Since 2022, finding quality stocks with high growth potential has been extremely difficult. Hence, we are amid megatrends such as a lingering global pandemic, high inflation, and geopolitical tensions. The world is on the verge of a recession, with COVID-19 and inflationary pressure becoming the new normal. We have seen in recent months structural issues, such as, most importantly, the trade war that is reversing 30 years of globalisation, geopolitical tensions that could change the world order, high energy prices, and the necessity to transition to renewables. The market has reacted with increased volatility, with the ASX 200 down 6% year-to-date. However, the Australian stock market is full of hidden treasures, but you still need to know where to find them.
At Shares In Value, we help our members to discover these hidden gems. We are a group of researchers dedicated to finding the next big play before the market knows it. Since last year, we have revealed to our members a dozen quality growth stocks that have gained more than 50%, and some have even doubled their value.
Source: Tradingview
Are Dreadnought Resources (ASX: DRE) shares a hidden treasure for investors?
One of our latest picks is Dreadnought Resources. Dreadnought (DRE) is one of these rare finds steadily drilling its way as one of the best shares in the ASX market after we recommended this as a BUY to our members over 3 months ago, soaring by a 38% increase in July.
Why is Dreadnought a hidden gem?
Dreadnought Resources has a clear mission and vision: to discover and extract metals that are needed for the future. Moreover, what we like about this Company is that it is highly efficient and has proved capable of delivering key milestones on time since its inception. Hence, Dreadnought is actively operating on three projects on the ground of a highly prospective terrain with proven mineralisation:
1. The Tarraji-Yampi Cu-Ag-Au-Co,
2. The Mangaroon Ni-Cu-PGE-REE-Au and
3. The Central Yilgarn Project.
Also, the Dreadnought board and management are strongly committed and have invested $1.3 million of their own money in the projects so far.
With a projected value of about US$2 billion in 2030, the renewable and sustainable energy market has more room to grow. However, only a few shares on the ASX are not crowded and can still exhibit serious upside potential.
We think it is time to consider Dreadnought. We believe the Company has what it takes to unearth rare earth elements (REE) successfully. In fact, Dreadnought recently confirmed the Yin ironstone within its Mangaroon project as a high-grade rare earth discovery. This can support the rising demand for REE used in batteries.
High-grade rare earth recently discovered
Dreadnought share prices have jumped by more than 20% since its assay results on July 28. DRE is trading near the 7 cents level, a fresh high not seen since March 2012, and there is a solid reason for that positive market reaction.
Dreadnought has confirmed from its first drill line at the Yin rare earth ironstone, located at the Company’s Mangaroon project in Western Australia, thick, high-grade rare earth mineralisation at quantity. Results showed up to 16% total rare earth oxides (TREO) with an average NdPr (neodymium and praseodymium) ratio of 30%. This is nearly double the global coverage of the Company.
It is time to take action before it is too late and consider DRE in your portfolio. Thus, infill drilling at the site is taking place now, and an initial JORC Resource will be released in the December quarter.
When we pick a Company, we also emphasise selecting it based on its quality and stability, such as:
- Well-capitalised with a robust balance sheet
- High-potential earnings growth
- Economic MOAT
- Well-positioned in a nascent or emerging niche
Dreadnought is ticking all the boxes of a quality growth stock.
We conduct research-backed findings to make data-driven decisions and only present our members with stock picks that meet our rigorous benchmarks across the blue-chip to small caps.
DRE has proved its capability to consistently run its operations smoothly in the last four years. In fact, for FY21, the Company was capable of bringing its expense/cash ratio down to 44.1%.
DRE’s recent acquisition of the Strickland copper-gold project in West Australia from fellow mineral exploration company Arrow Minerals further highlights its strength in the market. The agreement favours both parties as Arrow Minerals can now focus on their West African growth strategy while DRE gains more control in West Australia.
We are premium researchers specifically specialising in unearthing emerging stars that have not been covered yet by mainstream news articles.
If you would like to book a free personalised walkthrough of our platform from a Dedicated Account Manager and take a look at our portfolio for free, just click HERE.
* Prices on the graphs are approximate and as of 4th August 2022.
