A handful of tiny British companies are trying to carve out niches in battery metals and clean technology — and some could offer intriguing opportunities for investors.

That is, if they’re willing to stomach the risk.

Here are two exciting micro-cap shares that visionary and risk-aware investors may want to consider before they take off.

Atlantic Lithium

Atlantic Lithium (LSE: ALL) is a London-listed explorer focused on lithium projects in Ghana. With a market capitalisation of around £65m and a share price of roughly 9p, it sits comfortably within the penny stock bracket.

The company’s Ewoyaa project has been described as one of the most advanced lithium developments in Africa. So it’s well-positioned to benefit from rising demand for lithium-rich batteries. These are used in electric vehicles and the uninterruptible power supplies (UPS) that keep AI data centres running.

The growth potential here is hard to ignore. Lithium is at the heart of both AI and the global energy transition, and supply constraints could keep prices elevated for years. If Atlantic successfully shifts from exploration to production, its revenue and earnings could skyrocket.

Of course, that’s a big ‘if’. The business remains pre-revenue and reliant on successful financing and permits. Cost inflation, environmental scrutiny and commodity price swings all pose material risks. For many investors, those are red flags rather than buying signals.

But for the speculative minority, they’re part of the thrill.

Windar Photonics

Shifting focus to renewable energy, Windar Photonics (LSE: WPHO) offers a compelling concept. This £55m AIM-listed firm develops LiDAR-based sensors that help wind turbines align more accurately with the wind, improving energy output.

Its technology has been adopted by several turbine manufacturers and wind farm operators, offering the prospect of scalable commercial growth.

With its share price hovering around 60p, it also fits the penny stock definition — although it operates at a more mature stage than many of its peers.

Windar’s appeal lies in its technology-driven efficiency gains. As renewable projects face pressure to cut costs, even small improvements in output can make a meaningful difference to profitability.

Yet, despite promising signs of revenue growth, the company remains loss-making. Continued expansion will likely require further investment, and any delays in customer adoption could keep the share price in penny stock territory.

The idealist in me envisions a world powered entirely by green energy – but the realist knows there’s still decades of work to be done.

Risky or revolutionary?

Both Atlantic Lithium and Windar Photonics demonstrate how innovation and volatility go hand in hand at the small-cap end of the market. These are genuine businesses in promising sectors — but their valuations are highly sensitive to sentiment and execution risk.

For patient investors, they highlight why the penny stock arena can be both fascinating and unforgiving. It’s a place where the next big success story might emerge, but where many contenders will inevitably fall short.

For now, the AI and green energy narrative looks set to keep fuelling interest in these speculative corners of the market. Whether that excitement translates into lasting shareholder returns remains the billion-pound question.

The post AI and green energy: two UK penny stocks that could benefit from these explosive industries appeared first on The Motley Fool UK.

For example, a 10p stock growing to £1 doesn’t sound that unrealistic. But a £100 stock growing to £1,000? Now that would be surprising! The price of smaller-caps can move (up and down) far more easily than large-caps.

With that in mind, here’s one undervalued AIM stock that caught my attention this week and that I’m researching further.

Mining for the future

Atlantic Lithium (LSE: ALL) develops and operates lithium mines on the West Coast of Africa. It currently has one mine in Ghana and is working on a second in Côte d’Ivoire. Although its headquarters are located in Sydney, Australia, it trades on the London Stock Exchange and is a constituent of the AIM index.

Lithium’s becoming an increasingly desired mineral for the manufacturing of batteries for electric vehicles (EVs) and similar technology. The global lithium market’s expected to grow from $26.8bn to $134bn in the next 10 years — a fivefold increase. That’s huge!

But it’s a slow burn

Since Atlantic Lithium’s just starting out it could be a few years before it starts making sales. That said, getting in now while the stock’s only 13p could net me some considerable returns!

Sadly, last July, the firm was forced to halt operations at its Ewoyaa mine in Ghana after a fatality. The tragedy sent shockwaves through the mining community and gave shareholders the willies. Now the share price is down 35% since, hitting its lowest level since late 2020.

