When investors think of gold miners, the focus often lands on the giants—those with deep pockets, sprawling operations, and decades of production history. Yet sometimes, the most interesting opportunities sit in the shadows, away from the crowded spotlight. West African Resources (ASX: WAF) has been steadily building momentum, and 2025 may finally be the year it graduates from being “just another mid-tier” to becoming a serious player in the gold sector.

At a time when larger competitors are struggling with rising costs, lower grades, and geopolitical headaches, WAF is quietly moving in the opposite direction—delivering stronger output, lower costs, and higher margins. Let’s break down why this company may just be the dark horse of 2025.

Production Momentum and Cashflow Strength

WAF’s flagship Sanbrado Gold Mine in Burkina Faso continues to be the foundation of its story. Now in its fifth year of production, Sanbrado has consistently hit or exceeded expectations—a rare feat in an industry often plagued by misses.

1. FY25 production guidance: 190,000–210,000 ounces, at site sustaining costs of under US$1,350/oz.
2. Q1 FY25 results: Already 50,033 ounces produced at US$1,262/oz, signaling they’re on track.
3. FY24 production: 206,622 ounces at US$1,240/oz, with 199,550 ounces sold unhedged at an average price of US$2,391/oz.

This unhedged strategy—selling gold directly at market prices—has proven highly lucrative. With spot prices above US$2,800/oz during parts of 2025, the company’s margins have expanded sharply.

The impact is showing up in the balance sheet:

• Operating cashflow in H1 2025: $136.58 million.
• Cash reserves: A strong $285.28 million by mid-year.

For a miner of its size, this kind of financial cushion gives WAF flexibility—whether that’s paying down debt, funding expansion, or returning value to shareholders.

The Game-Changer: Kiaka Gold Project

If Sanbrado laid the foundation, the Kiaka Gold Project may well be the crown jewel. First gold was poured in June 2025, and the mine is now ramping up toward commercial production expected in Q3 2025.

Here’s why Kiaka matters so much:

• Scale and longevity: Expected to produce 234,000 ounces per year for 20 years, making it one of the largest undeveloped gold projects in West Africa before construction.
• Production uplift: Once fully ramped, WAF’s annual output will more than double, exceeding 420,000 ounces from 2026 onward.
• Reserves strength: Together, Sanbrado and Kiaka boast over 6.5 million ounces of gold reserves, offering rare long-life visibility in an industry often criticized for depleting resources.

Simply put, Kiaka transforms WAF from a one-mine company into a diversified mid-tier powerhouse.

The Bullish Case: Pricing Power and Growth

So why are investors increasingly warming up to WAF in 2025?

1. Unhedged Leverage: Many miners lock in forward sales at fixed prices. WAF hasn’t. With gold prices hitting historic highs, every ounce goes straight to the bottom line.
2. Operating Leverage: Kiaka’s scale spreads fixed costs more efficiently, boosting per-ounce profitability.
3. Exploration Upside: WAF plans 115,000 meters of drilling in 2025, targeting both resource upgrades at its existing mines and new discoveries in surrounding exploration permits.

In short, WAF is not just riding the gold price rally—it is positioned to amplify it.

The Risks That Keep It a “Dark Horse”

Of course, calling WAF a “dark horse” isn’t just about hidden potential—it’s also about uncertainty.

1. Sovereign Risk: Operating in Burkina Faso comes with challenges. The government has signaled moves to increase its share of mining projects—from the current 15% ownership stake to potentially 50% at Kiaka. That’s a big shift that could dent profitability.
2. Policy Risk: A mandatory 15% profit distribution is already in place, with room for more government take. Changes here could affect dividends and cashflow available to shareholders.
3. Execution Risk: Building and ramping a major project like Kiaka is never smooth sailing. Delays, cost overruns, or integration challenges with Sanbrado could eat into the company’s margin profile.

These risks explain why, despite its achievements, WAF is still priced with caution compared to some peers.

Valuation and Outlook

Despite those concerns, the numbers are pointing in a bullish direction.

• Net income: FY25 is expected to double year-on-year, with H1 net profit already at $185.8 million.
• Share price: WAF stock hit an all-time high in August 2025, up 77% year-to-date, as the market began recognizing its growth story.
• Valuation: Analyst fair value estimates suggest another 30%+ upside if execution at Kiaka goes smoothly and gold prices stay elevated.

The combination of rising production, expanding margins, and unhedged gold exposure makes WAF’s outlook among the most compelling in the mid-tier gold space.

The Bottom Line

West African Resources has quietly built itself into one of the most interesting gold stories on the ASX. With Sanbrado’s steady output, Kiaka’s transformative scale, and an unhedged exposure to record gold prices, the company is now delivering what larger players are struggling to achieve—growth, profitability, and longevity.

Yes, the risks are real—Burkina Faso’s regulatory shifts and the challenges of scaling up operations can’t be ignored. But that’s exactly what makes WAF a “dark horse.” It’s not the obvious pick. It’s the one investors may overlook—until the performance makes it impossible to ignore.

If sovereign risks remain manageable and execution at Kiaka stays on track, 2025 could mark the year West African Resources steps out of the shadows to become a true leader among ASX gold stocks.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

The global economy is entering a new era—one defined not just by oil, steel, or even semiconductors, but by rare earth elements. These obscure minerals are the backbone of technologies we rely on daily, from smartphones and electric vehicles to renewable energy turbines and advanced defense systems. Yet, their supply is overwhelmingly concentrated in China, creating a strategic vulnerability for industries and nations alike.

This is where Australia steps in. As one of the world’s richest sources of rare earths, Australia is now emerging as a trusted alternative for global supply chains. And among the companies leading this charge, two ASX-listed names stand out: Lynas Rare Earths (ASX: LYC) and Iluka Resources (ASX: ILU). Both are building scale, capacity, and credibility to secure a central role in the global rare earth market.

Let’s break down why these two stocks matter—and how 2025’s numbers and projects paint a promising picture.

Lynas Rare Earths: More Capacity, More Independence

If there’s one company that investors often associate with rare earths outside China, it’s Lynas Rare Earths. For years, Lynas has been the only significant producer of separated rare earths outside China. And in FY25, it reinforced that status despite facing cost pressures.

Financial Pulse

Lynas’ revenue climbed 20% to $556.5 million in FY25, a solid performance in a volatile market. Net profit, however, fell sharply—down 90% to just $8 million—due to heavy ramp-up costs, depreciation, and investment linked to new projects. While the headline number may concern some, the production data tells a brighter story: NdPr output (the critical ingredient for permanent magnets used in EV motors and wind turbines) jumped 16% to a record 6,558 tonnes.

