RCM: Hits high grade silver 300m away from its silver resource - silver price up ~25% in last 6 weeks

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 13,213,572 RCM Shares at the time of publishing this article. 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. Any forward-looking statements are uncertain and not a guaranteed outcome.

The silver price has delivered a solid comeback over the last six weeks:

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 silver thesis is that when the silver price is running, it takes silver stocks with it.

Almost 12 months ago, back in September 2025, billionaire silver bull Eric Sprott, fund managers Jupiter Asset Management and Tribeca Investment partners...

And us too...

Invested in Rapid Critical Metals (ASX:RCM) at 3.5c per share.

Sprott went on to buy another ~$1M in stock on market in January at an average of ~7.18c per share.

RCM last traded at 3.1c.

Sprott is RCM’s single biggest shareholder, owning ~10% of the company.

(source)

RCM has 67 million ounces of silver equivalent resource estimates across all its NSW silver projects. RCM wants to get this number to 100M oz silver equivalent (via drilling and/or acquisitions).

With 67 million ounces of silver equivalent resources, it's no surprise RCM’s share price pretty closely tracks what the silver price does.

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.

When silver hit US$120/oz in January, RCM went as high as 9c a share.

Today silver is at US$69/oz (hehe). RCM is trading at 3.1c a share, a ~$35M market cap, and had $7.6M in bank (at June 30th)...

and silver has started to run again.

We think a bigger silver run is yet to come. The last few weeks have been looking like a pretty good start.

And IF during that next silver run (that we think may happen), RCM can get to its 100M oz silver equivalent target via drilling and making new discoveries and/or land acquisitions...

We think the market could re-rate RCM’s share price higher.

Today’s set of drill results could be the first set to help get RCM there.

(source: today’s RCM announcement)

The positives:

1. The infill holes inside where the resource estimate sits came back very high grade and over thick intervals (37.4m at 278.8g/t silver equivalent), AND
   
2. RCM hit mineralisation ~300m south of its current resource estimate - so it looks like RCM’s resource could grow on this project (need more drilling to test this)
   
3. Third drill rig joining the campaign “within weeks” - more and faster drill results.

(source)

The unknown - which is what we are looking forward to the most with the next rounds of drilling:

RCM says “The spatial distribution of mineralisation supports the Company’s evolving

geological model that Webbs is not a single lode but a broader mineralised corridor hosting stacked or parallel lodes

- a corridor this program has now extended beyond the limits of the current resource..”

Remember that parallel lode RCM discovery announced in December last year?

(source)

When RCM announced that discovery we said we wanted to see some more drilling on it coming at the discovery from the opposite direction - i.e drilling east to west into the target:

(source)

Looking at today’s announcement it looks to us like RCM still has a fair bit more drilling it could do on that target area.

RCM says it is progressing plans for follow up drilling to test for the interpreted parallel lodes.

While we wait for that, RCM should be fairly close to a scoping study across its three projects too...

RCM has a scoping study incoming for its three resources

RCM started the study in late January 2026 and was targeted for completion in the June quarter. (source)

(so we could see something from RCM on the study any day now)

We are looking forward to the scoping study because it will be the first time the market gets a read on the potential economics of developing the three resources as a combined project.

Because all three of RCM's silver projects sit fairly close to each other, the study is looking at a model where the company processes all three projects’ ore at one central facility.

(source)

We think the scoping study could be a catalyst because so far, RCM has been valued as an explorer.

The market hasn’t really been given any sense of the economics of a potential mining operation across the three projects.

The scoping study will be the first time RCM publishes a meaningful look at how its three NSW silver projects might actually be developed and what they might be worth in NPV terms.

We should also see some numbers on operating costs and CAPEX.

The two numbers we'll be looking out for from the study:

1. The CAPEX number - how much it costs to build the project
   
2. The NPV - and especially the sensitivity tables at different silver prices

And of course the sensitivity of the project to silver prices (how the NPV changes with higher silver prices).

