Zaks Traders Cafe: 25 Stocks For 2025

25 Stocks For 2025

Now that we are just hours away from the end of 2024, we have seen the great, the good, and the not so good, deliver their tips for 2025. Given the state of the London stock market one wonders why anyone would bother, apart from trying to drive a bit of traffic to their website at one of the more quiet times of the year. If you add in all the hurdles of regulation, tax, and ever diminishing disposable cash as far as private investors, and pension funds having abandoned the area years ago, it is difficult to think what will drive equities. We are told that the London market is incredibly cheap and this will cause foreign buying, or domestic consolidation buying such as the recent Direct Line (DLG) deal by Aviva (AV.). However, while this may be a thing for 2025, it is rather like trying to guess which apply will be the next to fall from a rather large orchard.

A Last Look Back At 2024

While the overall takeaway of 2024 was a year interrupted and perhaps blighted by a mixture of UK and US elections, as well as the disastrous UK budget, the main problem with these events is that for weeks at a time it gave investors an excuse to sit on their hands, or even worse, sell out. Obviously, my focus is the small cap area. But the good news was that recommended takeovers reached £49bn, versus just £17bn in 2023. Darktrace, Direct Line and Virgin Money were particularly sweet. But what was a real head scratcher amidst all the deals that went through was why the likes of Anglo American (AAL), Rightmove (RMV), Wood Group (WG.) and Currys (CURY) would say no in the current environment.

In the small cap area it is difficult not to still be amazed at the transformation of MetalNRG to Atlas Metals Group (AMG). The only MNRG was a 6x riser earlier this year, but crashed as its Moroccan copper mine deal failed. A stewards enquiry certainly beckons. Mosman Oil & Gas (MSMN) also had a rise and fall in 2024, with delays in approvals on drilling and approvals being the culprits. Sticking with the helium area, Helium One (HE1) was an incredible 10x riser in January, but drifted for the rest of the year, on compulsive cash raises and no real material amounts of the gas turning up in either Tanzania or its new Colorado, USA angle.

I was particularly pleased by the way that many of the big small cap risers were either identified in the Bulletin Board Heroes charting video, or followed up on their rallies, or both. Sealand (SCGL), Mobile Streams (MOS), Global Petroleum (GBP), all featured regularly. Energy Pathway (EPP) clutched victory from the jaws of defeat and the subsequent funding news means that its 4x rally since the lows looks likely to be maintained, despite the best efforts of the bears attempting to cast doubt on the £5m green loan facility for the MESH Project. Guardian Metal (GMET) continued to be one of the best IPOs of the past couple of years, with the shares peaking at 37.5p versus last year’s 8.5p IPO price. Should the company receive US grants for its Pilot Mountain activities one would expect the shares to continue their bull run.

Given the woes of the London market at the small cap end, there were some glimmers of hope, largely provided by Oak Securities. It managed to list Pulsar Helium (PLSR), Rome Resources (RMR), Helix Exploration (HEX), and Georgina Energy (GEX). We should get the big reveal on all these companies in 2025.

The Selection Process:

Given the lay of the land, we have to avoid value traps, short term ramps, fundraises, a likely increase in profits warnings, and the severe apathy which the ongoing bear market in small caps has delivered. The answer to this is a combination of getting on the back of companies where the market has already given the thumbs up to their business / investment model, or hopefully, will soon do so. It would also help if one could get further validation / verification from the share price chart. Ideally, each stock will have a hook or hooks that mean that upside will be forthcoming or will continue. What we did see in 2024 more than ever, was that companies that had the ability to pull rabbits out of hats, had sources of non-dilutive funding, or could de-couple themselves from macro-economic issues tended to be the winners. This state of affairs is likely to continue into 2025.