CEO Amanda Lacaze summed it up best when she said demand could “sell out several times over.” In other words, the market is there—the challenge is scaling up to meet it.

Production Muscle

The production expansion is real and visible. Lynas’ new Kalgoorlie processing facility began producing mixed rare earth carbonate (MREC) in June 2024, marking a major milestone. Meanwhile, upgrades at its Malaysian facility are on track to boost NdPr oxide capacity to 10,500 tonnes per annum by 2025.

Even more exciting is Lynas’ entry into heavy rare earths (like dysprosium and terbium), crucial for high-performance magnets. The new heavy rare earths line is targeting first output by mid-2025, further diversifying its portfolio.

Strategic Footprint

What makes Lynas unique is its strategic shift toward processing more in Australia, reducing its reliance on external geographies. By commissioning new capacity both in Kalgoorlie and Malaysia, Lynas is strengthening the western-aligned rare earths supply chain. This makes it not just a mining story, but also a geopolitically significant one.

Why it matters: Lynas is effectively the bridge between Australian resources and the world’s clean energy and tech industries. For investors, it offers leverage to rising demand in EVs, renewable energy, and defense—all while contributing to a critical geopolitical goal: less dependence on China.

Iluka Resources: Integrated Refining and Government-Backed Growth

While Lynas has long been in the rare earth spotlight, Iluka Resources is transforming rapidly from a mineral sands producer into an integrated rare earth powerhouse. And the pace of change has accelerated thanks to strong government support and ambitious projects.

Eneabba Refinery: A National Project

At the heart of Iluka’s strategy is the Eneabba refinery project in Western Australia. Once complete, this will be Australia’s first fully integrated rare earths refinery, capable of producing separated rare earth oxides—a vital step in the supply chain that has long been dominated by China.

Construction is already underway, with commissioning now expected in 2027. The project isn’t just commercially important; it’s nationally strategic. Proof? The Australian government extended a massive $1.25 billion non-recourse loan to fund it, underlining its geopolitical weight.

Financial Strength

Despite industry headwinds, Iluka’s financial footing remains solid. In H1 2025, mineral sands revenue hit $558 million, with a robust 39% EBITDA margin and NPAT of $92 million. Sales volumes were down 8% year-on-year, reflecting broader market softness, but profitability stayed resilient thanks to operational discipline.

Phased Expansion

The Eneabba project is being developed with scalability in mind. Beyond producing separated rare earth oxides, it also leaves room for future upgrades and third-party tolling, allowing Iluka to offer refining services to other producers. This flexibility could make it a central hub for the global rare earth market.

Strategic Vision

Eneabba represents more than just a project—it’s a transformation. By moving up the value chain from mining to refining, Iluka positions itself as a “mine-to-magnet” player, ensuring that Australia becomes a genuine alternative to Chinese rare earth separation.

Why it matters: For investors, Iluka offers a rare opportunity to back a government-supported project with long-term structural importance. Its mix of resource scale, financial strength, and strategic support makes it one of the best-placed names in the global rare earths narrative.

What to Watch Next

Both companies are at turning points that investors should keep an eye on:

Lynas Rare Earths (LYC): Watch for commissioning updates on the Malaysian expansion, ramp-up progress at Kalgoorlie, the debut of its heavy rare earths line, and new long-term supply agreements.

Iluka Resources (ILU): Monitor construction milestones at Eneabba, updates on customer contracts (especially with international buyers), and quarterly margin performance as capital investment flows through.

Final Thoughts

Rare earths may not dominate the headlines like gold or lithium, but their importance is unmatched in the 21st century economy. Securing stable, non-China supply chains is no longer optional—it’s a necessity for industries and governments worldwide.

Lynas Rare Earths is already proving its capability with record NdPr output and new processing facilities, while Iluka Resources is building the future with a government-backed refinery that could redefine Australia’s role in the global market.

For investors, these two companies don’t just represent commodity plays—they represent critical pieces of a new industrial and geopolitical puzzle. If demand for EVs, renewable energy, and advanced electronics keeps climbing, Lynas and Iluka may well become the anchors of supply chains the world can trust.

In 2025 and beyond, rare earths aren’t just rare—they’re indispensable.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

Imagine discovering a hidden gem in the world of investments—one that’s not just riding the wave of rising gold prices but actively building a fortress of value in one of Africa’s most promising mining regions. That’s the story of Turaco Gold Ltd (ASX: TCG), a dynamic player in the gold exploration and development space. As we step into what experts are calling the next big commodity cycle—fueled by economic uncertainty, inflation hedges, and a global thirst for safe-haven assets—TCG stands out as a stock that could deliver serious shine for savvy investors.

The Gold Mining Industry: A Golden Era in 2025

Gold mining isn’t just about digging up shiny metal—it’s a thrilling industry where fortunes are made amid global shifts. In 2025, the sector is buzzing with excitement. Gold prices have soared to all-time highs, driven by geopolitical tensions, central bank buying, and investors flocking to gold as a buffer against inflation and market volatility. But it’s not all smooth sailing; challenges like rising costs, supply chain hiccups, and a push for sustainable mining practices are keeping companies on their toes.

The latest news? Experts highlight that gold miners focusing on ESG (Environmental, Social, and Governance) standards and efficient operations are the ones set to thrive. With limited new discoveries worldwide, companies with large, expandable resources are golden tickets. Brownfield exploration—expanding existing sites—is the hot trend, and mergers are reshaping the landscape to cut costs and boost scale. In places like India, efforts to boost domestic gold output through tailings recovery signal a global push for more supply, which could tighten markets and lift prices further.

This backdrop is perfect for nimble players like TCG. As gold mining stocks lag behind the metal’s price surge (a classic valuation gap), opportunities abound for those ready to capitalize. If you’re into this space, search for keywords like gold mining trends 2025, rising gold prices, or West Africa gold boom to stay ahead.

Turaco Gold Ltd: A Rising Star in West Africa

At the heart of TCG’s appeal is its flagship Afema Gold Project in Côte d’Ivoire, West Africa—a region that’s reclaiming its crown as a top gold mining destination thanks to stable policies and rich geology. Turaco, an ASX-listed explorer turned developer, has transformed rapidly since acquiring Afema in 2024. By May 2025, it announced a whopping 3.55 million ounce JORC Mineral Resource Estimate (90.8 million tonnes at 1.2g/t gold), a 40% jump from initial figures, with deposits still open for more growth.

