TSX Penny Stocks To Watch In October 2024

The TSX is having a strong year, up more than 17%, amidst a backdrop of a growing economy and supportive central bank policies. For those interested in smaller or newer companies, penny stocks—despite their somewhat outdated name—still present intriguing opportunities. These stocks can offer unique value and growth potential when backed by solid financials, and we will explore three noteworthy examples that may hold promise for investors seeking hidden gems.

Top 10 Penny Stocks In Canada

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

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

Discovery Silver

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

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

Operations: Discovery Silver Corp. does not report any specific revenue segments as it is focused on the exploration and development of polymetallic mineral deposits.

Market Cap: CA$420.24M

Discovery Silver Corp., with a market cap of CA$420.24 million, remains pre-revenue and focuses on mineral exploration. Despite being debt-free and having short-term assets that cover liabilities, the company faces challenges such as increased losses over five years and less than a year of cash runway if cash flow trends continue. The stock has experienced high volatility but was recently added to the S&P Global BMI Index, which may enhance visibility. Analysts suggest potential for significant price appreciation, yet profitability is not forecasted in the near term. The management team is relatively new with an average tenure of 1.8 years.

• Jump into the full analysis health report here for a deeper understanding of Discovery Silver.
• Learn about Discovery Silver's future growth trajectory here.

GoGold Resources

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

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

Operations: The company generates revenue from its Metals & Mining segment, specifically Gold & Other Precious Metals, amounting to $31.79 million.

Market Cap: CA$556.9M

GoGold Resources Inc., with a market cap of CA$556.90 million, operates in the gold and silver sector in Mexico. The company benefits from a seasoned management team and board, both averaging over five years of tenure, which could provide stability. GoGold's short-term assets significantly exceed its liabilities, offering financial flexibility despite being unprofitable. Recent production results show an increase in output for key metals compared to last year. The company is advancing its Los Ricos projects with a focus on underground mining, supported by extensive metallurgical testing and nearing completion of a definitive feasibility study for Los Ricos South.

• Get an in-depth perspective on GoGold Resources' performance by reading our balance sheet health report here.
• Explore GoGold Resources' analyst forecasts in our growth report.

New Pacific Metals

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

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

Operations: The company has not reported any revenue segments.

Market Cap: CA$437.27M

New Pacific Metals Corp., with a market cap of approximately CA$437.27 million, is pre-revenue and focuses on mineral exploration in Bolivia. The recent Preliminary Economic Assessment (PEA) for the Carangas project indicates potential with a post-tax net present value of US$501 million at base case metal prices and an internal rate of return of 26%. Despite being unprofitable, the company has no debt and sufficient cash runway for over two years. However, earnings have declined significantly over five years. Management's average tenure is relatively short at 2.7 years, indicating some experience but also potential instability in leadership continuity.

• Take a closer look at New Pacific Metals' potential here in our financial health report.
• Explore historical data to track New Pacific Metals' performance over time in our past results report.

Seize The Opportunity

• Get an in-depth perspective on all 950 TSX Penny Stocks by using our screener here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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

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