TipRanks
Desoto Resources Ltd. (AU:DES)
ASX:DES
Australian Market
Want to see AU:DES full AI Analyst Report?

Desoto Resources Ltd. (DES) AI Stock Analysis

4 Followers

Top Page

AU:DES

Desoto Resources Ltd.

(Sydney:DES)

Select Model
Select Model
Select Model
Neutral 45 (OpenAI - Gpt-5.6Sol)
Rating:45Neutral
Price Target:
AU$0.13
▼(-9.29% Downside)
Action:Reiterated
Date:09/23/26
The score is held down primarily by weak financial performance—minimal revenue, sharply wider losses, and accelerating cash burn—implying continued funding risk. Technical indicators also point to a weak trend (below key moving averages with negative MACD). Valuation provides limited support because the company is loss-making (negative P/E) and no dividend yield is available.
Positive Factors
Very Low Leverage
Very low debt reduces interest and refinancing pressure, giving Desoto greater financial flexibility than a highly leveraged explorer. This preserves room to direct available capital toward exploration and operations, although it does not remove the need to fund ongoing losses.
Negative Factors
Minimal Revenue Generation
Minimal and volatile revenue shows that the current business has not yet established a meaningful operating income base. With no FY2026 revenue supporting costs, Desoto remains dependent on funding or future exploration success rather than internally generated sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Very low debt reduces interest and refinancing pressure, giving Desoto greater financial flexibility than a highly leveraged explorer. This preserves room to direct available capital toward exploration and operations, although it does not remove the need to fund ongoing losses.
Read all positive factors

Desoto Resources Ltd. (DES) vs. iShares MSCI Australia ETF (EWA)

Desoto Resources Ltd. Business Overview & Revenue Model

Company Description
DeSoto Resources Limited, a mineral exploration company, engages in the exploration and evaluation of mineral properties in Guinea and the Northern Territory, Australia. The company explores for gold, lithium, rare earth, and other base metal depo...
How the Company Makes Money
null...

Desoto Resources Ltd. Financial Statement Overview

Summary
Overall financials reflect an exploration-stage profile with minimal revenue and rapidly widening losses (net loss ~A$2.9m in FY2025 to ~A$15.0m in FY2026) alongside sharply higher cash burn (operating cash flow about -A$7.7m in FY2026). The key offset is a low-debt balance sheet (total debt ~A$44k) and meaningful equity (~A$12.8m), providing some near-term flexibility but not resolving ongoing funding risk.
Income Statement
8
Very Negative
Balance Sheet
56
Neutral
Cash Flow
14
Very Negative
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue0.001.25K1.06K0.000.00
Gross Profit-70.19K1.25K-64.85K-66.55K-4.73K
EBITDA-8.93M-2.93M-1.62M-1.39M-149.18K
Net Income-15.02M-2.91M-1.69M-1.46M-154.61K
Balance Sheet
Total Assets13.55M14.09M9.55M10.60M1.22M
Cash, Cash Equivalents and Short-Term Investments9.16M6.24M5.66M8.66M881.15K
Total Debt44.25K100.87K157.35K213.54K270.30K
Total Liabilities792.51K890.78K511.54K450.94K353.83K
Stockholders Equity12.76M13.20M9.04M10.15M868.04K
Cash Flow
Free Cash Flow-8.55M-3.68M-3.10M-1.78M-141.50K
Operating Cash Flow-7.70M-2.71M-1.56M-1.19M-128.54K
Investing Cash Flow-2.95M-1.23M536.26K-2.59M-12.96K
Financing Cash Flow13.52M4.52M18.30K9.56M1.02M

Desoto Resources Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.14
Price Trends
50DMA
0.13
Negative
100DMA
0.13
Negative
200DMA
0.14
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
34.68
Neutral
STOCH
9.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DES, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.13, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.68 is Neutral, neither overbought nor oversold. The STOCH value of 9.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DES.

Desoto Resources Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
51
Neutral
AU$111.82M-90.57-16.47%84.52%
45
Neutral
AU$35.98M-2.00-42.31%-119.78%
44
Neutral
AU$35.38M-4.32-38.51%-37.56%
43
Neutral
AU$65.34M-28.13-99.27%54.55%
38
Underperform
AU$27.86M-13.00-14.34%15.79%
38
Underperform
AU$34.68M-0.92-28.53%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DES
Desoto Resources Ltd.
0.12
-0.05
-27.27%
AU:MRD
Mount Ridley Mines Limited
0.05
0.04
300.00%
AU:MRR
MinRex Resources Limited
0.01
<0.01
30.00%
AU:PL9
Arizona Lithium Limited
0.01
0.00
0.00%
AU:KLI
Killi Resources Limited
0.33
0.28
591.49%
AU:OD6
OD6 Metals Ltd.
0.12
0.06
105.36%

Desoto Resources Ltd. Corporate Events

DeSoto Resources Releases 2026 Annual Report Detailing Governance and Compliance
Sep 22, 2026
DeSoto Resources Limited has released its 2026 annual report, outlining its corporate structure, governance arrangements and key financial reporting components for the year. The document details the company&#8217;s board and executive roles, audit...
DeSoto Resources Files Updated ASX Corporate Governance Appendix 4G
Sep 22, 2026
DeSoto Resources Limited has lodged its Appendix 4G with the ASX for the year ended 30 June 2026, detailing how it complies with the ASX Corporate Governance Council principles and recommendations. The company has confirmed that its corporate gove...
DeSoto ramps up multi-project gold exploration in Guinea’s Siguiri basin
Aug 31, 2026
DeSoto Resources has launched a major expansion of its exploration campaign across the Siguiri Goldfields in Guinea, ramping up a 10,000 metre power auger drilling program at the Timbakouna Gold Project and bringing two additional rigs back to sit...
DeSoto Resources Restarts Drilling and Launches Major Geophysical Survey in Guinea
Aug 5, 2026
DeSoto Resources has restarted drilling and fieldwork at its Timbakouna Gold Project in Guinea following constructive engagement with government authorities and the resolution of access issues linked to a crackdown on illegal mining. The company h...
DeSoto Advances Guinea Gold Exploration Amid Temporary Drilling Pause
Jul 28, 2026
DeSoto Resources has advanced its exploration activities in Guinea with a maiden 10,000-metre power auger drilling program at the Timbakouna Gold Project, targeting extensive artisanal gold workings and historic high-grade intercepts. The company ...
Desoto JV Moves on First Guinea Gold Portfolio in Siguiri Basin
Jul 7, 2026
Desoto Resources has taken a significant step in expanding its West African gold footprint, announcing that its joint venture vehicle High Guinea Gold SARLU has signed a Heads of Agreement to acquire up to seven gold exploration projects in Guinea...
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: Sep 23, 2026