25 Small Cap Stocks For 2025

25. Capital Metals (CMET): 1.8p Target 5p

CMET has certainly been in the wars over the past year, with the slings and arrows of operating in Sri Lanka being the main stumbling block. But tapping into the “what does not kill you makes you stronger” vibe, it can be seen that as 2024 draws to a close, the company is not only back where it was before Sheffield Resources pulled the funding rug in the spring, but given the latest news, is actually in a much better place. This is said on the basis of the one third capex reduction on its Eastern Mineral Sands Project to $20.9m, something which is manageable, with or without an external sugar daddy. We should see the share price re-rate enough for the company to be spoilt for choice in terms of taking its milestone forward.

24.Beowulf Mining (BEM): 14.5p Target 28p

While it has to be acknowledged that explorers are not exactly flavour of the month as far as the London stock market, or perhaps anywhere else is concerned at the moment, there are explorers and there are explorers. As we have witnessed with the massive rise of Guardian Metals (GMET), an explorer of scale, and high grade can still excite. But it is the promise of non-dilutive funding that really stirs interest, and given that BEM already achieved further grant funding from Business Finland, one would expect this momentum to continue into the new year. If this is the case the current unloved market cap of £5.6m could look like a decent bottom fishing opportunity.

23. Metals One (MET1): 0.42p Target 1p

Given that explorers and even mining blue chips have ended the year effectively at rock bottom, both in terms of valuation and sentiment, one is taking the view that we are at a serious inflection point. The implication is that investors will start to fall in love with the space, if only on the basis that as we stand the risk / reward appears about as attractive as it can be at any point in the cycle.  In many ways MET1 is analogous to Beowulf Mining (BEM) mentioned above, in terms of the Scandinavian focus, and the potential of high grade projects that both companies are sitting on. This month MET1 confirmed that yet another new zone of nickel-copper mineralisation at the Råna Project associated with an extensive conductive geophysical anomaly had been discovered. The sizzle here is that there is still plenty more to be discovered, something that should ensure that the present £1.4m market cap appears even more mean that it looks currently as we go into 2025.

22. Phoenix Copper (PXC): 5.5p Target 15p

The market has not been kind to PXC in 2024, but given what the company has already stated as the year comes to a close, there is the prospect of the company getting itself “over the line” in terms of its corporate copper bond financing early in 2025. Helping the risk / reward at current share price levels (a £10m market cap) is that despite the company having enough cash to go into 2025, and being in discussions with a number of potential funders, the shares are trading at option value money given the massive opportunity highlighted by the Empire Mine open-pit Pre-Feasibility Study, published on 19 September 2024. Expect the shares to respond well to any whisper of bond finance being in the bag over coming weeks.

21. Valereum (AQSE:VLRM): 25p Target 40p

VLRM was starting to look like a contender back in September when the shares broke the 5p level and their 200 day moving average for the first time since June after the company announced a £2m subscription. Since then the newsflow was initially  dominated by collaboration / partnership news, and September’s launch of VLRM Capital Management. This got the share price pot stirring. But it was this month’s entry into a non-binding heads of terms for a capital raise of £13 million with DMC Markets, Inc and acquisition of strategic assets that really set a fire under the share price. What is more, it proved to the market that the relatively new management of the company mean business, and unlike many is not content to slouch in the corner. The DMC deal means that the present market cap of £33m, may still only be base cap for the stock.

20: Vinanz (AQSE:BTC): 15.5p Target 25p

Another AQSE listed stock to follow Valereum, and one that underlines the way that when a stock gets going on Aquis (there is no shorting), the price action can behave as if it is within a one way valve. The cause here has of course been helped by the push for Bitcoin through $100k, very handy when you are a Bitcoin miner, and the company’s clear commitment to fill its boots as far as gaining exposure to the ongoing bull run. It has been noticeable that the bull run here has been so strong, over the past year one could count the amount of red daily candles (8) on both hands, with fingers to spare. This kind of strength in the price action is very rare, a point underlined by the way even this month’s £1.5m conditional placing has barely caused a ripple. Given that this placing is conditional on a breakthrough move from Aquis to the LSE, BTC looks like an intriguing situation to follow in 2025, especially if Bitcoin continues to rally.

