ASX mining companies are facing significant downturn with none too bright projections for the coming year. However, some ASX listed companies appear to be near the end of the tunnel, offering a buying opportunity for the coming year. These potential growth companies offer a good return potential.
Patriot Battery Metals Inc. (ASX: PMT)
Patriot Battery Metals Inc. (ASX: PMT) has entered a transformative partnership with Volkswagen Group and its battery subsidiary PowerCo SE, underscoring the Shaakichiuwaanaan Project’s growing strategic importance in the global battery supply chain. Announced on December 18, 2024, the agreement includes a C$69 million investment, priced at C$4.42 per share—a premium of 65% and 35% to PMT’s 30- and 90-day volume-weighted average prices. This marks Volkswagen’s inaugural direct investment in a lithium mining company, solidifying PMT’s positioning as a critical future supplier for the electric vehicle (EV) sector.
The capital infusion will fund exploration, development, and the completion of the Environmental and Social Impact Assessment (ESIA) and Feasibility Study (FS) for the Québec-based Shaakichiuwaanaan Project. Supporting this is a binding offtake agreement whereby PowerCo will secure 100,000 tonnes per annum (ktpa) of spodumene concentrate—equivalent to 25% of Stage 1 production and 12.5% of combined Stages 1 and 2—over the next decade. Pricing is indexed to lithium chemical and spodumene benchmarks, with regular reviews to ensure market alignment. This agreement is a significant step in strengthening the supply chain for PowerCo’s European and North American operations, including its upcoming Canadian battery cell factory in St. Thomas. PMT is among the best growth stocks to buy now as it continues to achieve milestones in 2024, with successful drilling campaigns yielding robust results, including a 100.5-meter intercept grading 1.62% Li₂O. The FS, targeted for completion by Q3 2025, builds on a PEA projecting a pre-tax NPV of $4.7 billion (US$3.6 billion). These advancements position PMT as a key player in the lithium market, with increasing relevance to North America and Europe’s EV supply chains.
While PMT reported a net loss of $208,000 in Q3 2024 (improving year-over-year), its six-month loss widened to $3.37 million, reflecting strategic expenditures tied to project development and financing activities. The partnership also includes a non-binding MoU for potential joint ventures, including chemical conversion facilities and midstream opportunities, aiming to reduce costs and emissions while leveraging government support. The Volkswagen investment validates PMT’s potential, de-risks development, and accelerates its progress toward becoming a leading lithium supplier for the global EV market.
Fortescue Limited (ASX: FMG)
Fortescue Limited is one of the high growth stocks delivering a strong start to FY25 with record iron ore shipments of 47.7 million tonnes (Mt) in Q1, marking a 4% increase compared to the same period last year. This performance was driven by solid production and strong results from Iron Bridge, which contributed 1.6Mt. The company maintained a focus on safety, achieving a 29% reduction in its Total Recordable Injury Frequency Rate (TRIFR) compared to the previous year. Despite the strong operational performance, Hematite C1 costs increased by 12% to US$20.16 per wet metric tonne (wmt), primarily due to a higher strip ratio and inflationary pressures.
Ongoing initiatives in green energy continue to advance through Q1 FY25 by Fortescue. Some of the key accomplishments included commencing the Green Metal Project at Christmas Creek, with a goal of producing 1,500 tonnes per annum of green iron metal by 2025. Additionally, the company made significant strides in its transition to a zero-emission mining fleet, signing a US$2.8 billion partnership with Liebherr to develop and validate zero-emission mining equipment powered by Fortescue’s battery systems. The company finished the first test run of its Battery Electric Locomotive prototype, an important step in decarbonizing its rail operations.
Exploration and energy activities saw continued investment, with US$80 million spent on capital expenditure in Q1 FY25. The company focused on drilling programs at key iron ore projects in the Pilbara and continued exploration work at the Belinga Iron Ore Project in Gabon. Additionally, Fortescue advanced its critical minerals exploration in Brazil, Argentina, and Peru. The company is also making progress on its green hydrogen projects in Australia, the US, Norway, and Brazil, including feasibility studies in Norway and approvals for the Pecem Project in Brazil. Overall, Fortescue is on track to meet its FY25 guidance for shipments, C1 costs, and capital expenditure.
Source: Company’s Report
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