Earnings call transcript: Dreadnought Resources Q4 2025 outlines strategic gold project

Dreadnought Resources Ltd (DRE) held its Q4 2025 earnings call, highlighting its strategic focus on gold production and exploration in the underexplored Mangaroon region. The company reported holding $10 million in cash, with plans to generate significant cash flow from its Star of Mangaroon gold project. While InvestingPro analysis indicates the company is quickly burning through its cash reserves, the stock saw a 20% increase, closing at $0.012, reflecting investor optimism about the company’s future prospects.

Key Takeaways

• Dreadnought Resources is focused on the Star of Mangaroon gold project, with potential for $50 million in free cash flow from a 12-month production cycle.
• The company is advancing several gold prospects and critical metals assets, including the Gifford Creek Gobonatite complex.
• Mining approval for the Star of Mangaroon is targeted by the end of 2024, with production planned for early 2025.
• Stock price increased by 20%, closing at $0.012, as investors reacted positively to the company’s strategic plans.

Company Performance

Dreadnought Resources is positioning itself as a key player in the gold and critical metals sectors, leveraging its strong land holdings and exploration initiatives. The company is focused on the Star of Mangaroon, a high-grade gold project, and is exploring multiple other prospects. This strategic focus aligns with broader industry trends of increased interest in gold and critical metals.

Financial Highlights

• Cash in bank: $10 million
• Shares on issue: 5 billion
• Potential free cash flow from Star of Mangaroon: $50 million

Market Reaction

Dreadnought Resources’ stock rose by 20%, closing at $0.012. This increase reflects investor confidence in the company’s strategic direction and the potential for significant future cash flows from its gold projects. The stock has moved within its 52-week range, with a high of $0.022 and a low of $0.008.

Outlook & Guidance

The company is targeting gold production from the Star of Mangaroon in 2025 and has extensive drilling programs planned for the Mangaroon and Olara regions. Dreadnought is also seeking commercial partners for its critical metals assets, with the potential for significant discoveries in the next 12 months.

Executive Commentary

Dean Tuck, a key executive at Dreadnought Resources, emphasized the company’s strategic focus with statements such as "Finding more gold faster" and "We’re fully funded to deliver the next twelve months of discovery-focused drilling." These comments underscore the company’s commitment to accelerating its exploration and production activities.

Risks and Challenges

• Regulatory approvals: Dreadnought is targeting mining approval by the end of 2024, which is crucial for commencing production as planned.
• Market volatility: Fluctuations in gold prices could impact the company’s revenue projections.
• Exploration risks: The success of drilling programs and potential discoveries in the Mangaroon and Olara regions are uncertain.
• Funding strategies: While exploring revenue sharing and debt facilities, securing adequate funding remains a challenge.

Q&A

During the earnings call, analysts inquired about the funding strategy for the Star of Mangaroon project, with management indicating a focus on revenue sharing and debt facilities. There was also interest in potential takeover offers for the critical metals assets, which management acknowledged as a possibility.

Full transcript - Dreadnought Resources Ltd (DRE) Q4 2025:

Dean Tuck, Managing Director, Dreadnought Resources: Morning, everyone. I believe that we have or afternoon some places. I believe we’ve got this up and running, so just let the room fill up a little bit before before I get started. In the meantime, if you have any questions, send them through, and I’ll get to the questions as we as we progress through the webinar. A few people still coming in.

Looking good. Let’s give it one more minute. Thanks everyone for for joining us today. We’ll get started here here pretty shortly. Still got a few people coming into the room.

Alright. That seems to be stabilizing a bit. So welcome, everyone. My name is Dean Tuck. I’m the MD of Dreadnought Resources, and thanks everyone for signing up to our investor hub and joining us today for this June webinar.

So people may have seen I presented last week at NEWSA conferences, the the sort of quick pitches and and and the like. So getting behind, keeping up with our quarterly webinar idea gives us a chance to dive into a bit more detail and also answer any questions that that comes through. Thanks to people who submitted some beforehand. And I’m sure there’ll be a few people putting me on the spot here a bit later on. So with that, we’ll get started.

So now see how I make this work. Yep. There we go. I think that worked, hopefully. So company snapshot.

I assume everyone here is fairly familiar with Dreadnought because you’re all part of the investor hub and signed up and hopefully keeping track of all the wonderful things that Robin and and Dreadnought put out. It’s just something to to touch on the snapshot here at the moment for the for the I guess, really the first time in Dreadnought’s history. We’re we’re fully funded with 10 mil cash in the bank to deliver quite a bit of exploration and discovering. And in that time period, getting the star of mangrove into production, generating some cash flow. And so we’re in a pretty strong position over the last six months.

