Why is the Dreadnought Resources (ASX:DRE) share price down 7% today?

The minerals explorer has crept down after hitting a 52-week high a week ago.

| More on:
A businessman holds his glasses in concern, indicating uncertainly in the ASX share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Dreadnought Resources Ltd (ASX: DRE) finished the month of July on a busy note, with eight updates provided to the market before the month's end.

Despite this, the Dreadnought Resources share price has given away 37% from its five-year high on 23 June.

At the time of writing, the Dreadnought Resources share price is down almost 7% at 4 cents apiece.

Here we cover the tension points in the Dreadnought share price lately.

Quick refresher on Dreadnought Resources

Dreadnought is an exploration company with expertise in the development of gold and other natural resource assets in the Northern Territory, Australia.

The Dreadnought Resources share price hit its 52-week high on 23 June at 6.2 cents. Dreadnought has a market capitalisation of $111 million at the time of writing.

Quarterly results fail to gain market's attention

Dreadnought released its quarterly activities report on 30 July. It contained several progress updates at the company's 3 core projects.

Dreadnought completed a number of surveys and reverse circulation (RC) drilling programs in the quarter just past.

In the report, Dreadnought also detailed an "option agreement" the company entered into regarding the base metal rights at its Mangaroon site.

As per Dreadnought's report, the agreement is structured in the following way:

The option provides FQM with the right, following the completion of an exploration program funded by FQM, to earn a 51% interest in Mangaroon by spending $15m and a further 19% interest by sole funding all expenditure up until a decision to mine

Dreadnought shares have fallen 7% since the release of its quarterly activities report.

Before this update, on 26 July, the company announced it had exercised a conversion of 109,090,909 ordinary, fully paid shares via 600,000 convertible notes as per the noteholders.

Selling pressure has continued on Dreadnought shares since this event until today.

There is no market-sensitive information for the company today so it appears these recent events may have an implication on the Dreadnought Resources share price.

Dreadnought Resources share price snapshot

Despite the short-term drop, the Dreadnought Resources share price has lifted 95% year to date and is up 333% over the past 12 months.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO), which has gained around 26% over the past year.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Corporate Travel Management, Judo, and Zip shares are sinking today

These shares are missing out on the good times on Friday. But why?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

These were the worst-performing ASX 200 shares in April

These shares were out of form last month. But why?

Read more »

Man waiting for his flight and looking at his phone.
Travel Shares

Corporate Travel shares crash 11% as Trump tariffs bite

Trump’s tariffs are roiling Corporate Travel shares on Friday.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Brainchip, DroneShield, Resolute Mining, and Woodside shares are falling today

These shares are under pressure on Thursday. What's going on?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

Why Appen, Bank of Queensland, Novonix, and Ora Banda shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Brainchip, Catalyst Metals, Northern Star, and Pact Group shares are tumbling today

These shares are having a tough time on Tuesday. But why?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Share Fallers

Why Brambles, Bravura, Pantoro, and Telix shares are sinking today

These shares are starting the week in the red. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why DroneShield, Generation Development, Oneview, and PWR shares are falling today

These shares are ending the week in the red. But why?

Read more »