19. Ascent Resources (AST): 2.18p Target 4p

It had been another grim year for the AIM quoted European and Latin American focused natural resources until as recently as this month. But it could be the case that after years in the doghouse, AST may have finally turned the corner, not only in terms of the share price, but also the market’s attitude to the company. The catalyst here has been the announcement that it has acquired a 49% interest in American Helium LLC’s Utah and Colorado upstream acreage which includes direct interests in a proportionate share of 119,000 acres of helium rich oil and gas licenses across the two states. The fact that there has been there has been decent director buying of 550,000 shares subsequently, and there has been follow through in the stock implies that the market is prepared to give the company the benefit of the doubt.

18. Filtronic (FTC): 78p Target 120p

Shares of the designer and manufacturer of products for the aerospace, defence, space and telecoms infrastructure markets, have been up four years in a row, with this year’s gain well over 2x. It could and should be much more given the way that the group has said it expects to report a strong set of results for the period with significant growth in revenue and profits for the six months ending November 30. This is not the only sizzle given the way that the company was able to boast of a further follow-on production order from SpaceX (yes, that SpaceX / Elon Musk), valued at $8.4 million in August. If this company was listed in the US one would imagine it would already be worth billions. As things stand its market cap is only £170m. As the Americans might say, “do the math.”

17. Audioboom (BOOM): 360p Target 600p

A situation which has been hellish for holders over the past couple of years is Audioboom. The shares rocketed during the pandemic, largely on the basis that it was thought that lockdown victims had nothing else to do except listen to podcasts. Not a bad theory. But this and the ultimately very puffy rumours of a possible Apple (AAPL) takeover took the shares through £20, before they beat a very hasty retreat to as low as 132.5p in November 2023. There was a false dawn rally this time last year. However, the company has really needed to provide line of sight on advertising revenue, and this has been delivered this month. With the promise of further positive updates early in 2025, the prospect of a last rally is more real, alongside a valuation of £59m which appears to be very much at odds with its far better valued peers. As long as the stock remains above the former 320p – 340p resistance zone in coming weeks, one might venture to suggest that BOOM is on its way.

16. Asiamet Resources (ARS): 0.77p Target 1.50p

While we have been told again and again that the big copper bull market is on its way, this year has only chalked up a 6% rise for the metal, but at least it beat last year’s 2% improvement. This suggests that it will be up to companies in the space to produce, rather than rely on an momentum from the underlying commodity. At least for Asiamet, 2024 will be remembered for the company announcing two major capex reductions for its flagship BKM Copper Project. The first time was in August, while the second was this month by a hefty $58m. This has allowed the share price to rise 15% over the past month. But it should be the case that if there is news regarding funding the project as promised for early in 2025, we should at least see an attempt at retracing the 2024 share price peak towards 1.5p.

15. Predator Oil & Gas (PRD): 6.25p Target 12p

After seemingly being able to walk on water, and swallow multiple fundraises without seeing its share price fall significantly, in October PRD broke out of its previous 7p – 14p range. However, with the company sitting on a decent pile of cash after a November £2m placing off the back of “unsolicited investor demand,” and weak hands most likely already out of the stock, the end of December has seen a tentative recovery. This may continue into the New Year as the market looks forward to the all-important MOU-5 well being drilled in Q1 2025. PRD has said this represents one of the most significant risk-reward propositions of any well to be drilled in the near future. It has also said that the search has commenced for the next generation MOU-5 target onshore Africa. Given that MOU-5 on its own good be transformational for the company, at 6p and a £38m market cap, the floor for the stock appears to be in.

14. Blencowe Resources (BRES): 3.5p Target 8p

Non-dilutive funding is one of the buzzwords in the small cap area, especially given how stingy and cash strapped private investors are at the moment. This brings BRES into focus given that the company is in line for up to $5m from an entity no less salubrious than the United States International Development Finance Corporation. If any of us were CEO of BRES, we would probably think that it was “job done” as far as de-risking the company, and assume that the it and its share price would be off to the races. Obviously, the London stock market currently is not up with this level of enthusiasm. But even given this presumably temporary state of affairs, Oram-Cross having received such a sovereign grade validation suggests that those who buy and hold the shares now for 2025 should be able to tuck them away quite happily. This is especially true given last month’s additional £1.5m fundraise.