What makes TCG enticing? Picture this: high metallurgical recoveries (84-93%), a granted mining permit, and over 1,600 square kilometers of contiguous land for exploration. Their recent report paints an even brighter picture—multi-rig drilling programs are underway, a Pre-Feasibility Study is advancing to convert resources into reserves, and new discoveries like Begnopan and Toilesso are adding layers of upside. Plus, with A$76-85 million in cash reserves, TCG is funding this growth without heavy dilution, making it resilient in a cycle where capital discipline wins.

The technicals of this stock position it as a strong holding in many investors’ portfolios. On the charts, TCG shows solid support levels, neutral RSI with upside potential, and momentum building as gold prices climb. It’s not just numbers; it’s a story of smart management—led by a board with proven wins in companies like Perseus and Northern Star—turning potential into profits.

TCG doesn’t operate in a vacuum—it’s up against heavyweights like West African Resources, Northern Star Resources, Evolution Mining, and Gold Road Resources, all vying for dominance in Africa and Australia. These competitors boast large-scale operations and established production, but TCG’s edge lies in its undervalued, high-potential assets and lower entry barriers as a junior miner.

TCG faces off against giants such as West African Resources, Northern Star Resources, Evolution Mining, and Gold Road Resources, all battling for supremacy across Africa and Australia. These big names have massive setups and steady output, but TCG shines with its overlooked high-promise holdings and easier access as an up-and-comer.

Consider Newmont’s 2024 comeback: It notched a 90% gain in options over a month, rebounding from underappreciation amid climbing gold values. The secret? Growing reserves and perfect timing—mirroring TCG’s current path. Then there’s SSR Mining, which rocketed 303% annually through targeted expansion in favorable markets. In India, firms like Rajesh Exports and Titan Company have flourished by mixing extraction with product creation, proving variety’s value.

Such tales show a trend: Gold shares boasting solid foundations and clever tactics frequently yield huge rewards during booms. TCG echoes this, setting it up as a likely rising force. Motivated? Hunt for phrases like leading ASX gold newcomers, gold investment examples, or bargain mining picks 2025.

Why TCG Could Shine Bright in the Next Cycle

Wrapping it up, Turaco Gold Ltd (ASX: TCG) isn’t just another stock—it’s a gateway to the excitement of the gold mining world, backed by real progress and massive potential. With gold prices at record levels, a growing resource base, and a team that’s laser-focused on value creation, TCG is primed to reward patient investors. The technicals scream opportunity, the sector trends align perfectly, and the upside feels limitless.

If you’re looking for a stock that combines affordability with explosive growth, TCG could be your ticket. Dive in, do your homework with those search keywords, and who knows? This might just be the shine your portfolio needs for FY26 and beyond. What’s your take—ready to add some gold to your investments?

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

Penny stocks can be tricky — they’re volatile, often overlooked, and can swing sharply on just a single announcement. But it’s exactly that combination of risk and hidden potential that makes them so fascinating to investors hunting for the next breakout story. Small caps often catch fire after transforming earnings, landing game-changing contracts, or unearthing a new resource discovery.
Right now, two names on the ASX look primed for just that kind of move: Alfabs Australia (ASX: AAL) and Trigg Mining (ASX: TMG). Both companies are operating in sectors where news flow drives re-ratings, and both have credible growth stories that analysts believe could push them higher. Let’s take a closer look.

Alfabs Australia (ASX: AAL): Industrial Upside and Earnings Acceleration

Alfabs Australia isn’t your average penny stock — it’s a diversified industrial services and equipment company with deep roots in mining and infrastructure. From engineering and fabrication to equipment hire and refurbishment, AAL provides the backbone services that keep heavy industries moving.
The company’s FY25 results put it firmly on investors’ radar.

1. Numbers that matter: Revenue for FY25 reached $95 million, holding steady year-on-year, but earnings told a different story. Net profit surged to $12 million, a massive 242% increase, while earnings per share (EPS) grew 29%. Importantly, operating margins expanded as the company focused on higher-value services and renewed its fleet.
2. Attractive valuation: As of late September, AAL traded around $0.49 per share with a trailing P/E ratio of 10 and a forward P/E closer to 8. Investors are also enjoying a fully franked dividend yield of 7.5%, which is eye-catching for a small cap. Consensus analyst targets sit near $0.55 over the next 12 months, with most ratings leaning toward a “Buy.”
3. Future growth levers: Analysts are projecting double-digit revenue and EPS growth annually for the next three years. Return on equity (ROE) is expected to exceed 22% by FY27, reflecting efficient capital use. Add in low debt, strong free cash flow, and disciplined capex, and AAL appears well positioned even in a slower economic cycle.
   Why it’s poised for a breakout: Alfabs recently secured several large contracts, adding to forward revenue visibility. Analysts have also revised technical and fundamental outlooks upward, and sentiment is strengthening around the stock. With its combination of yield, earnings momentum, and growth contracts, AAL looks like a small-cap industrial name ready to punch above its weight.

Trigg Mining (ASX: TMG): Sulphate of Potash Meets Strategic Battery Metals

While Alfabs is all about industrial resilience, Trigg Mining is offering exposure to one of the hottest themes in global resources: critical minerals.
Traditionally, Trigg has focused on its Lake Throssell Sulphate of Potash (SOP) project in Western Australia. SOP is essential for food security, particularly in producing high-value crops. In late 2024, Trigg expanded the Lake Throssell resource by 90%, cementing its position as one of the largest SOP brine projects in Australia.
But in 2025, Trigg broadened its horizons by acquiring three high-grade antimony projects, stepping into the battery metals space. Antimony is used in energy storage, semiconductors, and advanced alloys — all areas seeing surging demand as global electrification accelerates.
Here’s why Trigg is catching attention:

1. Financial runway: After two well-supported capital raises in late 2024, Trigg entered June 2025 with $1.56 million in cash. That gives it the flexibility to fund exploration and development across gold, SOP, and antimony.
2. Resource growth: Expansion drilling at Lake Throssell continues, while Trigg also pursues gold targets in Queensland’s Drummond Basin and antimony prospects in New South Wales. Institutional investors took part in the most recent placement, signaling rising confidence in the company’s multi-commodity strategy.
3. Catalysts ahead: For Q4 2025, Trigg has active drilling underway across antimony and gold projects. Updates to the Lake Throssell SOP resource are also on the horizon, and any progress on offtake agreements or financing could be a major trigger, especially if SOP prices firm up globally.
   Why it’s poised for a breakout: Trigg is straddling two big structural themes — food security and battery technology. That kind of positioning often attracts long-term capital, and with catalysts lined up in the near term, TMG is one to watch closely.