Naturally, we all pray this was a one-off event. If so, the price should recover. But any further accidents could force permanent closure of the mine and threaten the company’s future.

Fundamentals

With the price now so low, analysts expect high growth from the company going forward. Some are forecasting an earnings growth rate of 65% a year, with revenue expected to ramp up significantly in 2026. And with future cash flows also expected to be high, the stock’s estimated to be trading at 90% below fair value! 

But for now, it remains unprofitable with earnings per share (EPS) running at a 1p loss. Buying shares in unprofitable companies can turn out very lucrative. But it does bring about a high likelihood of starting at a loss, particularly if the price-to-book (P/B) ratio’s high. For Atlantic Lithium, it’s five times the company’s market-cap per share.

Looking back, the ratio’s been decreasing, down from 14.5 times in 2022. It will likely take another two years before the company becomes profitable and the P/B ratio reaches an equilibrium of 1:1. The share price could rise or fall in that time, so I plan to buy small amounts of the stock each month. That way, I will achieve a better average price per share.

It’s certainly a long-term play – and one that could face several obstacles on the route to success. But that’s the beauty of penny stocks — they offer an exciting mix of risk vs reward!

The post Is this 13p penny stock the next gem for my Stocks and Shares ISA? appeared first on The Motley Fool UK.

But the list is shrinking, as ones like Michelmersh Brick Holdings have broken through either the £100m market cap limit, or a 100p share price.

In the case of Michelmersh, at 105p the shares are only just out of range now, but it’s still a candidate buy for me.

Penny stock dividend

At least Topps Tiles (LSE: TPT) is still within range with a 46p share price. But its market cap of £93m only just qualifies.

We often have to choose between a low share price that we think will rise, or a high dividend. In this case, we can hope for both.

Forecasts put the dividend yield at a whopping 7.5% this year. And though forecasts are probably at their least reliable when it comes to very-small-cap stocks, they do at least suggest dividend growth in the next few years.

A Q3 trading update showed conditions still tough, as we’d expect from the current state of the economy.

But the firm said: “Positive macroeconomic data on inflation, real wage growth, improving consumer confidence and increased activity in the housing market provides some confidence in a cyclical recovery.“

Big risk

Sometimes, a really hammered penny stocks swings into view. And it has all the hallmarks of either going bust, or making a possibly spectacular recovery. That’s the question I’m pondering over Petrofac (LSE: PFC).

Shares in the oil and gas services business were up over £15 in 2012. Today, they’re just 15p.

There was a bribery scandal a few years ago, and then Covid hammered the business.

And earlier in 2024, we saw major concerns over the firm’s liquidity, with $250m in debt set to mature in October. At the time, the threat of a significant shareholder dilution was real.

More recently, creditors have agreed to hold off for a while with Petrofac having a restructuring plan in place. And the order book looks strong, with some notable renewable energy wins.

If the board can pull it off, it might just be worth a small investment. The next few months could be crucial.

Lithium rebound?

The AIM-listed Atlantic Lithium (LSE: ALL) share price is down to just 13p per share. In early 2022, it was up over 60p.

At that time, the price of the elusive metal was soaring on the back of electric vehicle hype. But in the past couple of years, it’s slumped. Today, lithium fetches no more than it did in mid-2019.

The company itself looks to be in good financial health though. And its developments in Ghana are progressing nicely.

The future price of lithium must be the key here. And other technologies, like sodium batteries, pose a threat. There’s a lot more sodium around, and it’s far more easily accessible.

But if lithium demand stays strong and Atlantic Lithium can turn a profit in 2026 as forecasts suggest, I think it could move on out of penny stock territory.

The post Cheap penny stocks to consider buying in September appeared first on The Motley Fool UK.

Well positioned in Ghana

The drop today in the Atlantic Lithium share price can be put down to the news release that a member of the workforce was fatally injured in an incident while working at the Ewoyaa Lithium project. This is sad news, but I don’t see this as a driver for the stock going forward unless further reports come out that suggest there’s a widespread problem with safety.

