Sunday Edition: 5th April

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.

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

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

Yesterday’s Saturday note: Triple-Crown Supercycle: The 3 Incoming Global Buildouts

Quick Takes: LKY, TG1, SGQ (x2), VKA (x2), OD6, SS1, BMG, HAR, AL3, EMD

Deep Dives: ROC, PR1 (New Investment🚨), AW1, SGQ

LKY is advancing toward production of high purity antimony concentrate. Optimisation is underway to produce defence-grade >99% purity antimony using material sourced from its project in California, USA.

The US has no mine to end product antimony supply options right now. Which is why LKY partnering with Rice University to produce defence-grade high purity antimony aligns well with US strategic priorities.

TG1 - assays due from its WA copper project in the coming weeks.

TG1 has so far drilled 3 holes across 2 of its 4 copper targets. We have visible copper sulphides and a 20m at 1.14% copper hit from outside of the main target area. Now we wait for results from the main targets...

(source)

SGQ signed an MoU with a European rare earths leader which will see processing test work completed on samples of SGQ’s rare earths resource. The work potentially opens up access to the vast European market for rare earths for SGQ.

This is now SGQ’s third alliance/partnership for processing on its rare earths deposit. One in the US seeing if defence grade magnets can be produced, and the other two (in Brazil and Europe) to optimise processing for higher value end products).

SGQ has signed an MoU with US based Boston Metal to trial new generation niobium processing technology.

Under the MoU, SGQ is partnering with Boston Metal, a group that came out of MIT (in the US) and has attracted over US$500M in investment from a syndicate that includes BHP, BMW, Microsoft, ArcelorMittal, Vale, and Aramco. (source)

Boston Metal's CEO, Tadeu Carneiro, worked for CBMM for nearly 30 years including 10 years as CEO.

CBMM are the group that dominates the global niobium market (and are SGQ’s neighbours) so this group knows the niobium market (and probably SGQ’s asset) inside out.

In parallel to the test work with Boston Metal, SGQ is completing met test work on the ore using traditional processing that has been used in the region for more than 40 years - a low cost technical model that is tried, proven, and relatively simple to implement.

Read more on SGQ’s news this week in the Deep Dives section below.

VKA successfully demonstrated that its USA tungsten project’s mineralisation can be upgraded by over 5,300% using simple, low-cost gravity separation, confirming a potential high margin development pathway.

VKA has attained premium marketable grade tungsten, the concentrate sits within the top tier of global scheelite products. (Scheelite is the primary mineral ore of tungsten)

VKA released its full schedule of upcoming activities and newsflow for its USA tungsten asset. Drilling is scheduled for late May with assays to follow from July.

Here’s everything else VKA is planning over the next 6 months:

(source)

We Invested in VKA for its "fast to market" strategy - centred around bringing a previously producing tungsten project that sits inside US borders back into production while the tungsten price is soaring.

(source) (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.

OD6 is commencing exploration at US fluorspar project - soil samples, stream sediment sampling, and a mapping and channel sampling program are planned to identify drill targets.

This will be the first exploration program in over 60 years at the project OD6 plans to acquire.

This is a project that has never been drilled before despite having a historic resource, rock chips with fluorspar grades up to 94% and an old pit that previously produced Fluorspar in the 1950s.

SS1 starts drilling with four diamond core rigs at its giant US silver project.

Four diamond rigs are turning at the largest pre-production silver resource in the US.

IF those holes to the north-west of the resource come in, then the already giant resource could become even bigger.

The scoping study due in Q4 and a potential maiden antimony resource could be the big catalysts here though.

BMG - Diamond drilling at 518k oz WA gold project is underway. Scoping study nearly finalised.

BMG is already ~1,100m through its planned 10,000m drill program - mainly targeting extensions at depth to its existing resource.

IF any of those extensional holes come in then BMG’s “Never Never” style exploration model could come into play.

(Never Never was a recent discovery that got taken out for ~$2.4BN)

That scoping study should also be fairly interesting especially with gold where it is today.

HAR is scheduled to start a 4,000m RC drilling campaign at its Senegal gold project in early April, following regulatory approvals.

HAR will be following up the hits from last year where aircore drilling hit 20m at 6.0g/t gold from 12m... the result that started HAR’s run from ~6c to a high of ~20c.

(this will be the first time HAR follows up with deeper RC holes - so it’s a big campaign for HAR)

AL3’s $1.7M 3D printing system is now operational at a US defence supplier.

That system is going into a facility run by US based FasTech - a supplier to the defence, aerospace, and energy sectors. It's now doing so with one of AL3’s systems in its production line. Hopefully a sign of more things to come from AL3.

EMD launched a NSW recruitment campaign for psychiatrists and therapists to establish EMD’s fourth state based clinical operation.

EMD delivers innovative mental health treatments using psychedelic assisted therapies and drug treatments.

You also know the US is starting to show an interest in what EMD’s doing when a 37 minute podcast on psychedelics goes live and has almost half a million views in 10 days - watch it / listen here.

EMD is the global leader in delivering psychedelic therapies and treatments at scale. So any changes in regulations in the US could put EMD in prime position for a move into the US.

