Two penny stocks indicating good potential for growth in this year are
Patriot Battery Metals Inc. (ASX: PMT)
Patriot Battery Metals Inc. (ASX: PMT) announced a transformative partnership with Volkswagen Group and its battery subsidiary PowerCo SE, marking a significant milestone for the Shaakichiuwaanaan Lithium Project in Québec, Canada. The agreement includes a C$69 million strategic investment at a premium subscription price of C$4.42 per share, representing a 65% and 35% premium to the 30-day and 90-day VWAP, respectively. This investment, Volkswagen's first direct stake in a lithium mining company, underscores the strategic importance of Patriot as a future supplier for the EV market. A key highlight of the partnership is a binding offtake agreement, wherein PowerCo will purchase 100,000 tonnes per annum (ktpa) of spodumene concentrate over a 10-year period, equating to ~25% of Stage 1 production and ~12.5% of combined Stage 1 and 2 output. Pricing will be tied to lithium market indices with periodic adjustments, providing Patriot with long-term revenue visibility while supporting PowerCo’s battery supply chains in Europe and North America.
Operationally, the partnership de-risks the project by allocating funds toward the Feasibility Study (FS) and Environmental and Social Impact Assessment (ESIA), with FS completion expected by Q3 2025. Notable 2024 drilling results, including 100.5m at 1.62% Li₂O, reaffirm the high-grade potential of the CV5 Spodumene Pegmatite, bolstering confidence in the project’s economic viability. The Preliminary Economic Assessment (PEA) estimates a pre-tax NPV of $4.7 billion (US$3.6 billion), positioning Patriot as a significant player in the global lithium market. The partnership also explores broader collaboration opportunities under a non-binding MoU, including potential joint ventures, chemical conversion facilities, and strategies to lower carbon intensity and transport costs. By leveraging PowerCo’s resources and relationships, the companies aim to secure government support and incentives, enhancing the project’s competitiveness in the burgeoning EV supply chain. This strategic alliance not only accelerates Patriot’s path toward production but also aligns with Volkswagen’s push to secure sustainable lithium supply for its EV ambitions, reinforcing Patriot’s long-term growth trajectory.
Larvotto Resources Limited (ASX: LRV)
Larvotto Resources Limited (ASX: LRV) is advancing its Hillgrove Gold and Antimony Project in NSW, supported by recent funding, exploration success, and favorable market conditions. On December 20, 2024, the company secured A$6.2 million in pre-payment funding from Wogen Resources/Xcelsior as part of an off-take agreement for Hillgrove’s antimony concentrate. This financing strengthens Larvotto’s cash position, enabling accelerated exploration while maintaining flexibility to access premium markets, including the U.S. Partnering with Wogen, a leader in critical metals marketing, ensures optimized pricing and distribution, reinforcing the company’s strategy to restart production by early 2026. Drilling at Clarks Gully, reported on December 18, 2024, demonstrated significant high-grade mineralization, with standout intercepts such as 22m at 9.87 g/t AuEq (3.26 g/t Au, 2.89% Sb). These results expanded mineralization along strike and at depth, contributing to a forthcoming Mineral Resource Estimate (MRE) update in early 2025. Near-surface, high-grade zones indicate substantial upside, with plans to ramp up drilling in 2025 using additional rigs to delineate further resources.
The September 2024 Pre-Feasibility Study (PFS) validated Hillgrove’s strong financial potential. With a maiden Ore Reserve of 606,000 oz AuEq, projected annual production includes 80,000 oz AuEq and 5,400 tons of antimony, representing approximately 7% of global supply. Conservative assumptions yielded a post-tax NPV of A$157 million, with spot prices elevating the NPV to A$383 million. The project’s de-risked nature, supported by existing infrastructure and permits, along with exploration upside, enhances its appeal. China’s September 2024 export restrictions on antimony have tightened global supply, driving prices to over US$30,000/t—up from ~US$12,000/t when Larvotto acquired Hillgrove. With antimony critical for industrial, technological, and defense applications, Hillgrove’s resources are increasingly valuable. Although Larvotto faced consistent losses and declining cash reserves, recent funding and exploration milestones position the company for growth. By leveraging Hillgrove’s high-grade assets and favourable market dynamics, Larvotto is poised to deliver shareholder value as it advances toward production.
Source: Company’s Report
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.