Despite the fall in the share price over the past year, I think the future looks bright. Late last year, the firm was granted the mining lease for the Ewoyaa Lithium project in Ghana. The business commented that it’s “one of the lowest capital and operating cost hard rock lithium projects globally”. In other words, it’s expected to not cost a lot, but on the flipside be very profitable. This bodes very well.

The half-year report that came out in March showed that finances are also stable. This is usually a large risk for similar exploration and mining companies. It had $11.4m of cash on hand at the end of the period. Further, with it being listed on the Ghana Stock Exchange, it should be able to raise fresh capital in the future if needed.

A key risk remains the lithium price. Any lithium successfully extracted can only be sold at the going market rate. Therefore, if the price keeps falling, revenue will be lower.

Exploring both lithium and gold

The second company in focus is Kodal Minerals. Thanks to a strong recovery rally in the past few months, the stock is only down 3% over the past year. However, back in February the stock was down over 50% from the summer of 2023.

Kodal focuses on mining and exploration for both lithium and gold. This is why I like the stock, as it’s a slightly lower risk lithium play. Over the past year, the rally in the gold price has helped the share to move higher, particularly earlier this year.

Yet lithium is a key focus, with the Bougouni Lithium project. Drilling programmes have revealed several high-grade lithium pegmatite veins, which bodes well for commercial success. It has also secured funding from other partnerships. This should make it less likely to go bust from a lack of cash.

A risk is any delay that would cause investors to be disappointed. At the moment, the project is forecasted to produce lithium in Q4. Any pushback on this to next year could see the share price fall.

Long-term demand

I believe that the role of lithium in batteries for electric vehicles means that demand is going to increase in coming years. This should act to support the lithium price, along with boosting the prospects for lithium-related stocks. I’ve got both ideas on my watchlist to monitor in coming months, ready to buy.

The post I think these 2 FTSE lithium stocks are primed for a comeback appeared first on The Motley Fool UK.

So, rather than sit on the cash before the 5 April deadline, I’d rather put it to work right away. This way, I can get my money working for me immediately. And as I say, there are some top shares looking massively undervalued at this moment.

Here are three I’m thinking about buying before the ISA deadline.

Atlantic Lithium

Atlantic Lithium‘s (LSE:ALL) share price has tumbled as prices of the silvery-white metal have fallen. It could remain on a downward slant a little longer too if China’s economy continues to splutter.

I think this could be a great dip buying opportunity for long-term investors, however. The AIM company is developing the Ewoyaa project in West Africa, an asset that could deliver spectacular profits growth.

Fresh drilling news on Tuesday (19 March) has reminded the market of its brilliant potential. Atlantic has said high-grade assay results in 2023 revealed “impressive intersections” that it notes should help it deliver another mineral resource estimate (MRE) upgrade in the second half of this year.

Atlantic Lithium could find itself in a strong position to exploit the electric vehicle boom once Ewoyaa comes online. Adoption of cleaner cars is tipped to supercharge long-term lithium consumption, as the graphic below shows.

Central Asia Metals

Central Asia Metals (LSE:CAML) is another top mining stock on my radar today. This is thanks to its exceptional all-round value.

Today, the Kazakh miner trades on a forward price-to-earnings (P/E) ratio of 8.7 times. It also carries a large 9.2% dividend yield for 2024.

Central Asia Metals’ flagship asset is the Kounrad copper mine in Kazakhstan. It also owns the Sasa lead-zinc mine in North America. As with lithium, demand for these base metals is tipped to rocket as the green revolution picks up momentum.

Mining for metals is an unpredictable and costly business. Still, at current prices I think this AIM share is worth serious attention.

Warehouse REIT

I’m also considering adding Warehouse REIT (LSE:WHR) shares to my portfolio before the ISA deadline. The real estate investment trust (REIT) has fallen in value again as hopes of imminent interest rate cuts have receded.

This remains a threat going forwards. But I’m attracted by the boost recent share price falls have given to the FTSE 250 firm’s dividend yields. For this financial year its yield now stands at 8.2%.

