Rapid Critical Metals (ASX:RCM)

Investment Memo:

Rapid Critical Metals (ASX:RCM)

- LIVE

Opened: 17-Sep-2025

Shares Held at Open: 13,213,571

What does RCM do?

RCM will soon hold 100% of three nearby projects that have a combined 67M ounce silver equivalent JORC resource in NSW, Australia.

RCM also owns 100% of an early stage germanium/gallium exploration asset in Canada.

What is the macro theme?

Silver is both an industrial and precious metal.

As a precious metal silver can be used as a hedge against inflation, which remains persistently high at the time of this memo.

As an industrial metal, silver is used in the manufacture of photovoltaic cells for solar panels and can be considered important to the energy transition.

Why did we invest in RCM?

RCM has an estimated 67M ounces of high grade silver equivalent JORC resource estimates. We think it can grow bigger.

Across all its nearby projects, RCM will have an estimated ~67M ounces of high grade silver equivalent JORC resources. With capital to put into drilling now, we think RCM can multiply this resource with new discoveries and by extending its existing discoveries.

We like silver

Silver is now at 14 year highs, and we think its about to go on a once in a generation run to new all time highs (no guarantee of course).

There are very few silver exposures on ASX

There are very few silver names on the ASX. If silver runs, there could be a lot of capital chasing silver exposure in only a handful of names. This scarcity could mean valuations run from where they are now.

Silver stocks on the ASX (like RCM) are cheap relative to other exchanges

We think silver is misunderstood on the ASX and as a result, silver companies are not being valued in line with peers on North American exchanges.

We think that a big silver bull run could change that very quickly.

RCM is relatively cheap compared to other ASX listed silver stocks

RCM trades at an EV/silver equivalent JORC resource estimate of ~$0.38 per silver ounce equivalent (following the settlement of RCM’s latest acquisition).

NSW peer Silver Mines trades at a ~$1 per silver equivalent ounce.

This is before any of the exploration upside if factored into RCM.

We are Investing alongside Tribeca, Jupiter Asset Management and Eric Sprott

We have had success Investing alongside Tribeca (with Locksley Resources) and Jupiter Asset Management (with Mithril Silver and Gold).

Eric Sprott is also one of the most well known silver investors in the world.

We are following them all into RCM.

We know two of RCM’s projects really well

We were previously Invested in RCM’s Webbs and Conrad projects through a previous Investment (TMZ) which we held when silver was <US$25 per ounce.

TMZ back then hit a market cap >$50M.

Unfortunately, TMZ made a few errors and the company ended up suspended for years, and despite an attempted re-listing, it eventually sold its assets to RCM for a $6.5M cash and shares deal. We still hold a position in that unlisted vehicle now called SMG (ex TMZ) but unfortunately not sure what will happen to that.

Now with silver at US$42+ per ounce we think the same assets could be valued much higher in the current corporate vehicle (RCM).

We like the recent acquisition RCM completed

RCM just acquired a neighbouring deposit, adding a 32M ounce silver equivalent JORC resource estimate to its overall resource base.

Exploration upside (project area now 26x bigger)

We like the recent addition of ground around the newly acquired asset and RCM’s existing Webbs deposit.

The project area is now ~26x bigger and RCM will fully own the geological trend in between its two deposits.

None of this area has been drilled systematically - RCM plans to change this over the coming months.

Critical Metals “Side asset” in Canada could also come good

RCM also owns 100% of a germanium/gallium project in Canada. The project is at a very early stage, but previous drill holes have shown some of “the highest germanium grades globally”.

We didn’t Invest in RCM for this asset, however it could become a dark horse in RCM’s Portfolio of projects.

Ultimately, we want to see RCM drill out its silver assets in NSW and put together a resource base larger than where it is today which warrants taking the projects into development.

What do we expect RCM to deliver?

Objective #1: Drill results from the Webbs project

RCM is currently doing a 2,000m diamond drill program with two rigs. With this drilling, we want to see RCM to extend its Webbs resource to the south and upgrade the project’s overall resource estimate.

Milestones

not done Drilling

not done Assay results

not done Resource upgrade

Objective #2: Drilling on two other projects to expand resources

We want to see RCM drill both its Conrad asset and the newly acquired Webbs Consol projects to upgrade both those projects’ silver resource estimates.

Milestones

not done Permitting

not done Drilling commenced

not done Assay results

not done Resource upgrade

Objective #3: Target generation works on regional targets

We want to see RCM work up and define new drilling targets across parts of its project that haven’t been systematically drilled before.

Milestones

not done Soil Sampling

not done Geophys/Geochemistry work

not done Modelling of existing data

not done Identify drill targets

not done Permit for further drilling

Objective #4: Regional drilling across the newly expanded project area

Once RCM has ranked its high priority targets, we want to see the company drill test the highest ranking ones (and fingers crossed, make new discoveries).

Milestones

not done Permitting

not done Drilling commenced

not done Assay results

Objective #5: (Bonus): Update on North American critical minerals project

We want to see RCM work up its Canadian germanium/gallium asset or do a deal on the asset so that a partner can work up a carried interest for RCM.

What could go wrong?

Exploration risk

There is no guarantee that RCM’s upcoming drill programs are successful. RCM may fail to find economic silver resources in which case we would expect the share price to re-rate lower.

Commodity price risk

The performance of commodity stocks are often closely linked to the value of the underlying commodities they are seeking to extract. Should silver prices fall, this could hurt the RCM share price.

Funding risk/dilution risk

As a pre-revenue small cap company, RCM is reliant on capital markets to advance its projects. If something negative happens at a macro or company level, RCM could struggle to access capital on favourable terms.

These capital raises may take place at a discount, and result in the issuance of new shares which incur dilution to existing shareholders.

Permitting risk

RCM’s projects sit in regional NSW where there have been permitting issues in the past. Silver Mines, who is trying to develop its project in NSW has had issues with permitting and it is possible RCM experiences similar issues. There is no guarantee that RCM will get the necessary permitting to develop its resources.

Market risk

Broader market sentiment could deteriorate, and shares as an investment class trade lower, taking RCM’s share price with it. Alternatively, there could be further sector specific pain ahead where junior explorers suffer a lot more than the broader market.

What is our investment plan?

Our plan is to hold the majority of our position in RCM for a minimum of 18 months, which we hope is enough time to see RCM drill out its project, make a discovery and the silver price to go on the run we hope it will.

We may look to sell up to 20% of our holding if the company delivers on one or more of our Investment Memo objectives and/or the share price materially re-rates in line with our minimum hold conditions.

We intend to maintain a position in RCM for 2 to 5 years.

Disclosure: Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 13,213,571 RCM Shares at the time of publishing this Investment Memo. The Company has been engaged by RCM to share our commentary on the progress of our Investment in RCM over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs.