The strategy to identify high growth stocks is to pick these at a nascent stage, based on their business model and other metrics. The two such stocks from ASX listed companies are
Labyrinth Resources Limited(ASX: LRL)
Labyrinth Resources Ltd has announced promising maiden RC drilling results from its Cheer Prospect within the Comet Vale Project, confirming the presence of extended shallow, high-grade gold mineralization. This initial drilling success aligns well with Labyrinth’s strategy to expand and enhance high-quality, high-grade gold resources in Western Australia’s Goldfields region, leveraging proximity to transport and milling infrastructure.
Notably, the maiden drilling campaign at Cheer delivered significant high-grade results in a relatively short timeframe, underlining the project’s substantial untapped potential. The shallow and high-grade nature of the mineralization has not only highlighted the extensional potential at Cheer but has also reinforced Labyrinth’s confidence in the economic viability of further exploration at Comet Vale. In light of these findings, priority follow-up drilling is already in the planning stages. Concurrently, Labyrinth’s drilling at the nearby Sovereign Trend, which has a notable historical production profile of 200koz at 20g/t Au, continues, suggesting further upside potential in the area. Beyond Comet Vale, Labyrinth is making strategic moves to consolidate its gold assets within the prolific Menzies, Leonora, and Leinster corridors. The company recently signed a binding option agreement with Rocktivity Gold Pty Ltd to acquire the Mulwarrie and Mulline projects, which would provide additional high-potential ground close to existing infrastructure. This agreement underscores Labyrinth’s commitment to expanding its resource base in these underexplored regions.
Further, in July 2024, Labyrinth entered into a binding agreement to acquire 100% of Distilled Analytics Pty Ltd, which owns the Vivien Gold Project, located 15km west of Leinster. This acquisition aligns strategically with Labyrinth’s existing assets and adds another quality project to its growing portfolio. The company also secured a binding option to acquire a 49% interest in Comet Vale from Sand Queen Gold Mines Pty Ltd for $3M cash, increasing its ownership and operational flexibility in the project. To fund these acquisitions and exploration activities, Labyrinth is undertaking a two-tranche equity placement to raise $2M and a Non-Renounceable Entitlement Offer for an additional $2M. The capital raised will advance the development of the Vivien and Comet Vale projects and enable further exploration work. Overall, Labyrinth is among the best growth stocks to buy now base on its focused acquisition strategy and encouraging exploration results positioning it well for resource expansion and shareholder value creation in the high-grade gold segment.
Delorean Corporation Limited (ASX: DEL)
Delorean is one of the potential growth companies, as it is off to a strong start in FY2025, building on record profits posted in FY2024. The company has secured a strategic funding agreement with Tanarra Restructuring Partners, unlocking a three-year, $30 million corporate finance facility to support Delorean’s first build-own-operate (BOO) bioenergy project. As of 30 September 2024, Delorean reported a solid cash balance of $8 million. In Q1 FY2025, Delorean made significant headway in constructing the $53 million Yarra Valley Water food waste-to-energy project. Major progress was achieved with tank construction underway, the arrival of essential plant components on-site, and substantial advancements in civil works. Concurrently, preparations for the SA1 Project are well underway, with $25 million from the Tanarra facility allocated for this initiative. Final Investment Decision (FID) for SA1 is anticipated in Q2 FY2025, with Delorean currently finalizing the project team, suppliers, and program.
Further enhancing its portfolio, Delorean is advancing the NSW1 project in partnership with Brickworks Building Products. The project recently completed its public exhibition phase for development approval, and both parties are focused on determining a timeline and path to FID. Additionally, the company drew its first $5 million from the Tanarra facility in September 2024, which enabled early redemption of Palisade Impact’s Convertible Notes, leaving Delorean with zero convertible debt and a cleaner balance sheet. Key areas of focus for Q2 FY2025 include transitioning the SA1 Project into the construction phase post-FID, supporting NSW1’s progress through planning approvals, and working closely with Brickworks to finalize commercial terms and financing options. Delorean is also committed to delivering the Yarra Valley Water project on time and within budget, while prioritizing cash flow, profitability, and further leadership development. Additionally, the company is advancing its QLD1 and WA2 projects and applying for grants to bolster its infrastructure portfolio.
The broader bioenergy industry continues to offer strong tailwinds, with demand for renewable natural gas (biomethane) from both government and corporate sectors significantly outpacing current supply. Delorean’s focused BOO portfolio strategy, bolstered by the Tanarra partnership, supports the company’s goal of securing high-IRR projects with strong annuity-based revenue potential. In FY24, Delorean also achieved $1.3 million in earnings from trading Large Scale Generation Certificates within its energy retail division, with this strategy set to continue in FY25. Overall, Delorean is well-positioned to capture value from the growing bioenergy market, drive shareholder returns, and strengthen its competitive position through its expanding high-margin BOO portfolio.
Source: Company’s Report
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