The Upshot

So, what makes these two penny stocks worth watching in an often-crowded small-cap market?
Alfabs Australia (AAL): A turnaround in earnings, strong dividend yield, and credible growth forecasts give this industrial name plenty of upside. With analysts upgrading their outlook and fresh contracts secured, AAL looks like it has momentum on its side.
Trigg Mining (TMG): By blending its potash foundation with new exposure to battery metals, Trigg offers investors a play on two global megatrends. Funded exploration, resource expansion, and near-term drilling results could all act as breakout triggers.

Bottom Line

ASX penny stocks are never without risk, but that’s precisely why they can deliver outsized rewards. Both Alfabs Australia and Trigg Mining combine credible fundamentals with clear catalysts on the horizon.
For AAL, it’s about converting industrial expertise into sustained profit growth and rewarding shareholders with yield. For TMG, it’s about leveraging its potash base while adding exposure to the high-growth world of critical minerals.
In the high-volatility environment of small-cap investing, a breakout can be just one contract win, discovery update, or analyst re-rating away. These two companies have set the stage — and for investors looking for the next story stock on the ASX, Alfabs and Trigg may be names worth circling.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

Artificial intelligence (AI) is no longer a futuristic concept—it’s now driving real growth across industries. From powering hyperscale data centres to enabling smarter edge devices, AI is reshaping how businesses operate and how technology is delivered. In 2025, two Australian-listed companies have emerged as standout players in this space: NEXTDC (ASX: NXT) and BrainChip Holdings (ASX: BRN).

Both companies represent different ends of the AI value chain. NEXTDC provides the infrastructure backbone that allows cloud and AI workloads to scale, while BrainChip develops ultra-low power neuromorphic chips that make intelligent computing possible at the edge. Together, they showcase how Australian innovation is making a mark in the global AI race.

NEXTDC: Infrastructure Powering the AI Revolution

NEXTDC has long been recognised as Australia’s leading data centre operator, but 2025 has seen it become a critical player in the global AI buildout. With hyperscale demand skyrocketing, NEXTDC’s facilities now stand at the heart of how AI applications—from machine learning to generative AI—are deployed.

Numbers That Move Markets

NEXTDC’s FY25 results highlight just how quickly the company is scaling to meet AI’s infrastructure demands:

Revenue: Jumped 5.7% to $427.2 million, beating its own guidance.

EBITDA: Increased 6% to $204.6 million, reflecting strong operating leverage.

Contracted utilisation: Surged 42% (72.2MW) to a record 244.8MW.

Forward order book: Hit 134MW, which is actually larger than its current billing footprint.

These figures signal unprecedented customer demand—proof that AI’s hunger for compute capacity is driving tangible business performance.

Expansion Beyond Australia

NEXTDC also strengthened its international credentials in 2025 by securing its first 10MW hyperscale order in Kuala Lumpur, opening the door to further expansion across Asia-Pacific. With 121MW of capacity under construction, the company is setting itself up to handle the AI-driven boom for years to come.

Why It’s Making Headlines

Markets love companies that beat expectations, and NEXTDC delivered in style. Its results not only smashed capacity and contracting records but also triggered an 18% one-day share price jump. Analysts now describe NEXTDC as a “massive AI winner,” cementing its reputation as the backbone of Australia’s digital economy.

BrainChip: Edge AI With Neuromorphic Intelligence

While NEXTDC builds the foundations of AI in the cloud, BrainChip Holdings is capturing attention with its cutting-edge approach to edge AI computing. Its technology is based on neuromorphic principles—chips designed to mimic how the human brain processes information, allowing for ultra-low power and real-time decision-making.

Breakthrough Product Launches

In 2025, BrainChip unveiled Akida Cloud, a platform that makes its neuromorphic technology available to developers worldwide. This cloud-based service allows companies to prototype, test, and deploy AI models on BrainChip’s patented IP without needing specialised hardware upfront.

For developers, this means faster time-to-market, easier experimentation, and lower costs when building AI solutions for robotics, autonomous vehicles, security systems, and medical devices.

Growing Global Partnerships

BrainChip’s innovations have not gone unnoticed. In 2025 alone, it secured:

1. A space-tech deal with Sweden’s Frontgrade Gaisler.
2. Collaborations with ISL and Arquimea in radar and embedded vision applications.
3. Partnerships with RISC-V leader Andes to expand adoption in next-gen processors.

These collaborations showcase BrainChip’s technology being deployed in high-stakes environments where efficiency, speed, and reliability are critical.

Financial Progress

BrainChip remains an early-stage company, but there are signs of commercial traction. Half-year receipts reached $2.3 million, largely from licensing and SaaS agreements. While the numbers may seem small compared to infrastructure giants like NEXTDC, they reflect the first real wave of adoption for neuromorphic AI—a field expected to expand significantly over the coming decade.

Why It’s Making Headlines

BrainChip’s developer cloud is a turning point. By lowering barriers to access, it positions the company at the centre of innovation in edge AI. Coupled with its global partnerships, BrainChip is proving that its technology is more than just theoretical—it’s being embedded into real-world applications across industries.

The Bottom Line

AI is driving the next wave of digital transformation, and Australian companies are making sure they’re part of the action. NEXTDC provides the physical infrastructure that allows AI to scale, while BrainChip delivers the brain-like computing that enables intelligent devices to function in the real world.

Both stocks have made headlines in 2025 for good reason. NEXTDC’s financial strength and expansion prove its central role in the AI economy, while BrainChip’s pioneering neuromorphic technology opens the door to a future of low-power, always-on AI applications.

For investors looking to gain exposure to the AI theme on the ASX, these two companies are not just making noise—they’re shaping the future of the industry. And with their momentum in 2025, they might just be getting started.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

Vault Minerals (ASX: VAU) has been one of the standout performers on the Australian Securities Exchange this past year. The gold miner’s share price has surged 97% over the last 12 months, comfortably outpacing both its sector peers and the broader market. A mix of upbeat results, resource growth, and exploration momentum has propelled this rally, drawing the attention of investors who are now asking: is there still more upside left, or is the stock priced to perfection?

To answer that, let’s dig into the company’s latest results, assets, and growth pipeline—while also weighing the risks that investors should not ignore.

