Despite certain risks and high volatility associated with them, investors look at ASX Penny stocks because right quality stocks are available at cheaper levels and have the potential to deliver much higher returns.
Best ASX Penny Stocks
Some of such penny stocks having high potential are
Nyrada Incorporation (ASX: NYR)
has commenced its Phase One trial, with patients already dosed and released from Scientia Clinical Research. The company has achieved final Cohort 6 approval for Phase one clinical trial of XolatrypTM on 14 July 2025. Followed by safety and pharmacokinetic review by Safety Review Committee based on results of Cohort 5. No serious side effects and safety concerns were identified. The results from Phase one trial are expected in September 2025.
Nyrada is now poised at a critical inflection point: early dosing of NYR-BI03 is underway, cash reserves are sufficient for upcoming trial phases, and management is positioned to drive out-licensing or further clinical expansion based on emerging safety and proof-of-concept data.
Falcon Metals Ltd (ASX: FAL)
began diamond drilling at the Blue Moon prospect within Pyramid Hill during the June quarter. In early July, its first wedge hole yielded an extraordinary intercept—1.2 m grading 543 g/t Au with visible gold, confirming high-grade Bendigo-style mineralisation
The structure confirms the interpreted down-plunge extension of the historically significant Garden Gully anticline, located directly north of the Bendigo Goldfield.
Financially, Falcon closed December 2024 with approximately $9.9 million in cash and a low burn rate, positioning the company with sufficient runway into late 2026.
Viridis Mining and Minerals Limited (ASX: VMM)
has secured a strategically located land parcel in collaboration with its Brazilian joint venture, Viridion Limited, to establish Latin America’s first dedicated facility for rare earth processing and recycling. This site will serve as the foundation for the upcoming Centre for Rare Earths Innovation, Technology, and Recycling (CRITR). The acquisition marks a key milestone in enhancing Brazil’s rare earth supply chain, following official approval from the Poços de Caldas City Council.
The company’s portfolio includes projects such as the South Kitikmeot Gold Project in Nunavut, Canada; the Boddington West and Bindoon licenses in Western Australia; Poochera in South Australia; the Smoky asset in New South Wales; and the Colossus IAC rare earth clay project in Brazil.
Dimerix Limited (ASX: DXB)
is currently advancing its lead candidate DMX-200 through the pivotal ACTION3 Phase 3 trial targeting focal segmental glomerulosclerosis (FSGS).
As confirmed on 13 June 2025, 200 adult patients have now been randomised and dosed in the ACTION3 Phase 3 trial, representing approximately 70 percent of the total recruitment target. The clinical study spans 22 countries with more than 190 sites activated, and 43 patients have completed the full two-year treatment period and enrolled into the Open Label Extension study. These milestones indicate strong operational execution and sustained engagement across trial locations.
Significant commercial momentum came in January 2025, when Dimerix signed an exclusive development and licensing deal with Japan’s Fuso Pharmaceutical. The agreement can potentially deliver up to ¥10.5 billion (approx. A$107 million) through milestone payments and sales royalties.
Unico Silver Limited (ASX: USL)
has reported notable shallow mineralisation at the La Negra prospect within the Joaquin Project in Santa Cruz, Argentina. Drillhole JDD005-25 returned a high-grade intercept of 28 metres at 507 grams per tonne (gpt) silver from 33 metres depth, including 7 metres at 1,452 gpt silver. This result is part of 13 newly completed drillholes totalling 1,484 metres, increasing the Phase 1 program to 33 holes and 4,196 metres in total. The infill drilling is consistent with the company’s PLUS 150 growth strategy and targets the conversion of the 2013 Foreign Estimate into a JORC-compliant Mineral Resource.
Unico has accelerated its exploration with an aggressive Phase 3 drilling program totalling up to 50,000 m, focused on prospects including Karina, Savary, MS Link, Kasia, Silvia, Ivonne, and La Negra. Assay results have been highly encouraging and USL expects to report an updated JORC-compliant resource estimate in the third quarter of 2025.
FAQ About ASX Penny Stocks
What are ASX penny stocks?
ASX penny stocks are shares of small Australian companies listed on the Australian Securities Exchange (ASX) that trade at a low price, generally below $1 per share. Some of these stocks are of smaller, less established companies and can offer high growth potential but can also have increased risk because of more volatility.
Which penny stock is best for the next 5 years?
Nyrada Incorporation (ASX: NYR)
How do I research and evaluate ASX penny stocks?
ASX penny stocks are evaluated based on their fundamental analysis, financial health and the potential risk. Companies with strong business models, reasonable valuations and having high growth potential are best penny stocks for investment.
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