Sunday Edition: 3rd May

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.

Time to venture out of the research and writing den...

Get some natural light, and interact with some human beings IRL.

This week we will be heading up to Sydney to the RIU Resources Round up conference.

It’s the largest and busiest resources investment conference on Australia’s east coast, and it's free for investors to attend.

There’s dozens of companies presenting and sitting at booths, so plenty of time to chat to management and get a better understanding of what a company is all about.

Maybe even pick up some free merch or see a few rocks.

We are planning to catch up with our Portfolio stocks in attendance:

• Investigator Silver (ASX:IVR)
• Viking Mines (ASX:VKA)
• West Coast Silver (ASX:WCE)
• St George Mining (ASX:SGQ)
• Power Minerals (ASX:PNN)
• Pursuit Minerals (ASX:PUR)

And who knows, maybe some future Investments too...

Specifically we are looking out for gold, silver, USA based critical minerals, AI build out tech (or minerals), robot metals, niche industrial metals (fluor-what?).

(we are even looking for unlisted, private projects - reach out if you are in Sydney or at the conference)

To get a better idea of WHY we are looking for these specific supply-side sectors, check out the 3 engines we think will be driving the demand side of a coming “every commodity boom”:

Yesterday’s Saturday note: Commodity supercycle beginning as inflation fuels demand?

Below you can find short overviews of all of the other content we wrote last week, plus links to each full note.

Further down, there’s also some links to other interesting stuff we came across on our travels around the internet.

Quick Takes: PNN (x2), VKA, ONE, AL3, RML (x2), PFE, EIQ, LKY, AW1, TRI, EMD, BPM, PKP, PR1

Deep Dives: BPM, LSR, NC1

Other content: IVZ, WAU, IIQ, SS1

PNN completed the acquisition of the Morro do Ferro (MDF) Rare Earths Project in Brazil this week.

PNN also announced verification assay results from its due diligence sampling program at the same asset.

We think PNN’s new asset has the potential to deliver an “SGQ 2.0” style outcome for us.

SGQ has been a very good Investment for us, and we maintain a large holding in the company.

PNN’s new acquisition feels eerily similar to when SGQ first acquired its Brazilian rare earths project.

SGQ is currently capped at $471M, and PNN is capped at circa $50M post transaction.

The main thing that we like about the new PNN asset is the grades of up to 14.03% TREO. For context, $19BN Lynas’ resource has an average grade of 4.10%.

And up to 2.64% whole rock MREO (magnet rare earth oxides). MREO measures the concentration of rare earths that go into magnet making.

Only really high grade assets measure intercepts using that metric...

(source)

It’s early days though, there’s no Mineral Resource Estimate here yet - one is due next half.

IF PNN can put together a Mineral Resource Estimate that demonstrates scale and maintains anywhere near those grades, the market could start to look at the company very differently.

We caught up with the new CEO Alistair Stevens last week in Melbourne, who previously had successful stints with other ASX rare earth companies Lindian Resources and Arafura Resources.

PNN also took the roadshow to Sydney too.

Here’s some pics from both events:

Far East Capital’s Warwick Grigor also featured PNN in his weekly commentary yesterday - a nice read to get quickly up to speed on PNN.

Good to see some more eyeballs on PNN and its new asset.

VKA (OTC: VKALF) finalised a modular processing plant design for its US tungsten project.

VKA’s now got concepts locked in for a 43 tonne per hour facility - with capacity to increase production pretty simply (that’s where the ‘modular’ aspect comes in).

By going for a modular approach, VKA SHOULD be able to get its project up and running for relatively low CAPEX and then ramp up production by responding to demand signals.

So, a lower cost to get up, but it will require CAPEX to grow later. We like that approach with where tungsten prices are now AND the broad macro economic urgency to build out critical mineral supply chains in the US.

Next we wait to see the results from estimating CAPEX for the start-up.

Check out the VKA webinar from the week here:
Viking Mines (ASX: VKA | OTC: VKALF) Investor Webinar | April 2026

RML (OTC: RLMLF) produced tungsten concentrates from its Golden Gate project in Idaho, USA.

RML’s project has a history of critical minerals production supplying government needs:

• During World War 1: RML’s project produced antimony.
• During World War 2: Antimony was produced again.
• In the 1960’s: Even more Antimony production.
• Between the 1950s & 1980s: Tungsten.

