3 Undervalued TSX Penny Stocks with High Growth Potential in August 2025

The Canadian small-cap market has long been a treasure trove for investors seeking high-growth opportunities, especially during periods of macroeconomic stability. With improved labor productivity and modest wage gains bolstering consumer spending in August 2025, the stage is set for undervalued TSX-listed penny stocks to shine. These companies, often overlooked by mainstream investors, are leveraging strong fundamentals, favorable industry trends, and manageable risk profiles to position themselves for outsized returns. Below, we spotlight three standout names across the mining and energy sectors that warrant closer attention.

1. GoldMining Inc. (TSX:GOLD) – A Dual-Commodity Play on Green Energy and Safe-Haven Demand

GoldMining Inc. operates at the intersection of two critical trends: the global push for green energy and the enduring demand for gold as a safe-haven asset. The company's focus on gold and copper exploration in the Americas positions it to benefit from both sectors. Copper, a linchpin for renewable energy infrastructure, is seeing renewed demand, while gold remains a hedge against inflation and geopolitical uncertainty.

Recent developments, such as the permit application for the West Susitna Access Project in Alaska, could unlock significant value by improving infrastructure access to its Whistler Gold-Copper Project. Historically strong drill intercepts at its Crucero Project in Peru further underscore its multi-metal potential. Financially, GoldMining is debt-free and has sufficient short-term assets to fund operations, though its pre-revenue status and limited cash runway require careful monitoring.

Investment Thesis: GoldMining's dual-commodity strategy and strategic permitting progress make it a compelling play for investors bullish on both gold and copper. The key risks—execution delays and commodity price volatility—are mitigated by its strong balance sheet and alignment with macro trends.

2. Scottie Resources Corp. (TSXV:SCOT) – Unlocking Gold's Hidden Potential in British Columbia

Scottie Resources Corp. is a junior explorer targeting gold deposits in British Columbia, a region with a rich mining history and favorable regulatory environment. The company's Scottie Gold Mine Project is currently undergoing bulk sampling and diamond drilling, which could convert inferred resources to indicated, a critical step for project development.

With CA$6 million in recent capital raises, Scottie has extended its cash runway and is well-positioned to advance its exploration program. The gold sector, broadly supported by central bank purchases and ETF inflows, remains a defensive corner of the market. Scottie's debt-free status and management's track record in resource conversion add to its appeal.

Investment Thesis: Scottie's focus on a high-grade gold project in a politically stable jurisdiction, combined with its disciplined capital allocation, makes it a low-risk/high-reward opportunity. Investors should watch for updates on resource upgrades and permitting timelines.

3. Standard Lithium Ltd. (TSXV:SLI) – A High-Stakes Bet on the EV Revolution

Standard Lithium is a standout in the lithium space, a sector poised for explosive growth as the global shift to electric vehicles (EVs) accelerates. The company's Arkansas-based lithium brine projects have shown promising concentrations, and a feasibility study expected by year-end 2025 could validate its production potential.

A recent CA$50 million equity offering has provided the capital needed to advance its projects, and its debt-free balance sheet offers flexibility. While lithium prices have been volatile, the long-term demand outlook remains robust, driven by EV adoption and energy storage needs. Standard Lithium's technology-driven approach to brine extraction also positions it to capture efficiency gains in a competitive market.

Investment Thesis: Standard Lithium's strategic location, strong funding, and alignment with the EV megatrend make it a high-growth candidate. The primary risks—regulatory delays and lithium price swings—are balanced by its technological edge and strong capital backing.

Conclusion: Balancing Risk and Reward in the Small-Cap Arena

The three stocks above exemplify how investors can capitalize on the Canadian small-cap market's dynamism. GoldMining and Scottie offer exposure to gold and copper, two assets with enduring demand, while Standard Lithium taps into the EV revolution. Each company has a manageable risk profile, with strong balance sheets and clear catalysts for growth.

However, small-cap investing is inherently volatile. Investors should approach these opportunities with a long-term horizon, diversify their portfolios, and stay informed about sector-specific risks. For those willing to do the homework, the current market environment presents a rare chance to invest in undervalued companies with the potential to deliver outsized returns.

Final Note: Always conduct due diligence and consult with a financial advisor before making investment decisions. The small-cap market rewards patience and a deep understanding of fundamentals.