DREADNOUGHT RESOURCES LIMITED (DRE)
Share Price Analysis and Chart

13/09/2024

3

Downgrade to Hold from Speculative Buy

$0.02

33.33%

Bell Potter lowers its target for Dreadnought Resources to 2c from 15c and downgrades to Hold from Speculative Buy. Management is increasing exploration for niobium across its Mangaroon project and focusing less on rare earths, explains the broker.

This is a similar move to near neighbour Hastings Rare Earths ((HAS)), observes Bell Potter, which has pivoted to a niobium by-product stream at its Yangibana project.

In the event rare earth pricing recovers, the analysts see some chance for consolidation of the Yangibana and Mangaroon
tenements, but at this point talk of consolidation is highly speculative.

FORECAST
Bell Potter forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -5.00 cents.
Bell Potter forecasts a full year FY26 dividend of 0.00 cents and EPS of minus -5.00 cents.

12/11/2024

1

Speculative Buy

$0.05

233.33%

Dreadnought Resources is expected to release a maiden gold resource estimate for the Star of Mangaroon prospect, targeting cash flow generation to fund further exploration, Canaccord Genuity explains.

Recent high-grade drill results at Star of Mangaroon include 2.7m at 55.5g/t Au, highlighting the prospect’s potential.

Management is considering a partnership model for open-pit mining, with processing possibly arranged through discussions with Black Cat Syniicate's ((BC8)) Paulsens Gold Operation.

The broker values the company based on its rare earth resource, maintaining nominal value for other assets. Speculative Buy with a 5c target price.