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        <title>Anglo Asian Mining Plc (LSE:AAZ) Share Price, History, &amp; News | The Motley Fool UK</title>
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        <description>The Motley Fool UK: Share Tips, Investing and Stock Market News</description>
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	<title>Anglo Asian Mining Plc (LSE:AAZ) Share Price, History, &amp; News | The Motley Fool UK</title>
	<link>https://www.fool.co.uk/tickers/lse-aaz/</link>
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                                <title>Does this ex-penny stock have the potential to almost double?</title>
                <link>https://www.fool.co.uk/2025/07/19/this-ex-penny-stock-has-the-potential-to-almost-double/</link>
                                <pubDate>Sat, 19 Jul 2025 06:41:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Micro-Cap Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1548014</guid>
                                    <description><![CDATA[<p>This under-the-radar mining stock has doubled in the last 12 months, lifting it out of penny stock territory. But could it be about to do the same again?</p>
<p>The post <a href="https://www.fool.co.uk/2025/07/19/this-ex-penny-stock-has-the-potential-to-almost-double/">Does this ex-penny stock have the potential to almost double?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>One year ago, <strong>Anglo Asian Mining</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-aaz/">LSE:AAZ</a>) sat firmly within penny stock territory. But since then, the gold and copper mining enterprise has seen its valuation more than double. And if analysts&#8217; forecasts are correct, the ex-penny stock could soon be repeating this performance over the next 12 months.</p>







<p>With that in mind, let&#8217;s drill deeper into what&#8217;s going on and whether now&#8217;s a good time to consider buying some shares.</p>



<h2 class="wp-block-heading" id="h-explosive-potential">Explosive potential</h2>



<p>The last 12 months have been transformative for this business. During 2024, the company suffered through numerous production constraints as a result of lower ore grades and an open pit mine approaching the end of its life. However, skip ahead a few months, and most of these woes seem to have been resolved.</p>



<p>Its Gedabek project resumed production after a temporary halt in 2024. Its new Gilar mining project entered production earlier this year, on track to deliver 10,000 ounces of gold equivalents a year. And later this year, the Demirli project is set to begin production.</p>



<p>Combined, these mines are expected to send full-year production flying. Gold volumes are now anticipated to reach as high as 33,000 ounces versus 15,000 in 2024, while copper production is on track to explode from 377 tonnes to as much as 6,800 tonnes!</p>



<p>In terms of money, that&#8217;s enough to boost revenue to between $110m and $125m versus the $39.6m achieved in 2024. And with sales on track to almost triple, the <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/broker-forecasts/">analyst consensus</a> is that the Anglo Asian Mining share price will continue its upward trajectory all the way to 308p. Compared to where the stock&#8217;s trading today, that represents an 80% potential return.</p>



<p>However, it&#8217;s important to note that there&#8217;s currently only one analyst tracking this business at the moment, with their forecast dependent on Anglo Asian hitting its production targets. So as with all broker forecasts, it&#8217;s prudent to take them with a healthy pinch of salt.</p>



<h2 class="wp-block-heading" id="h-what-could-go-wrong">What could go wrong?</h2>



<p>There&#8217;s a lot to be excited about when looking at the growth potential of this mining enterprise. But like all potentially explosive investments, there are also some significant risks to consider. Beyond the usual commodity price cycle risks that all mining enterprises have to endure, Anglo Asian also has other challenges to overcome.</p>



<p>One of the biggest concerns among institutional investors is the single-country risk. The company operates entirely out of Azerbaijan, a country not known for its political and regulatory stability. And with the relationship between Azerbaijan and Russia deteriorating, it introduces further geopolitical risks should the situation escalate even further.</p>



<p>For example, transport corridors and supply chains could be disrupted. And even if the impact on operations continues smoothly, disrupted banking relationships with Russian financial institutions could result in notable local <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/">currency volatility</a> that drives up costs.</p>



<h2 class="wp-block-heading" id="h-the-bottom-line">The bottom line</h2>



<p>All things considered, Anglo Asian may no longer be a penny stock, but it still has a lot of risk attached to it. And that&#8217;s something investors will have to carefully consider before jumping in. Yet, given the tremendous progress made to date, I think the mining enterprise deserves a closer look.</p>
<p>The post <a href="https://www.fool.co.uk/2025/07/19/this-ex-penny-stock-has-the-potential-to-almost-double/">Does this ex-penny stock have the potential to almost double?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>4 small-cap stocks Fools think have explosive growth potential</title>
                <link>https://www.fool.co.uk/2025/06/06/4-small-cap-stocks-fools-think-have-explosive-growth-potential/</link>
                                <pubDate>Fri, 06 Jun 2025 02:45:00 +0000</pubDate>
                <dc:creator><![CDATA[The Motley Fool Staff]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Top Stocks]]></category>
		<category><![CDATA[Editor's Choice]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1500770&#038;preview=true&#038;preview_id=1500770</guid>
                                    <description><![CDATA[<p>As long-term investors, we’ve seen plenty of success stories where stocks have multibagged beyond belief — but which could still have that unrealised growth potential in them?</p>
<p>The post <a href="https://www.fool.co.uk/2025/06/06/4-small-cap-stocks-fools-think-have-explosive-growth-potential/">4 small-cap stocks Fools think have explosive growth potential</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>History has shown that it’s most often well-run businesses with a smaller market cap that turn out to have long runways of growth and eventually provide early adopters of the stock with incredible wealth creation. Here are four that Fool.co.uk&#8217;s contract writers are bullish on!</p>



<h2 class="wp-block-heading" id="h-anglo-asian-mining">Anglo Asian Mining</h2>



<p>What it does: Anglo Asian Mining is a gold and copper producer that’s listed on the&nbsp;<strong>Alternative Investment Market&nbsp;</strong>(<strong>AIM</strong>).</p>



