Sunday Edition: 14th December

Disclosure: S3 Consortium Pty Ltd and its associated entities may hold direct or indirect interests in securities referred to in this publication and may receive fees or other forms of consideration from entities mentioned. These interests and arrangements may create a potential conflict of interest in the preparation of this material.

The information contained in this communication is provided for general information purposes only and may relate to speculative investments. It does not constitute financial product advice, and has been prepared without taking into account your personal objectives, financial situation or needs. You should consider obtaining independent financial advice before making any investment decision.

Any forward-looking statements are uncertain and not a guaranteed outcome.

Yesterday we just had to write about silver again.

Silver hit a NEW all time high of US$64.5/oz AND closed out the week at US$62/oz...

another week, another new all time high for silver.

To read our full Saturday note, click here.

We have consolidated our silver investment thesis and the ASX silver stocks we are Invested into an ebook.

We are going to pay to send this eBook to about a half a million people who are not on our mailing list over the next 8 weeks to try and get some of them to subscribe to our newsletter...

But you can read it first - here it is:

(Click here to get the eBook)

Below is a summary and links for everything else we wrote about last week, along with some other interesting content we found in relation to our Portfolio.

Quick Takes: BPM, SGQ, MAN, CAY, PUR, TG1, LKY, PNN, L1M, EMD

Deep Dives: LKY, SS1, HAR, BKB, PKP

BPM started drilling at its WA gold project.

BPM’s project sits in the same part of WA as the Tropicana gold mine, which is rumoured to be at the center of a $2.5BN M&A deal...

BPM is drilling ground that used to belong to one of Tropicana’s current owners - the $63BN capped Anglogold Ashanti.

Anglo drilled BPM’s ground, hit ~3m at 65.8 g/t gold and ~9.7m at 4.5 g/t gold and the project has not been drilled since.

A pretty good start - fingers crossed BPM builds on those hits over the coming weeks.

SGQ released high grade drill results from its rare earths and niobium project in Brazil.

SGQ’s project is already the largest and highest-grade carbonatite-hosted rare earths resource in South America.

AND the second-highest grade rare earths resource in the Western world.

With more hits like the ones from this week, we think that SGQ’s resource upgrade could surprise the market to the upside...

MAN signed a binding agreement to recover uranium and other critical minerals from its project in Utah.

MAN’s project sits next to US uranium producer Energy Fuels - which is capped at US$5.6BN.

Energy Fuels also owns the White Mesa Mill which is capable of producing uranium AND heavy rare earths. The heavy rare earths component was actually what started the rally in Energy Fuels share price earlier this year...

We note MAN’s deal includes “other critical minerals”...

CAY put out an update on mine development works for its bauxite project in Cameroon.

CAY confirmed that the surface miner would be on site and mining in Q1 2026 and that infrastructure works would be completed shortly after, with first shipments targeted for June.

So CAY could be mining within the next few weeks (after years of Investing in small caps, this could actually be our first Investment that gets into production).

Looks like it’s all happening on site:

PUR completed the acquisition of its silver-gold asset in Argentina.

We will soon get to see what's lying below PUR’s “silica cap”.

We are following PUR Chairman Tom Eadie in PUR’s silver-gold asset - Eadie was behind the $1.1B Southern Cross Gold discovery in Victoria, Australia.

PUR’s early exploration model also shares similarities with the 8M ounce Cerro Negro mine ~100km to the north, which was discovered by drilling beneath a silica cap.

PUR will be defining and ranking the highest impact drill targets next.

TG1 received approvals for drilling at its copper-gold project in WA (Mount Boggola).

No more permitting hurdles - just weather and the new year break...

Drilling is scheduled to start in February 2026.

TG1 spent most of this year building up a list of high priority drill targets (doing all the grunt work like permitting, geophysics and sampling).

2026 looks like it will be the year we see them get drilled.

LKY is a few weeks from drilling its rare earths targets - next door to $16BN MP Materials.

Interestingly, LKY ranked two new target areas, so if the first set of drilling comes in there should be some follow up targets to build on the initial drill program.

The market should like strong drill results, but we have a feeling the outcome from the pending application for a US$43M US Defense Production Act Title III funding is what the market is really looking forward to here.

