The latest announcement is out from Desert Mountain Energy Corp ( (TSE:DME) ).
Desert Mountain Energy Corp. has entered into a strategic agreement with Sustany Holdings to construct a large data center powered by a mix of grid electricity, solar energy, and natural gas. This agreement ensures a long-term end user for DME’s natural gas and a significant portion of its helium output. The company plans to enhance its infrastructure by upgrading flow lines and adding a nitrogen separation unit to meet gas purity standards, which will temporarily halt production but is expected to boost future output. DME’s operations are environmentally conscious, with no methane leakage issues, and the Bureau of Land Management has approved temporary production suspensions for these upgrades. The company is also exploring further integration with the Southwest Power Grid and expanding solar facilities, aiming to reduce operational losses while advancing projects in Arizona and New Mexico.
Spark’s Take on TSE:DME Stock
According to Spark, TipRanks’ AI Analyst, TSE:DME is a Neutral.
Desert Mountain Energy Corp’s overall stock score reflects significant financial and operational challenges, including negative income and cash flow metrics, and a bearish technical outlook. Although recent corporate events offer some optimism, the company’s valuation remains unattractive, and profitability is a major concern.
To see Spark’s full report on TSE:DME stock, click here.
More about Desert Mountain Energy Corp
Desert Mountain Energy Corp. is a publicly traded resource company focused on the exploration, development, and production of helium, hydrogen, and natural gas. The company emphasizes environmentally and economically sustainable helium extraction, catering to the renewable energy and high technology industries.
YTD Price Performance: -26.67%
Average Trading Volume: 65,445
Technical Sentiment Signal: Buy
Current Market Cap: C$19.86M
For detailed information about DME stock, go to TipRanks’ Stock Analysis page.