I’m confident profits at Warehouse REIT will rise strongly in the years ahead. Rising e-commerce activity and supply chain evolution will drive strong demand for warehouse and distribution hubs even higher. The rents that REITs like this charge should, therefore, remain on a healthy uptrend, helped by a chronic shortage of new developments across the industry.

Warehouse REIT’s like-for-like rental growth accelerated to 3.7% in the December quarter.

The post 3 last-gasp value stocks I’m considering buying before the ISA deadline appeared first on The Motley Fool UK.

Signs of growing oversupply have pushed lithium prices to their cheapest since July 2021. Weaker-than-expected electric vehicle (EV) sales have caused inventories to build. And investors are nervous that prices could remain depressed as new supply enters the market and EV sales slow (especially in China).

But could Atlantic Lithium shares now be a clever buy at current prices?

Reward vs risk

Atlantic Lithium owns the Ewoyaa lithium project in Ghana. It has designs on getting first material out of the ground in 2025, and is making a good fist of getting this done.

As a potential investor I’m conscious of further price weakness if lithium prices continue sinking. This is part and parcel of purchasing shares in any commodities stock.

Yet the potential long-term rewards of owning this former penny stock remain significant. This is thanks to the massive potential of its Ghanian assets, which was underlined in fresh drilling news on Monday.

Exciting results

According to Atlantic, most recent exploration work in 2023 revealed “multiple high-grade and broad extensional drill intersections” at the Dog-Leg target, as well as the company’s Okwesi, Anokyi, and Ewoyaa-South 2 deposits.

Atlantic said that the results at Dog-Leg alone provide potential for “significant resource growth“. All of the results are outside of the mineral resource of 35.3m tonnes at 1.25% lithium oxide for Ewoyaa.

In good shape

Today’s (5 February) update is the latest in a string of positive drilling reports from the lithium business. Exploration work can be troublesome and fraught with disappointment, but so far Atlantic has a strong track record on this front that gives me confidence.

I also like this particular lithium miner because it’s in good financial shape to get Ewoyaa off the ground. A solid balance sheet gives it more wiggle room if any operational problems arise and thus reduces the risk to investors.

Piedmont Lithium has vowed to cover $70m of an estimated $185m to develop the monster asset. It will also take care of 50% of any additional costs that spring up. Furthermore, Ghana’s sovereign wealth fund announced last September plans to invest $32.9m in the project.

The verdict

As I say, lithium consumption has been in the doldrums recently, a development that reflects the impact of higher interest rates and China’s turbulent economy. These could remain problems for metal demand in 2024 too.

But the long-term outlook for lithium usage remains pretty solid. EV sales are still tipped to rise strongly in the next 10-20 years as decarbonisation initiatives intensify.

And Atlantic Lithium — whose Ewoyaa project is one of the largest lithium deposits on the planet — could be well placed to capitalise on this. I’ll be looking to add the company to my own portfolio when I next have cash to invest.

The post Down 50%+, is the Atlantic Lithium share price too cheap following Monday’s news? appeared first on The Motley Fool UK.

But when things go right, investing in young businesses can enjoy significantly better returns than by buying mature companies on say the FTSE 100 or FTSE 250. Profits growth can be far, far superior which, in turn, can result in terrific share price gains.

Here are two top penny stocks I think could deliver exceptional long-term wealth.

Atlantic Lithium

Investing in early-stage mining companies can be packed with peril. Setbacks at the exploration and asset development stages can take a sledgehammer to profit forecasts. These businesses also have weaker balance sheets than the major miners, which makes them more vulnerable to failure.

Yet I believe Atlantic Lithium (LSE:ALL) — which owns the Ewoyaa lithium project in Ghana — remains an attractive investment right now. As the graph from chemicals giant Albemarle below shows, demand for the silvery-white metal is tipped to rocket as electric vehicle (EV) sales take off.

The miner is making good progress in getting Ewoyaa up and running in early 2025. It received a mining lease from Ghana’s government in October, while talks over at engineering, procurement, construction and management (EPCM) contract for the main processing plant and non-processing infrastructure are said to be at an advanced stage.

