These stocks are so positioned because of ensuing developments that they seem to be be opening a good growth potential. Since penny stocks are prone to high volatility and associated risk, the following stocks offer a good risk to reward ratio.
Praemium Ltd (ASX:PPS)
produced impressive FY2025 results, with operating leverage assisting to drive a 25% increase in revenue to $103.0m. As a result of increased profitability, EBITDA improved 31% to $28.1m, while NPAT increased 55% to $13.6m. Dividends per share (DPS) more than doubled to 2.25 cps, while earnings per share (EPS) rose 56% to 2.8 cps. The results demonstrate Praemium's strong growth momentum and steady increase in profitability throughout its platform business. Praemium's outlook is still optimistic as it concentrates on enhancing its investment offerings, expanding its superannuation capabilities, and fortifying its Spectrum platform for high-net-worth clients. The company is putting more emphasis on client on boarding while aiming for consistent double-digit revenue growth and EBITDA expansion above revenue growth, with the integration of OneVue planned for 1H26.
Element 25 Ltd (ASX: E25)
has announced strong results from its Butcherbird Expansion Feasibility Study, highlighting robust project economics and growth prospects. The study reports a low capital cost of AU$64.8M, an impressive pre-tax net present value of AU$561M with an outstanding internal rate of return (IRR) of 96%, and a projected yearly cash flow of AU$70.5M, all of which have a quick payback period of just 1.3 years. Strong funding support is provided by the Northern Australia Infrastructure Facility's (NAIF) commitment of up to AU$50M in senior debt financing. Having a planned 1.1Mtpa manganese ore operation, E25 hopes to become a low-cost, globally competitive manganese producer that is well-positioned to service partners in the steel industry as well as future markets for battery components.
Vital Metals Ltd (ASX: VML)
has secured A$6.8 million through a two-tranche strategic placement to advance the Tardiff project into a Pre-Feasibility Study (PFS) using innovative Dry Field Force Extraction (DFFE) technology. A$3.8 million will be raised from accredited US investors, and A$3 million will be invested by Strategic Resources LLC for a 19.52% stake. By lowering capital, transportation, and refining costs while minimising environmental impacts, the proprietary DFFE process which eschews water and chemicals will offer the potential to revolutionize Tardiff's economics. A significant turning point in the project's development is the planned completion of a DFFE facility for North T by the summer of 2026. Overall This will help to strengthen supply of rare earth elements and support cleaner with more sustainable extraction methods.
Prospect Resources Ltd (ASX: PSC)
has identified a major new copper drill target at its West Mwombezhi prospect, part of the Mumbezhi Copper Project in north-west Zambia. Highly anomalous near-surface copper mineralisation, including intersections like 22m @ 0.17% Cu and 7m @ 0.21% Cu, was confirmed by recent geochemical sampling and aircore drilling. These findings indicate multi-factor copper prospectivity and strong scale potential over a 1 km strike zone. Phase 2 drilling at Mumbezhi is still on track within the budget, and diamond drilling will be utilised for evaluating continuity at depth on the new target. In Q4 2025, pending assays, ongoing geophysical surveys, and resource updates will be expected.
(Source: Company reports)
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