LKY also kicked off an expression of interest process with engineering firms for its antimony project in California.

Check out this video of LKY’s ‘Mine to Market’ plan:

Locksley Resources - Desert Antimony Processing Facility

Read our Deep Dive on LKY’s capital raise earlier this week below.

PNN released results from a geophysical survey at its Brazilian rare earths project.

The key takeaway for us were the undrilled targets PNN now has to the south of its project.

PNN should be starting the first phase of a 10,000m deeper drilling program on the project soon - hopefully that broader program tests those southern targets at some point next year.

L1M detailed its planned phase 2 drilling program at its QLD project.

L1M just finished its first round of drilling hitting 20.4m at 2.4g/t gold below old producing gold pits AND some base metals on the fringes of the big porphyry target for the project.

Now with this next round of drilling we should have two questions answered:

1. Is there more gold below that old pit near the 20.4m hit at 2.4g/t gold? (L1M has a fair bit of drilling planned around that intercept), and
2. Can L1M make a discovery on its porphyry target. (L1M has a single vertical hole planned to test that target).

Drilling is scheduled for Q1-2026 so we won't have to wait too long for answers...

EMD put out an update on the national rollout of its psychedelics treatment clinics heading into 2026.

With payers entering the psychedelics space (Medibank’s deal with EMD and now the Department of Veteran Affairs willing to fund treatments) it looks like forward demand for EMD’s care protocols is increasing.

EMD explicitly said it was looking to add a fourth room to its Perth clinic. 39 Perth therapists have been trained and contracted to deliver EMD’s treatment AND 67 initial screenings with potential patients had been booked for Q1 alone.

Locksley Resources (ASX:LKY)

This week LKY raised $17M in an “oversubscribed” placement “cornerstoned by well established U.S. institutional investors”. (source)

(we put money into this placement)

We topped up because we like LKY’s ‘fast to market’ approach.

LKY is executing a plan to rapidly become the first domestic supplier of the critical mineral antimony in the USA.

The US is racing to find, secure and stockpile domestic sources of critical minerals like rare earths and antimony.

LKY is taking advantage of the current window of urgent US market need, zero domestic US antimony supply, increased investor interest and available US government funding.

In just 6 months, LKY managed to produce the first 100% US-sourced antimony ingot in decades.

(source)

LKY’s project sits in a highly strategic critical minerals corridor in the USA - Mountain Pass, California.

LKY has ground directly next door to (and even inside of) the $16.6BN capped MP Materials, the only rare earths miner (and aspiring rare earths magnet producer) in the US.

(Source)

LKY’s rare earth targets (El Campo prospect) are literally INSIDE MP Materials' land area.

Two weeks ago, LKY started ground operations ahead of drilling this rare earths target. (source)

(any big rare earth hits announced by LKY in the coming weeks would be a nice bonus to the antimony story)

Once the rare earths drilling is finished, drilling will move directly to LKY’s antimony project to the north.

So LKY has back to back drill programs about to start in the coming weeks.

Results from the drilling are expected sometime in the first half of 2026.

Read more: LKY: Just raised $17M, now backed by US institutions - first antimony producer in the USA?

Sun Silver (ASX:SS1)

SS1 upgraded its USA silver resource estimate’s size and grade this week.

The upgrade means SS1’s project is now the even larger... the biggest pre-production, primary silver asset in the USA and on the ASX.

SS1’s project is in Nevada, USA - home to some of the biggest, lowest cost operating silver mines in the world.

SS1’s resource estimate now sits at 539M ounces silver equivalent.

(Source)

The resource estimate upgrade does NOT include the near surface mineralisation SS1 has been sampling of late.

(Source)

SS1’s project may also contain critical military mineral antimony...

(antimony is critical for making bullets, missiles, tanks and all sorts of important military uses but the USA has zero domestic supply)

Silver and antimony prices are both at record highs.

Read more: SS1 increases resource estimate to 539M ounces of silver equivalent, silver price at all time highs...

Haranga Resources (ASX:HAR)

Out of all the stocks in our Portfolio, HAR looks likely to release the most major announcements before and just after Christmas.

HAR is currently drilling two projects at the same time, on two different continents.