<div class="tmf-chart-singleseries" data-title="Anglo Asian Mining Plc Price" data-ticker="LSE:AAZ" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>By&nbsp;<a href="https://www.fool.co.uk/author/artilleur/">Royston Wild</a>. Thanks to its suite of gold projects,&nbsp;<strong>Anglo Asian Mining</strong>’s(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-aaz/">LSE:AAZ</a>) share price is rising rapidly as bullion’s multi-year bull run continues.</p>



<p>The small cap &#8212; which owns the Gadir and Gedabek gold, silver and copper mines in Azerbaijan &#8212; has risen 103% in value over the last year.</p>



<p>With macroeconomic and geopolitical uncertainty growing, and fears of resurgent inflation back on the boil, I think gold prices could have much further to go after hitting multiple new record highs in 2025.</p>



<p>However, Anglo Asian Mining’s foothold in the gold industry isn’t the only reason why I think it could be a hot growth stock to consider. I’m also encouraged by its plans to supercharge copper production to capitalise on the fast-growing green economy.</p>



<p>It plans to open several new red metal mines over the next few years, which it hopes will take annual copper production to 36,000 tonnes by 2028 from 15,000-15,500 today.</p>



<p>Any setbacks at the mine development stages could hit Anglo Asian Mining’s share price hard. But I think this is reflected in the company’s cheapness (it trades on a price-to-earnings (P/E) ratio of 6.1 times).</p>



<p><em>Royston Wild does not own shares in Anglo Asian Mining.</em></p>



<h2 class="wp-block-heading" id="h-animalcare-group">Animalcare Group</h2>



<p>What it does: Animalcare Group develops and markets veterinary pharmaceuticals and identification products.</p>



<div class="tmf-chart-singleseries" data-title="Animalcare Group Plc Price" data-ticker="LSE:ANCR" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>By <a href="https://www.fool.co.uk/author/cmfmhartley/">Mark Hartley</a>. The <strong>AIM</strong>-listed veterinary pharmaceutical and identification group <strong>Animalcare </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ancr/">LSE: ANCR</a>) looks like an intriguing small-cap investment to me. Earnings have exploded recently, leading to a six-fold increase in its net margin. This was driven by strategic divestments, including the sale of Identicare and a minority stake in STEM.</p>



<p>However, debt has also skyrocketed to £23.16m, almost double that of its available cash. For now, it&#8217;s sufficiently covered by equity &#8212; but could be at risk if profits slip. Being a small-cap, it may also experience higher volatility and lower liquidity compared to larger firms.</p>



<p>With the price slow to catch up with earnings, it has a forward price-to-earnings (P/E) ratio of only 16, which is well below the sector average of 40. This suggests it has more room for growth. It also boasts an attractive return on equity (ROE) of 36.62% &#8212; a reassuring sign of efficient management and profitability.&nbsp;</p>



<p><em>Mark Hartley doesn’t own shares in Animalcare Group.</em></p>



<h2 class="wp-block-heading" id="h-central-asia-metals">Central Asia Metals</h2>



<p>What it does: Central Asia Metals is a base metals producer with copper operations in Kazakhstan and a zinc and lead mine in North Macedonia.</p>



<div class="tmf-chart-singleseries" data-title="Central Asia Metals Plc Price" data-ticker="LSE:CAML" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>By <a href="https://www.fool.co.uk/author/psummers/">Paul Summers</a>. Small-cap stocks usually require even more due diligence than your typical FTSE juggernaut, especially when their share prices have been on a downward trajectory. <strong>Central Asia Metals</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-caml/">LSE: CAML</a>) is a great example.</p>



<p>Sure, ongoing geopolitical concerns combined with lower demand for one of the metals it digs up doesn’t exactly paint a pretty picture. And the miner obviously has no control over either.&nbsp;</p>



<p>But these feel like short-term headwinds. Demand for copper is expected to shoot up over the next decade as the world transitions to green energy at an increasing pace. This could eventually make the current valuation of seven times forecast FY25 earnings look like a steal.</p>



<p>In the meantime, the stock yields a monster 11.5% as I type. I’d prefer this to be covered to a greater extent by profit but at least the firm’s balance sheet looks solid for now.&nbsp;</p>



<p><em>Paul Summers has no position in Central Asia Metals</em></p>



<h2 class="wp-block-heading" id="h-international-personal-finance">International Personal Finance</h2>



<p>What it does: This financial services company provides home and digital credit to over 1.7m customers in nine global markets.</p>



<div class="tmf-chart-singleseries" data-title="International Personal Finance Plc Price" data-ticker="LSE:IPF" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>By&nbsp;<a href="https://www.fool.co.uk/author/cmfccarman/">Charlie Carman</a>. Many individuals struggle to access loans from mainstream banks. That&#8217;s where a firm like&nbsp;<strong>International Personal Finance</strong>&nbsp;(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ipf/">LSE:IPF</a>) steps in.</p>



<p>The growth opportunity in lending to underserved credit customers is huge. The company eventually aims&nbsp;to claim 2.5m customers, representing a small fraction of the addressable market of more than 70m people across its target geographies.</p>



<p>Business is humming along nicely. In the first quarter, customer lending grew by 12%, driven by strong performances in Poland, Romania, Mexico, and Australia. Bolstering the investment case, a £15m share buyback programme is due to commence imminently, and shareholders also benefit from a mighty 7.4% dividend yield.</p>



<p>All lending businesses face risks. However, International Personal Finance has a riskier customer base than most, given its inability to access conventional credit. That shouldn&#8217;t be ignored, but a cheap valuation and plenty of room for expansion make the risks tolerable in my view.</p>



