Here are two top penny stocks I’d buy for my Stocks and Shares ISA with spare cash to invest. I think they could deliver spectacular capital appreciation over the next 10 years.
Kodal Minerals
Purchasing junior mining shares like Kodal Minerals (LSE:KOD) can be perilous for investors. These smaller operators tend to have less financial headroom to weather setbacks at the exploration, project development, and/or production phases.
But I believe this particular penny stock is far less risky following recent funding developments. In January, it sealed a conditional funding package worth around $118m to get its Bougouni lithium project in Mali off the ground.
The deal will provide full financing for the development and start of production at the asset. It will also support a significant exploration and development programme at other West African projects.
I’m attracted to Kodal as an investor because its flagship Bougouni asset has significant long-term potential. It has a mine life of 8.5 years and a current resource estimate of some 21.3m tonnes.
I’m thinking of buying lithium stocks to capitalise on booming demand for electric vehicles (EVs). Demand for the key battery material is tipped to soar as production of cleaner cars ramps up.
The boffins at S&P Global Platts Analytics think 26.8m EVs will be sold in 2030. That’s a huge lift from the 6.3m that rolled off forecourts in 2021. Kodal could be one of the safest ways for investors to make money from this rapidly-growing market following that recent capital injection.
Everyman Media Group
A bright start to 2023 for the UK box office suggests Everyman Media Group (LSE:EMAN) could also be a top stock to buy. Future cinema takings could suffer as the cost-of-living crisis endures. But latest data from the industry is highly encouraging.
The latest Marvel Studios release Ant-Man and The Wasp: Quantumania took an impressive £8.8m at the UK and Ireland box office on its debut last weekend. To put that in perspective, the previous two Ant-Man flicks took £4m and £5m on their debuts respectively.
There is strong pent-up demand for cinema tickets following the pandemic. And a robust slate of blockbuster movies over the next two years could deliver excellent profits for the likes of Everyman.
I like this particular cinema operator because it offers more than just a place to catch the latest mainstream or independent movie. Visitors can also grab a drink at its in-venue bars or a bite to eat in its restaurants.
This superior experience could allow it to see off the threat posed by streaming giants like Netflix and Amazon. It might also see it grab market share from the bog-standard operators like Cineworld and Vue.
Everyman is expanding too to give long-term earnings a shot in the arm. It plans to open five new venues in 2023 alone to take the total on its books to 43.
