Cash Flow

The cash flow statement highlights ongoing cash flow challenges, with negative operating cash flow and free cash flow. The TTM data shows deteriorating free cash flow, suggesting inefficient capital expenditure management. However, the company has managed to raise financing in previous years, providing temporary cash flow relief.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
860.34K	1.74M	443.92K	0.00	0.00
	Gross Profit
-409.67K	276.60K	244.42K	-5.06K	-1.60K
	EBIT
0.00	-6.11M	-5.78M	-6.12M	-1.87M
	EBITDA
-5.08M	-6.22M	-6.34M	-7.89M	-1.63M
	Net Income Common Stockholders
-4.58M	-11.59M	-9.14M	-8.78M	-1.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.18M	12.09M	12.52M	26.82M	10.61M
	Total Assets
50.53M	59.45M	40.02M	34.52M	13.55M
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-1.18M	-12.09M	-12.23M	-26.61M	-10.09M
	Total Liabilities
3.30M	8.68M	2.71M	666.93K	75.72K
	Stockholders Equity
47.23M	50.77M	37.31M	33.85M	13.47M
Cash Flow		Free Cash Flow
-9.71M	-14.14M	-13.61M	-5.79M	-2.38M
	Operating Cash Flow
-2.63M	-4.70M	-3.52M	-1.60M	-873.36K
	Investing Cash Flow
-8.28M	-16.88M	-17.86M	-4.18M	-928.17K
	Financing Cash Flow
0.00	21.43M	7.00M	22.31M	11.85M

Desert Mountain Energy Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 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 0.22 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.26, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 44.58 is Neutral, neither overbought nor oversold. The STOCH value of 63.64 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 *	57 Neutral	$8.36B	5.47	-5.51%	7.41%	0.15%	-68.69%
HELI	48 Neutral	C$9.63M	―	-19.36%	―	-71.68%	78.98%
DME	44 Neutral	C$19.86M	―	-8.81%	―	-81.44%	59.09%
RHC.H	37 Underperform	C$7.55M	―	-34.75%	―	―	-63.19%

Desert Mountain Energy Corp Corporate Events

Desert Mountain Energy Wins Legal Battle Against City of Flagstaff

Desert Mountain Energy Corp. announced a favorable ruling from the Arizona Court of Appeals, which declared the City of Flagstaff’s claims against the company null and void. This legal victory, following a four-year battle, is expected to positively impact the company’s operations and strengthen its position in the resource industry, particularly in helium extraction.

Desert Mountain Energy Secures Licensing Agreement for Helium Extraction in England

Desert Mountain Energy Corp. has entered into an exclusive licensing agreement with Hethos Ltd. for a helium extraction plant design in South West England. This agreement allows Desert Mountain Energy to receive a 5% royalty on helium gases extracted and participate as an operator in projects within the designated area. The plant is designed to be energy-efficient, utilizing alternative energy sources like solar and wind power, which aligns with the company’s focus on sustainable practices. This strategic move enhances Desert Mountain Energy’s operational flexibility and positions it favorably in the helium and hydrogen exploration and production sectors.

Desert Mountain Energy Secures C$514,000 in Private Placement

Desert Mountain Energy Corp. has successfully closed the first tranche of its non-brokered private placement, raising C$514,000 through the issuance of 2,056,000 units. Each unit includes a common share and a warrant, allowing further share purchases at a specified price. This financial move is expected to support the company’s ongoing operations and strategic goals in the helium and natural gas sectors, potentially enhancing its market position and offering value to stakeholders.

Desert Mountain Energy Advances Responsible Helium Bill in Arizona

Desert Mountain Energy Corp. announced the successful passage of Arizona Senate Bill 1444 by the Senate Committee on Natural Resources, which facilitates responsible helium exploration and production. The bill, supported by major industry organizations, aims to establish clear regulations for helium extraction, balancing economic benefits with environmental protection. This legislation is set to advance to the Arizona House of Representatives, with potential positive implications for the company and the state’s economy, particularly in education funding.

Desert Mountain Energy Launches $2 Million Private Placement to Fund Helium Projects

Desert Mountain Energy Corp. has announced a non-brokered private placement offering aimed at raising up to CAD $2 million. The funds will support the development of the company’s natural gas and helium projects in New Mexico and Arizona, as well as general corporate purposes. The private placement involves selling up to 8 million units, each consisting of a common share and a share purchase warrant, with the proceeds enhancing the company’s project development and operational capabilities.

Desert Mountain Energy Corp. Updates Operations and Financials, Eyes Future Growth

Desert Mountain Energy Corp. has provided an operational update regarding its activities in New Mexico and Arizona, highlighting the successful resolution of technical challenges at its helium processing facilities in New Mexico. The company is now poised to commence helium shipments and is exploring potential opportunities for data centers and cryptocurrency mining in the area. In Arizona, DME is working with regulatory bodies to establish guidelines for helium production and is collaborating on hydrogen projects with Beam Earth Ltd. and Hethos Ltd. The company reported a significant reduction in net loss for 2024 and remains optimistic about achieving profitability in 2025, despite ongoing legal disputes with the City of Flagstaff.