ASX Penny Stocks To Watch: Arafura Rare Earths And 2 More

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The ASX200 is set to open around 2% higher, reflecting a positive shift in investor sentiment following hopeful signs of easing tensions in the U.S.-China trade war. For those considering investments in smaller or emerging companies, penny stocks—despite their somewhat outdated moniker—continue to offer intriguing opportunities. These stocks can combine affordability with growth potential, especially when backed by solid financial foundations, and this article will explore several that stand out for their financial strength.

Top 10 Penny Stocks In Australia

Name

Share Price

Market Cap

Financial Health Rating

CTI Logistics (ASX:CLX)

A$1.66

A$133.7M

★★★★☆☆

MotorCycle Holdings (ASX:MTO)

A$2.11

A$155.73M

★★★★★★

EZZ Life Science Holdings (ASX:EZZ)

A$1.58

A$74.53M

★★★★★★

IVE Group (ASX:IGL)

A$2.43

A$374.66M

★★★★★☆

GTN (ASX:GTN)

A$0.605

A$116.34M

★★★★★★

Bisalloy Steel Group (ASX:BIS)

A$3.30

A$156.59M

★★★★★★

Regal Partners (ASX:RPL)

A$1.69

A$568.12M

★★★★★★

SHAPE Australia (ASX:SHA)

A$2.94

A$243.25M

★★★★★★

NRW Holdings (ASX:NWH)

A$2.45

A$1.12B

★★★★★☆

LaserBond (ASX:LBL)

A$0.375

A$44M

★★★★★★

Click here to see the full list of 988 stocks from our ASX Penny Stocks screener.

Here's a peek at a few of the choices from the screener.

Arafura Rare Earths

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

Overview: Arafura Rare Earths Limited focuses on the exploration and development of mineral properties in Australia, with a market cap of A$517.51 million.

Operations: Currently, there are no reported revenue segments for this company.

Market Cap: A$517.51M

Arafura Rare Earths, with a market cap of A$517.51 million, remains pre-revenue and unprofitable, having reported a net loss of A$18.85 million for the half-year ended December 2024. Despite being debt-free and having short-term assets exceeding liabilities, the company faces challenges due to its inexperienced management and board teams. While it was recently added to the S&P/ASX Emerging Companies Index, it was dropped from several others like the S&P/ASX 300 Index in March 2025. The company's cash runway is limited but has been extended through additional capital raising efforts.

ASX:ARU Debt to Equity History and Analysis as at Apr 2025
ASX:ARU Debt to Equity History and Analysis as at Apr 2025

CTI Logistics

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

Overview: CTI Logistics Limited, along with its subsidiaries, offers transport and logistics services across Australia and has a market cap of A$133.70 million.

Operations: The company's revenue is primarily derived from its Transport segment, contributing A$228.92 million, followed by the Logistics segment at A$124.18 million, and Property at A$8.13 million.