Results Driving the Rally

The fiscal year 2025 numbers were a major catalyst for Vault’s share price surge.

1. Revenue Growth: The company reported revenue of $1.43 billion, driven largely by higher gold prices and steady production from its Australian and Canadian assets.
2. Net Profit: Bottom line net profit jumped to $237 million, highlighting efficiency in operations and strong demand.
3. Margins: Vault posted a net profit margin of 16.6% and a gross margin of 22.3%, both healthy numbers compared to peers in the gold mining space.
4. Earnings Per Share (EPS): EPS for FY25 came in at 3.5 cents, outperforming many ASX-listed competitors.
5. Cash Flow Strength: Operating cash flow reached $560 million, giving the company ample room to fund growth and shareholder returns.
6. Balance Sheet: With zero net debt, Vault stands out as a financially secure miner—an important edge in a sector where leverage often weighs heavily on balance sheets.

This combination of profitability, liquidity, and capital discipline has strengthened investor confidence and justified much of the rally we’ve seen.

Resource Growth Story

Beyond financials, the real excitement lies in Vault’s ability to grow its reserves, extend mine life, and add new opportunities.

1. Leonora Operations (Australia): Ore reserves here rose by 39% post depletion, even after producing 405,828 ounces of gold. This not only extends the mine’s life but also sets the company up for >400,000 ounces annual production in the years ahead.
2. Sugar Zone Mine (Canada): Gold reserves increased 20% after a strong drilling campaign. Management plans to restart operations by late 2027, pending regulatory approval for a new tailings dam. Interestingly, the Sugar South discoveries have grades 23% higher than current zones, signaling a low-capital, high-return expansion pathway.
3. Deflector Operation: This asset continues to deliver standout margins, thanks to its gold and copper mix. The diversification helps Vault reduce reliance on a single commodity and boosts group profitability.

Looking ahead, Vault has guided for FY26 production between 332,000–360,000 ounces at an AISC (All-In Sustaining Cost) of $2,650–$2,850/oz. While costs are toward the higher end, the company’s multi-asset structure provides optionality to manage margins in different gold price scenarios.

Strategic Moves and Near-Term Catalysts

Vault isn’t just sitting on its reserves—it’s actively taking steps to maximize shareholder value.

1. Buyback Program: The recently launched share buyback reflects management’s confidence in the company’s long-term prospects and signals that they see the current price as undervalued.
2. Exploration Success: The ability to replace and even grow reserves post depletion is a rare trait among mid-tier gold miners. This makes Vault attractive to investors seeking sustainability and scale.
3. Operational Flexibility: With multiple mines and projects in its portfolio, Vault reduces single-asset risk. Capital-light expansions, such as those at Sugar South, allow the company to grow without overcommitting resources.

These factors combine to give the company a strong medium-term outlook, even in the face of market volatility.

Bottom Line – Buy, Hold, or Wait?

So, is Vault Minerals a buy after nearly doubling in a year?

The company’s rally appears justified given its strong fiscal results, cash generation, and clear progress in extending reserves across multiple assets. Its balance sheet is clean, operations are efficient, and exploration success continues to create fresh opportunities.

However, the current share price already reflects a lot of good news. At its elevated valuation, the stock is less of a screaming bargain and more of a “hold with upside potential.” For long-term investors who believe in gold’s sustained appeal, Vault could still deliver attractive returns—especially if exploration surprises keep coming. For those waiting on better entry points, buying on dips might be the smarter strategy.

In short, Vault Minerals remains one of the best-positioned gold producers on the ASX, but caution is warranted given its premium valuation. If you’re comfortable with cyclicals and the ups and downs of the gold market, Vault is still a stock worth keeping firmly on your radar.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

Gold has always held a special place in investor portfolios, but in 2025 it is once again proving why it remains one of the most valuable assets to hold. The yellow metal has surged to record highs, with prices climbing above US$3,800 an ounce in September, and this strength has spilled directly into gold equities. Investors are piling back into gold stocks, not just for defensive exposure, but for the growth potential that well-managed producers and developers can offer. For anyone building a diversified portfolio, the technicals of this sector position gold miners as strong holdings across many strategies, whether you are seeking income, growth, or leveraged exposure.

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Why gold — and gold stocks — are rallying now

The reasons for this renewed momentum are clear. Central banks around the world have been net buyers of gold for 15 consecutive years, with 2024 and 2025 marking record purchases as they diversify reserves and hedge against currency volatility. This kind of structural demand provides a natural price floor. Add in a softer US dollar and growing expectations that interest rate hikes are behind us, and the opportunity cost of holding gold has fallen dramatically. At the same time, geopolitical tensions and supply chain disruptions have pushed investors back into safe-haven assets. Unlike industrial metals, which depend heavily on economic cycles, gold is unique in that it straddles both the commodity and financial markets, benefiting equally from investor flows and its role as a store of value.

On the supply side, global mine production remains flat as declining ore grades, higher costs, and regulatory hurdles limit growth. That means even marginal increases in demand translate into outsized gains for gold producers. This supply-and-demand imbalance is highly favorable for listed miners, who can now generate stronger cash flows, increase dividends, and accelerate exploration projects. Opportunities like these are a gold mine for dividend investors, penny-stock speculators, AI-focused younger investors exploring commodity-linked equities, and those seeking defensive exposure. This makes gold stocks one of the best categories to buy and hold for FY26.

The performance of companies like Kingsgate Consolidated (ASX:KCN) illustrates the point. KCN’s share price has rallied strongly in recent months as higher gold prices boosted margins and investor confidence. Smaller and mid-tier producers such as Kingsgate offer higher leverage to the gold price than global majors, meaning they can outperform during bull cycles. That leverage is why growth-focused investors love them. At the same time, larger names like Northern Star Resources and Evolution Mining provide scale, balance sheet strength, and consistent dividends, making them appealing to conservative or income-focused investors. The combination of these different profiles allows investors to build a portfolio tailored to their risk tolerance while staying positioned for gold’s upside.

The current stance of the gold sector reinforces its attractiveness. The ASX All Ordinaries Gold Index has recently broken into new highs, showing that this rally is broad-based across producers rather than concentrated in a single name. From a technical perspective, many gold stocks are trading well above their 50-day moving averages with RSI levels sitting in neutral territory, leaving room for further upside before hitting overbought conditions. These technicals, combined with strong fundamentals, explain why gold miners remain a core holding in many investor portfolios.

