Two small cap stocks from ASX listed companies undergoing strong developments could become high growth stocks in the upcoming year.
Polymetals Resources Limited (ASX: POL)
Polymetals Resources Limited (ASX: POL) has made significant progress in redeveloping the Endeavor Silver Zinc Mine, with a clear focus on revitalizing the project for future production. The Endeavor mine, which was on care and maintenance since 2020, had previously operated for 38 years, processing 32 million tonnes of ore. Polymetals acquired the mine in 2023, restructuring a burdensome silver streaming royalty into a more favourable 4% NSR over silver, lead, and zinc. The company is one of the best growth stocks to buy now. It is now fully funded to complete refurbishment works, with first cash flow expected in the first half of 2025. Key milestones achieved include the recruitment of senior management and progress in critical path capital works, such as mobile equipment selection and surface refurbishment.
Additionally, Polymetals is ramping up exploration efforts in the Endeavor Project area. The company has compiled over 50 years of historic exploration data from a range of previous operators, including major players like Newmont and Pasminco. This comprehensive database has allowed Polymetals to target new copper, gold, and silver-lead-zinc orebodies across the region. Exploration activities are set to intensify in early 2025, with plans to drill the Carpark Prospect and initiate regional exploration via 18km of induced polarization (IP) survey lines, aiming to identify new, high-potential deposits within the project’s exploration and mining licence areas.
The financial outlook for Polymetals is also strong, with the September 2024 quarterly report showing a cash balance of A$4.5 million. The updated 10-year mine plan for Endeavor highlights robust financials, including an estimated pre-tax NPV of A$414 million and an impressive internal rate of return (IRR) of 345%. The project is expected to generate free cash flow of A$609 million and EBITDA of A$89 million annually over the first five years. With funding secured and redevelopment progressing on schedule, Polymetals is poised to become Australia’s next major silver and zinc producer.
Patriot Battery Metals Inc. (ASX: PMT)
Patriot Battery Metals Inc. (ASX: PMT) has made significant progress in advancing its Shaakichiuwaanaan Lithium Project in Quebec, Canada, with a strategic partnership with Volkswagen Group and PowerCo. On December 18, 2024, the company secured a C$69 million investment, with Volkswagen acquiring a 9.9% stake in Patriot at a 65% premium to the 30-day average share price. The investment will primarily fund exploration, development, and feasibility studies for the project. In addition, Patriot, strongly placed among potential growth companies, signed a binding offtake agreement with PowerCo SE, a wholly owned subsidiary of Volkswagen, to supply 100,000 tonnes per year of spodumene concentrate from the project. This offtake represents around 25% of Stage 1 and 12.5% of combined Stage 1 and Stage 2 production, supporting the growing lithium demand in North America and Europe.
Patriot has also made a significant technical achievement with the successful production of a marketable battery-grade lithium hydroxide sample from its CV5 Spodumene Pegmatite Deposit. This sample, produced from spodumene concentrate grading 6.2% Li2O, demonstrates the potential to produce high-quality lithium products from the project. This success serves as a proof-of-concept and a de-risking milestone, further validating the Shaakichiuwaanaan project’s economic viability and advancing its development towards feasibility.
Drilling activities at the Shaakichiuwaanaan Project have also been instrumental in progressing the project. During the 2024 drilling season, Patriot completed over 128,000 meters of drilling, including significant in-fill drilling at the CV5 deposit to upgrade resource classifications for the feasibility study. High-grade intercepts, such as 100.5 meters at 1.62% Li2O, demonstrate the quality and continuity of the mineralization. Geotechnical, hydrogeological, and geomechanical drilling has been completed to support infrastructure development. The Feasibility Study, along with the maiden Ore Reserve Estimate, remains on track for completion in Q3 2025.
Source: Company’s Report
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