Small-cap stocks, because of their ability to benefit from economic cycles, tend to outperform due to their higher growth potential. As younger companies, some of these could be undervalued also.
A few of such ASX stocks under 1 dollar are
Element 25 Limited (ASX: E25)
Polymetals Resources Limited (ASX: POL)
Aurum Resources Limited (ASX: AUE)
Biome Australia (ASX: BIO)
Focus Minerals Limited (ASX: FML)
Element 25 Limited (ASX: E25)
moved ahead with its growth plans in Q2 FY2025. It secured a A$50 million NAIF debt facility to help expand the Butcherbird Manganese Project to 1.1Mtpa. This is backed by a Feasibility Study showing A$64.8 million capex, A$561 million NPV and an IRR of 96%. Louisiana HPMSM refinery also picked up momentum with a U$166 million grant. Cash balance was A$2.16 million while financing talks are moving forward in a good way. Looking to the future, the company is set to gain from rising demand for manganese-rich LMR batteries with strong EV partners in the U.S and its patent protected low carbon processing technology giving long term growth potential.
Polymetals Resources Limited (ASX: POL)
marked a big step forward in Q2 FY2025 with the restart of the Endeavor Silver-Zinc Mine at Cobar, NSW. The company got its first revenues in July from concentrate sales after processing 36,066 dmt of commissioning ore. The workforce has now grown to 185 full time staff backed by major refurbishment and mine development works. By the end of the quarter cash stood at A$8.3 million and this was supported by A$6 million in available finance, plus a A$15 million equity placement that finished in July. Looking ahead the company is counting on higher silver prices and a ramp up towards 65,000t ore each month which should boost revenue and create steady cashflow growth.
Aurum Resources Limited (ASX: AUE)
is moving forward with drilling at the Boundiali Gold Project in Côte d’Ivoire. It finished around 29,963m out of its big 100,000m drilling program planned for 2025. The Boundiali project already has a 1.59Moz gold resource . Their other project Napie is also active with a 30,000m program to expand the current 0.87Moz resource. By the end of the quarter Aurum had about A$46.9 million cash mainly supported by a A$35.6 million placement from Lundin and Zhaojin. The operating cash outflow for the quarter was A$0.425 million and for the year so far was A$3 million. Looking into 2025 the company is aiming for resource upgrades at Boundiali and Napie plus working towards a Pre Feasibility Study.
Biome Australia (ASX: BIO)
had a strong FY2025 as it posted its first ever NPAT of A$0.21 million. Sales revenue came in at A$18.4 million which is 41.6% higher than FY24. EBITDA was A$0.93 million and gross profit was A$11.25 million with margins improving to 61.1%. In the June quarter sales went above A$5 million including a record A$2.1 million month. International sales jumped 69% to A$1.5 million helped by new distribution deals in Canada, Ireland, UK and New Zealand. The company also launched 7 new products including the practitioner only Activated Therapeutics line. For the future the company is aiming for A$75 million cumulative sales from FY25–27 under Vision 27 with focus on international expansion and product innovation.
Focus Minerals Limited (ASX: FML)
had a very strong June 2025 quarter from its Coolgardie Gold Operations. It processed about 361,158 tonnes and poured a record 3,874oz of gold in June. The total ore mined in the quarter was 151,189 tonnes. Gold sales for the quarter was at A$5,178/oz giving revenue of around A$36.2 million. The company ended with A$74.2 million cash balance which was helped a lot by the A$250 million sale of the Laverton Gold Project and more importantly from this money it also repaid A$174.8 million debt to Shandong Gold. Going forward the company is expecting higher production as Bonnie Vale stoping starts in Q4 and owner mining fleets ramp up.
(Source: Company Announcements)
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