13. Georgina Energy (GEX): 9p Target 20p

We have already had the use of the “what does not kill you makes you stronger” in the case of Capital Metals (CMET). But whereas that company had to deal with political interference, in the case of the developer of onshore helium, hydrogen and hydrocarbon prospects in Western Australia and the Northern Territory, its headwinds were of the online smear campaign variety. Given the state of the London stock market space, and the prevalence of bearish sentiment, the last thing that newly listed small caps need is the shorting playbook of character assassination, with added distortion and omission as far as the investment case. Nevertheless, GEX has held its ground against those who love kicking companies when they are down, and has done so with a series of business as usual updates over the past couple of months. This is always the right thing to do in such circumstances, with the share price steadying following news this month that the Central Land Council has been formally instructed to commence negotiations regarding the grant of the Company’s selected priority area within the EPA 155 permit area, which includes the proposed Mt Winter 1 well target. On this basis alone one would expect shares of GEX to return to their best post new listing levels at 19p, versus the 12.5p start price.

 

12. Coinsilium (COIN): 3.8p Target 8p

While it would be unfair to suggest that COIN is merely a play on the price of Bitcoin / cryptocurrency, it has been the case that in recent years it has been nevertheless been an excellent proxy to the space. This was certainly the case this autumn as shares of COIN celebrated Bitcoin hitting $100k by rallying from 1.5p to 4.5p at best. Nevertheless, there is much more to COIN than shadowing crypto. For instance, part of its portfolio is in Web3, as highlighted by its investment in the Otomato Web3 Automation Protocol, via a Simple Agreement for Future Tokens in the “Early Backers” round, with an option to acquire an additional $150,150 of future tokens. COIN reminded us in its recent Strategic Portfolio Update that Otomato is well-aligned with the accelerated pace of innovation within the Web3 and AI-driven automation sectors. “Coinsilium’s investment at this very early stage, and secured at a low valuation.” All of this suggests that even though COIN has ended 2024 on a high, there is exposure to cutting edge areas of the digital space, such as the Yellow Network, the first-ever broker clearing network for the crypto industry.

11. Ananda Pharma (ANA): 0.52p Target 1p

A change of name from Ananda Developments to Ananda Pharma to end 2024 signal the new maturity of the ANA, a point underlined by the validation for the cannabinoid therapies group provided by the ongoing advancement of the flagship asset MRX1. The latest here is that the treatment has led to reduced cardiac stress and improved heart function, and these findings will be used to support Ananda’s existing MRX1 patent application. This adds to MRX1 clinical trials regarding the   treatment of chemotherapy induced peripheral neuropathy, and the second evaluating efficacy and retention in endometriosis patients. This underlines the way that ANA has come of age on a fundamental basis, with its beefed up Scientific Advisory Board, publication of a CBD white paper and epilepsy trials co-funded by the National Institute for Health and Care Research (NIHR) and the NHS. For a company in a pioneering space, it does not get better than this.

10. Eurasia Mining (EUA): 2.2p Target 4p

Going into the US Presidential Election there were two obvious Trump Trades, with the most obvious and so far successful, being Ferrexpo (FXPO), tripling from its 40p September low. The idea here was that should the Trump return and end the Ukraine war in “24 hours” then the Ukraine based the iron ore pellets producer would soar, given the damage the conflict has done to its share price over the past couple of years. The other obvious beneficiary of peace in our time was said to be Russia focused PGM / base metals play Eurasia (EUA), which presumably due to sanctions and the conflict has not been its usual self of late. What has been interesting is that while FXPO has indeed soared since the Trump victory, we are still twiddling our thumbs as far as waiting for the big relief / recovery rally for EUA. Backing the idea of at least an intermediate rebound on Russia / Ukraine was the way that EUA entered into a loan secured against its shares. Hopefully, during 2025 the company will sell or be able to monetise its portfolio in the way its long-standing shareholders would like.