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What’s driving sector growth — latest news and themes

Recent news headlines further validate the rally. Record central bank buying has continued into 2025, IPO activity in the sector has drawn significant institutional demand, and investors are increasingly turning to gold as insurance against uncertainty. Meanwhile, Australian producers in particular have benefited from both strong global prices and a favorable local currency, which boosts revenue when translated into Australian dollars. Financing activity has picked up, allowing developers to raise capital and accelerate projects, which in turn feeds more momentum into the sector.

For investors, the appeal of gold stocks goes beyond the metal itself. Those drawn to the sector may also be interested in adjacent opportunities such as silver producers, battery mineral plays in lithium and copper, or mining services companies that benefit from rising exploration and production activity. These areas attract similar investor flows and can diversify exposure while still tying into the broader resources growth story.

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Risks to keep in mind

Of course, no rally comes without risks. Gold remains sensitive to changes in real interest rates, and a rapid shift in monetary policy or a sudden strengthening of the US dollar could dampen sentiment. Operational challenges, such as cost inflation or mine-specific setbacks, can also weigh heavily on individual stocks. This is why portfolio balance is critical: pairing large-cap producers with mid-tier names and sprinkling in some speculative explorers can give investors both stability and upside.

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Bottom line

Gold stocks are gaining ground again because the global environment is working in their favor. Rising demand from central banks, ongoing geopolitical uncertainty, constrained supply, and supportive technicals all combine to make the sector highly attractive. Examples like Kingsgate Consolidated highlight how even mid-tier names are enjoying renewed momentum, while the performance of established players like Northern Star and Evolution Mining shows that both scale and growth opportunities exist. For investors looking at FY26 and beyond, gold equities stand out as an asset class that offers not just protection, but genuine potential for wealth creation.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

Imagine a future where every piece of Core Lithium’s strategy clicks into place. The company, which has endured turbulence in recent years, not only revives its flagship Finniss Project but also transforms it into a leaner, smarter, and globally competitive operation. Investors have seen both the highs and lows of lithium markets, but if Core executes flawlessly, the upside could be significant. Let’s explore what it might look like if Core Lithium truly delivers on all its promises.

Reinventing Finniss: A Leaner, Smarter Operation

The Finniss Project has already seen its fair share of stop-start challenges. But after placing the project on care and maintenance in 2024, Core took FY25 as a reset year to engineer a new approach. This reboot has been all about creating a more resilient operation—one designed to thrive in both booming and volatile markets.

1. Cost breakthroughs: Core’s restart study flagged the potential to slash mining costs by 40% and processing costs by 33%. By buying critical plant assets outright—like the crushing circuit—the company expects to halve crushing costs while also reducing reliance on third parties.
2. Capex reset: Restart capital expenditure is now projected to be 29% lower than the previous plan, giving Core a significant efficiency edge.
3. Plant upgrades: Planned improvements to the Dense Media Separation (DMS) plant could lift throughput by 20%, taking capacity to 1.2 million tonnes per annum (Mtpa), while boosting lithium recovery to 78%. This isn’t just about more volume—it’s about building a lower-cost, more robust system that can withstand price cycles.

In short, Finniss 2.0 is shaping up as a project with operational resilience at its core, giving Core Lithium a fighting chance to become a cost leader.

Total Marketing Flexibility: Offtake Unshackled, Global Reach

Another game-changer for Core has been its bold move to regain marketing control. In September 2025, the company negotiated an exit from its binding offtake deals with Chinese giants Ganfeng and Yahua.

100% optionality: With no fixed contracts tying its hands, Core can sell all of its future production directly. In times of high lithium prices, the spot market becomes an attractive option. When markets soften, the company retains the flexibility to secure longer-term strategic offtake agreements for cash flow certainty.

Global reach: This flexibility could allow Core to target premium markets, build strategic relationships with electric vehicle (EV) and battery manufacturers, or even align with downstream chemical processors in growth regions like Europe and North America.

This marketing freedom positions Core as more than just another junior miner—it becomes a nimble supplier with the ability to pivot with market conditions.

Balance Sheet and Growth Upside

Financial strength is the foundation for any ambitious restart, and Core has made moves to rebuild its balance sheet.

Cash and capital: At the end of FY25, Core held $24 million in cash with no debt. Shortly after, it raised an additional $60 million at 10.5 cents per share, attracting strong institutional support.

Funding the future: These funds will support operational readiness at Finniss, initial boxcut development at the high-grade BP33 deposit, and ongoing exploration—all while maintaining balance sheet flexibility.

If commodity markets align, Core could transition from being a capital-hungry junior to a self-sustaining lithium producer with the optionality to return value through dividends, buybacks, or reinvestment in growth.

Resource Scale and Exploration Potential

Lithium projects live or die by their resource base, and Core has been working to extend the life and scale of Finniss.

Bigger ore reserves: In FY25, Finniss’s Ore Reserve increased by 16%, giving greater confidence in the project’s longevity.

Exploration pipeline: At Blackbeard, Core unveiled a high-grade exploration target of 7–10 Mt at 1.5–1.7% Li₂O, which could materially expand the project footprint. Beyond lithium, the company also reported gold discoveries at Shoobridge—adding potential diversification.

Ongoing drilling and resource conversions suggest that Finniss could continue to grow, ensuring relevance even as global competition in lithium supply intensifies.

What Could It All Add Up To?

If Core delivers across all these fronts, the outcome could be transformational.

1. Operational leverage: With a capacity of ~1.2 Mtpa, best-in-class costs, and strong recoveries, Finniss could become a globally competitive lithium project. This would make Core highly attractive to major EV, battery, and chemical players.
2. Financial resilience: A stronger balance sheet, coupled with disciplined operations, could allow Core to transition from survival mode to a position where it generates free cash flow—unlocking options for dividends, share buybacks, or acquisitions.
3. Strategic partnerships: With unencumbered production and competitive costs, Core could draw interest from tier-one offtakers or even attract acquisition bids from larger players eager to secure supply in a tight lithium market.

The Big Picture

Lithium demand is expected to surge again as EV adoption accelerates globally, particularly in markets like China, the US, and Europe. While pricing remains cyclical, the long-term trend points to higher volumes and sustained demand growth. Core Lithium, with its fresh operating model, clean balance sheet, and exploration upside, could emerge as a significant player in this next wave.

Of course, execution is everything. Mining history is filled with companies that promised more than they delivered. But if Core Lithium keeps its promises—on costs, throughput, marketing flexibility, and resource expansion—the result could be a remarkable turnaround story.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

Hydrogen is back in the spotlight. As the world accelerates its shift toward cleaner energy, investors are hunting for companies that could ride the next wave of growth. In Australia, the hydrogen story has gone from speculative to serious, with real projects, global partnerships, and strategic capital backing the sector.