<p><em>Charlie Carman does not own shares in International Personal Finance.</em></p>
<p>The post <a href="https://www.fool.co.uk/2025/06/06/4-small-cap-stocks-fools-think-have-explosive-growth-potential/">4 small-cap stocks Fools think have explosive growth potential</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Here’s how one penny share soared 83% in a year</title>
                <link>https://www.fool.co.uk/2025/01/18/heres-how-one-penny-share-soared-83-in-a-year/</link>
                                <pubDate>Sat, 18 Jan 2025 08:51:53 +0000</pubDate>
                <dc:creator><![CDATA[Christopher Ruane]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1451560</guid>
                                    <description><![CDATA[<p>Christopher Ruane looks at why a former penny share has soared 83% in the past year and tries to learn any wider lessons for his investing.</p>
<p>The post <a href="https://www.fool.co.uk/2025/01/18/heres-how-one-penny-share-soared-83-in-a-year/">Here’s how one penny share soared 83% in a year</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>This time last year, <strong>Anglo Asian Mining </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-aaz/">LSE: AAZ</a>) was very firmly in penny share territory.</p>



<p>Since then however, the share has jumped a stunning 83% in value. Can this performance help provide me with any lessons for when I am assessing possible penny shares to buy for my portfolio in future?</p>


<div class="tmf-chart-singleseries" data-title="Anglo Asian Mining Plc Price" data-ticker="LSE:AAZ" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-right-place-right-time">Right place, right time</h2>



<p>The company’s focus on <a href="https://www.fool.co.uk/investing-basics/market-sectors/investing-in-gold-stocks-in-the-uk/">precious metals</a> and copper has positioned it well to benefit from surging metal prices. Last year saw copper prices perform solidly, silver hit an 11-year high, and the yellow metal hit a new all-time high.</p>



<p>So a lot of Anglo Asian’s share price performance reflects the fact that it operates in markets that are riding high. Sometimes it is easy to anticipate that a given market may do well and sometimes it is not. </p>



<p>Ideally though, I prefer not to be too highly exposed to very cyclical markets unless I am confident I am getting in fairly close to the bottom. Even after the recent rise, Anglo Asian shares are 20% lower than five years ago.</p>



<h2 class="wp-block-heading" id="h-investing-is-about-the-future">Investing is about the future</h2>



<p>Anglo Asian’s interim results talked of its ramp-up to full production being underway. But suspension of some activities during the first six months of the year meant that revenues fell by over 50% year-on-year.</p>



<p>A <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-profit-and-loss-account/">profit</a> in the prior year period was replaced by a loss. Production of all three metals was down markedly.</p>



<p>In many companies, a dramatic cut in production and revenues, accompanied by a loss, would see the share price crash not rise. </p>



<p>But clearly, in recent months Anglo Asian shareholders were looking at the <span style="text-decoration: underline">future</span> potential once temporary setbacks were a thing of history and the company could get back to a much higher level of production again. </p>



<p>On top of that, its large copper reserves could be more fully exploited as the company develops more infrastructure at a key site.</p>



<h2 class="wp-block-heading" id="h-concentration-risk">Concentration risk</h2>



<p>That is interesting as a lot of penny shares – especially in the natural resources sector – are focused on an investment case about future production potential. One thing that helped set Anglo Asian apart, in my view, was the fact that it had already demonstrated it was able to mine and sell at volume.</p>



<p>Indeed, the company announced this week that, after resuming full processing at its key mine in the most recent quarter, production more than doubled compared to the prior quarter.</p>



<p>But &#8212; again like many shares in the natural resources sector &#8212; the flipside of focusing on just a few metals is that, if prices move down sharply, Anglo Asian’s profitability will likely follow. Its heavy focus on one mining territory (Azerbaijan) is positive in terms of making the business less complex to operate, but ties the firm&#8217;s fortunes more closely to geopolitical risks there than if it had a more diversified portfolio.</p>



<p>That &#8212; and cyclically high precious metal prices &#8212; puts me off buying this one for my portfolio just now.</p>



<p>But some of the factors above that separate it from some other penny shares –such as a proven business at scale – do give me food for thought when assessing penny shares to buy for my portfolio.</p>
<p>The post <a href="https://www.fool.co.uk/2025/01/18/heres-how-one-penny-share-soared-83-in-a-year/">Here’s how one penny share soared 83% in a year</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Here’s a 75p penny stock that has the potential to almost triple!</title>
                <link>https://www.fool.co.uk/2024/07/06/heres-a-75p-penny-stock-that-has-the-potential-to-almost-triple/</link>
                                <pubDate>Sat, 06 Jul 2024 06:31:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Small-Cap Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1329644</guid>
                                    <description><![CDATA[<p>Zaven Boyrazian looks at an up-and-coming natural resource penny stock that's potentially on track to thrive as demand for copper surges with EVs.</p>
<p>The post <a href="https://www.fool.co.uk/2024/07/06/heres-a-75p-penny-stock-that-has-the-potential-to-almost-triple/">Here’s a 75p penny stock that has the potential to almost triple!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>When it comes to penny stocks, earning triple-digit gains isn’t unrealistic. After all, smaller companies have far more room for growth if they prove to be successful. Of course, that’s a big ‘if’ in many cases since they also come with extremely high levels of risk compared to larger <strong>FTSE 350</strong> enterprises.</p>



<p>Nevertheless, this immense growth potential keeps this class of equities popular among investors comfortable with volatility. And one penny stock that continues to grab attention in 2024 is <strong>Anglo Asian Mining</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-aaz/">LSE:AAZ</a>).</p>