Now, RML is trying to get the project going again - a key takeaway for us from this announcement was confirmation that “discussions with tungsten smelting and refining companies” were underway.

Also, RML has drill rigs arriving on-site at the same project.

Drilling is expected to start this upcoming week for a 45-hole, 13,700m program with two diamond drill rigs.

Fingers crossed the gold discovery from last year is extended AND we see the tungsten potential on the project properly tested for the first time.

RML raised $20M at 7c a share (plus 1:3 options ex price 10, expiry 30 Nov 2029) in late April, cornerstoned by Tribeca Capital and L1 Capital Global.

Good to see the funds being put into good use with drilling kicking off any day now.

PFE (OTC: PTMLF)’s EnergyX shareholding, based on the pricing of a recent EnergyX capital raise, is now worth ~$42M. PFE’s current market cap is ~$9.86M.

Last year PFE sold its US lithium asset to a private US based company EnergyX.

EnergyX just completed a funding round which implies a ~$42M valuation for PFE’s EnergyX shares.

PFE is also due to receive a further $4M in cash milestone payments from the sale over the next few 12 months (the next $2M is due July, then another $2M in April 2027).

IF EnergyX lists (at an even higher valuation OR where it is valued now), PFE’s market cap could re-rate closer to the value of the EnergyX public shares.

EIQ deployed its AI heart disease detection tech into New York’s #1 ranked cardiology hospital.

The deployment is into the Mount Sinai Health System, which comprises seven hospitals, over 400 outpatient practices and +3,760 beds.

Initially, it covers EIQ’s Aortic Stenosis tech, which is FDA cleared, and EIQ is currently rolling out in the US.

The reason we think the news is a lot bigger than just the Aortic Stenosis product is that EIQ is currently awaiting FDA clearance on AI Heart Failure detection technology.

IF EIQ gets that product cleared by the FDA it can utilise all of the existing distribution being built for its Aortic Stenosis tech... basically EIQ is currently doing the distribution and market preparation work for both products.

IF FDA clearance comes in for that second product, EIQ can instantly start distributing it.

In its latest quarterly, EIQ called progressing the heart failure tech through the FDA a ‘significant near term catalyst’ - so perhaps news isn't too far away on that front...

(source)

LKY progressed its rare earths processing partnership with Columbia University in the US.

The collaboration now has conceptual flowsheets developed for a specific style of rare earths products (bastnaesite-style mineralisation) - a type of mineralisation found in hard rock carbonatite projects - like the one next door at $16BN MP’s project.

There’s a fair bit happening with LKY right now and catalysts pending:

• Drilling results from Desert Antimony Mine 🔄
• Drilling results from the rare earth targets (inside the ground held by $16BN MP) 🔄
• Product qualification with defence and industrial partners 🔄
• Updates on its antimony/rare earth processing partnerships 🔄
• US government funding decisions. 🔄

Any one of those could be a catalyst that triggers more interest in LKY.

AW1 hit visual mineralisation from its first drill hole of its 2026 drill program.

AW1 hit 77m of structure ~430M away from the existing resource - IF assays can confirm mineralisation then it could mean the single biggest Indium resource in the US is actually even bigger.

It will also de-risk the ~4km long magnetic structure running in that same direction.

(source)

The main thing we are looking forward to is all of the assaying for other minerals - like germanium, gallium and copper.

Assays are due in the next 3-5 weeks.

AW1 went into a Trading Halt Thursday for a capital raise, and we expect it to return to the ASX Monday with details of that raise.

TRI appointed ex- $5BN Telix Pharmaceuticals - Dr Danielle Meyrick as CEO this week.

Dr Danielle Meyrick was previously Global Head of Clinical Science at ~$5BN Telix Pharmaceuticals (ASX:TLX), and as of 1st of June will lead TRI.

Telix has been a massive success story on the ASX going from a 2017 IPO market cap of $125M to peak at $10BN in 2025. It's currently capped at around $5BN.

(past performance of Telix is not an indication of future performance of TRI)

Telix develops and commercialises "theranostics"—radiopharmaceutical products that combine diagnostic imaging with targeted therapy to treat cancer and rare diseases.

A nice fit given TRI recently acquired the “Stabl-Im” brain imaging technology business.

TRI will be developing a diagnostic tool aimed at detecting tumours early and safely without the need for invasive surgeries.

IF TRI can prove the technology works then it could potentially mean brain cancers are able to be much better imaged/monitored using standard MRI.