The Ewoyaa project is huge, and when operational will be one of the 10 largest spodumene [ lithium aluminum silicate mineral] concentrate producers on the planet. Thanks to agreements with Piedmont Lithium and Ghana’s Minerals Income Investment Fund, the funding situation for the asset looks pretty robust.

On top of this, Atlantic Lithium also has a series of exciting exploration projects in the Côte d’Ivoire and Ghana. Last week, it received a new licence to explore for lithium in two projects within 70km of Ewoyaa. I think the company could have a very bright future.

European Metals Holdings

I believe European Metals (LSE:EMH) could be another great way to ride the lithium boom. The company owns the Cinovec project in Czechia, a resource that has been labelled ‘a strategic asset’ by the European Union.

It’s no mystery why. Cinovec is the largest lithium resource on the continent, and will produce 29,386 tonnes of lithium hydroxide during its 25-year life.

News of a successful pilot programme in early November illustrates the quality (and thus the huge commercial potential) of the Central European project. It showed “exceptionally clean battery grade lithium carbonate” that demonstrated 99.7% purity.

An added bonus is Cinovec’s location on the doorstep of Europe’s major carmakers and chemicals manufacturers. It’s much simpler and cheaper for the likes of Mercedes-Benz and BMW to source their lithium from here than elsewhere.

I think European Metals’ recent share price slump represents a top dip buying opportunity. A risk is that it could fail to deliver the profits growth its shareholders hope for if EV sales fall short of forecast. But, on balance, things are looking pretty good for the mining company.

The post 2 penny stocks that could help fund my retirement! appeared first on The Motley Fool UK.

Atlantic Lithium

What it does: Atlantic Lithium is a lithium focused exploration and development company, with a flagship project in Ghana.

By Jon Smith. Atlantic Lithium (LSE:ALL)’s business came under fire in Q1 of this year due to a negative short seller report — the stock fell like a stone, which is why a chart shows that the share price is down 39% over the past year.

Any commodity exploration company is going to have a very volatile share price, and I have to accept this as par for the course. Despite this as a risk, I do believe that the project in Ghana has potential. The stock has jumped 27% over the past month thanks to positive assay results from the most recent drilling excursion.

More positive news came out at the start of September, with a non-binding agreement with the Ghana sovereign wealth fund for investment. If the Government is wanting a piece of the action, it’s a vote of confidence on the potential success of the project in my eyes.

Jon Smith does not own shares in Atlantic Lithium

Rio Tinto

What it does: Rio Tinto is a UK-based mining and metals company with 52,000 employees operating in 35 countries around the world.

By Matthew Dumigan. Despite primarily focusing on iron ore, aluminium and copper, my top lithium stock is Rio Tinto (LSE:RIO).

Recently, the company has made the strategic decision to build its exposure to lithium, but it’s not been straightforward.

Rio only has two lithium projects, one of which (the Jadar project) was cancelled in January 2022 after the Serbian government cited environmental concerns. That said, it’s worth noting that the company remains in consultation with relevant stakeholders to explore all options related to the project’s future.

Beyond Jadar, though, the Rincon Project in Argentina looks set to be a valuable source of rapidly produced, high-quality lithium for the global energy transition.

In my view, it positions the group well to tap into this growing market and capture a larger share of the exploding demand. Ultimately, if successful, Rio could drastically reduce European reliance on China and Australia for battery-grade lithium.

Matthew Dumigan does not own shares in Rio Tinto.

Rio Tinto

What it does: Rio Tinto is one of the world’s largest miners, with global operations mining and marketing a range of metals and other minerals.

By Christopher Ruane. I expect high future demand for lithium. But as with many similar gold rushes in the past, a surging potential market size does not necessarily translate to healthy profits for all companies in the sector.

That is why I would not try to get exposure to lithium by investing in a pure-play lithium mining stock, let alone one with no experience of commercially producing and marketing the product.

Instead, I would go for a proven, diversified miner that has deep expertise in turning the promise of a project into a productive, money-making reality. That describes Rio Tinto (LSE: RIO).

Rio Tinto still faces risks, such as the cyclical nature of pricing for most of its products. That can depress profits for long periods.