9. Helix Exploration (HEX): 18p Target 35p

HEX has been one of the few outright IPO successes of 2024, barely dawdling near its listing price of 10p back in April before peaking at 27p several times since then. This is no accident. The company chose to scale the money raised to £7m, after receiving orders of more than £20m, so that share supply would be tight. The $64,000 question is of course how much helium it can find and how quickly? Last month HEX could boast significant finds at Darwin, and at Clink #1, although Amsden is still a work in progress. Nevertheless, what has been discovered so far does significantly de-risk HEX, especially when one takes into consideration that Rudyard has already delivered high flow rates in historical drilling. Recent dips for the shares have been towards the 14p area, and those wishing to get a decent entry point in a stock which has performed well in a hot sector may be eying up this zone.

8. EnergyPathways (EPP): 9p Target 16p

It has been almost exactly a year since EPP came to market, after a rather long gestation period ahead of the IPO in December 2023. What was noticeable here was that for months the shares drifted from their listing price at 4p, and it appeared that it was on a slippery slope as far as the relationship between the £2m raised and the amount of cash needed to get the company on a successful path as far as developing the Marram Field offshore gas project in the UK Irish Sea. Indeed, first gas was supposed to appear as soon as “early 2025”. By the beginning of October the shares were down at 1.5p and it appeared that EPP would just be another example of why companies should not list on the public market. However, the shares rallied hard on October 3^rd as it was announced that the cavalry had arrived in the form of Global Green Asset Financing, a new Luxembourg-based green project and corporate financing platform for the cleantech and renewable energy sectors. It was offering a £5.1m facility for EPP’s  Marram Energy Storage Hub (MESH), a large-scale clean energy storage facility. While some have looked the gift horse in the month and wonder who the GGAF / sugar daddy is, and whether anyone dealing with the new Labour government can expect any certainty of outcome, so far shares of EPP have held the bulk of their 4x gains. Perhaps the kicker here is that with a current market cap of £15m EPP could easily raise £5m from the market, and so thwart the bears, even if they are right in the near term.

7. WeCap (AQSE:WCAP): 1.10p Target 2.5p

2024 was the year when not only entrepreneurs left the country in droves (quite rightly so far), but UK listed companies accelerated their exodus to the greener, and more positive pastures of the USA. For instance, only this month the £21bn market cap FTSE 100 company announced its intention to move to a US primary listing. Presumably its market cap there will be $50bn plus. On a smaller scale, and presumably missed by many due to being on the Aquis market, and it being Christmas Eve, social commerce group WCAP confirmed a “Confidential Submission of Draft Registration Statement to SEC for Proposed Direct Listing.” This should have a double benefit, not only giving the company the high profile of being in a more receptive US stock market, but also enable a rollout stateside to add to its current UK footprint. Even better, this means that shareholders will be treated to a genuine liquidity event, and presumably at a rather higher valuation than the measly £5m market cap.

6. Rome Resources (RMR): 0.34p Target 0.6p

Another Oak Securities deal, and perhaps in some ways the most conventionally attractive, given that we are talking high grade tin in DRC, and with an experienced and proven management team. The potential here was underlined last month as RMR revealed “significant tin hits”, all within its flagship Bisie North Project. The company has said it is confident of unlocking a simple, open pit, high-grade tin resource. This was enough for the company to secure a strategic investment of £4.2m in December, and one would expect the share price to return to the October peak of 0.48p and beyond early in the New Year, as more drilling and more assay result reveal the quantum of what RMR is sitting on. Given the way that the company hit the ground running in terms of its exploration as soon as it completed its RTO in July, there is no reason for the shares to be anywhere near their listing price at 0.30p.

