Undervalued and Under $1: 2 ASX Penny Gains to Watch — Airtasker (ASX: ART) and Waratah Minerals (ASX: WTM)

Why These Two?

In a market dominated by large caps, some of the most compelling risk-reward opportunities sit under $1. Airtasker and Waratah Minerals each offer clear, trackable catalysts and differentiated paths to upside. Airtasker is shifting from “growth-at-all-costs” to disciplined, city-by-city scaling while delivering positive operating and free cash flow—unusual for sub-$1 tech. Waratah Minerals, meanwhile, is a cashed-up explorer in New South Wales with active drilling and near-term assay news flow, supported by fresh funding that extends runway without heavy dilution. Together, they provide exposure to two very different engines of value creation: operating leverage from a scaled marketplace and discovery torque from a focused explorer.

Airtasker (ASX: ART) — A Leaner Marketplace Scaling Internationally

Airtasker connects customers with “taskers” across categories like home services, deliveries, and maintenance—an everyday utility with significant repeat potential when city-level liquidity is strong. After years of investment into brand and overseas expansion, the company is now balancing growth with cash discipline. That shows up in the latest half: group revenue of roughly $25.7 million (up low double digits year-on-year), a net loss of about $16.0 million as it continues to invest, but crucially, positive operating cash flow around $1.91 million. Marketplace growth remains in the low-teens with Australia as the cash engine, while the UK and US are scaling from small bases. What truly stands out is the combination of expansion with both positive operating cash flow and positive free cash flow—reducing dilution risk and signaling maturing unit economics.

Strategically, Airtasker’s city-by-city playbook focuses on densifying supply and demand in targeted locations, lifting conversion and repeat usage without overspending. This approach compresses CAC payback and raises contribution margin at the city level. Supporting that, the company has prepaid media partnerships—a multi-period “media bank” that helps fund growth without returning to equity markets, smoothing acquisition spend through macro cycles. Internationally, the UK is showing strong traction (triple-digit growth off a small base) and the US is building steadily; as each new city crosses liquidity thresholds, take rate, task frequency, and retention generally improve, which compounds marketplace economics.

Key things to monitor from here include: sustaining positive free cash flow as UK/US marketing ramps; take rate stability and contribution margins per city; task frequency and retention trends; and CAC payback periods by cohort. The undervaluation case under $1 rests on three pillars: operating leverage beginning to show through both P&L and cash flow; international optionality without overextension thanks to targeted rollouts and prepaid media; and a high gross margin structure that provides resilience if the macro softens. If Airtasker keeps its free cash flow positive while scaling the UK/US with disciplined spend, the share price has scope to re-rate as investors price in improving unit economics and reduced dilution risk.

Waratah Minerals (ASX: WTM) — Funded Drilling and Fresh Momentum

Waratah Minerals is an exploration company focused on gold and critical minerals in New South Wales. The setup here is a classic small-cap exploration torque story—renewed funding, expanded drilling, and a pipeline of assay results. Recent developments include meaningful funding commitments that allow Waratah to accelerate drilling at high-priority targets, promising a steady cadence of news. Liquidity and price action have picked up as investors respond to early-stage results and a fully funded campaign with multiple shots on goal.

Explorers are judged less on revenue and more on prudent cash management, exploration progress, and runway. Waratah’s latest half typically shows a net loss driven by exploration and admin—normal for the stage—cash reserves around $4.23 million, and selective placements strengthening the balance sheet to support drilling. The strategy hinges on near-term assays with potential to catalyze rapid re-ratings if intercepts show grade and continuity. Target refinement via geophysics and structural mapping aims to improve hit rates and spend efficiency, while portfolio optionality—farm-ins, farm-outs, or joint ventures—offers flexibility to extend runway without excessive dilution depending on results.

Investors should keep a close eye on assay timelines and grades relative to regional analogues, cash burn relative to drill-meter productivity, and permitting progress or new land access deals that unlock higher-priority targets. The undervaluation thesis under $1 centers on funded, near-term catalysts; strong news flow potential as drilling updates land; and leverage to supportive gold sentiment—while managing risk through staged programs and optional partnering. If Waratah delivers high-grade intercepts or demonstrates compelling thickness/continuity with efficient drilling, the path to a re-rate is straightforward in the sub-$1 exploration bracket.

Side-by-Side: What Could Unlock the Next Leg?

For Airtasker, the next leg comes from maintaining positive free cash flow while scaling in the UK and US; demonstrating improving unit economics in new cities via higher repeat engagement, better cohort retention, and stable take rates; and continuing disciplined marketing with predictable CAC payback. Milestones such as new cities reaching marketplace liquidity thresholds, rising contribution margins, and proof of scalable playbooks across geographies can all trigger re-rating.

For Waratah Minerals, the catalysts are near-term and binary: drill results with high-grade intercepts or convincing thickness/continuity; efficient meters drilled per dollar maintaining a strong cash runway; and smart capital moves, such as strategic placements or JV structures, that extend funding into follow-up programs without undue dilution. A steady sequence of solid assays and strategic refinement can change the narrative quickly.

Risks to Weigh Before You Buy

Airtasker’s key risks include competitive pressure in local services, execution risk in new cities where supply/demand density must be built patiently, and macro sensitivity if discretionary spending slows. The core question is whether the company can hold positive free cash flow while increasing international marketing. Waratah’s risks are intrinsic to exploration: results can disappoint, schedules can slip due to permitting or weather, and funding windows can tighten if markets turn. Managing cash-per-meter drilled and maintaining a disciplined program are essential to limit dilution.

Bottom Line

Airtasker and Waratah Minerals offer two distinct, complementary paths to asymmetric upside under $1. Airtasker is becoming a cleaner, leaner marketplace story—anchored by improving cash dynamics, targeted international scaling, and high gross margins that compound as city liquidity deepens. Waratah offers discovery-driven torque—funded drilling, clear near-term assay catalysts, and multiple ways to crystallize value with staged programs and optional partnerships. For investors scanning the sub-$1 shelf, this duo merits a spot on the watchlist: one for operational leverage and cash discipline, the other for high-impact exploration catalysts in a supportive gold environment.

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