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Ann: Annual Report to Shareholders - 30 June 2024, page-3

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04/09/24

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Post #: 75515238
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Originally posted by curlednoodles ↑

**The 2024 Annual Report for Dreadnought Resources Limitedprovides a comprehensive overview of the company's activities, financialposition, and strategies for future growth. Here are the key highlights:

Company Overview:

Dreadnought Resources Ltd (ASX: DRE) is a West Australian mineral exploration company focused on finding and developing critical metals essential for future industries.

The company is highly active in exploring for rare earth elements (REE), niobium, gold, and other critical minerals across several projects in Western Australia.

Operational Highlights:

Gifford Creek Carbonatite: The company has extended this project to over 17km, identifying high-grade zones of niobium and REE. They have successfully drilled thick high-grade niobium and are working on a commercial assessment.

Mangaroon Project: This project is a major focus, with significant discoveries of REE, niobium, and gold. The company aims to develop a high-grade open-pit mine at Star of Mangaroon, potentially transforming Dreadnought into a self-funded explorer.

Central Yilgarn and Other Projects: Dreadnought has identified multiple lithium targets and continues to explore gold, iron ore, and base metals in this region.

Financial Overview:

The company reported a loss of $6.3 million for the financial year, slightly higher than the previous year’s loss of $5.5 million.

Net assets increased by approximately $1.2 million to $52 million as of 30 June 2024.

No dividends were declared or paid during the year.

Strategic Focus:

Dreadnought is focused on becoming a self-funded explorer by developing high-grade projects and outsourcing the funding, development, haulage, and processing to third parties. This approach is intended to reduce reliance on market funding and generate cash flow for further exploration.

The company plans to advance the Gifford Creek Carbonatite project to determine its economic viability and is exploring multiple high-potential prospects across its portfolio.

Corporate Activities:

The company completed a placement raising $3.96 million and issued shares under a Share Purchase Plan, raising an additional $628,000.

Significant progress was made in joint venture discussions for the Mangaroon Ni-Cu and Bresnahan U-Au-Sb-Pb projects.

Board and Management:

The board consists of experienced professionals with extensive backgrounds in resource management and exploration.

The company emphasizes corporate governance, environmental responsibility, and social responsibility in its operations.

Outlook:

The company remains committed to delivering significant shareholder returns by discovering and developing economic mineral deposits in Western Australia.

Key future developments include the commercial assessment of the Gifford Creek Carbonatite and the commercialisation of the Mangaroon gold targets.

This summary provides a high-level view of the company'soperations, financials, and strategic direction based on the 2024 AnnualReport.
The corporate activities of Dreadnought Resources Limitedduring the financial year ending 30 June 2024 were significant, focusing onstrategic financial and operational manoeuvres to strengthen the company'sposition in the mineral exploration sector.
Key Corporate Activities:

Share Placements:

In October 2023, Dreadnought Resources completed a share placement at $0.047 per share, raising $3,960,000 before costs from institutional and sophisticated investors. The company issued 84,255,319 shares as part of this placement.

Additionally, a Share Purchase Plan (SPP) was offered to eligible shareholders, raising an additional $628,000 before costs, with 13,361,764 shares issued.

Director Contributions:

Directors of the company contributed a further $1,040,000 to the placement, which was approved by shareholders during the annual general meeting on 23 November 2023. This resulted in the issuance of 22,127,660 shares to the directors.

Options Issuances and Exercises:

On 9 October 2023, 6,000,000 options were issued to Shaw and Partners and their nominees for their role as Lead Manager in the October 2023 placement. These options have an exercise price of $0.094 and will expire on 9 October 2025.

The Managing Director exercised 31,500,000 options on 9 April 2024, generating $157,500 in total.

Performance Rights:

Several tranches of performance rights were vested and exercised during the year. For example, on 5 July 2023, 2,566,667 performance rights for directors and 11,983,334 performance rights for employees vested under Class B. These were subsequently converted into fully paid ordinary shares on 1 August 2023.

New performance rights were also granted on 4 December 2023, divided into four tranches based on specific vesting conditions tied to market performance and continued service.

Strategic Acquisitions:

Dreadnought Resources made several strategic acquisitions to expand its exploration footprint. Notably, on 4 October 2023, the company acquired a 100% interest in exploration tenements E52/3412 and E52/3462, which involved a $100,000 cash payment, the issuance of 2,500,000 fully paid ordinary shares, and a 1.0% gross royalty(Annual Report to Shareh….

These activities highlight the company’s proactive approachto securing funding, rewarding key management, and expanding its explorationcapabilities, which are crucial for its ongoing operations and future growth.
Overview section of Dreadnought ResourcesLimited's 2024 Annual Report provides a detailed analysis of the company’sfinancial performance and position. Here are the key points:
Operating Results

The company reported a net loss of $6.32 million for the financial year ended 30 June 2024, compared to a loss of $5.52 million in 2023. The increased loss is attributed mainly to higher impairment costs related to exploration assets and a decrease in other income.

Operating revenue for the year was $242,788, down from $338,777 in the previous year. This includes government grants and other income sources but highlights a challenging year with a decline in revenue streams.

Financial Position

As of 30 June 2024, Dreadnought Resources had net assets of $52.04 million, an increase from $50.84 million in 2023. This growth in net assets is primarily due to the successful capital raising activities despite the operational losses.

Cash and cash equivalents at the end of the year were $1.45 million, down from $5.66 million at the end of 2023, reflecting significant investments in exploration and development activities.