Put us into that. We’ve had quite a few new people join our our top shareholders. Of course, Black Cat Syndicate’s in there at number two, Hong Kong Casino, Farjoy, all joining the the top ranks of of our shareholders. We’ve all been sticking around, and we’re very supportive and and very happy that they’re here. So we’re quite excited to deliver on the strategy of finding more gold faster.

So the dreadnought strategy there is developing the high grade star of Makerum to generate cash flow. We still continue to progress that. Hopefully, have some agreements out to the market soon on that as soon as we can finalize legals, add near term production ounces, generate more cash flow, which I’ll talk a little bit about in today’s webinar. Finding more bold faster, this is where we are really seeing a lot of shift at the moment. And for the next twelve months, in reality, we will be drilling all across Mangaroon and Olara to make that life changing discovery of a big gold discovery.

And in the background, we continue to look to commercialize our base metal and critical metal assets. We now have two joint ventures with Teck, the money intrusion, the nickel copper PGEs, Bresnahan, which is a copper zinc farm in with Teck as well. And as sort of mentioned earlier this quarter, receiving an arising rare earth and critical metal interest globally. We’re starting to get a lot more inbound interest on the Gifford Creek monotype and the rare earth iron stones, and looking forward to what continues to play out in the background there. So getting stuck in to the Star Of Mangaroon, some infill drilling going very well up there.

So where Star Of Mangaroon currently sits, we have the resource that we delivered, 23,000 ounces at 12.8, all within a 100 meters of the surface, high grade open pit. We put out that scoping study at the start of this year, showing that generates 50,000,000 free cash flow twelve month production. So it’s a pretty pretty quick hit sort of mine, and it generates quite a bit of cash in a short period of time. That max cash drawdown of 10,000,000, which we had a question earlier on, which I’ll answer at the end of the webinar, and then pretty pretty attractive all in sustaining costs. So our strategy remains to outsource the funding, development knowledge, and processing of that.

However, we’re also looking at debt funding for that to keep a larger piece of the pawn. Syndicate has invested 2 mill to date, and we’re working closely with them to finalize agreements for the development of the start of. So as we’ve highlighted before, high grade at surface, it’s it’s pretty pretty beautiful rocks. The guys are doing the infill drilling, painting lots of gold. So we’re looking forward to getting out some good results on that infill grade control drilling.

It’s got fantastic recovery. And and as part of all this drilling, hopefully, we’ll get out a new updated resource. I believe we’ve added some shallow high grade ounces, and we’ll just already improve the the economics of of this open cut, bring forward some cash flow as well as putting few few extra ounces in there. So looking at the the star Mangaroon, don’t know if you guys can see my see my my mouse on this, but inside the pits. So we did that extension drilling earlier in the year.

That was to add shallow ounces. If you look at the long section, the resource sort of blows out at depth. And in the shallow areas, there was a high grade historical drilling. We put those drill holes up there at the start of the year, extended out some of that outside the resource, and we’re now doing infill drilling around that and across the entire resource. So, essentially, everything that’s within that pit is being infilled to 10 by 10.

That’s great control. Hopefully, the last drilling before mining commences. And we’ll look that drill program should be finishing up here in the next week or two. We also put in a few exploration holes down at Popeye. We put in a few extra holes up to the north where we have a nice blowup and and some good geochemical anomalism also within the mining lease and another target sitting over here, which is right next to that between the dump and the and the haul road, and we’ll see how some of that drilling some of that drilling pans out.

That batch of drilling so the batches of drilling from Popeye and the start of Mangrove and a few of the other exploration holes are currently at the lab. They received by the lab last week, and we got notification last night that they’re starting to to progress through. So we’re hoping to see that second batch of assays from this drilling in the next couple of weeks. The last, the third, or and or fourth batch of assays should come should be delivered to the lab once this drill program is completed here in the next week or two. So the pathway to production on this, as we announced in July, so just over twelve months ago, that we’re going to to develop on, go down this pathway.

We’re currently sitting at the infill grade control drill that’s in the pit and finalizing those mining haulage and processing agreements. We’re hoping to have those mining haulage and processing agreements done last quarter, but there’s been, groups have been quite busy. Legals are going back and forth. So, those continue to progress, and we hope to have those finalized here in the coming weeks. We’ll have drilling results coming up from the infill drilling.

Hopefully, get an update resource out and an updated mine plan, pitch and change, but we should get some more ounces in there, hopefully, and and some shallower ounces for that as well. And then, of course, mining approval by the end of the year and commencing mining as soon as those mining approvals are in hand. So all remaining on track to break ground by the end of this year and which would see us really see the the vast majority of cash flow coming into the company throughout 2026. So I’d say it’s sort of a nine to twelve month operation from once we break ground, just probably around three months before cash flow comes in. And then so we expect to see the cash flow run throughout the entirety of 2026.