But I like the exposure the company offers me to lithium through its project in Jadar, Serbia. I am more comfortable with the overall risk profile of this FTSE 100 share than with businesses focussed only on lithium.

Christopher Ruane does not own shares in Rio.

Rio Tinto

What it does: Rio Tinto is a diversified mining company with notable strength in iron ore and big lithium expansion plans.

By Charlie Carman. Rio Tinto (LSE:RIO) isn’t a pure lithium stock. Iron ore is central to the business, alongside other commodities, including aluminium and copper. However, lithium is high on the mining giant’s agenda with two flagship projects in Argentina and Serbia.

Progress at Rincon, located in South America’s ‘lithium triangle’, is accelerating. Yet, it’s proving more expensive than anticipated. Rio Tinto’s capital expenditure has increased from the initial $140m estimate to $335m today.

Serbia’s Jadar valley is a unique source of jadarite — a mineral deposit containing lithium and boron. Although it has the potential to be a world-class asset, Rio Tinto’s been mired in a stand-off with the Serbian government since its mining licenses were revoked in 2022.

Undismayed by challenges at its existing projects, Rio Tinto recently bought 145,000 hectares of exploration tenements in Western Australia. This underscores how vital the alkali metal is to the Anglo-Australian miner’s future plans.

Charlie Carman owns shares in Rio Tinto.

The post “My top lithium stock is…” appeared first on The Motley Fool UK.

Yet, despite this bright outlook, there is a dearth of new supply set to come online. Just over 50 projects are currently in the global development pipeline, a figure that S&P Global Market Intelligence thinks will create a material deficit of 605,000 tonnes of lithium carbonate equivalent by the end of the decade.

Two top lithium stocks

Of course there’s no guarantee that early-stage lithium miners will be able to command high prices for their product. Lower-than-forecast EV sales, for instance, could cause certain projects to be less profitable than hoped.

Digging for metals is also a difficult process. Mine development delays could leave earnings forecasts in tatters. Production problems later on could also dampen output and result in huge, unexpected costs.

Having said that, the potential reward of owning certain lithium shares could make these risks more than worth it. Here are two penny stocks I’m thinking of buying when I next have spare cash to invest.

1. Atlantic Lithium

Ghana-focused Atlantic Lithium owns what is set to be the country’s first producing lithium mine. It is hoping to produce metal there over a 12-year period beginning in the first half of 2025.

I like Atlantic because of the funding steps it has taken to get the Ewoyaa mine built. It has a deal with Piedmont Lithium that will see the Australian company fund the first $70m of an estimated $185m capital expenditure bill.

On top of this, in recent days, Ghana’s Minerals Income Investment Fund (MIIF) said it would invest $32.9m to get the asset off the ground. The agreement is non-binding, but it helps to de-risk the project still further.

The MIIF deal puts a value of $372m on Ewoyaa, according to brokers at Liberum. This underlines the huge potential of the project. Atlantic has described West Africa as a “new lithium frontier”, which, if correct, could make the producer a brilliant buy. It also owns exploration assets in Côte d’Ivoire.

2. European Metals

As owner of the Cinovec asset in the Czech Republic, European Metals is developing the largest hard-rock lithium deposit on the continent. Nestled on the Czech-German border, the project — which has a 25-year life — is located on the doorstep of some of Europe’s biggest automakers and chemical producers, as the map below shows.

When the mine’s up and running, European Metals expects to produce 29,386 tonnes of lithium each year. After recent testing, the company believes there is capacity to add a second stage that would double production.

I also like Cinovec because it is one of the world’s ‘greenest’ lithium mines. When it comes to water usage, environmental acidification, and carbon dioxide emissions, the site is at the front of the pack. These qualities could see it become highly popular as ESG investing takes off.

The post 2 top penny stocks I’m looking to buy for the lithium boom appeared first on The Motley Fool UK.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Anglo Asian Mining 

What it does: Anglo Asian Mining is an AIM-listed mining share whose precious and base metals projects span the globe. 

By Royston Wild. Commodities are popular wealth preservers with investors during uncertain times. And by extension so are producers of raw materials like metals. This is why I believe Anglo Asian Mining (LSE:AAZ) could be a top investment for April. 

