Two ASX Penny Stocks Gaining Strength

Team Veye | 22-Nov-2024

On a red day, it is unusual to see any of the ASX listed companies, making remarkable gains. Contrary to the sentiment, two of such best growth stocks to buy now are

C29 Metals Limited (ASX: C29)

C29 Metals Limited (ASX: C29) continues to make significant progress in advancing its Ulytau Uranium Project in Kazakhstan, with several key milestones achieved. The company announced on 14 November 2024 that it has received Category 4 exploration works approval for its newly acquired northern and southern tenements. These approvals, coupled with strong local support and a signed Social Support Agreement, have enabled the commencement of airborne geophysical and ground-based geological programs, with drilling set to begin imminently. A drilling permit has been granted for the Ulytau project area, and the company anticipates the mobilisation of contractors for its initial diamond drilling campaign by the end of this week. Further exploration activities on the northern tenement are scheduled for Q1 of CY2025. During the previous quarter, C29 Metals expanded the Ulytau Project area by 213km² through the successful grant of southern tenements, increasing the project footprint to 276km². These new tenements are interpreted to host a mineralised uranium trend similar to that of the existing project area, significantly enhancing the project’s resource potential. These developments reflect the efficiency and strong support of the local government, enabling the company to advance its exploration strategy swiftly.

In a strategic move, C29 Metals signed a Memorandum of Understanding (MOU) with Volkov Geology, a 100%-owned subsidiary of Kazatomprom, Kazakhstan’s national uranium producer. Volkov Geology, which manages all geological and drilling services for Kazatomprom, will provide oversight and technical expertise for the upcoming drilling program, expected to commence this month. A commercial agreement between the parties is anticipated shortly, further strengthening this partnership. Volkov Geology will also ensure strict regulatory compliance, leveraging its experience in uranium permitting and transportation. These advancements highlight the favorable operating environment in Kazakhstan and the strong local and governmental support that C29 Metals enjoys. The Ulytau Uranium Project continues to demonstrate substantial potential, aligning with the company’s strategy to create shareholder value through resource expansion, strategic partnerships, and rapid project execution.

SciDev Limited (ASX: SDV)

On November 20, 2024, SciDev Limited (ASX: SDV) announced a significant milestone in its business expansion, securing its first commercial order in Europe for the treatment of PFAS "forever chemicals". The company has partnered with Swedish Hydro Solutions AB to design, construct, and commission a containerized PFAS water treatment system (WTP) to remediate contaminated landfill leachate in Northeast Sweden. This initial A$475k contract marks the first phase of a potentially larger, multi-phase project, with European demand for PFAS remediation technologies expected to grow due to tightening environmental regulations. The order highlights SciDev’s successful entry into the European market, where over 17,000 sites are already confirmed to be contaminated with PFAS.

In the first quarter of FY25, SciDev reported a 21% increase in revenue, reaching A$26.1 million compared to the same period in FY24. The company generated an underlying EBITDA of A$2.7 million, which is a 286% increase from the previous year. SciDev maintained positive cash flow, with cash and equivalents of A$10.2 million at the end of September 2024. The company's financial growth was driven by strong performances in both its Chemical Services and Water Technologies divisions. Notably, SciDev secured a major contract with Ventia Utility Services for a water treatment plant to address PFAS contamination in Victoria and expanded its U.S. and Australian market share.

SciDev’s outlook for FY25 remains positive, with expectations of continued growth across its key business segments. The company is confident that its proprietary technologies, like MaxiFlox® and FluoroFIX™, will drive ongoing success in water treatment and mining services, both domestically and internationally. The company is also expanding its footprint in the U.S. and European PFAS markets, where demand for advanced remediation solutions is increasing. Despite some seasonal variability expected in Q2 FY25, SciDev’s strong balance sheet and operational capabilities position it well to capitalize on opportunities in the growing environmental technology market.

Source: Company’s Report

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