So talking about the near term production ounces, one of the drill programs we put out this quarter was some of the drilling at Pritchard’s lead mine in Two Peaks, and these were the other granted mining leases around the area. Now the initial drill programs intersected Nugety Gold, Pritchard’s 2 Peaks lead mine and and potentially Popeye. Nuggety gold can be quite frustrating, and as we’ll talk a little bit about. We see two gold events from the diamond drilling and and and drilling out at some of these areas. There’s gonna be two gold events.

There’s an older gold only event that we see at Star Of Mangerun. Importantly, Star Of Mangaroon was not found by nuggets. It was found by by Dolly and Outkron, whereas the other prospects were found by by, essentially, by finding prospect or looking for nuggets. And the younger event, which is associated with a lot of base metals, tends to tends to be a

: lot more negative, not to

Dean Tuck, Managing Director, Dreadnought Resources: the point where, yeah, we’ve seen we’ve seen gold with the imprints of of Galena crystals inside of it. Quite quite impressive same things. So with that negative gold, which we’ll talk about in a minute, nugget of gold is very frustrating, and we’ve sent some samples off for leach oil test work. We’re seeing some preliminary results of that are starting to come through, and that looks very encouraging. And what that mean by encouragement is that we can actually get representative assays from standard sampling.

We’re not looking to create any new, novel sort of a sampling technique like Noble Gold had to attempt to do up in the Pilgrim. We’re looking wanna use Leachwell. It’s a standard assay technique. We wanna do it as standard a and b bags. And so we’re hoping that leach well will work for us.

It looks like it will, particularly at Pritchard’s, which may allow us to go up and revisit these areas and and actually show them and see if we can put something together. So talking about nuggets and gold from a very, you know, sort of basic standpoint, you look at nuggets of gold as sort of a sample theory thing because gold’s quite rare and can form nuggets. If you have some couple examples here on on the map, on the on the chart that shows a 10 gram nugget at the top within one ton of rock, and the example below that is 10 gram in in coarse gold within one ton of rock. So it’s fewer particles, but it’s not one particle. It’s multiple particles.

And then you look at 10 grams of gold dust. So it’s just super fine gold, like a lot of gold, a lot of gold systems, you know, sub twenty, fifty microns, and it’s it’s evenly distributed throughout the rock. If you subdivide that, then one with the with the 10 gram nugget in it, you get one sample with zero grams, other sample with 20. Whereas if you have force gold nuggets, it starts to you still get some representivity with the larger samples, and you subdivide those smaller and smaller. If you only have one one nugget representing all the gold in that sample, then you end up with a bunch of zeros and and one that gets extremely high grade.

Whereas if you have particles, nuggety gold is a continuum, so it goes from finding one massive gold nugget within a sample all the way through to that gold dust. And so it really is a a matter of of particle size and also sample size. Clifton 1956, a classical paper on sample theory and nugget effect. Talks about how you wanna get sort of you’re targeting around 20 particles of what you’re looking for, in this case, gold, into a sample size. So depending on on the particle and the grades, it tells you how big the sample you need.

And that’s where a lot of the the work on sample size and and sample techniques has come about with photon fire assay and leach well. There’s some examples down there at the bottom. A fire assay can be anywhere between twenty five and fifty grams. It’s not a very large sample. Photon came on to the scene fairly recently and has taken the gold industry by storm, And that allows for fairly routine, low consumption, low processing sample prep, assays of of a half kilo sample.

And and that gives you essentially you know, there’s there’s 10 fire assays in in every photon. So when we went out to this area, we thought photon, and we use for almost almost all of our gold projects. Once we do our resource drilling, we do photons. It gives us better representivity, better repeats, better duplicate performance. And, when it comes to the more nuggety systems like we’re seeing at Pritchard’s, the photon has proven to not be the best as we saw in previous announcement put out this this quarter.

We did assays on that, on that We did we ran eight photons. So, essentially, you have an a and b bag. Each one’s two to three kilos. So we split that out into all a and b bag into a bunch of 500 gram samples.

There was eight of them that came out from that, and we ranged from point two to 36 grams per ton. So it’s a that’s a quite a nuggety system, even too nuggety for the larger sample size of the photon assay. It would have been even worse had we tried to do fire assay. So looking at the lead 12, this is again multiple, again, larger than the photon assay. It’s two to three kilos.

And, what we’re looking for is ability to get, fairly consistent numbers. We don’t want yes and no. We want close, to each other. So if that what we’re looking for and kinda what we’re seeing already, while the photon assay for PitCharts gave us point 2.3, one, thirty four grams per ton, what we’re seeing from the which would average out to about 4.8 grams per ton if you took all eight of those, I believe. What we’re seeing with the the photon s or the leach wall assays that we’ve put out already, we’re seeing around five grams per ton for all three samples.