<h2 class="wp-block-heading" id="h-explosive-potential">Explosive potential</h2>



<p>As an early-stage mining business, Anglo Asian is filled with literal untapped potential. The group is currently sitting on over 585,000 tonnes of copper across its prospective projects. And since demand for copper is expected to skyrocket thanks to the electric vehicle revolution, the business appears on track to propel itself to new heights.</p>



<p>It’s not surprising that current analyst forecasts predict the stock price to reach just shy of 205p within the next 12 months. That’s almost three times the current stock price. And if accurate, snapping up this stock today could be a very lucrative investment.</p>



<p>So, is this forecast correct? Quite a few things are working in Anglo Asian’s favour. Most recently, the firm has received regulatory approval to increase the height of one of its tailings dams by another seven metres. As a quick crash course, a tailings dam is used to store leftover materials from the mining process. This approval allows the company to bring the dam to its completed design specs and allows mining operations to continue as planned.</p>



<p>This is yet another positive step for the group’s portfolio of projects. The firm’s Gilar project is expected to enter production by the end of this year, adding another 10,000 ounces of gold equivalents to its production capacity each year. And with other projects on track to enter production over the coming years, the long-term potential for this mining enterprise is undoubtedly promising.</p>



<h2 class="wp-block-heading" id="h-where-s-the-risk">Where&#8217;s the risk?</h2>



<p>Mining is a tough business. Apart from the immense capital expense of scouting, developing, and operating a mining site, there&#8217;s a mountain of paperwork and regulatory hurdles to jump through. In this respect, Anglo Asian already has the upper hand against many of its penny stock peers. Since the business already has an active portfolio of producing mines, <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-profit-and-loss-account/">revenue and profits</a> are already flowing in. But that doesn’t make its explosive potential a guarantee.</p>



<p>The rising demand for copper hasn’t gone unnoticed, especially among industry titans that are also ramping up copper production. If the supply of this metal starts exceeding demand, prices will naturally start to drop. And that could put Anglo Asian’s stellar growth potential in jeopardy.</p>



<p>The group also produces both gold and silver, which adds some welcome diversity to the product portfolio. But just like other commodities, these, too, are affected by the balance of demand and supply. And with only around $4.5m of cash on the balance sheet, a sudden downturn in metal prices could be enormously problematic.</p>



<p>All things considered, just like other penny stocks, Anglo Asian’s risk profile is pretty high. And it’s not a business I’m eager to add to my own portfolio. But for investors who are comfortable with the <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/">volatility</a>, this enterprise may merit a closer look.</p>
<p>The post <a href="https://www.fool.co.uk/2024/07/06/heres-a-75p-penny-stock-that-has-the-potential-to-almost-triple/">Here’s a 75p penny stock that has the potential to almost triple!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>3 penny stocks I&#8217;d buy to target a £1,280 passive income</title>
                <link>https://www.fool.co.uk/2024/07/02/3-penny-stocks-id-buy-to-target-a-1280-passive-income/</link>
                                <pubDate>Tue, 02 Jul 2024 16:05:00 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1328503</guid>
                                    <description><![CDATA[<p>These high-dividend penny shares could be great passive income buys for years to come. Here Royston Wild gives the lowdown on their prospects.</p>
<p>The post <a href="https://www.fool.co.uk/2024/07/02/3-penny-stocks-id-buy-to-target-a-1280-passive-income/">3 penny stocks I&#8217;d buy to target a £1,280 passive income</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>Penny stocks aren&#8217;t a traditional asset class for investors seeking a passive income.</p>



<p>These small-cap companies are often young companies with limited financial resources. What&#8217;s more, because they are at the beginning of their life cycle, they tend to reinvest any spare cash to boost growth. <a href="https://www.fool.co.uk/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/" target="_blank" rel="noreferrer noopener">Dividends</a> are a very distant consideration.</p>



<p>However, there are exceptions to this rule, a few of which are shown in the table below.</p>



<figure class="wp-block-table"><table><thead><tr><th><strong>Company</strong></th><th><strong>Forward dividend yield</strong></th></tr></thead><tbody><tr><td><strong>&nbsp;HSS Hire Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hss/">LSE:HSS</a>)</td><td>&nbsp;7.8%</td></tr><tr><td>&nbsp;<strong>Topps Tiles </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-tpt/">LSE:TPT</a>)</td><td>&nbsp;7.2%</td></tr><tr><td>&nbsp;<strong>Anglo Asian Mining </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-aaz/">LSE:AAZ</a>)</td><td>&nbsp;4.1%</td></tr></tbody></table></figure>



<p>Of course, dividends are never, ever guaranteed. But if broker projections are correct, a £20,000 lump sum invested equally across these <a href="https://www.fool.co.uk/investing-basics/types-of-stocks/investing-in-penny-stocks-in-the-uk/" target="_blank" rel="noreferrer noopener">penny stocks</a> would make me a £1,280 passive income this year alone.</p>



<p>There&#8217;s a good chance too that they could grow their dividends over time. Here&#8217;s why I think they&#8217;re worth a close look today.</p>



<h2 class="wp-block-heading" id="h-hss-hire-group">HSS Hire Group</h2>



<p>Construction companies across the globe are changing the way they operate. Rather than buying their own heavy equipment, many are choosing to rent instead in increasingly large numbers.</p>



<p>The advantages are numerous: the avoidance of large initial costs, no storage concerns or maintenance expenses, and better equipment tailoring for specific projects. It&#8217;s a trend that should benefit businesses like HSS going forwards.</p>



<p>This operator is expanding rapidly to capitalise on this trend as well. It opened 29 new builders&#8217; merchants last year to take the total to 89. I think it could be a great buy despite current weakness in the UK economy.</p>