(as opposed to things like CT scans, lumbar punctures (where cerebrospinal fluid is taken for analysis of cancer cells) or things like a biopsy where there is the need for invasive surgery.

At the moment the tech is pre-clinical but TRI is preparing for in-human clinical studies and expects to complete a Phase 1 trial later this year.

We also came across a podcast with new TRI CEO Dr Danielle Meyrick during the week:

Is Nuclear Medicine Becoming Next Big Breakthrough in Oncology Treatment? Danielle Meyrick

Dr Meyrick begins by going through her history and ends on her achievements which are quite interesting.

We learnt that Dr Meyrick has experience directly with isotope based technologies which is directly applicable to TRI’s Stabl-Im technology.

So we are looking forward to seeing what she can do leading our $24M capped Investment TRI.

EMD signed a partnership to launch its first clinics in NSW.

This is EMD’s third independent private hospital operator partnership and opens the door for EMD to open its first clinic in NSW by Q3 of this year.

We also noticed EMD increased the number of Authorised Prescribers in its network from 6 to 12 - doubling the number of personnel able to run EMD’s treatments.

EMD has 7 more psychiatrists currently undergoing training. The team will focus on scaling services to capture the massive addressable market across New South Wales.

(source)

Nice to see the growth story playing out now - surely the US operators will be watching after last week's news from the White House too.

See our take on Trump’s Executive Order for psychedelics and what it means for EMD here.

BPM finished its second round of drilling on its WA gold project.

A total of 46 holes over 7,400m following up the last round of drilling on the project that hit gold in all 24 holes.

Now we wait to see IF BPM has extended the known gold mineralisation at Beachcomber.

(source)

Any find here - even if it's a few hundred thousand ounces of gold, could start to bring a lot more interest in the other targets BPM has sitting across its ~75km of strike.

Then BPM can use the interest in the stock (and its bigger market cap) to have a real crack at making a large new discovery on completely undrilled targets.

Especially that giant ~6km long Bonnie and Clyde target - which BPM expects to drill in Q3-2026.

More on BPM in the Deep Dives section below and here: BPM: Drilling next quarter - the big one we’ve been waiting for...

PKP raised ~A$2.4M via a convertible note to fund a manufacturing ramp up for its THC-infused beverages.

Funds are mostly being used to fund inventory buildouts, which should mean there is a fairly short payback on the cash outlay.

Also good to see the funding come in after PKP delivered its first positive EBITDA month under its new management team, along with more than expected volumes.

(Volumes increased to 1M (up from 900k when last projected, with the current quarter also boosted by 100k units to 1.5M produced):

PR1 signed a Strategic Partnership with UT Battelle for rare earth recoveries in the US.

This will allow PR1 to collaborate with the Oak Ridge National Laboratory (ORNL) - the US Department of Energy's largest multi-program science and energy laboratory.

(Oak Ridge is also co-host of the Critical Materials Innovation Hub - formerly the Critical Materials Institute).

So, PR1 will now be involved in the US Department of Energy’s critical materials ecosystem (this time looking to process heavy rare earths from its WA garnet project).

This week we also did a deep dive into the recent run in one of PR1’s peers - the ASX listed Adisyn (ASX:AI1).

Both companies are in the materials science space, working on materials for AI data centres and defence. Adisyn is capped at $218M, PR1 at $33M.

You can read our PR1 vs AI1 review in the same Quick Take here.

Quarterlies we covered this week:

Usually quarterly reports are more of a formality in the small cap pre revenue space.

BUT for our Investments that are generating revenues, we can sometimes find a few nuggets of very interesting information.

Here were two we covered this week:

ONE’s March Quarterly Report.

The two notable points from the quarterly for us included:

• A$19M raised - Tranche 1 of A$12M settled in the quarter (Tranche 2 of A$7M subject to AGM approval in September) - a capital raise which we took part in.
• The Top 10 US health system with 85+ hospitals and 15,000+ beds is now in direct negotiations with ONE on “the scope and timing of the initial project”.

The second point has now opened up potential access to 85+ hospitals and 15,000+ beds in the US.

The next step we wanted to see was all that access converting into actual conversations about deployments.

Here are the products ONE is aiming to implement in these rooms:

(source)

As for the capital raise, we like that ONE took the opportunity to secure capital when it was available - which will give ONE a balance sheet to go hard on maxing out AI use across the business.

