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Exclusive: Insights from Dreadnought's Dean Tuck (ASX:DRE)

Dreadnought's take on momentum.

This has always been a topic we’ve discussed here at Dreadnought.

From the early days with just Paul and myself when we were a $3m micro-cap, to now with my entire team in how we advance our projects and present them to market as a near $200m small-cap.

I certainly see your point from a pure shareholder base perspective; you need an aware and engaged shareholder base.

But we also view momentum from the perspective of material results because as a junior explorer (and this would apply to most companies), you have to be doing (and delivering) meaningful work at every stage of the process.

If I refer to your investor marketing analogy where momentum is dictated by:

  • Mass: The weight of your engaged shareholders.
  • Velocity: Mass buying or selling and how fast that’s happening.

I’d apply that to Dreadnought and the way we’ve experienced momentum as a result of:

  • Mass: The significance of the news or the material results we release.
  • Velocity: How often we generate newsflow, communicate with the market, and engage our shareholders.

And we need both mass and velocity, because if we simply put out news every fortnight at a high velocity that isn’t material or lacks mass, then we’re just creating wind.

It’s when we’ve been able to maximise our material newsflow, and thrown in encouraging results, built anticipation and added some mega intercepts at a high frequency that enabled us to collectively build a lot of mass, and create some serious momentum.

Dreadnought's stages of mass.

In junior exploration, the ultimate value driver is the discovery drilling of new projects.

We need to establish these projects, define the targets and drill these targets constantly so that we can get to the discovery drilling point as quickly as possible.

We build momentum along the way because each stage if done correctly, gives us material newsflow (mass) to provide to investors (new project, new target, target defined, continued hits, resource) at high-cadence (velocity).

(1) Generate/acquire a project.

We’ve found the right project that gives us the best chance of delivering material value from the start of the project

Example: MANGAROON NI-CU-PGE & AU Project

(2) Target generation.

We’ve generated the relevant targets to understand what we’re expecting from each project and established expectations for our investors.

Example: HIGH-GRADE RARE EARTH ELEMENT IRONSTONES OUTCROPPING AT MANGAROON

(3) Target definition.

We’ve defined estimates and resource targets for the project that reflect our expectations for discovery and growth, as well as where they sit within our portfolio.

Example: HIGH-GRADE REE IRONSTONES CONFIRMED OVER 2.5KMS AT MANGAROON

(4) Targeting Testing: Discovery

We’ve discovered if there’s any potential within each project against the resource estimates, which is naturally a high-mass piece of newsflow for our investors.

Example: ASSAYS CONFIRM YIN AS A HIGH-GRADE RARE EARTH DISCOVERY

(5) Follow-Up Drilling: Stage and Resource

We’ve confirmed initial discoveries and we’re making plans to follow-up and move ahead with a timeline to do further testing, and establish a better idea of each project. 

Example: INITIAL HIGH-GRADE, INDEPENDENT RESOURCE OVER 3KM AT YIN – MANGAROON (100%)

Our goal at every stage is to create a market that’s well informed about what we’re doing, at high mass with the material news, and high velocity with the cadence.

But there’s also risks with the way we try and build momentum because if a target falls over, or doesn’t result in a discovery, we lose the mass and the momentum drops also. So we keep generating new projects, targets, and hopefully discoveries a way to maintain consistent and robust newsflow.

And you’re right that repetition is important because it takes much more than one! We’ve lost momentum and even though our last results were fantastic (some of our best), I didn’t expect the market to move because of that. But let’s see how we go with the next batch, and the batch after that.

Because that’s how we approach it at Dreadnought, building mass batch by batch.

Cheers,
Dean Tuck

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Dreadnought's take on momentum.

This has always been a topic we’ve discussed here at Dreadnought.

From the early days with just Paul and myself when we were a $3m micro-cap, to now with my entire team in how we advance our projects and present them to market as a near $200m small-cap.

I certainly see your point from a pure shareholder base perspective; you need an aware and engaged shareholder base.

But we also view momentum from the perspective of material results because as a junior explorer (and this would apply to most companies), you have to be doing (and delivering) meaningful work at every stage of the process.

If I refer to your investor marketing analogy where momentum is dictated by:

  • Mass: The weight of your engaged shareholders.
  • Velocity: Mass buying or selling and how fast that’s happening.

I’d apply that to Dreadnought and the way we’ve experienced momentum as a result of:

  • Mass: The significance of the news or the material results we release.
  • Velocity: How often we generate newsflow, communicate with the market, and engage our shareholders.

And we need both mass and velocity, because if we simply put out news every fortnight at a high velocity that isn’t material or lacks mass, then we’re just creating wind.

It’s when we’ve been able to maximise our material newsflow, and thrown in encouraging results, built anticipation and added some mega intercepts at a high frequency that enabled us to collectively build a lot of mass, and create some serious momentum.

Dreadnought's stages of mass.

In junior exploration, the ultimate value driver is the discovery drilling of new projects.

We need to establish these projects, define the targets and drill these targets constantly so that we can get to the discovery drilling point as quickly as possible.

We build momentum along the way because each stage if done correctly, gives us material newsflow (mass) to provide to investors (new project, new target, target defined, continued hits, resource) at high-cadence (velocity).

(1) Generate/acquire a project.

We’ve found the right project that gives us the best chance of delivering material value from the start of the project

Example: MANGAROON NI-CU-PGE & AU Project

(2) Target generation.

We’ve generated the relevant targets to understand what we’re expecting from each project and established expectations for our investors.

Example: HIGH-GRADE RARE EARTH ELEMENT IRONSTONES OUTCROPPING AT MANGAROON

(3) Target definition.

We’ve defined estimates and resource targets for the project that reflect our expectations for discovery and growth, as well as where they sit within our portfolio.

Example: HIGH-GRADE REE IRONSTONES CONFIRMED OVER 2.5KMS AT MANGAROON

(4) Targeting Testing: Discovery

We’ve discovered if there’s any potential within each project against the resource estimates, which is naturally a high-mass piece of newsflow for our investors.

Example: ASSAYS CONFIRM YIN AS A HIGH-GRADE RARE EARTH DISCOVERY

(5) Follow-Up Drilling: Stage and Resource

We’ve confirmed initial discoveries and we’re making plans to follow-up and move ahead with a timeline to do further testing, and establish a better idea of each project. 

Example: INITIAL HIGH-GRADE, INDEPENDENT RESOURCE OVER 3KM AT YIN – MANGAROON (100%)

Our goal at every stage is to create a market that’s well informed about what we’re doing, at high mass with the material news, and high velocity with the cadence.

But there’s also risks with the way we try and build momentum because if a target falls over, or doesn’t result in a discovery, we lose the mass and the momentum drops also. So we keep generating new projects, targets, and hopefully discoveries a way to maintain consistent and robust newsflow.

And you’re right that repetition is important because it takes much more than one! We’ve lost momentum and even though our last results were fantastic (some of our best), I didn’t expect the market to move because of that. But let’s see how we go with the next batch, and the batch after that.

Because that’s how we approach it at Dreadnought, building mass batch by batch.

Cheers,
Dean Tuck

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