Silver Spends Session Above $36

This week the small end of the markets broadly felt very good... hooray.

Many tiny stocks were going up from lows, without news.

Speculative money seems to be finding its way back into our end of the markets.

Overnight the silver price traded above US$36... for most of the session.

$36 is the price earmarked by many chartists (including Michael Oliver - a well known technical analysis expert) - in what he was calling a "triple top breakout”.

He said: “If silver goes above $35, watch out because if it goes above $36 its a triple top breakout”

(As was discussed in the Silver Slingshot Webinar at around the 7 min mark)

And last night silver did in fact spend most of the session trading above $36... after flirting with $36 the night before:

So if Michael Oliver’s technical analysis (which is clearly much better than ours) is correct...

He reckons “we are going to get another launch” and when we get it “it will be at a speedier process than what gold is currently doing”.

Gold has more than doubled over the last 12 months (hopefully Michael is right and the same will happen to silver post this “triple top breakout”).

While silver was delivering its glorious triple top breakout, we were in Mexico visiting our gold and silver Investment Mithril Silver and Gold (ASX:MTH)

MTH’s project has a 373Koz gold and 11Moz silver JORC resource.

MTH’s resource grades average around 4.8g/t gold and 141g/t silver - which are seriously high grades.

AND MTH is currently drilling with two rigs to double its resource size - with more assays results due literally any day now.

MTH closed up 16% on Friday on over $1M in volume:

In case you missed it, here is yesterday's write-up on what we learned on our MTH site visit - read it here: Silver price breakout during our MTH Silver and Gold Site visit

We also noticed Sun Silver (ASX:SS1) had a bit of a “silver price run” pop on Friday too ending the day up ~10% on more than $2M of volume.

SS1 has a ~480M ounce silver equivalent JORC resource in Nevada, USA and it has the biggest pre-production silver asset on the ASX.

With the silver “triple top breakout” happening overnight, when our market had already closed, it should be an interesting week for MTH and SS1 coming up..

Speaking of the USA...

Prior to our visit to MTH’s project in Mexico, we spent some time in the USA to visit a few of our other company’s projects

...and we are now more bullish than ever on US based resources.

We’ll release our site visit write ups for each company over the coming weeks.

(in the meantime, here’s one photo from each different company we visited)

See if you can guess which one of our companies is literally surrounded on 3 sides by this enormous producing mine (spoiler alert - its JBY):

USA critical metals (and mining in general) is definitely getting bid by the market - benefiting from macro cash inflows.

Dateline Resources is up ~6,200% and Locksley Resources is up more than 900% - they both have projects next to more advanced US resource projects.

Dateline is up because Trump mentioned a successful permit for its US-based rare earths project and Locksley because it’s close to the USA’s biggest rare earths mine.

We also have been hearing a lot in the media about the US trying to fix its $36 trillion national debt and fiscal deficits with “austerity”.

(Basically cutting government spending - like Elon Musk’s DOGE was trying to do)

But the media reports say that Donald Trump’s new “Big Beautiful Bill” could add another $2 trillion to $3 trillion to the debt...

This week the narrative seems to be changing to “let’s spend and grow our way out of the debt” by increasing GDP.

The change in narrative has even caused a rift between Donald Trump and his chief “cost cutter” Elon Musk...

(and popped the gold price, which goes up when the US government debt goes up)

Trump is arguing for more spending and more growth.

And Elon saying the US needs to cut costs.

The reality is the US will probably need a mix of both, BUT without growth, the cost cutting will mean very little...

One way for the US to “grow its way out” of its debt problem is by unleashing the potential of its natural resources sector.

Which has the added bonus of securing the critical and defence metals it needs, and energy security.

Many won’t know this, but the US was actually built on mining.

Up until the 1990s the US was one of the world’s biggest mining superpowers (source).

Now with Trump looking to fast track permits for mines and also pushing for investment in critical minerals projects we think the US is slowly going back to a position of being mining friendly.

We think Trump's push to “make US mining great again” will be good for US resource assets...

(including the projects we visited)

Trump continues to push for US-based critical minerals

So the big theme this week has been “critical minerals” inside the US with Trump set to use emergency powers to lift US production:

These new rules would allow Trump to bypass the congressional approval process on projects over US$50M and force project permitting timeframes down to ~1 year.

Trump's big push for US critical minerals makes sense for two reasons:

1. Supply chain security - by encouraging more investment into critical minerals projects, Trump can solve for import dependency on minerals that are used in the defence/Ai/tech/battery industries.
   
   AND
   
2. Promotes investment and increases GDP - if more capital comes into the country and helps build more mines that means more jobs for the population while those mines are built, more jobs when they are operating and more taxes/royalties to the government and landowners while they operate for decades to come.

On the All In Podcast, billionaire investor Chamath talked about this exact point (watch from 1:04:00):

(Watch Video - From 1:04:00)

We think that it could be a golden opportunity for US-based minerals to come online, as it solves two of the US’s biggest issues right now: Domestic Growth and Supply Chain Security.

More US M&A on the horizon

In the last few weeks, there have been a few acquisitions for US-based projects:

• New World Resources for A$185M (copper in Northern Arizona).
• Nuclear Fuels for US$31M (Uranium in Wyoming).

(Note - both of our uranium Investments GTR and GUE are based in Wyoming).

Against this backdrop, we think interest and capital flows into US based assets will only increase from here.

Whether it's critical minerals, gold, uranium or more defence metals like antimony...

As mentioned earlier, Dateline Resources more than 50-bagged off the back of Trump mentioning its US-based rare earths project in a “Weekly Policy Achievements” bulletin:

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Another one that has moved recently is Locksley Resources.

Locksley went from 1.4c to 13.5c simply because its project is close to the MP Materials project in California.

Locksley is now capped at $19.2M.

(MP Materials is the biggest rare earths miner in the USA and is capped at ~$6.5BN)

There are heaps of companies with US based assets that have been cash starved or in permitting purgatory for years...

We think it's the right time to be placing bets on companies with US assets that can now raise a bunch of cash and make meaningful progress on a previously cash starved asset.

If you have any stocks with US-based assets that you think we should look at please reply to this email with the ticker and our team will take a look at them.

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Have a great weekend,

Next Investors