One chart that lives rent free in our head is the one below - which makes us think the ~A$19M ONE raised can go a lot further now with ONE then it has in the past:

(source - The above is showing how AI MAY change software development costs)

AL3 released its March Quarterly Report.

Here were the two standout numbers for us:

• $29M in orders in hand for the FY (as at 31 March 2026)
• $26.5M cash in the bank

That order book is the highest AL3 has ever reported and if the last few months are anything to go by, we could see things get even stronger going into the end of the FY.

Over the last few months AL3 announced:

• $9.9M, 4x ARCEMY systems for Newport News Shipbuilding (a division of $20BN Huntington Ingalls - the largest military shipbuilder in the US)
• $2.6M, 5x US Navy submarine components (parts no longer supported by their original equipment manufacturers)

Key wins included a major shipbuilding contract and submarine component orders, while the appointment of a former US Navy director as advisor will bolster future growth.

With the Ohio facility expansion fully funded, management will focus on securing further naval system sales in the US and also expansion inside European markets.

Below is a snippet on the former Director of Additive Manufacturing of the US Navy who was just appointed to AL3 as a US Defence advisor.

There would be plenty of knowledge from inside the Navy and many contacts in the industry AL3 will have access:

(source)

(source)

BPM Minerals (ASX:BPM)

There aren't many gold targets left in WA that are 6km long, surface-sampled at over 1 g/t, sitting on a 8Moz Tropicana-grade shear zone...

A footprint large enough to be WA’s next major gold discovery...

PLUS the right type of geology similar to some of the mega mines in the area.

and have never had a single drill hole put into it.

Our exploration Investment BPM Minerals (ASX:BPM) “Bonnie & Clyde” prospect is one of them.

It's the reason BPM is calling it the "crown jewel" of its 2026 program.

(the company’s words, not ours - although we're not exactly rushing to disagree)

This week BPM said that it would be drilling that target in Q3 2026.

Bonnie and Clyde sit across an area so large it’s comparable to that of the 8Moz Tropicana deposit owned by $69BN AngloGold and $5.6BN Regis Resources.

AND the Glenburgh discovery - which has re-rated Benz Mining’s share price by over 400% in the last 12 months.

(past performance of Benz Mining is not an indicator of future performance of BPM)

(Source)

We’ve been waiting for this drilling event for nearly 6 months now.

BPM first started talking about Bonnie and Clyde as a priority target in November last year. (source)

At the time, drilling was at least 9+ months away - usually enough time for the market to move on to the next shiny target junior explorers are talking about.

Turns out, that lead time actually worked out pretty well for BPM.

BPM has had a full FIVE months to hit the road and insert the target and a potential discovery into the market's mind.

BPM’s last capital raise was cornerstoned by two institutions - Terra Capital and Tribeca Investment Partners for $3.5M at 23c a share, about the same price BPM is trading right now.

Read more: BPM: Drilling next quarter - the big one we’ve been waiting for...

Lodestar Minerals (ASX:LSR)

The great modern, global buildouts of our generation that will drive the next commodities boom are all “high tech”.

They need a LOT of electricity... meaning they need a lot of copper.

AI data centres, autonomous robots, military rebuilds and drones all want their cut of this metal.

Global copper demand is set to outstrip supply by ~10M tonnes a year by 2035.

While no major new mines have been built in over a decade...

The copper price just quietly hit the highest it’s EVER been:

(source)

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.

Our Investment Lodestar Minerals (ASX:LSR) is potentially on the cusp of a new copper discovery in Chile - assay results are pending...

Chile is the world’s leading copper supplier with 22% to 27% of global mined supply.

A few weeks ago LSR started drilling its project in Chile and hit “visible chalcopyrite (copper sulphide)” (zones of copper over ~410m - ending in mineralisation).

Then immediately after, LSR started drilling its second hole.

(always a good signal that the company likes what it’s seeing).

A full 700m away from the first drill hole - a proper step-out, swing for the fences exploration hole.

And this week more visual copper - like that first hole, only ~700m away.

(source)

So two sets of visual copper in holes ~700m apart, both ending in mineralisation.

So why is LSR releasing early updates on a partially completed drillhole that is still drilling towards its main target right now?