So if that holds up and once that gets once that gets released, that gives us confidence that we can take a a simple a bag like we normally would for drilling and and submit that for leach well assay and have confidence in the value that’s coming out. And so that’s that’s encouraging. That means we can go back with the leak 12 technique and and revisit per chart 12. And that gives us the ability to find some more gold on existing mining lease and and a second pitch for that operation. So we’re encouraged by that, and we’ll continue to keep the market updated as as those results get finalized.

But preliminary results are are looking quite encouraging. Now we look at two peaks since we’re talking about Nuggety Gold. Two peaks is one that probably is is the extreme example of Nuggety Gold. So a bit of history out here. Eric Kimpton, who’s a pastoralist, is on the on the shire board of gas going for years and years.

His whole family owned quite a few stations up in the area. Discovers course Nuggets with an outcropping bay in the nineteen eighties. We unfortunately, Eric has has has passed away. We managed to make contact with his with his wife and met with quite a few people who were operating the area. Well well, he was when he made the discovery and and while he was while he was doing his digging out and unverified.

But what we’re told is that after he made his discovery, Sons of Gwalia was in the region, and then they drilled put some holes into two peaks and and got no results. And this was extremely discouraging for Eric because he’s pulling gold out of the surface. And, like, I think it outs outs nuggets plus, on some of these and, did the drilling. Since the boy did the drilling, a reputable company didn’t get any results, but everyone encouraged Eric to, go after it anyway. So we’ve actually got a ahold of Eric’s mind mind plan, mind proposal, which we could submit handwritten nine page mind proposals these days.

Ours is couple 100 pages long. But, essentially, they did a a drill blast and metal detect operation, and that ran for about eight to almost ten years. They dug a pit there. It’s about thirty, fifty meters long, ten, twenty meters wide, and about 10 meters deep, and the second pit going off to the north there. And, you know, it produced gold out of there at almost an ounce per ton over over an eight to ten year period.

We’ve got about 2,000 ounces worth of gold. We’ve been able to verify about half of those ounces based on this submission sheets. But, anyway, Tony Sten drills that prospector before he evens it into us. No assay results. He put about 20 holes in.

And then we’ve drilled two programs. We have then we put about five or six holes into that using photon assay, hoping that using a larger sample size might allow us to get representative samples out of the system. No love. And so two peaks is a very nuggety system. We have high confidence.

The goal is there, but, you know, we’re not gonna try and and create new assay techniques to to go for this sort of thing. It’s it’s Paul Paul Chapman suggests if we wanted to see how much gold was in two peaks, you just dig some up, set it up to Paulsens, and and see what comes out of the mill. But, you know, it’s it’s a frustrating system. We know the gold’s there, but we can’t drill it, which means we’re not gonna spend too much time on it. So but Pritchard’s well and potentially lead mine, Popeye, we believe the leach well technique, we might be able to actually get representative samples, which means we can drill it, get assay results, put together a resource, mine plan, and dig that up.

So two peaks might be taking a backseat for a while, but we believe we’re making good progress for some of the others less than equity systems. That’s just a bit of a tidbit on that. It was a very frustrating system, frustrating results, frustrating drill program because we know the gold’s there, but not being able to drill and get into assay makes it difficult for a for a public listed company. So with that, we’ll move on to exploration and discovery. So this is what we’ll see a lot more activity.

That’s the rig drilling out at at Steve’s reward, taking a picture up on a on a big big chirp ridge sitting behind the the drilling area. And, yeah, quite happy with the way things have gotten off to a good start. So we talk about underexplored Mangaroon, 5,000 square kilometers. People tend to like this image a fair bit. Kalgoorlie, the other end of the spectrum, almost well in that areas, drilled the buggery.

And so where we put stewards, rewards, and inevitable drillings highlighted there on the map, that’s out in the middle of nowhere. No drilling anywhere nearby. And to get some of those first hits out of Steve’s is is extremely encouraging. They always want more, always want thicker and higher grade. But with that, the soil anomalies extending and getting stronger and better.

We’re very, very excited to get back out there. So over the past several years of working out at Mangaroo, we’ve been doing the stream sediment sampling across 5,000 square kilometers of landholding. And, essentially, what that’s resulted into now is we have essentially five fairly significant campscale prospects. You know, campscale prospects is where the litho geochemical litho structural settings are correct. We have evidence of gold mineralization.