<h2 class="wp-block-heading" id="h-topps-tiles">Topps Tiles</h2>



<p>Like HSS Group, building materials supplier Topps Tiles is also vulnerable to a subdued construction sector. It also faces significant competition from the likes of <strong>Kingfisher</strong>-owned B&amp;Q and <strong>Travis Perkins</strong>.</p>



<p>But I still think earnings could surge given the bright outlook for UK homebuilding over the next decade. Britain needs to rev up residential construction to meet the needs of its growing population. Indeed, the Labour Party &#8212; favourites to win this week&#8217;s general election &#8212; has vowed to build 1.5m homes over the next five years.</p>



<p>This could support large and growing dividends from Topps Tiles for years to come.</p>



<h2 class="wp-block-heading" id="h-anglo-asian-mining">Anglo Asian Mining</h2>



<p>Copper miner Anglo Asian Mining hasn&#8217;t had the best of things more recently. Production has fallen sharply as it awaits regulatory approval for some of its operations. More specifically, it&#8217;s seeking the green light to raise a tailings dam wall.</p>



<p>The company isn&#8217;t out of the woods yet. But it received a positive environmental report from Azerbaijan&#8217;s government last month to carry out its work. Now could be the time to buy a stake in the company, then.</p>



<p>Copper miners like this have excellent long-term investment potential. Their product is used extensively in fast-growing sectors like renewable energy, computing, electric vehicles, and construction. And with supply shortages opening up, prices of the red metal are tipped by many industry experts to explode.</p>
<p>The post <a href="https://www.fool.co.uk/2024/07/02/3-penny-stocks-id-buy-to-target-a-1280-passive-income/">3 penny stocks I&#8217;d buy to target a £1,280 passive income</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>This cheap penny stock could skyrocket in the electric vehicle revolution!</title>
                <link>https://www.fool.co.uk/2024/06/08/this-cheap-penny-stock-could-skyrocket-in-the-electric-vehicle-revolution/</link>
                                <pubDate>Sat, 08 Jun 2024 06:21:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Small-Cap Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1310785</guid>
                                    <description><![CDATA[<p>Zaven Boyrazian explores a UK penny stock that’s been on a downward trajectory, despite the critical role it could play in the EV industry.</p>
<p>The post <a href="https://www.fool.co.uk/2024/06/08/this-cheap-penny-stock-could-skyrocket-in-the-electric-vehicle-revolution/">This cheap penny stock could skyrocket in the electric vehicle revolution!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>Penny stocks aren’t for everyone. These tiny enterprises almost always end in complete failure, making them exceptionally risky endeavours. But every once in a while, a diamond in the rough appears, and patient investors can end up very wealthy. That’s why they remain so popular.</p>



<p>Looking at the world of micro-cap companies listed on the <strong>London Stock Exchange</strong>, there are a lot of promising enterprises. Among them, <strong>Anglo Asian Mining</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-aaz/">LSE:AAZ</a>) is getting attention from opportunistic investors thinking long term. Specifically, this business could be perfectly positioned to ride the tailwinds of the electric vehicle (EV) revolution.</p>



<p>As this presents an exciting opportunity, let’s take a closer look at this enterprise and explore why today’s share price might be a bargain.</p>



<h2 class="wp-block-heading" id="h-the-rising-importance-of-copper">The rising importance of copper</h2>



<p>As its name suggests, Anglo Asian Mining is an extractor of valuable resources. Its sites are located in Azerbaijan and is one of the sector’s leading companies in the region, specialising in gold, silver and, most excitingly, copper extraction.</p>



<p>Copper’s quite a versatile material with a lot of advantageous properties when it comes to electronics. So it’s unsurprising it’s a critical ingredient for manufacturing EVs. On average, an estimated 83kg of copper’s needed for a single EV, about four times the amount needed for a traditional combustion engine vehicle.</p>



<p>And with governments aiming to steadily phase out the latter within the next two decades, demand for copper’s expected to skyrocket.</p>



<p>So it’s no surprise Anglo Asian management’s investing heavily in developing new copper projects. In fact, across its prospective sites, an estimated 585,373 tonnes of the metal is awaiting extraction, with the bulk concentrated in its <em>Garadag</em> project.</p>



<p>To put this in perspective, at current prices, that’s worth roughly £4.6bn – about 80 times the penny stock’s current market capitalisation!</p>



<h2 class="wp-block-heading" id="h-time-to-invest">Time to invest?</h2>



<p>Despite this huge opportunity and the fact that copper prices have already risen by double-digits so far this year, shares of Anglo Asian are actually down 40% over the last 12 months. This could signal a buying opportunity. But digging a little deeper reveals a few challenges the firm’s encountering.</p>



<p>For staters, production’s hit a snag since some operations were forced to shut down, awaiting regulatory approvals. Subsequently, production in the first quarter of 2024 collapsed from 847 tonnes to just 54. Meanwhile, gold and silver production experienced similar levels of disruptions. This meant a 46% drop in revenue and pre-tax profits tumbling into the red by $32m (£25.1m).</p>



<p>Production disruptions are a risk that all mining companies must face. But given its relatively small scope of projects compared to an <a href="https://www.fool.co.uk/investing-basics/market-sectors/investing-in-mining-stocks-in-the-uk/">industry giant</a> like <strong>Rio Tinto</strong>, delays are especially problematic for Anglo Asian.</p>



<p>The good news is that management remains confident its production timelines for its new prospective sites remain undisturbed. <em>Gilar</em> is expected to start producing later this year, with <em>Xarxar</em> coming on-line as early as 2026. Meanwhile, its all-important <em>Garadag</em> project is scheduled to start in 2028. That&#8217;s seven years ahead of the UK government’s expected ban on new petrol and diesel car sales.</p>