Just as the gold price threatens to hit new all time highs:

• Drilling has (finally) STARTED at its USA gold project in the famous California gold rush “Motherlode” - Drilling just started about 2 weeks ago. So we could start to see first results (or visuals) in the coming weeks...

(Source)

• Assay results from HAR’s (surprisingly good) gold project in Senegal are due any day now...

(Source)

Lets see what HAR might be bringing us for Christmas...

Read more: HAR: Two high grade gold drill programs - results in the coming weeks (some before Christmas)

Black Bear Minerals (ASX:BKB)

BKB started drilling at its newly acquired silver project in Texas, USA.

The project already has a 17.5M ounce silver (non-JORC) resource estimate, at an average silver grade of 289g/t.

AND a processing plant with infrastructure worth an estimated ~$150M (source) (which can be quickly restarted to sell the silver while prices are at record highs):

(Source)

Now we get to see IF that resource can grow, with some drilling, to a size that starts to make a restart too hard to ignore.

Another thing we will be looking out for is assay results for other minerals.

BKB’s project has historically produced gold (but drilling has never been assayed for it)...

(source)

Ultimately we want to see BKB’s resource estimate grow to a size big enough to allow a restart of its processing plant, which means BKB can start selling silver ASAP while the silver price is running...

Especially as that generational “cup and handle breakout” of the silver price that we have been writing about for a while plays out...

Some technical chartists predict that if silver clearly breaks out above its 1980 and 2011 highs of ~$US50/oz... it will keep running...

... and it looks like it has - how high will it go now? We’ll have to wait and see...

(Source)

Read more: BKB: Silver drilling started in Texas USA as silver price hits new all time high US$61.80/oz

Peak Processing Ltd (ASX:PKP)

We Invested in PKP because we think the THC drinks sector will rapidly grow over the next 5 years as people look for alcohol alternatives.

THC is the active compound in cannabis that gives the high/buzz.

THC offers a controlled, alcohol-like effect with fewer drawbacks - no hangovers, less calories...

... a healthier, modern alternative to alcoholic drinks.

If you are struggling with Christmas party silly season hangover horrors right now on this glorious Sunday and just swore you are “never drinking again”...

... perhaps THC drinks are for you.

Earlier this week PKP signed a “co-manufacturing” deal with Organigram in Canada.

(source - today’s PKP announcement)

The deal, which runs for two years, locks in PKP as the contract manufacturer of choice for the biggest licensed cannabis producer in the country...

Interestingly, PKP is 45% owned by British American Tobacco (capped at $190BN+) - so PKP is the contract manufacturer of choice for the hand picked THC vehicle for British American Tobacco...

Not bad, given PKP is our “sell the picks and shovels in a gold rush” Investment for the THC drinks sector.

(oh and PKP already has a deal with multi billion dollar Boston Beer Co)

PKP is not a start up - its manufacturing division already has a ~33% share of the Canadian THC-infused beverage market. (source)

(AND PKP produces for ~70% of the brands operating in the Canadian market).

One of the main reasons we Invested in PKP was because we think the company can take its market leading business model in a highly regulated THC drink market in Canada, and replicate it in the much bigger US market.

With the US government looking to regulate the sector in the US and PKP just recently having opened its facility in Florida, we think regulation could be an opportunity for PKP.

Read more: PKP: New name. New (big) customer. New alternative to drinking alcohol - cannabis beverages.

Locksley Resources (ASX:LKY) - INVESTOR PRESENTATION USA MINE TO MARKET ANTIMONY & RARE EARTHS COMPANY December 2025

Bloomberg - The ECB urges Italy to rethink declaring its massive reserves “property of the people,” sparking fears the government plans a historic bullion sell-off.

Bloomberg - The safe-money party is over. As yields crash, income investors face a brutal choice: accept lower returns or chase dangerous, exotic assets to stay afloat.

Bloomberg - Silver just hit record highs above $60/oz, driven by rate cuts and tight supply. As momentum builds, traders ask: how much higher can it go?

Bloomberg - China’s only silver fund flashes a red alert. Managers are beginning to show concern as a 12% premium signals further rapid growth, but for how long?