You have potential for multiple deposits. These are sort of the biggest footprint areas you look for in the mineral system and and the stream sets and and the the work we’ve done today. It’s been trying to highlight where within Manger room do we need to focus our efforts. Borda, this is a 13 by seven kilometer stream, you know, gold Golden Stream sediment anomaly. Got high range north, 17 by five, high range south, 11 by four.

There’s a quite large scale anomalies, and this is where we’re gonna start to see a lot more focus on our target generation, target definition work, and, of course, our our drilling. Looking at the the source work that we’ve done to date, Steve’s rewards, you know, like to point out, you know, you can see a bit on that map. You can see where the soil samples we’ve collected to date. Black dots are sort of background value less than less than five. And around Steward, we haven’t found the edge of that thing yet, and it’s got more of the some of the highest value golden soil anomalies values we’ve identified to date out here.

So we’re very excited to see Steward grow. We’re also gonna get stuck into midday moon, columns, and midnight stars part of this next drill program in addition to following up Steve’s reward. And we still have quite a few soils to do, like high range north, high range south. We’re still finishing up the last bits of that stream sediments survey, which should be done by the August. And we’ll also be commencing soil surveys over high range north, high range south, assuming the ones that Steve’s all all throughout August.

So we’re very excited to see what’s going to grow and what new targets we’re gonna have going to our pipeline. Zooming into sort of that gold focused area, you can see Steve’s rewards already in 2.6 kilometers by about 600 meters wide. That’s open in all directions. So very that sort of exceeded expectations. Early drilling, very encouraging.

Like I said, we always want a little bit more, always want more gray, more thickness, and but we believe that this is really, really just beginning. The strongest golden soil anomaly is part of that to find to date is sitting 600 meters off to the northwest. Looks like we have multiple shears sitting within that, standing on some of those peak within that at 760 PPB golden soil anomaly. We stood on that. That’s on essentially sitting on the side of the hill.

And as you walk walk up the hill, you go through this extremely sheared laminate stained altered shoe zone and then go into the cap of of of the church zone sitting just above it. I walk back to another 100 p two b anomaly, and you almost see a repeat of of that same sheared highly laminate stains and altered sentiments. And so we’re very, very excited to see, what will come from putting drill holes into those. So we we believe we have multiple structures. So we’ll follow-up Steve’s reward, and we’ll also chase the rest of that soil anomaly.

As part of that program, we’re also finalizing all the all the access and approvals with the with the Buddha. We’re coming into the office this week and had a very good survey with them. And so we anticipate to be drilling Cullen’s midday moon and midnight star as part of the the next drill program as well. So Steve’s follow-up and extension Cullen’s midday moon, midnight star. If Pritchard’s continues to the reach well shows good good progress, we’ll probably add in Pritchard’s well to that to that drilling program as well.

So quite excited. We got quite a bit of targets to drill out here, and we’ll be getting those drilled probably another two or three drill programs at Mangaroon before the end of this year. It’s a lot of drilling and hopefully discovery from that. Because once it gets to summertime at Mangaroon, it’s four forty five every day, which isn’t pleasant when you’re sleeping in a swag in a tent. So we’ll head down to the gold fields where it’s slightly better weather, and that’s where we’ve got Alar.

So Alar was a project that we picked up off Newmont in 2019. When we first started, we had a lot of early hits out here. This was the main asset for us prior to making the Orion discovery in 2021 and rare earths and critical metal run that took us from 2022 all the way through 2024. So it’s been last time we worked at Alarm, we sort of had a 5 mil market cap and never had more than mil or 2 in the bank. And on the back of this recent cap raise, thanks to the people at Petra, we got 10 mill in the bank.

And as part of once we finish up drilling at Mangaroon for this year, we’re gonna head down to Alara and finally do the drill program that Newmont wanted to do before they hand the project over to us and what we’ve wanted to do since we first got out here, and that’s a big aircore program. We’ve got these major structures sitting right in the center of the belt. They’re they’re they’re bending. They’re they’re they’re waving. They got, you know, 15 degree.

All these are arm wavy things you want for all the geologists stream of center structures on greenstone belts that bend 10 to 15 degrees and round, round, round, and it opens up dilution and fluid comes through and all the rest of that stuff. So we’ve got all those things sitting out here. Big structures, good anomaly along those structures where it does daylight, lots of cover, and it’s just prime prime ground for for air cooled drilling. You look at any other green stone belts in the area, they’ve all been drilled to buggery. Olara is probably the least most underexplored green stone belt in the entire yield gone.

We are very, excited about what this what a larva will produce. It’s it’s it’s classic. You know, it’s a yield on green stone belt. There should be a million ounces of gold sitting there. So it’s just a matter of us getting out there, getting the work done, and I didn’t find it.