<p>Providing there are no further hiccups, the penny stock seems to be offering a lucrative opportunity for long-term investors. But we’ve already seen the <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/">volatility</a> that follows even a short-term hiccup. And investors need to be comfortable with this level of risk before allocating any capital.</p>
<p>The post <a href="https://www.fool.co.uk/2024/06/08/this-cheap-penny-stock-could-skyrocket-in-the-electric-vehicle-revolution/">This cheap penny stock could skyrocket in the electric vehicle revolution!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 penny shares to consider buying while their prices are still cheap</title>
                <link>https://www.fool.co.uk/2024/05/31/2-penny-shares-to-consider-buying-while-their-prices-are-still-cheap/</link>
                                <pubDate>Fri, 31 May 2024 14:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Small-Cap Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1308020</guid>
                                    <description><![CDATA[<p>I thought these two penny shares looked good value in late 2023. Their prices have gained since then, but I still like what I see today.</p>
<p>The post <a href="https://www.fool.co.uk/2024/05/31/2-penny-shares-to-consider-buying-while-their-prices-are-still-cheap/">2 penny shares to consider buying while their prices are still cheap</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>I&#8217;m going to slightly stretch the usual definition of penny shares today. But I hope you&#8217;ll understand when I explain why.</p>



<p>Typically, in the UK we think of a <a href="https://www.fool.co.uk/investing-basics/types-of-stocks/investing-in-penny-stocks-in-the-uk/" target="_blank" rel="noreferrer noopener">penny stock</a> as one with a share price of less than a pound, and a market cap of under £100m.</p>



<p>And that&#8217;s exactly what the two I&#8217;m looking at today were like when I last examined them in late 2023. Since then, they&#8217;ve both risen. And one has crept up to a bit over £100m. But not by a lot.</p>



<h2 class="wp-block-heading" id="h-nearly-penny-share">Nearly penny share</h2>



<p>My, erm, nearly penny share is the <strong>CT UK High Income</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-chi/">LSE: CHI</a>) <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/investment-trusts/" target="_blank" rel="noreferrer noopener">investment trust</a>. After recent gains, the market cap almost squeezes in at £106m. And the share price only just qualifies, at 95p.</p>



<p>But I think there could be more to come, and I reckon 95p is still too cheap.</p>



<p>Among the trust&#8217;s top 10 holdings, <strong>Shell</strong> is at number one. There&#8217;s long-term risk with oil, but when I see a price-to-earnings (P/E) ratio of only around eight, my eyes sparkle.</p>



<p>Billionaire investor Warren Buffett is still big on oil, and he usually knows good value when he sees it.</p>



<h2 class="wp-block-heading" id="h-big-dividends">Big dividends</h2>



<p><strong>Phoenix Group Holdings</strong> is in there, with its stunning 10.9% forecast dividend yield.</p>



<p>There&#8217;s <strong>NatWest Group</strong> too. And that&#8217;s possibly my favourite <strong>FTSE 100</strong> bank right now, with a 5.5% yield.</p>



<p>As well as holding some of my top Footsie picks, the trust&#8217;s shares can be bought at a discount of 2.3%. It was 6% not long ago, which suggests investors are getting back in.</p>



<p>A small trust like this shares the risks of the stocks it holds. And those risks tend to be magnified as  investment trust shares can fall to a big discount if those holdings fall.</p>



<p>But on the other hand, we get diversification thrown in.</p>



<h2 class="wp-block-heading" id="h-mining-growth">Mining growth</h2>



<p><strong>Anglo Asian Mining</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-aaz/">LSE: AAZ</a>) has a £72m market cap and a 64p share price at the time of writing.</p>



<p>Again, it&#8217;s one I&#8217;ve been watching since late last year. And, after a long share price slide, it&#8217;s finally been picking up a bit.</p>


<div class="tmf-chart-singleseries" data-title="Anglo Asian Mining Plc Price" data-ticker="LSE:AAZ" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>FY 23 results were a bit disappointing, as revenue for the year fell to $45.9m, from $84.7m. Anglo Asian produces gold, copper and silver, and the lower revenue was due to lower production.</p>



<p>The firm posted a $32m loss before tax, following a 2022 profit of $7.5m. The balance sheet fell to a net debt of $10.3m at 31 December.</p>



<h2 class="wp-block-heading" id="h-look-ahead">Look ahead</h2>



<p>The reason I&#8217;m optimistic? Some key resources should come on-line in the current year, with the Gilar mine looking like a major asset. First ore is expected by the end of 2024. And the firm has doubled the capacity of a flotation processing plant &#8220;<em>in anticipation of processing richer ores from Gilar.</em>&#8220;</p>



<p>With a lot of miners at this stage of development, there&#8217;s very much a &#8216;jam tomorrow&#8217; aspect. And I wonder if new cash might be needed before any return to profit.</p>



<p>But Anglo Asian has been generally profitable, which boosts my confidence.</p>
<p>The post <a href="https://www.fool.co.uk/2024/05/31/2-penny-shares-to-consider-buying-while-their-prices-are-still-cheap/">2 penny shares to consider buying while their prices are still cheap</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 interesting penny stocks that have caught my eye!</title>
                <link>https://www.fool.co.uk/2024/01/09/2-interesting-penny-stocks-that-have-caught-my-eye/</link>
                                <pubDate>Tue, 09 Jan 2024 16:31:00 +0000</pubDate>
                <dc:creator><![CDATA[Sumayya Mansoor]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Small-Cap Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1270283</guid>
                                    <description><![CDATA[<p>Our writer breaks down these two penny stocks and explains how they could soar. At the same time, both have considerable risk attached, too.</p>
<p>The post <a href="https://www.fool.co.uk/2024/01/09/2-interesting-penny-stocks-that-have-caught-my-eye/">2 interesting penny stocks that have caught my eye!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>Two penny stocks currently on my radar are <strong>BATM Advanced Communications</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-bvc/">LSE: BVC</a>) and <strong>Anglo Asian Mining</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-aaz/">LSE: AAZ</a>).</p>