Cash Flow

The company’s operating activities used net cash of $2.09 million, slightly higher than the $1.74 million used in 2023.

Investing activities saw a net cash outflow of $7.57 million, a substantial reduction from $27.11 million in the previous year. This decrease is primarily due to reduced payments for exploration and fewer acquisitions of tenements and subsidiaries.

Financing activities provided net cash of $5.44 million, down from $32.01 million in 2023, mainly due to lower proceeds from share issues and options exercises in the current year.

Capital Management

The company successfully raised $5.63 million through share placements and the exercise of options during the year, which was crucial for funding ongoing exploration and operational expenses.

The share price at the end of the year was $0.02 per share, reflecting market conditions and the broader industry context.

Dividends

No dividends were declared or paid during the year, consistent with the company’s focus on reinvesting in exploration and development.

These points provide a snapshot of Dreadnought ResourcesLimited's financial health and strategic focus during the 2024 financial year .
Operational Highlights fromDreadnought Resources Limited Annual Report (2024):

Mangaroon Project:

Nb-REE Focus: The Mangaroon Rare Earth Elements (REE) and Niobium (Nb) project remains a globally significant critical minerals complex, with a combined resource at the Yin and Gifford Creek Carbonatite totaling 40.82 million tonnes at 1.03% Total Rare Earth Oxides (TREO). This project has successfully produced a high-quality mixed rare earth carbonate from Yin concentrate, marking a crucial step in its commercialization.

Gold Exploration: High-grade gold mineralization was identified at the Star of Mangaroon and other prospects, with an internal study supporting the commercial viability of an open-pit mine. This is part of a broader strategy to become a self-funded explorer by outsourcing development to third parties.

Gifford Creek Carbonatite:

High-Grade Niobium: This project is notable for producing some of the best niobium intercepts in Western Australia. The company is focused on extending known pyrochlore niobium mineralization and discovering additional deposits. Assay results from recent drilling have confirmed thick, high-grade niobium intercepts, bolstering the project's potential as a multi-commodity critical metals hub.

Central Yilgarn:

Multi-Commodity Potential: Covering four greenstone belts within the Yilgarn Craton, this project has significant gold, copper, nickel, lithium, and iron ore potential. A recent drilling program tested four gold targets, with anomalous gold mineralization intersected in all, especially at the Chicken Little target, which showed shallow, high-grade gold and silver.

Tarraji-Yampi Project:

Base Metals Exploration: Located within the Yampi Sound Training Area, a Commonwealth Defence Reserve, this project is focused on copper, silver, gold, and cobalt exploration. Recent drilling identified four strong off-hole conductors, with follow-up drilling planned for high-priority targets. The project received a co-funded grant under the Western Australia Government’s Exploration Incentive Scheme.

Bresnahan Project:

REE-HREE Exploration: This project focuses on heavy rare earth elements (HREE) and has over 3,700 square kilometers of prospective ground. Initial assays from surface sampling have confirmed unconformity HREE mineralization, and joint venture discussions are well-advanced.

These operational highlights reflect Dreadnought ResourcesLimited's ongoing efforts to explore and develop a diverse portfolio of mineralassets, focusing on critical and strategic metals essential for futuretechnologies
The Strategic Focus of Dreadnought Resources Limited,as outlined in the 2024 Annual Report, centers on several key initiatives aimedat transforming the company into a self-funded explorer and ensuring long-termsustainability and growth. Here are the main elements of their strategic focus:

Self-Funded Exploration:

Dreadnought aims to transform into a self-funded explorer by developing high-grade open-pit mining operations. A key example of this strategy is the potential development of the Star of Mangaroon gold project. The company plans to outsource the funding, development, haulage, and processing to third parties, which would allow Dreadnought to generate its own cash flow and reduce reliance on external market funding. This model is common in Western Australia, especially given the robust gold price environment.

Progressing Gifford Creek Carbonatite:

The company is focused on advancing the Gifford Creek Carbonatite project to a commercial assessment. They are conducting low-cost, high-value work to determine whether the niobium resource at this site can deliver an economic resource or ore reserve. Given the existing infrastructure and favorable mineralogy, preliminary work suggests economic viability, which would allow the company to make decisions about whether to proceed with sole development or seek joint venture partners.

Discovery and Development on 100% Owned Ground:

Dreadnought emphasizes the importance of making "life-changing" discoveries on its 100% owned projects. They have identified several high-priority prospects with the potential to transform the company's portfolio, including gold, niobium, and base metal targets across their exploration projects.

Commercialization and Joint Ventures:

The company is actively pursuing the commercialization of its existing portfolio and is in advanced discussions with third parties for joint venture opportunities. For instance, the Mangaroon project, which includes rare earth elements and critical minerals, is considered a long-life, strategically important project. Dreadnought is minimizing holding costs while preparing for market upturns in rare earth elements, and they are also advancing joint venture discussions for their nickel-copper projects.

These strategies are designed to position Dreadnought Resources Limited as a leading explorer with the ability to fund its own operations, discover new resources, and maximize shareholder value through strategic partnerships and careful project development.

**Summarised by GPT4o

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Thanks CN & GPT40.

Here's another summary from a fellow (biggest) shareholder/DRE Chairman:

Certainly a big and successful year behind us (I know, SP hasn't reflected it, due to all/most juniors being in the same/overall junior market position), and hopefully an even bigger year coming up (and hopefully with the market rewarding us/the SP this year).

Cheers,

GB.
DRE Price at posting: 1.6¢ Sentiment: Buy Disclosure: Held
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