And so we’re very, very excited. It’s got a large scale project. It’s over sixty, eighty kilometers long. So, like I said, it’s an entire green stone belt. You can see it’s next to Delta Lithium’s recent spin out, whatever they call that thing, RN, Bright Star, or Banda, all immediately next door to us.

We So got a couple mills nearby, but, hopefully, we can also make a discovery out here that will justify its own. And then we have Metzky’s fine before we move on with things. I don’t think that’s on the next slide. Nope. So Metzky slides also sitting there.

Metzky’s fine. That’s about 15,000 ounces at 6.8. We will be looking to extend Metzky’s and are also applying for the mining lease there here in the here in the next couple weeks. So we’ll start to The drill program that was commenced by First Quantum before they had to pull out, and there’s a good chance that we’ll we’ll finish that program sometime this year, extend some of those holes, and see what’s see what’s down there at depth. We’re also putting a lot of work down to the southern area, the southern half of of the money intrusion.

There wasn’t too much work done by first Quantum before they pulled out. So that’s quite an exciting. Looking forward to working with tech. They’re great operators. And, yeah, looking forward to see what what comes from this.

And as part of our strategy to focus on gold, we now got a a major international partner to carry that risk with us going forward. Hopefully, make that that copper and nickel discovery. Gifford Creek Gobonatite complex. Gobonatite is the things that if you want critical metals, get yourself a Gobonatite, and they have a bit of everything. So we’ve, of course, got the this is what took us to the moon and back.

So at one stage, was a half billion dollar market cap, and that was on the back of the Yenrare with Ironstone Complex. But as goes with these small commodities, like lithium’s gone through quite a bit over the last ten years, they can have some massive swings and peaks and troughs along the way. So we’ve had a a massive peak in when coming out of, hopefully, a massive trough. So that that red Yin Reiter at the Ironstone Complex that sits there, it’s study ready. It’s sitting right next door to what was Hastings, and it’s now Wailu.

They’ve just taken control of of Yenkopana. We have the other half of the Ironstone Complex, which would be an extreme value add to amalgamate that area. And we’ve also got beyond the iron stones. We have, of course, the Gifford Creek kibonotype, which is the source intrusion for that region, which has more than just rare earths. It also has some spectacular nalium phosphates, scandium, titanium, and zirconium on the put out a proven not proven niobium.

We put out a a niobium exploration target on that in the last couple of months. And due to the inbound interest, we got some EIS supported drilling, and we’ve just completed drilling four diamond holes down there. We’ve got PQ through most of it. PXU did a great job for us to smash that drill program out. And so we’ve got we’ve a couple we have about a thousand meters of of material, oxide, and four holes fresh in two to see what to see what mineralogy work and mill metallurgical work we can get stuck into on that.

So very excited to start seeing some inbound interest on on the Gifford Creek kibonotype and the Yenrar Thyristone Complex, and, we will continue to, look to look for ways to partner with someone to really help unlock the value of this so that we can stay focused on the goal. So finding more gold faster strategy stays the same as it has for the last twelve months. Develop the high grade star of Mangaroo and generate cash flow, getting closer and closer to that, add short term production ounces to generate more cash flow. We believe we’ve added short term production ounces at the star. And, hopefully, with improved assay techniques at Leachwell, we can continue to pursue items opportunities like per charge and and papa.

Generate and define targets for discovery. This is gonna see a lot of lot of work for Dreadnought for the last for the next twelve months. It is going to be exploration, discovery, discovery, discovery, lots of drilling, looking to make that life change in discovery at Mangaroo and Malar. And in the background, continue to commercialize the base amount of critical medical assets, find the right partners to carry those forward, free options for our shareholders on those critical metals and base metal assets as we focus on the globe. Work plan summary.

Yeah. As this as I just spoke to, you’ll see us at Mangaroon until it starts getting too hot, and we’ll head down to Alara for the nice summer break and and drill away at our at our Alara project before migrating back up to to Mangaroon and and chasing more up there. Or staying at Alara if if we’re onto a big discovery there. So we’ll wait and see what what next year brings. But for for for now, getting the start of Mangaroon production, lots of exploration at Mangaroon, finish the year and start next year at Alara, and then see where we go from there as we get into production and generate the cash flow.

So with that, feel free to send through some questions. I’ve got a few questions that were submitted beforehand, and I think there’s I oh, there it is. Yep. So I can see questions now. So if you have any questions, send them through.

So here’s a question. Given the scoping study shows 10 mil max cash draw down for the star of Mangaroon, and there are 3,770,000,000.00 shares already on issue. Can you provide specific details on how you plan to fund production without excessive dilution? Will this come from debt facilities, further equity raises, or revenue sharing agreements with podcast syndicate? So there’s two questions here I’d like to address.