On the ASX, two companies are emerging as clear breakout contenders—Hazer Group Ltd (ASX: HZR) and Gold Hydrogen Ltd (ASX: GHY). Both are small caps today, but each has unique strengths that could make them central players in Australia’s hydrogen revolution.

Let’s break down why these two hydrogen innovators deserve attention as we head into FY26.

Hazer Group (ASX: HZR): Cash-Flow, Commercialisation, and Global Partnerships

Hazer Group is no longer just a promising technology play—it has crossed the threshold into commercialisation. The company’s breakthrough lies in its low-emission hydrogen and graphite production process, which uses natural gas and iron ore as feedstock. The process not only produces clean hydrogen but also generates synthetic graphite, which has high-value applications in batteries and advanced materials.

A financial reset in FY25

Hazer ended FY25 in a far stronger financial position than many of its peers:

1. Cash balance: $12.5 million
2. Debt: Nil
3. Operating costs: Significantly reduced after the Commercial Demonstration Plant (CDP) completion
4. Revenue: First engineering revenue from Canada’s FortisBC and milestone payments

For a company transitioning into revenue-generating mode, this reset is crucial. Investors can now see a clearer pathway to sustainability without constant capital raisings.

Strategic global partnerships

One of Hazer’s most significant milestones in 2025 was landing alliances with KBR and Mitsui—both heavyweights in engineering and global project development. These partnerships unlock new pathways for Hazer to license and market its technology in Asia, North America, and Europe.

Instead of going it alone, Hazer is plugging into billion-dollar networks with the expertise and reach to take its hydrogen-graphite process to global markets.

What’s next?

Looking ahead, Hazer is targeting:

1. Licensing deals that could support 50,000+ tonnes of annual hydrogen production.
2. Scaling its graphite output for use in batteries, EVs, and industrial materials.
3. Continued grant and milestone revenues that will strengthen cash reserves.

If adoption accelerates, Hazer could move from niche player to mainstream technology supplier faster than many expect.

Gold Hydrogen (ASX: GHY): Strategic Capital and Natural Hydrogen Breakthroughs

While Hazer is advancing engineered hydrogen, Gold Hydrogen is chasing a different frontier altogether: natural, or “white,” hydrogen. This refers to hydrogen that occurs naturally underground—an almost untapped resource that could redefine the cost and scale of hydrogen production.

Ramsay Project’s breakthrough results

Gold Hydrogen’s flagship Ramsay Project in South Australia has already delivered results that turned heads globally:

1. Hydrogen purity: Up to 95.8%
2. Helium concentration: Up to 36.9%

These results suggest the project could supply not just ultra-pure hydrogen but also helium, another high-value gas used in medical, industrial, and space applications.

Backed by global giants

In July 2025, Gold Hydrogen secured a $14.5 million investment from a strategic consortium including Toyota, Mitsubishi Gas Chemical, and ENEOS. What’s more impressive is that the investment came at a 22% premium to market price—a strong vote of confidence.

This capital injection not only funds drilling and appraisal but also provides technical expertise from some of the world’s most advanced hydrogen players.

Resource advantage

With more than 75,000 km² of exploration acreage, Gold Hydrogen controls one of the largest natural hydrogen footprints in the world. It already has one granted license and several pending approvals. Importantly, drilling ramps up again in October 2025, giving investors a near-term catalyst.

Why it matters

Natural hydrogen, if commercialised, could provide zero-carbon, low-cost hydrogen at scale—a game-changer compared to conventional production methods. Add in the helium by-product, and GHY has a dual revenue stream that makes it stand out from the pack.

Catalysts to Watch

Both Hazer and Gold Hydrogen have multiple near-term triggers that could fuel a breakout:

Hazer Group (HZR):

1. Licensing and engineering revenue growth
2. New partnerships with global players
3. Demonstration-scale projects coming online in 2026
4. First commercial graphite shipments

Gold Hydrogen (GHY):

1. October 2025 drilling and appraisal results
2. Progress on pilot and commercialisation programs
3. Government partnership opportunities in Australia’s clean energy push
4. Updates on helium resource monetisation

The Risks

No growth story is without risks, and hydrogen is still an emerging industry:

Hazer Group: Scaling new reactor technology and securing large licensing deals could take longer than expected. Broader adoption of hydrogen and graphite applications also depends on policy support and industry uptake.

Gold Hydrogen: As with any exploration play, there’s risk in proving commercial-scale reserves. Regulatory approvals and the first commercial sales of natural hydrogen and helium may face delays.

Final Take

The hydrogen sector has been through hype cycles before, but the backdrop in 2025 feels different. Governments are embedding hydrogen into their decarbonisation plans, major corporates are writing big cheques, and technology pathways are maturing.

On the ASX, Hazer Group (HZR) and Gold Hydrogen (GHY) stand out as two of the most compelling ways to gain exposure. One is leveraging proven technology and heavyweight partners to push hydrogen and graphite into global markets. The other is pioneering a whole new category of natural hydrogen, with resource scale and strategic backing that few can match.

For investors who believe in the long-term hydrogen story, both HZR and GHY are poised at the right moment—with catalysts, funding, and partnerships lining up. If execution follows, these two small caps could quickly graduate to major players in Australia’s clean energy transition.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.

The lithium story has always been about cycles. Prices surge when supply lags demand, only to retreat as new projects flood the market. Right now, lithium is sitting in one of those cyclical lulls. Prices have cooled off after their record highs in 2022, and investor sentiment has followed suit. But in the background, exploration companies are quietly preparing for the next upturn.

History shows that when lithium demand kicks back into gear—driven by electric vehicle (EV) adoption and battery storage—junior explorers often deliver the fireworks. They hold the leverage to new discoveries, and when momentum flips, their share prices can move fast. Two such names on the ASX are Kali Metals Ltd (ASX: KM1) and Forrestania Resources Ltd (ASX: FRS).

Both are penny stocks, both are well-funded for their exploration programs, and both are about to enter key phases that could generate a stream of news and investor attention. Let’s break down what makes them stand out.

Kali Metals: Strategic Landbank and Multiple Catalysts Firing

Kali Metals has positioned itself as a nimble explorer with a portfolio across some of Australia’s most prospective hard-rock lithium districts. What makes it unique is its flexibility—it can pivot between lithium and gold, depending on which commodity offers the best opportunity.