5. Pulsar Helium (PLSR): 26p Target 50p

The highest rated of the Oak Securities deals of the year in this list, if only on the basis that PLSR originally listed on the TSXV and the shares delivered fireworks with a 5x rally at one stage as the company delivered a massive helium find at its flagship Topaz project in Minnesota. One would expect a similar result as the company moves to explore the remaining 87% of the project it has not drilled. An added kicker currently with the share price at 26p, versus the initial 25p listing level is that the Canadian stock is trading at a premium to the UK, the equivalent of 40p. Oh the joys of being listed in London. But all things being equal, there is an opportunity, the mother lode of helium discoveries notwithstanding in 2025.

4. Power Metal Resources (POW): 13.75p Target 30p

There was a possibility of including Guardian Metal Resources (GMET) in this list of the 25 stocks for 2025, but given that POW has a 45% stake in the Nevada focused explorer, covering POW means that one gets two companies for the price of one. Indeed, POW’s current market cap at £15m is almost exactly the same value as its stake in GMET. This means that one gets exposure to GMET, one of the past year’s top stock risers, and everything that POW is involved in currently for free. And this is nothing to be sniffed at. Recent highlights include the acquisition of the Pardoe Uranium Project in northern Saskatchewan, Canada, a binding agreement with Al Masane Al Kobra Mining Company, a Saudi Arabian listed exploration and mining company, and a deal with ASX listed Alara Resources Limited and Awtad Copper LLC  to earn a 12.5% stake in the Block 8 concession in Oman. Indeed, there is much more. But the message with POW is the it continues to be grievously undervalued by the market.

3. Fusion Antibodies (FAB): 7p Target 15p

After some three years with its shares in the doghouse, made worse by the post pandemic hangover for biotechs, we have seen the FAB phoenix rise from the ashes. The driver in the recent past has been the prospect of what the stock market is very keen on, non-dilutive funding. In this instance, there is the prospect of approximately £1 million of direct funding for research & development initiatives, and access to up to £5 million of capital equipment. All of this coupled by the way that at the interim stage as reported in November FAB revenue had more than doubled, means that fans of the company are looking at a situation where 2025 could be a pivotal year. Before all the good news this autumn as recently as a year ago the shares were trading at 9p, and therefore one would expect this to be easily beaten in Q1 2025.

2. Zenith Energy (ZEN): 5p Target 20p

The small end of the London stock market is no strange to minnows looking for mega payouts through litigation / arbitration. The problem is that they always take longer than the punters are expecting, and then usually disappoint. The exception that proves the rule may come in the form of ZEN which all of a sudden appears to be one of the most significant, and most timely of all the contenders we have become familiar with over the years. The sizzle here is that things really are moving apace as far as ZEN vs Tunisia, with 2024 ending on two highly positive RNS announcements, underlining the speed at which events are moving and highlighting the relative ease at which the company could win up to the $639.5m it is looking for to compensate for the smash and grab on its assets. Even better, shares of ZEN have tripled over the past week, indicating that market makers, and the market in general has been caught on the hop as far as the prospects for success here.

1.Sovereign Metals (SVML): 36p Target 100p

Shares of SVML are up nearly 40% so far this year, but if this was not the London market in 2024, one would imagine that this £219m market cap company would be trading at multiples of this valuation. The reason for this judgement is that the company has clearly made significant operational progress in the past year, with rather less appreciation than is deserved for a company set to be one of international significance. For instance, the market still behaves as if SVML does not have a Tier 1 Kasiya Rutile-Graphite Project in Malawi, does not have Rio Tinto (RIO) as a strategic investor, and will not be the world’s largest, lowest cost and lowest-emissions producer of two critical minerals – titanium and graphite. However, it has been progressing towards the latter goal, with frequent, solid newsflow in recent months. Of late the company announced that it has started backfilling the pit at Kasiya, following successful mining trials stage at the programme, and reminded us that its cash position has been bolstered by an additional AUD19 million invested by Rio Tinto PLC, as the mining giant now has a 20% stake in the company. One would expect all of this to sink in well before the end of 2025, and for the 100p target to be fulfilled in consequence.