This UK mining share produces gold, silver and copper from its assets in Azerbaijan. It also owns a stake in Libero Copper & Gold Corporation, a business with precious and industrial metal assets in The Americas. 

The prices of Anglo Asian’s metals could continue climbing if worries about high inflation and a banking sector crisis persist. They could also keep rising if factory data from commodities glutton China impresses. Manufacturing PMI readings from the country soared to their highest in more than a decade recently. 

I think this small-cap stock is especially attractive for income investors. It carries a meaty 5.9% dividend yield at current prices.

Royston Wild does not own shares in Anglo Asian Mining. 

Atlantic Lithium

What it does: Atlantic Lithium is an Australia-based lithium exploration company, operating in West Africa.

By Alan Oscroft. Lithium for batteries is in great demand from the electric vehicle industry. But demand for shares in lithium explorers has gone off the boil.

Atlantic Lithium (LSE:ALL) has always been hard to value, as it’s not making any profit yet. But nearly all of the share price gains of 2021 and 2022 have now been reversed.

I suspect that’s more likely to be due to a turn away from growth stocks than anything else.

Forecasts suggest relatively small losses for this year and next. But there’s a profit down for 2025, putting the shares on a price-to-earnings (P/E) ratio of under six.

The company had cash of AU$19.1m at 31 December. So how long that will last and what new cash might be needed before profitability is reached looks like the big risk.

But I think I’m seeing a buying opportunity in this small-cap stock.

Alan Oscroft does not own Atlantic Lithium shares.

Bioventix

What it does: Bioventix is a UK biotech firm developing and supplying high-affinity diagnostic antibodies for the medical industry.

By Zaven Boyrazian. Bioventix (LSE:BVXP) is a biotech firm specialising in sheep monoclonal antibodies. These antibodies serve a pivotal role in human medical diagnostics, and are most commonly used on blood testing machines in hospitals and research labs.

Despite being a critical supplier to the healthcare sector, the firm took quite a stumble during the pandemic. With the industry primarily focused on tackling Covid-19, blood diagnostic antibodies weren’t exactly in high demand.

With Covid-19 no longer dominating hospitals, demand for Bioventix’s niche products is back on the rise. And thanks to its antibodies specialising in detecting vitamin D deficiency, pre-tax profits have returned to double-digit growth.

Bioventix looks like it’s back on track. And while trading at a P/E ratio of 25 is certainly not cheap, it may be a justifiable price given the small-cap stock’s long-term potential.

Zaven Boyrazian does not own shares in Bioventix Plc.

Calnex Solutions

What it does: Calnex Solutions is a Scottish company that specialises in testing and measurement services for telecommunication networks.

By Edward Sheldon, CFA. Calnex Solutions’ (LSE: CLX) share price took a big hit recently after the company warned that performance in FY2024 was likely to be below that of FY2023. It noted that in the current macro environment, some customers are taking a more cautious approach to investment decisions.

However, the company also said that it is confident that, as the industry spending cycle normalises, it will see an uplift in orders from the current, more subdued, levels. And looking further out, it said that it remains well placed to capitalise on the underlying long-term growth drivers in the telecoms and cloud computing markets. “We are well-placed to return to a growth trajectory once market confidence returns,” said founder and CEO Tommy Cook.

Given management’s confidence in the long-term growth story, I’m looking at the recent share price weakness here as a buying opportunity. I think it’s only a matter of time until growth picks up and the share price moves higher.

Edward Sheldon owns shares in Calnex Solutions.

Everyman Media Group  

What it does: Everyman Media Group is the owner of the premium cinema chain.  

By Charlie Keough. Everyman Media Group (LSE: EMAN) shares have failed to excite this year, down 15% as I write. Yet despite this, I think the future looks bright for the small-cap stock.  

2022 saw revenues increase by a whopping 62.5% compared to 2021. And while this might be expected given the impact of the pandemic, the 20% jump its latest revenues represents from the pre-pandemic year highlights Everyman’s strong growth.  