RCM will probably have to plug in a conservative price assumption to their model - but if we can see the sensitivity tables we can start to see what the economics look like at mining billionaire and silver bull Eric Sprott’s predicted US$300 per ounce silver price.

(source)

Speaking of Eric Sprott...

Eric Sprott is probably one of the most well known gold-silver bulls out there.

He also happens to have become a billionaire off the back of that bullishness...

Sprott is one of RCM’s biggest individual shareholders owning 10.79% of the company, including personal holdings.

And was buying more RCM stock on market back in January at an average price of ~7.18c per share. (source)

(source)(source)

The thing is, Eric Sprott rarely ever ventures into the ASX, let alone a microcap like the $40M capped RCM.

He is usually too busy buying lazy $100M+ positions in North American giants like Hycroft (which we happen to own some of too).

Over in North America, retail investors have dedicated X (the social media platform formerly known as Twitter) accounts tracking his live holdings or any other stocks he buys/sells.

(the below X post is not financial advice, we are simply showing an example of the online global army that follow Eric Sprott’s moves)

(source)

Which means any company Sprott invests in automatically shows up on the radar of thousands of investors all across North America.

A bunch of investors who would probably never hear of a tiny ASX small cap otherwise...

It’s sort of like the more niche version of being a company Elon Musk has invested in.

Anyone into investing knows Elon Musk, and as a result have heard of SpaceX (and even a lot of those who don't care about the markets).

So when SpaceX goes public - they don't mind dabbling in the IPO.

The same thing happens for a company Eric Sprott invests in (except on a smaller scale and limited to the mining/precious metals bulls... for now - but that Forbes cover we saw above is another example of more people finding out).

Read more about the power of distribution/marketing in our “meme stock reactivation” thesis here: The reactivation thesis: When meme stocks awaken.

The basic gist of all of this is that if a stock becomes well known amongst a big audience - any good news can re-rate the stock more than it would have with no audience.

Pretty intuitive stuff - fill the stadium with an audience and then kick a few goals...

RCM could kick that goal from its silver projects OR...

Its other asset (that we think doesn’t really get much market attention).

RCM also has a gallium/germanium project in Canada where it has permits approved for a first ever drill program.

Both are critical minerals that China put export controls on back in 2024:

• Gallium is used in military semiconductors for higher power/frequencies, and;
• Germanium is used in fibre optic cables and infrared military systems.

China has softened its critical mineral export restrictions over time... BUT one thing that stayed was the ban on selling gallium and germanium to "military end-users".

(source)

China controls roughly 98% of the world's gallium production and around 60% of its germanium.

So the US gallium/germanium supply problem is nowhere near solved - for the most critical of uses - national defence.

Which probably explains why the US Department of War is stockpiling gallium & germanium (source).

RCM hasn’t really talked about this critical minerals project since it acquired its silver assets and focused on silver a year ago.

What we know right now is that RCM’s project has some of "the highest germanium grades globally”.

All from surface samples - 22.69% zinc, 40 g/t gallium and 1,500 ppm (0.15%) germanium.

Now RCM has FIVE drill ready targets based on geophysical surveys that line up with those high grade surface samples.

(source)

RCM’s June quarterly said drilling would start in July so we could see something on that front any day now.

(source)

We think that a new critical minerals discovery in Canada - IF big enough - could attract strategic funding from the US - especially now that the US has committed to funding “Allied projects” through its Defense Production Act (Title III).

Coming back to RCM’s “Sprott factor”....

IF RCM gets lucky and makes a discovery... we think there will hopefully be a bigger, Sprott-o-sphere driven North American following (as well as on the ASX) looking at RCM who may want a piece of it.

Then the market can do more DD and sees that he is not alone on the register either:

• Eric Sprott - ~10.79%
• Jupiter Asset Management (UK resources fund) - ~7.29%
• Tribeca Investment Partners (Australia's largest natural resources fund) - ~5%

And a gallium-germanium discovery in North America is instantly “backable”.