Read more: LSR: unexplained share price run forces “visible copper” results release while drill hole is still in progress - Approaching main target now

LSR is also drilling aiming to expand the gold mineralisation at its Ned’s Creek project in WA, here’s the field team on site with rig in the background:

Nico Resources (ASX: NC1)

It feels to us like the nickel price wants to go on a run higher...

Just a few days ago, another major Indonesian nickel producer said it would slash production from its mines...

... this time because of sulphur supply shortages due to the Strait of Hormuz being closed (source).

It looks like the longer the Strait of Hormuz stays shut and causes chaos in global markets, the more likely a nickel bull run becomes - more on why later in today’s note. (source)

Nickel’s already up ~36% since the December low late last year.

In the last 14 days, the nickel price has broken out and started running again.

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.

The nickel price is now at ~US$19,500 per tonne, and climbing.

Our Investment Nico Resources (ASX: NC1) owns 100% of one of the largest undeveloped nickel projects on the planet.

It’s one of those giant Tier 1 kind of deposits that get major miners interested.

The current nickel price is just below the nickel price that NC1 assumed in its 2022 Pre-Feasibility Study (PFS).

NC1 applied a US$20k/tonne nickel price in its study, which demonstrated the following project economics:

• Net Present Value (NPV) = $3.34BN.
• Payback period of 4.9 years
• Internal Rate of Return (IRR) = 18.02%

From CAPEX of ~$2.9BN.

(source)

But the reason we are Invested in NC1 is not for the nickel price today.

It’s for a world where nickel goes to US$25,000, $35,000 or $40,000 per tonne.

If any of those price scenarios come into play, NC1 could become the quickest and easiest way to get leveraged nickel exposure - for investors and producers alike.

At US$30,000 per tonne, NC1’s project’s NPV would almost double to $6.5BN.

Read more: NC1: Leverage to a rising nickel price... and guess what - it’s rising.

Visual Capitalist: Released this graphic showing the reserves (expected in ground resources) and the actual production for countries across the world, of note is Mexico's high production vs comparative silver resources:

Far East Capital - This newsletter piece highlights fluorite as a critical industrial mineral and discusses how the ongoing Iran War and de-globalisation are cementing Australia’s importance in global resource security.

Our exposure to fluorite in the US is OD6 (project is in Nevada, USA and it was the first of the small cap ASX stocks to pick up a fluorspar project in the US).

Bloomberg - covered a comprehensive update on the US government’s controversial "Inventory Acceleration Plan," confirming that the Pentagon is aggressively purchasing critical minerals from China to "top off" the National Defense Stockpile (NDS) before total legal decoupling begins.

AFR - This article highlights Europe’s desperate pivot toward Australian mining projects as the continent struggles to overcome its "laggard" status in the global race for critical minerals.

The Guardian - UN findings are that critical minerals are the new "oil," driving a scramble that ravages water, health, and livelihoods in Africa and Latin America.

FT - The US has warned Europe of major arms shipment delays due to its Iran War stockpile depletion, even moving weapons from other regions which is leaving Ukraine’s defences more exposed.

X (@ekwufinance) - Lukas Ekwueme posted how copper could be about to enter a commodity supercycle and lists the reasons, the copper price has been setting all time highs:

(source)

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.

AFR - Australia has established a Bio-AI Countermeasures Taskforce to prevent the synthesis of catastrophic bioweapons by monitoring the intersection of advanced AI models and automated laboratory infrastructure.

This is the space ILA is operating in, it is going through the process to have its Galidesivir drug approved which has positive results to treat against Marburg virus, Ebola and Zika, all of which could become weaponised into bioweapons.

IVZ - Investor Presentation - Unlocking a new hydrocarbon province in the Cabora Bassa Basin

WA Gold (ASX:WAU) - WA Gold Explorer with Strategic Positioning & Near-Term Catalysts (East Coast Research

Inoviq (ASX:IIQ) - EXO-OC Nears LDT Readiness (MST Access)

Shovels, Not Spreadsheets: The Resource Crisis Wall St. Isn’t Pricing – Luke Gromen & Craig Tindale

SS1 posted a video from MD Andrew Dornan about the importance of shareholder engagement and highlighted how the company has been able to deliver value to shareholders:

SS1 also posted an image of the drill rig in action at its Maverick Springs Silver Project with the sun in the background:

Special shout out to SS1’s MD Andrew Dornan who on Friday night was recognised as a 2026 40under40 Award winner in WA - nice work!

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.

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Bye for now.

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