TSX Penny Stocks to Watch in October 2024

The TSX is having a strong year, up more than 17% amid a growing economy and supportive central bank policy. For those interested in smaller or newer companies, penny stocks – despite their somewhat dated name – still offer interesting opportunities. These stocks can offer unique value and growth potential when backed by solid financials, and we’ll examine three notable examples that could hold promise for investors looking for hidden gems.

Top 10 Penny Stocks in Canada

Click here to see the full list of 950 stocks from our TSX Penny Stocks Screener.

Here we highlight a subset of our favorite stocks from the screener.

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Discovery Silver Corp. is a mineral exploration company focused on the exploration and development of polymetallic mineral deposits with a market capitalization of C$420.24 million.

Operations: Discovery Silver Corp. does not report specific revenue segments as the Company focuses on the exploration and development of polymetallic mineral deposits.

Market capitalization: C$420.24 million

Discovery Silver Corp. with a market capitalization of C$420.24 million, remains ahead of revenue and focuses on mineral exploration. Although the company is debt-free and has current assets to cover liabilities, it faces challenges such as increased losses over five years and less than a year of cash runway if cash flow trends continue. The stock has been subject to high volatility, but was recently added to the S&P Global BMI Index, which could increase visibility. Analysts suggest potential for a significant price increase, but short-term profitability is not forecast. The management team is relatively new, with an average tenure of 1.8 years.

Simply Wall St Financial Health Rating: ★★★★★★

Overview: GoGold Resources Inc. is engaged in the exploration, development and production of gold and silver in Mexico with a market capitalization of C$556.90 million.

The story continues

Operations: The company generates revenue of $31.79 million in its metals and mining segment, particularly gold and other precious metals.

Market capitalization: $556.9 million CAD

GoGold Resources Inc. operates in the gold and silver sector in Mexico with a market capitalization of CA$556.90 million. The company has an experienced management team and board, both of whom have been with the company for an average of more than five years, which could provide stability. GoGold’s current assets significantly exceed its liabilities, providing financial flexibility despite its unprofitability. The latest production results show an increase in production of key metals compared to the previous year. The Company is advancing its Los Ricos projects with a focus on underground mining, supported by extensive metallurgical testing and the upcoming completion of a definitive feasibility study for Los Ricos South.

Simply Wall St Financial Health Rating: ★★★★★★

Overview: New Pacific Metals Corp. Corp., together with its subsidiaries, focuses on the exploration and development of mineral properties in Bolivia and has a market capitalization of approximately C$437.27 million.

Operations: The company has not reported any revenue segments.

Market capitalization: $437.27 million CAD

New Pacific Metals Corp., with a pre-sales market capitalization of approximately CA$437.27 million, is focused on mineral exploration in Bolivia. The current Preliminary Economic Assessment (PEA) for the Carangas Project indicates potential with an after-tax net present value of US$501 million at base case metal prices and an internal rate of return of 26%. Although the company is unprofitable, it has no debt and sufficient liquidity to last more than two years. However, returns have declined significantly over five years. The average management tenure is relatively short at 2.7 years, indicating some experience but also potential instability in leadership continuity.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies covered in this article include TSX:DSV, TSX:GGD and TSX:NUAG.

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