(source)

Here's some how we think RCM could re-rate over the next 3-6 months

Here are the three catalysts we think can trigger the next run in RCM’s share price:

1. The silver price - If silver does what we (and Sprott) think it can - pushing toward US$150/oz and beyond - the whole thin pool of ASX silver names re-rates.
   
2. Silver drill results + the scoping study - RCM is drilling now AND has a scoping study running across all three NSW silver projects. Ideally these drop into a bullish silver environment and start a new leg up in RCM’s share p
   
3. The wildcard for RCM will be a North American critical minerals discovery if the gallium/germanium drilling comes in.

Our RCM Big Bet:

“RCM expands its existing silver resource through new discoveries into a silver bull market and re-rates by over 1,000% from our Initial Entry Price”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our RCM Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

What’s next for RCM?

(source)

🔄 Silver drilling in NSW (Webbs project)

Two drill rigs are currently drilling and today it was confirmed a third set to be brought in with drilling approvals received for the Consol Project.

With drilling continuing, the 2 rigs ongoing have shown more mineralisation to the south at Webbs.

We always like to see additional ounces being added to the resource, especially ahead of a scoping study being completed on these

🔄 Target generation on newly acquired asset

On the asset RCM acquired recently we want to see the company complete LiDAR surveys, surface sampling and geophysics.

Ultimately, we want to see the historic results validated and then a bunch of drill targets ranked from most interesting to least ahead of a drill program on the project.

(source) (source)

🔄 Scoping study across projects in NSW

We also want to see RCM complete a scoping study for its projects in NSW - this will be the first time we get a sense of the potential economics of the projects 67M ounce silver equivalent resource base.

🔄 Gallium/Germanium drilling in Canada

We want to see RCM lock in a rig and start drilling the project.

The drilling window in that part of the world usually starts about now and runs through to October/November, before the winter months kick in.

So ideally we see that project drilled inside this current drilling window.

RCM had previously said it expected to drill in “late July”. (source)

What are the risks?

The biggest risk for our RCM Investment right now is "exploration risk".

RCM recently got its 15,000m drill program underway and a 3rd rig is expected to be brought in soon with approvals received for drilling at the Consol Project.

There is no guarantee that any of it returns economic results.

Poor exploration results would negatively impact RCM's share price especially with the amount of capital that would be spent on a two rig, 15,000m program (plus a 3rd rig to be added).

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.

Source: "What could go wrong" - RCM Investment Memo 17 Sep 2025

Other Risks

Like any early-stage exploration company, RCM carries significant risk, here we aim to identify a few more risks.

RCM's valuation is heavily tied to the broader market sentiment and spot prices for silver. If the silver price suffers a sharp downturn or remains stagnant, RCM's share price could fall regardless of positive exploration milestones.

Running an aggressive 15,000-meter drilling program with up to three active rigs is capital intensive. While the company holds $7.6M in cash, high operational burn rates could force RCM to raise capital at a discount, diluting existing shareholders.

The incoming scoping study may deliver conservative economic projections, high initial CAPEX estimates, or unfavourable NPV sensitivities. If the market finds these figures unconvincing, it could prompt a negative re-rating of the stock.

Managing aggressive drilling in New South Wales while simultaneously attempting to hit narrow seasonal weather windows in Canada adds operational complexity. Management bandwidth could become stretched, leading to program delays or execution missteps across jurisdictions.

Investors should consider these risks carefully and seek professional advice tailored to their personal circumstances before investing.

Our RCM Investment Memo

Our Investment Memo provides a short, high-level summary of our reasons for Investing.

We use this memo to track the progress of all our Investments over time.

Click here to read our RCM Investment Memo where you will find:

• What does RCM do?
• The macro theme for RCM
• Our RCM Big Bet
• What we want to see RCM achieve
• Why we are Invested in RCM
• The key risks to our Investment Thesis
• Our Investment Plan