3 ASX penny stocks to watch in 2026

Prospect Resources Limited (ASX: PSC) 

Prospect Resources Limited on 14 January 2026 announced widespread by-product gold mineralisation at its Nyungu Central deposit within the Mumbezhi Copper Project.

This discovery has the potential to improve project economics with the new gold data expected to be incorporated into an updated Mineral Resource Estimate scheduled for late Q1 2026.

Management stated that its multi commodity profile enhances the overall strength of the Mumbezhi Project alongside its existing copper resources at a time when both gold and copper prices are strong and the company held a cash balance of $12.7 million as of 30 September 2025.

The Mumbezhi Project contains a significant copper resource of 107.2 million tonnes at 0.5% copper which positions it as a potential large-scale development within the Central African Copperbelt.
The stock has risen by around 60% year-to-date and Prospect currently has a market capitalisation of $289 million which reflects high investor confidence.

Cobre Limited (ASX: CBE) on 21 January 2026 announced the commencement of ISCR production wellfield construction at its Ngami Copper Project in Botswana which represents an important step towards commercial development.

The wellfield forms the first stage of the planned in situ copper recovery demonstration plant and is intended to de risk the project ahead of feasibility studies.
Construction will use advanced directional drilling technology which is aimed at optimising copper silver recoveries and testing fluid flow performance before the introduction of leaching agents.

The stock is up around 50% year-to-date and current market capitalisation is $78.26 million while the company also executed a subscription agreement with Tribeca Investment Partners for the placement of 40 million new shares at an issue price of $0.10 per share to raise $4 million.

On 3 December 2025, the company announced that ongoing infill drilling at the Cosmos Target within the Ngami Copper Project confirmed continuity of higher-grade copper silver mineralisation including chalcocite intersections with visual estimates of up to 8% over narrow zones.

Microba Life Sciences Limited (ASX: MAP) 

has risen more than 30% year-to-date and on 3 December 2025 announced it received a $3.06 million R&D Tax Incentive refund for FY25 which further strengthens its balance sheet alongside $13.9 million in cash and equivalents reported at the end of Q1 FY26.

In Q1 FY26, core test volumes grew 145% year-on-year to 4,931 tests with the global annualised run rate nearing 20,000 tests which positions the business to reach regional break even across Australia and the United Kingdom.

The company currently has a market capitalisation of $60.9 million and revenue quality improved as growth product revenue increased 151% year-on-year while disciplined cost management resulted in operating expenditure declining by more than 26% versus the previous quarter.

During the quarter, several operational milestones were achieved which included new MetaXplore product feature releases, brand consolidation efforts and continued growth in clinician adoption across both Australia and the UK.

Microba will release its Q2 FY26 quarterly report on 29 January and offers significant upside as a capital efficient diagnostics platform with demonstrated clinical traction.

(Source: Company Reports)