Rocketboots (ASX:ROC)

We think the recent, indiscriminate, SaaS/tech sell off over the last couple of weeks/months (SaaSpocalypse) has been WAY overdone.

The broad sell off has offered up some great valuations for companies that probably aren't going to be affected...

ESPECIALLY for companies that are already AI native, already have major customers AND will actually immensely benefit from faster and cheaper technology development.

Our 2025 Tech Pick of The Year RocketBoots (ASX:ROC) has been “doing AI” for years - and already is in use by major banks and retail store chains.

(way before AI was everyone's favourite investment)

~3 months ago ROC bagged a transformational $9.1M Annually RECURRING Revenue (ARR) contract from a tier-one global retailer.

This week ROC confirmed a NEW “Activation Contract” of a further $3.3M in one off revenue has been signed by the same client.

In summary, ROC will be paid $3.3M for its services to implement its tech for the customer, where the license fees will eventually generate $9.1M in yearly recurring revenue.

(incredible given that just ~6 months ago, ROC’s annual report showed ~$660k in revenues for the 2025 financial year).

(source)(source)

AND ROC says they have FIVE more opportunities of SIMILAR size in their ADVANCED stage pipeline...

(source)

ROC sells to giant retail and banking enterprises - where privacy, security and stability matter.

(not an easily disruptable, replicable sector for new entrants using AI coding)

ROC’s “Vision Artificial Intelligence” technology is used by giant companies to analyse and respond to in-store customer behaviours.

Allowing them to improve and optimise operations across its sites:

Read more: ROC (AI for giant banks and retail store chains) announces another ~$3.3M revenue... on top of its $9.1M annual recurring revenue deal.

Pure Resources (ASX:PR1) New Investment

We think AI and robotics will be bigger for humanity than the internet and mobile phones were.

However managing the immense heat generated by these technologies is a critical and growing problem.

The specialized hardware used for Artificial Intelligence generates far more heat than traditional servers.

(The thermal management market is valued at over $100BN)

Current cooling solutions rely on copper and aluminium heat sinks - but they are approaching their physical and structural limits.

Power density is rising faster than conventional cooling architectures can scale.

Managing heat has become the bottleneck for AI computing and next generation defence technologies.

Carbon nanotubes represent one of the most advanced forms of engineered carbon, combining exceptional:

• thermal conductivity,
• mechanical strength, and
• lightweight structural properties.

Carbon nanotube fibre (CNTF) thermal management is a high-performance cooling technology.

The technology uses microscopic, hair-like carbon threads to move heat away from sensitive components.

(source - PR1 announcement)

These carbon fibres act as "thermal superhighways" because they possess exceptional axial thermal conductivity (the ability to conduct heat along their length) - which can exceed that of copper by 15-20%, while being significantly lighter.

We have recently written a lot about AI taking our jobs...

Now carbon nanofibre tubes could be taking copper’s job in AI chips and data centre cooling.

(sorry, copper bulls)

Not even base metals’ jobs are safe...

The potential applications for this technology extend to anywhere where lightweight cooling is required in tight spaces - including robotics and military.

Rice University in Houston, Texas is known as “The Birthplace of Carbon Nanotechnology”.

It is also the same University that has done four technology partnerships with ASX listed companies:

• ~$757M capped Weebit Nano (ASX: WBT): ReRAM semiconductor technology up ~700% at its peak.
• $413M capped Metallium (ASX: MTM): Flash Joule Heating technology up at ~800% at its peak. ~
• ~$34M capped Environmental Clean Technologies (ASX: ECT): up 104% on the day it partnered with Rice Uni for Flash Joule Heating technology.
• Locksley Resources (ASX:LKY): signed a collaboration with Rice Uni - on that day alone, LKY’s share price was up over 40%. One of our best performers of 2025 -

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.

This week we added Pure Resources (ASX:PR1) to our Portfolio.

PR1 has just entered into an R&D collaboration agreement with Rice University to research carbon nanotube fibre thermal management systems for advanced electronics.

PR1 will provide Rice with up to US$500,000 in Research and Development funding (over a maximum 24 month period) to apply carbon nanotube fibre for thermal management (cooling) in:

• Hyperscale AI data centres
• directed-energy weapons (e.g. military lasers) and advanced RF platforms (e.g. radar and comms)
• and autonomous defence systems (e.g. automated drone swarms and robot dogs)

Both PR1 and Rice will have joint ownership of any intellectual property where there are inventors from both PR1 and Rice.

Read more: Our Latest Investment: Pure Resources (ASX: PR1) - Thermal Management for AI data centres, Military and Robotics with Rice University

American West Metals (ASX:AW1)

The critical metal “indium” is essential for infrared detectors, night vision systems, missile guidance systems, radar systems and F-35 fighter jets.

The US has zero domestic production of indium.

China produces 70% of the world’s supply.

Gallium is essential for defence systems and high-performance semiconductors required for AI.

The US has zero domestic production of gallium.

China produces 98% of the world’s supply.

Our Investment American West Metals (ASX:AW1) owns 100% of the largest undeveloped JORC-compliant indium resource in the United States.