<p>Both picks are similar in that they have the potential to provide bumper growth and returns in the long-term. However, they also both have some unavoidable external risks that could derail their progress.</p>



<p>Let’s dig deeper.</p>



<h2 class="wp-block-heading" id="h-batm-advanced-communications">BATM Advanced Communications</h2>



<p>BATM is an Israeli-based technology business with interests in cyber security, networking, and medical technology.</p>



<p>As I write, BATM shares are trading for 22p. At this time last year, they were trading for 32p, which is a 31% drop over a 12-month period. Macroeconomic volatility, but especially the war, has pushed the shares down.</p>


<div class="tmf-chart-singleseries" data-title="Batm Advanced Communications Price" data-ticker="LSE:BVC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>The obvious risk for the firm is the current geopolitical picture in the Middle East. Continued conflict could hurt performance, sentiment, and growth. In addition to this, larger competitors in its industry with much more money and resources could out-muscle the firm.</p>



<p>However, I’m impressed by BATM’s performance and growing presence. Between June and December, it racked up $32m of orders. Its half-year period to the end of June saw revenue, profit, and margins all rise too. The business also looks to have a healthy balance sheet too.</p>



<p>I’m hoping for a peaceful resolution in the current conflict. It would also be good news for BATM, and I think this is one small-cap to keep an eye on. </p>



<p>At just over 22p a share, I’d be willing to open a small position the next time I have some cash to invest. I reckon there’s plenty of room for growth, especially as we hurtle towards the artificial intelligence (AI) revolution and governments continue to increase spending to ward off digital threats!</p>



<h2 class="wp-block-heading" id="h-anglo-asian-mining">Anglo Asian Mining</h2>



<p>Anglo is a mining company that focuses on copper and gold.</p>



<p>As I write, Anglo shares are trading for 55p. They’re down 100% from 110p at this time last year to current levels.</p>


<div class="tmf-chart-singleseries" data-title="Anglo Asian Mining Plc Price" data-ticker="LSE:AAZ" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>Mining stocks are very cyclical. This is one of its biggest risks. I reckon the shares are down due to the economic slowdown in China, as the country is one of the largest copper users in the world. Similar to BATM, Anglo is affected by the current conditions of the country it operates in. An unsteady geopolitical outlook could present issues when mining for commodities and this could dent performance and growth.</p>



<p>However, I reckon Anglo shares could climb once macroeconomic volatility cools. Gold and copper are generally both in high demand. The latter especially is essential for infrastructure building. If the Chinese economy turns around, I think demand and sentiment towards copper and copper miners could soar.</p>



<p>Finally, I find myself intrigued that Anglo’s current <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/">dividend yield</a> is close to 12%. Now I reckon its shares falling has pushed that up but the firm has indicated a dividend is on the cards. Whether the yield is covered by earnings remains to be seen as it’s worth remembering dividends are guaranteed.</p>



<p>Although Anglo could experience a sharp rise in the future, for me personally, it’s the riskier of the two stocks. I’ll keep Anglo on my watch list for now.</p>
<p>The post <a href="https://www.fool.co.uk/2024/01/09/2-interesting-penny-stocks-that-have-caught-my-eye/">2 interesting penny stocks that have caught my eye!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>3 penny stocks I think could turn into pounds in 2024</title>
                <link>https://www.fool.co.uk/2023/12/24/3-penny-stocks-i-think-could-turn-into-pounds-in-2024/</link>
                                <pubDate>Sun, 24 Dec 2023 09:45:00 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Small-Cap Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1265859</guid>
                                    <description><![CDATA[<p>A lot of penny stocks have fallen further than the bigger ones in 2023. I'm wondering which of them might rebound the best in 2024.</p>
<p>The post <a href="https://www.fool.co.uk/2023/12/24/3-penny-stocks-i-think-could-turn-into-pounds-in-2024/">3 penny stocks I think could turn into pounds in 2024</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>Penny stocks can be risker than most, as they often bring a fair bit of volatility. But, as part of a diversified portfolio, I think they can add a bit of excitement.</p>



<p>And right now, I&#8217;m seeing quite a few that look like they might be cheap. I reckon these three deserve a closer look.</p>



<h2 class="wp-block-heading" id="h-cheap-lithium">Cheap Lithium</h2>



<p>My first pick faces a bit of extra risk, on top of penny stock volatility. It&#8217;s <strong>Kodal Minerals</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-kod/">LSE: KOD</a>), and its share price is down below a penny.</p>



<p>That can mean a wider spread between buying and selling prices, so we&#8217;d need an even bigger gain just to break even.</p>



<p>But, after a big slump in the 2020 stock market crash, the Kodal share price has spiked up a few times. Right now, it&#8217;s come down from a recent high. And with a market-cap of £92m, I see this as a possible buy now.</p>



<p>Kodal is currently developing a lithium asset in Mali, and I think investors have taken their eyes off lithium stocks a bit.</p>



<p>There&#8217;s no profit yet, so valuation is tricky. But the company has net cash. And I think we could be in for an interesting few years.</p>



<h2 class="wp-block-heading">Walls and floors</h2>



<p>I&#8217;ve been watching <strong>Topps Tiles </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-tpt/">LSE: TPT</a>) on and off this year, and it&#8217;s a bit unusual for a penny stock.</p>