Firstly, shares on issue and dilution. We actually have 5,000,000,000 shares on issue. We started with 1,000,000,000 shares in 2019. And we we get questions a lot about shares on issue, both from people concerned that we have too many and other side, people concerned that we’re do a consolidation. We’re not gonna do a consolidation.

So too many people don’t like that. So I’d to comment here that had we gone from 10 mil to 50 mil shares on issue or even a 100 mil to 500 mil shares on issue, no one would notice and no one would care. So we have not massively diluted the share base. We’ve gone from one to five. It looks, yeah, looks bad.

We got 5,000,000,000 shares on issue. But, hopefully, with with income coming in, some deals getting done, we can take care of that in other ways. Excessive dilution comes from issuing too many shares at a low price. Traditionally, Dreadnought has done multiple small raises to control this. We do a bit of raise.

We started a 3 mil market cap of 0.03¢ 0.3 of a cent. Sorry. And we did a lot of small raises because that’s all we could do and to get some success, get the value up into a small raise. People complained when we’re doing that because we’re always come raise. So we’re not gonna please everyone.

So we have 5,000,000,000 shares on issue. We have no plans to do a consolidation. We don’t believe we’ve we’ve blown out the share capital because we’ve gone from from one to five. So, anyway, I just wanna comment on those things because that always gets brought up. Funding store of mango development, the two things that we’re pursuing at the moment.

The the default has always been the revenue sharing joint venture, which will most likely be with Black Hat, or we’ve had some group come up come up recently looking at providing debt facilities for that. We are tossing those two ideas together, and we’ll see which one comes out on top in regards to risk and and also best outcome for our shareholders. So we don’t see doing the further equity ways to to, to develop the star of Maker. Next question. Will you be extending the rare earth drilling acreage?

You only did forty forty k in length. The deeper you drill downwards at Stinger fresh, you will have more surprise finds, much better grade as the rock will be surprisingly well preserved and softer. Good luck. Thank you. So the bulk of the current funds we raised is to pursue the gold strategy, and that’s where the funding will go.

We are looking for commercial partners to help take the critical metals forward. Otherwise so if we in the absence of finding a good commercial outcome, allocating funds that we generate from the star of Mangoroon towards the critical metals might be something that that we pursue depending how it stacks up against gold opportunities and and if we have commercial partners in place. But the 10 mill that we have in the in hand right now was to pursue the gold strategy. That money will be used for the gold strategy. And unless we get a partner in or or start generating around cash, we can look at how we fund to the critical metals at that point.

The rare upside, good good comments on there. Now there’s lots of rare there’s rare earth ironstone targets that remain undrilled, so there’s lots of exploration upside. And we also have rare earth intercepts within the Gifford Creek Gabonetite, which we recently put out. And as the Gifford Creek Gabonetites and the iron stones are not fully drilled, there’s potential new areas of mineralization to to to add to that. So it’s plenty rare of upside within the region, both on our ground and and talks about that as well.

Stinger. So Stinger is currently target there. It’s the Niogin. It’s got a few other critical metals in there. Niogin is the focus, and we’re currently drilling that metallurgical metallurgical hole that is EIS supported, and that also falls in the strategy of of helping to attract the best commercial outcome for that project.

And so that is why we’ve we’ve allocated funds for that drill. So we do not plan to do any more exploration on the rare earths and critical metals with the current funding in place. Hopefully, we’ll have a commercial partner to help take that forward. Otherwise, when we generate our own cash, we may revisit it there. As the price of gold is on the up in value, has there been any interest of similar companies or far larger in a possible takeover, or is it a little premature at this stage as Dre is still in its discovery stage?

Great question. We’ve had that a couple the last couple of weeks. So for gold, I would say, is premature as we are as you said, we’re still in discovery phase. But given the market and our landholding, there are companies watching, and things will move quickly on the discovery. I’d to point out here the board of management still have a blocking stake of actually, supposed to be greater than 10%.

I’m just dyslexic. So that’s yeah. We still have a blocking stake of board of management, so it would be difficult for anyone to go hostile. Our critical metals, I would like to point out from a takeover perspective, our critical metals were once multiples more than we are now. In a rising rate of the critical metal market, I would see these assets as the reason for potential takeover.

So when you look at the gold, yes, we’re premature. We’re doing the discovery. We have people watching and and everything else that goes on there. But if people are looking at takeovers, they’re they’re looking at something that’s on sale. And if we were once $500,000,000 in the back of the red earths and now we’re $50.60 mil, That’s sort of the asset that people look at for takeovers.

So that’s what we are concerned about or or or keeping an eye on, and those are some of the discussions that we’re having. There’s a lot of interest in those critical metals for some of those reasons. So where do you see the share price in the next six to twelve months time? Always a classic question. My crystal ball is as good as yours.