The same project also has confirmed gallium mineralisation.

Late last week AW1 started a 5,000m drilling campaign - that for the first time will properly test a pipeline of high grade indium, gallium and copper targets.

(All from outside the existing JORC resource)

AW1 is targeting a “Goldilocks Zone” - an area where it expects to be critical minerals rich and where there has been very limited drilling to date...

As well as indium, AW1’s JORC resource also has large defined resources of zinc, copper, and silver.

Oh and it’s already fully permitted for open pit mine and exploration shaft construction - potentially saving the company years of permitting purgatory and development delays.

We are hoping assay results over the next few months deliver AW1 a few new unexpected discoveries, allowing AW1 to define a multi-mineral resource to go with AW1’s giant indium resource.

Read more: AW1: Drilling in the USA for critical metals... that China controls

St George Mining (ASX:SGQ)

You can't build AI chips, data centres and robots without rare earths.

Rare earths provide powerful permanent magnets and specialized phosphors that are essential for high‐efficiency motors, sensors, and cooling in AI chips, data centres, and robotics.

You can’t build next‐gen power, mobility, and quantum hardware without niobium either.

(niobium is a critical mineral used in Aerospace, defence and semiconductors)

Brazil controls over 90% of global niobium reserves.

And has the second-largest rare earth reserves in the world (after China).

As China puts restrictions on rare earths exports, the USA needs to secure rare earths resources to fund its domestic tech build out.

Last month the US held a critical minerals summit in Brazil saying it had identified more than 50 rare earths projects in Brazil it wants to invest potentially billions of dollars into. (source)

Then a few weeks ago, the US signed an MoU with the state of Goiás aimed at “connecting local miners with US technology” (source)

Around 7 hours ago, details were revealed about USA securing control of future rare earths production from a Brazil mining company in return for a US$565M loan:

(source)

The New York Times is reporting US pressure on Brazil for an agreement to "produce millions of tons of critical minerals to support future economies and military operations." (source)

Two minerals that keep coming up in every US-Brazil discussion:

Rare earths and niobium.

Our Investment St George Mining (ASX:SGQ) has both rare earths and niobium in the same asset.

The big news this week - SGQ signed two strategic alliances to process its rare earths and niobium with companies in the US and EU (more on the processing deals in the link below)

SGQ owns 100% of the largest and highest-grade carbonatite-hosted rare earth deposit in South America.

SGQ’s resource is larger than the Mountain Pass Mine in California owned by $12BN MP Materials.

(MP has attracted funding from the US government and tech giant Apple)

SGQ’s project is the third highest grade REE deposit - behind projects owned by $12BN MP and $20BN Lynas.

(source)

SGQ is currently drilling with FOUR rigs 24/7 - so it could get bigger - SGQ is targeting another resource upgrade next quarter.

Read more: SGQ: Rare earth and niobium in Brazil - USA deal to secure control over Brazil rare earth production.

X (@GoldTelegraph_) -Gold Telegraph posted - The dollar’s share of global reserves just fell to 56.8%. Lowest since 1994.

The implications of this include the US potentially facing difficulties refinancing its debt as demand for its dollar drops.

Mining.com - Perpetua Resources US$2.7BN EXIM loan for its Idaho project proposal has entered the final approval stage, another step towards establishing a critical domestic antimony supply.

Fastmarkets - Tungsten prices have continued to climb as China’s export controls and defence demand created extreme volatility, forcing the US to launch massive stockpiling initiatives for this strategic resource.

Oilprice.com - A report on how a rare earth magnet shortage threatens the ten trillion dollar tech sector, as China’s processing monopoly creates a critical bottleneck for global high-tech electronics.

AlCircle - A surge in bauxite shipments and record aluminium premiums as Middle East tensions and rising freight costs force a massive realignment in global trade and production strategies.

Heat Treat Today - The Pentagon awarded additive manufacturing contracts to twenty four manufacturers to accelerate domestic defense production, which bypasses global supply chain chokepoints and secures critical components for national security.

Bloomberg - A critical naphtha shortage in Japan as the Middle East conflict disrupts oil flows, threatening the nation's plastics and automotive sectors with widespread supply-chain chaos.

X (@sequoia) - To commemorate Apple’s 50th anniversary, Sequoia Capital shared an interesting memento of theirs - Don Valentine's original 1977 memo for Sequoia's investment into Apple Computer;

Who at the time could have imagined the US$3.76 trillion dollar Apple is today...

PR1 - 3D Recycled Carbon Nanotube Fibre IP Collaboration High-Flux, Low-Mass Thermal Management

88E - Cap raise to advance Augusta - MST Access

Power Minerals (ASX: PNN) Investor Webinar - South American Project development

Power Minerals (ASX: PNN) NWR Critical Minerals Webinar Replay

AL3 posted an article from the south Australian newspaper - The Advertiser, this comes on the back of a few significant updates over the past couple of week, receiving 2 large orders and closing another out from last year:

LSR’s executive director, Coraline Blaud is pictured on site at LSR’s copper project in Chile where drilling is underway with the first hole having intersected visual sulphides over ~410m.

(source)

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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