ASX:DRE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Dreadnought Resources

Executive Summary

Dreadnought Resources Limited explores for and develops natural resources properties in Australia. More Details


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Dreadnought Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DRE is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: DRE's weekly volatility has decreased from 23% to 12% over the past year.


Market Performance


7 Day Return

-8.3%

DRE

-0.4%

AU Metals and Mining

1.4%

AU Market


1 Year Return

266.7%

DRE

25.8%

AU Metals and Mining

-0.6%

AU Market

Return vs Industry: DRE exceeded the Australian Metals and Mining industry which returned 25.8% over the past year.

Return vs Market: DRE exceeded the Australian Market which returned -0.6% over the past year.


Shareholder returns

DREIndustryMarket
7 Day-8.3%-0.4%1.4%
30 Day10.0%7.3%3.0%
90 Day-18.5%23.6%11.9%
1 Year266.7%266.7%32.6%25.8%2.8%-0.6%
3 Year175.0%175.0%71.3%47.6%27.0%11.4%
5 Year477.4%340.0%277.7%207.4%68.6%34.6%

Long-Term Price Volatility Vs. Market

How volatile is Dreadnought Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dreadnought Resources undervalued compared to its fair value and its price relative to the market?

9.06x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DRE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DRE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DRE is unprofitable, so we can't compare its PE Ratio to the AU Metals and Mining industry average.

PE vs Market: DRE is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DRE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DRE is overvalued based on its PB Ratio (9.1x) compared to the AU Metals and Mining industry average (3x).


Next Steps

Future Growth

How is Dreadnought Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.3%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Dreadnought Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Dreadnought Resources performed over the past 5 years?

30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRE is currently unprofitable.

Growing Profit Margin: DRE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DRE is unprofitable, but has reduced losses over the past 5 years at a rate of 30.4% per year.

Accelerating Growth: Unable to compare DRE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DRE is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (38%).


Return on Equity

High ROE: DRE has a negative Return on Equity (-26.45%), as it is currently unprofitable.


Next Steps

Financial Health

How is Dreadnought Resources's financial position?


Financial Position Analysis

Short Term Liabilities: DRE's short term assets (A$562.5K) do not cover its short term liabilities (A$1.1M).

Long Term Liabilities: DRE has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: DRE's debt to equity ratio (12.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if DRE's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DRE has sufficient cash runway for 2 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: DRE is forecast to have sufficient cash runway for 5 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is Dreadnought Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DRE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DRE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DRE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DRE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DRE's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average board tenure


CEO

Dean Tuck

1.75yrs

Tenure

AU$172,000

Compensation

Mr. Dean Tuck, B.Sc (Hons), FGAA, MAIG is Managing Director and Director of Dreadnought Resources Limited since April 09, 2019. He is an experienced geologist and exploration manager having worked across a...


CEO Compensation Analysis

Compensation vs Market: Dean's total compensation ($USD132.73K) is below average for companies of similar size in the Australian market ($USD293.77K).

Compensation vs Earnings: Dean's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Dean Tuck
MD & Director1.75yrsAU$172.00k0.69%
A$ 345.6k
Ian Gordon
Independent Non-Executive Director3.08yrsAU$36.63k2.09%
A$ 1.0m
Paul Payne
Independent Non-Executive Director3.08yrsAU$36.63k2.05%
A$ 1.0m
Paul Chapman
Independent Non-Executive Chairman1.75yrsAU$36.63k12.56%
A$ 6.3m

2.4yrs

Average Tenure

Experienced Board: DRE's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28%.


Top Shareholders

Company Information

Dreadnought Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dreadnought Resources Limited
  • Ticker: DRE
  • Exchange: ASX
  • Founded: 2006
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$49.761m
  • Shares outstanding: 2.26b
  • Website: https://www.dreadnoughtresources.com.au

Location

  • Dreadnought Resources Limited
  • 16 Nicholson Road
  • Suite 5
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DREASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2006
N2ZDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2006
DRECHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2006

Biography

Dreadnought Resources Limited explores for and develops natural resources properties in Australia. The company explores for gold, copper, and nickel deposits. It holds interests in the Tarraji-Yampi Ni-Cu-...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/24 07:08
End of Day Share Price2021/01/22 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.