But having said that, I would not have been able to raise funds if I or the people investing did not see it going higher. Is it gonna be 10% higher, a 100% higher, a thousand percent higher? Well well, it depends on the drilling. So but I will say on that, after two and a half years of of pain and suffering, the gold production and cash flow from start of mangrove is getting closer. That should be, within reach.

Exploration and discovery, we’ve got early hits to steves. We’re fully funded to deliver, the next twelve months of discovery focused drilling. We have every every crack at that, every every chance of a lot of seven discovery you can ask for, line up the targets and drill them down. And, of course, it’s always been sitting there in the background, things that we had no control over, but we’re starting to see a lot of that rising rare earth sentiments increasing in critical metal critical metal sentiment increasing. And so we think the combination of of those three things are are starting to go our way, and, hopefully, except we would’ve been able to raise the the funds that we had if we didn’t see it going higher.

So I think those are the questions I received. So I have a question here from Joseph. The market continues to value trade fairly poorly. You know? Thanks.

I believe the same. What are your predictions, Ray, say, over that six to twelve months? I I think we just let’s answer that one, Joseph. So, yes, now it’s it’s if you look at the sum of the parts, I think we’re starting to get to the point where we’re certainly we’re certainly worth a lot more than a market cap. The cash flow from Starved Mangaroo should should support of itself, and the barriers continue to rise.

And with them, if you get $1.10 for a US for a a guaranteed neodymium price, then all of a sudden, Hastings and these other options look really, really good. So things are things will hopefully start to come around. And when they do, well, they might move quickly. Got a question from Glenn. If I may ask, have you had any discussions with tech regarding the Kimberly?

Tech and the Kimberly. When I first started speaking with tech it was a fourteen month discussion. When we first started speaking with tech to to our use of gun, we did go through and and talk about did talk about the Kimberly. And and the interest was at that stage, they wanted copper with with nickel exposure. So the money intrusion was the big one, and they happened to have a bunch of ground next to us at Bresnahan.

And so both of those were were quite natural early discussions. We do have some other groups looking at the Kimberly and having some chats there. We still haven’t decided what we want to do with the Kimberly. It is it is copper and also gold, so it does sort of fit in. So once we again, similar to the Gifford Creek Duvante complex, once we start generating our own funds, if we can’t find a commercial partner in the meantime, which would generate our own funds, we’d probably go back

: up and give that a crack.

Dean Tuck, Managing Director, Dreadnought Resources: And that’s the only questions I’ve got at the moment. If there’s any others oh, here we go. Marcel, where do you see where do you see Dre heading in twelve months? What are your expectations? Alright.

That’s probably a better way of of framing that question. So in the next twelve months, I see Dreadnought, wrapping up, right in the midst of generating significant cash flow. I hope that we can use some of that cash to clean up our corporate structure through, perhaps, share buyback or dividends or whatever, and being fully funded to continue delivering on our discoveries. At that stage, within twelve months, I hope that we have a a discovery well in hand, and we’re in the phase of of drilling that discovery out. So in twelve months time, generating cash flow from the start of Mangaroon, discovery delivered, corporate structure being returning some funds to our shareholders and getting getting stuck into that big discovery.

I think we had a a late question, which I didn’t add to this, about how does a share buyback work, and that is if if the company is sitting on lots of lots of money, we can allocate 10 mil of that cash to buy shares on market and and essentially extinguish those shares. So what a share buyback is is a company using cash that is generated, or in case, cash that it raised, to actually buy back shares and remove them from the market. So it’s like, essentially, you buy the company buys the shares off shareholders. So it’s way of increasing the share price and reducing the, the shares on issue without having to do a consolidation, which everyone hates because they don’t tend to do it very well. I believe that question was from Goldfinger.

Thank you, Goldfinger. If there’s no other questions, then we can wrap up the quarterly. Thanks everyone for for for paying attention. We’ll continue to do our our quarterly webinar. And then, of course, if we do have any any big or or significant news in the meantime, we can we can throw in a webinar on the back of that as well as as questions come through.

If there’s lots of questions or or uncertainty or or excitement from from shareholders, we can throw together another webinar. But in the meantime, we’ll continue to do at least one a quarter. Next week, we’ll we’ll be out at at Diggers walking around flashing the old a threes and and trying to a few people. And went straight back up to site, so he’s finished up the drill program with Frank. And we’re looking forward to getting out our drill results, getting out agreements and the progress in the start of Mangaroon, and looking forward to making that big discovery.

So thank you all for for joining us. And, as always, send questions through the investor hub, all the announcements, anything it is, try to answer all of them, and, greatly, greatly appreciate everyone’s support. Thank you very much.

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