Last year also saw the business beat expectations with EBITDA coming in at around £14.5m. On top of this, it managed to maintain its market share with its 38 venues.  

Looking to this year, Everyman is set to open venues in five new locations, including the likes of Durham and Plymouth.  

Consumers tightening their belts may impact the business in the short term. But with a strong pipeline of releases lined up for 2023 alongside the unique service Everyman provides, the stock could present a solid opportunity in April.  

Charlie Keough does not own shares in Everyman Media Group.  

Everyman Media

What it does: Everyman is a premium and luxury chain of cinemas located across the UK.

By John Choong: With the cost-of-living crisis continuing to bite down on consumer spending, many would expect discretionary spending to take a hit. However, Everyman (LSE:EMAN) has bucked the trend with its premium experiences. Cinema goers don’t normally pay more than £10 per ticket, but at Everyman, customers pay upwards of £20 for luxurious and comfortable seats with at-seat service.

This proposition sets this small-cap stock apart from its competitors, as its products are catered towards more affluent spenders. As such, sales have managed to stay robust through difficult times. In fact, they’re expected to continue growing in the medium term as the UK’s fourth-largest cinema chain is anticipated to open another four venues this year. 

Combine the above with resilient retail sales data so far this year and reasonable multiples, and it’s not difficult to see why I’m keen on adding Everyman shares to my portfolio.

John Choong has no position in any of the shares mentioned.

Income & Growth VCT

What it does: Income and Growth is a venture capital trust that owns stakes in a variety of small and medium businesses.

By Christopher Ruane. A weak economy and rising interest rates could make this a challenging time for young businesses.

Some will still do well, though – and spotting them could be lucrative. That is what the fund managers at venture capital trust Income & Growth (LSE: IGV) aim to do. A recent successful example is the trust’s investment in software provider Tharstern. An investment of £1.5m has generated cash proceeds of £4m in under nine years.

Not all picks will be as successful. A difficult economy risks worsening investment results.

But the small-cap stock has a strong track record, and successful investments could help fund future dividends. The current yield is 10.7%. Dividends have moved around from year to year but have often been substantial.

I like the strong income potential and would be happy to buy the shares for my portfolio in April if I had spare cash to invest.

Christopher Ruane does not own shares in Income & Growth VCT.

Pensana 

What it does: Pensana is a rare earth metals company aiming to break China’s monopoly on the processing of the critical minerals. 

By Mark Tovey. Rare earths include a list of 17 chemical elements with strange names but familiar applications. Neodymium, for example, is used in the magnets that make smartphones vibrate. Promethium is needed in pacemakers.  

China is responsible for processing 85% of the world’s supply of rare earths. Outside of China, there are only two rare earth processing plants. That number will soon rise to three, thanks to Pensana’s (LSE:PRE) planned separation facilities in the Humber Freeport.  

For the project, Pensana received an undisclosed sum from the UK government. Western leaders are anxious to free the rare earths supply from China’s stranglehold.  

I plan to buy shares in Pensana, although it will only be a very small proportion of my portfolio. That’s because Pensana has no revenues, putting it at the mercy of capital markets. In addition, its neodymium-praseodymium mine in Angola could be struck by any number of geological or political catastrophes.  

Mark Tovey does not own shares in Pensana. 

Somero Enterprises

What it does: Somero Enterprises designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment.

By Paul Summers: Shares in laser-guided equipment maker Somero Enterprises (LSE: SOM) have sunk by 25% or so in the last year as the market has fretted over rising interest rates. The concern is that this will cause a recession in construction. Since Somero’s tech helps to lay perfectly flat floors, that makes sense.

As an existing shareholder, however, I’m not worried. In fact, I’m contemplating increasing my position in this high-quality, cash-rich company.

March’s full-year results read just fine to me. Revenue remained steady and profit dipped only slightly due to higher costs. 

This makes the valuation of a little over eight times earnings look like a steal. There’s even a monster 7% forecast dividend yield in the offing while I wait for the share price to recover. 

Although pure speculation on my part, I also wonder if we could see a few takeover bids in the near future.

Paul Summers owns shares in Somero Enterprises

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