FT - Silver goes parabolic: prices nearly doubled to $64, forcing Germany to scrap coin issues. Is this historic squeeze a warning sign of a looming market crisis?

Reuters - “An army without bullets is just a parade.” The US is building portable refineries to break China’s grip on critical minerals and secure its ammo supply.

Bloomberg - A $448 million gamble: The Navy taps Palantir AI to fix critical submarine delays. Under a unique “shared risk” deal, the tech giant must perform to profit.

This may be of interest to our Investment AL3 which can produce parts for ships like these, the US appears to be beginning to do something about the lag in ship production.

More ship production requires more industrial capacity and more maintenance requires more replacement parts.

(AL3’s 3D printing systems fit in all along that supply chain)

Reuters - Standard Lithium surges as its joint venture attracts over $1 billion in financing interest, fueling the race against Exxon to unlock Arkansas’s massive underground lithium reserves.

This could be good news for Our Investment PFE who recently sold its Arkansas lithium project to EnergyX in a deal that saw it acquire equity in the unlisted company.

More interest in the area can only be good for EnergyX (which in turn is good for the shareholding PFE has in EnergyX).

Bloomberg - The White House chases rare-earth independence, but unlike the shale boom, geology and China’s iron grip mean this dream remains a distant fantasy unless it puts up the investment required.

We have seen the US beginning to do deals, even abroad in Brazil such as the $465M in financing offered to Serra Verde’s Brazilian rare earth project.

Maybe our Investment SGQ is on their radar? It has the largest and highest-grade carbonatite-hosted rare earth deposit in South America after all...

VICE - Alcohol is out, THC drinks are in. Sales are skyrocketing as drinkers ditch the hangover, Vice tested the best legal sippers to find the perfect buzz.

We came across this while writing our article on PKP, so we had to chuck this in here as these are the types of drinks that PKP can produce.

It’s interesting to see the wide range of drink flavours in this category, if THC drinks are your thing, there are plenty of flavours to enjoy.

Yahoo Finance - Trump eyes a historic shift: The President is poised to reclassify marijuana as a less dangerous drug, sparking a massive surge in cannabis stocks on Friday.

Washington Post - Trump plans to reclassify marijuana to Schedule III, easing restrictions to boost research and business. This stops short of legalisation (but reduces barriers to access) and overrides House Speaker Johnson’s prior objections.

This news has implications for our cannabis adjacent Investments PKP and NTI.

While no direct benefits to the companies, this regulatory move should result in higher level social acceptance and the removal of stigma associated with the industry. This could really improve the environment for big companies considering making a foray into the industry.

The biggest win for the industry will be related to the banking system and allowing money to flow freely between borders, which could open up a lot more investment and banking opportunities for the industry as a whole.

88E Energy (ASX: 88E) - Strategic Boost to Alaska Portfolio MST Access

Mithril Silver and Gold (ASX: MTH) - District-Scale Mexico Play With High-Grade Ounces

Lodestar Minerals (ASX: LSR) - Inside Virgin Mountain: Lodestar’s First Look at a Heavy Rare Earth Hotspot

Canyon Resources (ASX: CAY) - Premium Cameroon Bauxite Mine Ships First Ore Mid-2026

How a New Global Order Is Rewriting Commodity Investing - The Money of Mine pod had Tomasz Nadrowski on the podcast who runs a fund that solely invests in non-Chinese critical minerals (so we think we would get along well with him...).

Jamie Dimon Warns: A Weak Europe Is a Major Risk to America | JPMorgan CEO & RTX CEO Full Panel

Michael Oliver: Here's How Far Silver Will Go By Q2 Next Year

A word of caution...

While we aim to highlight developments in the small cap space, investing in early-stage and small cap companies - like those we cover - is inherently risky.

These companies often face funding challenges, regulatory hurdles, and market volatility. Announcements may reflect aspirations more than guaranteed outcomes.

Things can, and often do, change.

Just because a company has signed a deal, released drill results, or appointed a new director doesn’t mean success is assured.

Always assume delays, cost overruns, or results that don’t pan out.

We’re here to share insights, not offer personal financial advice - so please do your own research and speak with a licensed adviser before acting on anything mentioned.

Follow us on social media: X, LinkedIn, Facebook

Bye for now.