• Cash in Hand: As of March 2025, Kali Metals reported a cash balance of around $5.8 million, giving it the runway for at least 12–18 months of exploration without needing to raise fresh capital. For a junior, that’s a strong buffer against market volatility.
• Pilbara Focus: The company’s Marble Bar Project in the Pilbara has turned heads recently—not just for its lithium potential, but also for high-grade gold hits. Drill results have returned up to 87.9 grams per tonne (g/t) of gold over strike lengths of more than 3km. That’s the kind of grade that gets serious attention.
• Lithium Optionality: While gold has been in the spotlight, Marble Bar and other Kali tenements—particularly those in the Southern Lachlan Fold Belt—remain lithium-rich grounds. These areas are adjacent to major producing operations, which significantly de-risks the exploration thesis.
• What’s Next: Kali Metals is gearing up for a new phase of soil sampling, mapping, and drill testing across multiple tenements. This newsflow will be critical, as positive results could quickly shift the market narrative back to its lithium story while maintaining the gold upside.

In short, Kali Metals offers something rare for a penny explorer: genuine multi-commodity optionality with the cash to aggressively pursue it.

Forrestania Resources: Drill-Ready Lithium and Ni-Cu Upside

While Kali is defined by flexibility, Forrestania Resources is about to become defined by action. The company has consolidated a sizeable land position in Western Australia’s Forrestania and Southern Cross regions—areas known for lithium, gold, and base metals.

• Drilling About to Begin: Forrestania is set to kick off Phase 1 drilling in Q4 2025, with around 1,500 metres of drilling planned at the Hyden Project. But that’s just the warm-up. A much larger 13,500-metre resource definition campaign is scheduled to follow, aiming to expand and upgrade the resource base.
• All Systems Go: One of the biggest risks for juniors is delays, but Forrestania has cleared that hurdle. Contractors are secured, approvals are in place, and the rigs are ready. Investors won’t be waiting long for results.
• Multi-Commodity Angle: Like Kali, Forrestania isn’t a one-trick pony. Alongside lithium, it holds promising gold and copper targets. These could support standalone projects or add significant value as by-products.
• Recent Milestone: In September 2025, the company received the Lady Lila Mining Lease, a critical step that de-risks the development pathway. This not only enhances the lithium story but also shows the company is steadily ticking the boxes toward production readiness.

Forrestania is setting up for a steady flow of drilling updates in the quarters ahead. In penny stock terms, that kind of newsflow is the fuel that can drive sharp re-ratings.

Why These Two Stand Out

Plenty of lithium juniors are listed on the ASX, but not all are created equal. Kali Metals and Forrestania Resources stand out for a few key reasons:

1. News-Packed 2025–26: Both have high-impact drill programs either underway or about to begin. That means investors can expect a steady stream of updates, assays, and potential resource upgrades.
2. Strong Balance Sheets: Kali Metals’ $5.8 million cash position gives it breathing room to explore aggressively without immediate funding concerns. Forrestania, too, is well-funded for its upcoming drill campaigns.
3. Leverage to Lithium Recovery: Should lithium sentiment recover in 2026, these juniors—with fresh discoveries and resource growth—could see outsized gains compared to more mature producers.

Bottom Line

If you’re looking for speculative exposure to the lithium recovery theme, Kali Metals (ASX: KM1) and Forrestania Resources (ASX: FRS) both deserve a spot on the watchlist.

Kali brings the advantage of flexibility—able to pursue gold or lithium depending on which market shines brightest—backed by a strong cash position.

Forrestania is about to launch a two-phase drilling blitz in a proven lithium belt, with approvals in hand and a clear path to resource growth.

Both companies are entering a catalyst-rich period at a time when the broader lithium market is out of favour. That combination—low expectations, strong cash backing, and news on the horizon—is often where explosive penny stock potential is born.

Disclaimer:

General Financial Product Advice and Regulatory Framework: Pristine Gaze Pty Ltd (ABN 66 680 815 678, ACN 680 815 678) operates as Corporate Authorised Representative (CAR No. 001312049) of Alpha Securities Pty Ltd (AFSL 330757), which is licensed and regulated by the Australian Securities and Investments Commission under the Corporations Act 2001 (Cth). This report contains general financial product advice only and has been prepared without consideration of your personal objectives, financial situation, specific needs, circumstances, or investment experience. The information is not tailored to individual circumstances and may not be suitable for your particular situation. Before acting on any information contained herein, you should carefully consider its appropriateness having regard to your personal objectives, financial situation, and needs, and consider seeking personal financial advice from a qualified financial adviser who can assess your individual circumstances and provide tailored recommendations.

Investment Risks and Market Warnings: All investments carry significant risk, and different investment strategies may carry varying levels of risk exposure including total loss of invested capital. The value of investments and income derived from them can fluctuate significantly due to market conditions, economic factors, company-specific events, regulatory changes, commodity price volatility, currency fluctuations, interest rate movements, and other factors beyond our control. Securities markets are subject to market risk from general economic conditions and investor sentiment, liquidity risk affecting the ability to buy or sell securities at desired prices, credit risk from issuer default or deterioration, operational risk from inadequate internal processes, sector-specific risks including industry regulatory changes, technology obsolescence, management changes, competitive pressures, supply chain disruptions, and mining-specific risks including resource estimation uncertainty, operational hazards, environmental compliance, permitting delays, commodity price cycles, geopolitical factors affecting mining operations, and exploration risks. Small-cap and speculative mining stocks carry additional risks including limited liquidity, higher volatility, dependence on key personnel, limited operating history, uncertain cash flows, and potential failure to achieve commercial production.

Information Accuracy and Limitations: While we endeavour to ensure information accuracy and reliability, we make no representations or warranties (express or implied) regarding the accuracy, reliability, completeness, timeliness, or suitability of information provided, except where liability cannot be excluded under applicable law. This report may include information from third-party sources including company announcements, regulatory filings, research reports, market data providers, financial news services, and publicly available information, which we do not independently verify and for which we assume no responsibility. Past performance, examples, historical data, or projections are not indicative of future results, and no guarantee of future returns is provided or implied. To the maximum extent permitted by law, Pristine Gaze Pty Ltd and Alpha Securities Pty Ltd, together with their respective directors, officers, employees, representatives, and related entities, exclude all liability for any errors, omissions, inaccuracies, loss or damage (including direct, indirect, consequential, or special damages) arising from reliance on information provided, investment decisions made based on this report, market losses, opportunity costs, and technical issues or system failures.