<p>It&#8217;s profitable, has a modest forward valuation, and it even pays a dividend. It does only just squeeze under the £100m penny stock limit, mind, with a £99m market cap.</p>



<p>Forecasts put the stock on a price-to-earnings (<a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">P/E</a>) ratio of 14 for 2024, which might not look ultra-cheap on the face of it.</p>



<p>But strong earnings growth down for 2025 would drop it to under 10. And with <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/" target="_blank" rel="noreferrer noopener">dividend yields</a> of 7%, that could definitely be cheap.</p>



<p>In its last FY results, the company recorded its third year of record sales in a row. Demand has started to soften in the tail-end of 2023, though. So there&#8217;s some risk there. </p>



<p>But the board believes Topps is &#8220;<em>well-positioned to continue to take market share.</em>&#8220;</p>



<h2 class="wp-block-heading">Another digger</h2>



<p>Mining and commodities stocks do seem to be down right now. I expect that&#8217;s mainly down to the Chinese slowdown, and weakening demand.</p>



<p>But it&#8217;s a cyclical business, and we can make some nice cash if we buy when share prices are down. So, I&#8217;m including another miner in my three here.</p>



<p>This one is <strong>Anglo Asian Mining</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-aaz/">LSE: AAZ</a>). And it has a bit of a unique risk to it, as its operations are all in Azerbaijan. Know anything about the politics and financial regulation systems in Azerbaijan? Me neither.</p>



<p>Still, the share price has given up its recent bright spell, and it&#8217;s now down 35% in five years. But perhaps the most remarkable thing about this one is the dividend, forecast at a whopping 11%.</p>



<p>It looks like the company would struggle to cover that with earnings. But it&#8217;s focused on copper, and if demand for that should rise, we might see a nice earner here.</p>
<p>The post <a href="https://www.fool.co.uk/2023/12/24/3-penny-stocks-i-think-could-turn-into-pounds-in-2024/">3 penny stocks I think could turn into pounds in 2024</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Should I buy this 13% yielding penny stock?</title>
                <link>https://www.fool.co.uk/2023/11/07/should-i-buy-this-13-yielding-penny-stock/</link>
                                <pubDate>Tue, 07 Nov 2023 16:33:00 +0000</pubDate>
                <dc:creator><![CDATA[Sumayya Mansoor]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1254176</guid>
                                    <description><![CDATA[<p>Surely a penny stock with a double-digit dividend yield seems too good to be true? Our writer investigates!</p>
<p>The post <a href="https://www.fool.co.uk/2023/11/07/should-i-buy-this-13-yielding-penny-stock/">Should I buy this 13% yielding penny stock?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>One penny stock that caught my eye recently is <strong>Anglo Asian Mining</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-aaz/">LSE: AAZ</a>). This is because of its mammoth double-digit yield, which is not something you see everyday from small-cap stocks. Should I buy or avoid the shares for juicy passive income?</p>



<h2 class="wp-block-heading" id="h-mining-in-azerbaijan">Mining in Azerbaijan</h2>



<p>Anglo is a mining business with its core operations in the country of Azerbaijan. Its primary focus is copper and gold from its projects in the country, which include its flagship Gedabek gold and copper mine.</p>



<p>As a penny stock, Anglo is already prone to more volatility than other shares. However, macroeconomic and geopolitical issues haven’t helped markets in recent times. So I’m not surprised to see Anglo shares heading downwards.</p>



<p>As I write, Anglo shares are down 17% over a 12-month period. They’re trading for 70p, compared to 85p at this time last year.</p>


<div class="tmf-chart-singleseries" data-title="Anglo Asian Mining Plc Price" data-ticker="LSE:AAZ" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-to-buy-or-not-to-buy">To buy or not to buy?</h2>



<p>Mining stocks are risky due to the volatility that comes from a variety of directions. Firstly, economic volatility can hinder commodities, or even help them surge. For example, demand for gold may rise during times of economic issues but at the same time demand for copper may fall. Conversely, copper is in high demand generally due to its multitude of applications.</p>



<p>For Anglo, I see the fact it is operating in Azerbaijan as a risk as it is at the mercy of geopolitical issues due to its location. This could hinder operations, performance, and any investor returns.</p>



<p>So let’s break this huge <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/">dividend yield</a> of 13% down. I believe it’s been inflated by the share price slumping. Taking a look at Anglo’s balance sheet and forecasts, the business has lots of cash but earnings don’t look like they’ll cover such a high yield. I’m not a fan of uncertainty and volatility. However, dividends are never guaranteed and forecasts don’t always come to fruition.</p>



<p>In Anglo’s interim update a few months back, there were some positives to take away. A rise in copper production was positive. When I think that close-by China is one of the foremost copper users, Anglo could find itself in a position to benefit. The flip side of this is the fact that the Asian superpower has had its own economic issues so demand could weaken. Plus, cash on the balance sheet looks healthy to help through the current challenging market we find ourselves in. </p>



<h2 class="wp-block-heading" id="h-a-penny-stock-i-m-watching-for-now">A penny stock I’m watching… for now</h2>



<p>Amid so much uncertainty and what looks like an over-egged dividend yield, I’m not going to take the plunge and buy any Anglo shares at present.</p>



<p>What I will do is keep a close eye on economic developments and watch the business and its updates when they arrive. This will help me build a better perspective on whether or not the shares could boost my holdings. I may revisit my position in the near future.</p>
<p>The post <a href="https://www.fool.co.uk/2023/11/07/should-i-buy-this-13-yielding-penny-stock/">Should I buy this 13% yielding penny stock?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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