TSX Penny Stocks To Watch In October 2024

As the TSX continues to exhibit strength in 2024, investors are turning their attention to smaller-cap stocks, seeking hidden gems and potential growth opportunities. Penny stocks, despite their reputation for volatility, can offer unique value and growth potential when backed by solid fundamentals. This article highlights three noteworthy penny stocks listed on the TSX, each with compelling reasons for investors to watch them in October 2024.

1. **Discovery Silver (TSX:DSV)**
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. The company recently announced a Preliminary Economic Assessment (PEA) for its Carangas project, indicating 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, and management's average tenure is relatively short at 2.7 years. Analysts suggest potential for significant price appreciation, yet profitability is not forecasted in the near term.
2. **GoGold Resources (TSX:GGD)**
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. 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.
3. **New Pacific Metals (TSX:NUAG)**
New Pacific Metals Corp., along with its subsidiaries, focuses on the exploration and development of mineral properties in Bolivia, with a market cap of approximately CA$437.27 million. The company's 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, and management's average tenure is relatively short at 2.7 years. Analysts suggest potential for significant price appreciation, yet profitability is not forecasted in the near term.
Investors should carefully consider these penny stocks, weighing the potential risks and rewards before making any investment decisions. The TSX penny stocks highlighted in this article offer compelling reasons for investors to watch them in October 2024, but it is essential to conduct thorough research and stay informed about the companies' progress and market developments.