10 Best ASX Penny Stocks to Watch in June 2025

Investing in ASX penny stocks can be a high-risk, high-reward endeavour. These low-priced shares usually belong to small-cap companies with significant growth potential, yet their volatility and limited liquidity demand careful research and a clear understanding of the risks before you invest.

Here are 10 ASX penny stocks to watch in June 2025:

 

Aldoro Resources (ASX: ARN)

Aldoro Resources is a junior mineral exploration company that initially focused on gold and nickel projects in Western Australia but has recently expanded its ambitions into the critical-minerals space. Its flagship asset is now the Kameelburg REE/niobium carbonatite project in Namibia, which could become a key supplier of rare-earth elements (REE) and niobium—two commodities in high demand for advanced technologies and clean-energy solutions. Given the global race to secure critical minerals, this pivot could be transformational for Aldoro.

The company has recently confirmed the niobium potential of Kameelburg through early-stage exploration and further drilling campaigns are under way to define the resource. Niobium is especially valued in aerospace, energy and battery applications due to its unique alloying properties. Investors are closely watching the progress of exploration and any future announcements regarding resource estimates or potential development partners. However, like many early-stage explorers, Aldoro faces the challenge of securing sufficient funding for continued exploration and managing potential geopolitical risks in Namibia.

 

Caprice Resources (ASX: CRS)

Caprice Resources is an Australian mineral exploration company with a primary focus on gold and base metals. Its main asset, the Island Gold Project in Western Australia, is the target of a recently launched 2,500-metre air-core drilling program. The company’s goal is to uncover high-grade gold mineralisation zones that could transform the project’s value proposition. Alongside gold, Caprice has been expanding into the West Arunta region, considered Australia’s newest frontier for critical mineral discoveries, particularly rare earths.

A key milestone for Caprice has been the successful execution of a land-access agreement covering a vast 2,000 km² tenement in West Arunta. This agreement not only enhances the company’s exploration footprint but also opens doors to potentially significant discoveries. Investors see Caprice as a dual-opportunity play: the more traditional gold-exploration angle and the emerging critical-minerals story. Positive drill results or early signs of rare-earth mineralisation could act as major catalysts for the stock, while challenges like remote access, drilling success rates and funding remain key risks.

 

AusQuest Ltd (ASX: AQD)

AusQuest is a diversified mineral explorer with assets in Australia and Peru. The company has embarked on an ambitious 7,000-metre reverse-circulation drilling program at its Balladonia Project, located in Western Australia. Notably, the program is funded under a Strategic Alliance Agreement with South32 Limited, a major global mining company providing both financial backing and technical support.

Initial assay results from this drilling campaign are expected between late May and early June 2025, making the next few months crucial for investors. AusQuest’s exploration portfolio also extends into Peru, offering international diversification. Investors are optimistic about the South32 partnership, as it reduces financial risk and increases the chances of commercial success. However, as with most explorers, AusQuest’s valuation is closely tied to drill results, so any negative outcomes or delays could weigh heavily on its share price.

 

Otto Energy (ASX: OEL)

Otto Energy is an oil-and-gas exploration and production company with operations in the United States. Unlike many resource juniors focused solely on growth, Otto has taken a shareholder-friendly approach by announcing a cash return of capital, distributing AUD 0.00657 per security. The ex-date for this payment is set for 29 May 2025, with the payout scheduled for 16 June 2025, reflecting the company’s effort to deliver direct value to investors.

This capital return is seen as a reward for shareholders, particularly after a period of stable operations and cash-flow generation. For investors, Otto Energy offers exposure to US-based energy production, but it also comes with typical sector risks, including commodity-price volatility, operational performance and regulatory challenges. The decision to return cash rather than aggressively reinvest in growth suggests a more conservative capital-management approach, which could appeal to income-focused investors but may limit near-term production expansion.

 

Cosmos Exploration (ASX: C1X)

Cosmos Exploration is an emerging player in the exploration of nickel, copper, gold and lithium, with a strong focus on Western Australia. The company has recently announced a change in directors’ interests, which could signal active management and potential strategic moves behind the scenes. Cosmos is also advancing its lithium exploration projects, notably by sending samples to Germany for further testing and signalling a strong push into the battery-minerals market.

The lithium angle is particularly exciting given the ongoing global demand for electric-vehicle (EV) materials. Cosmos offers investors exposure to several high-demand commodities and success in any one of these could significantly lift the company’s value. However, Cosmos remains at an early exploration stage, so there is a high degree of risk associated with funding, drilling outcomes and resource-definition timelines. Shareholders will be keenly watching the company’s next announcements and any updates from the lithium-testing programs.

 

Green Critical Minerals (ASX: GCM)

Green Critical Minerals is positioned at the intersection of resource exploration and the clean-energy revolution. The company focuses on minerals essential to the energy transition, such as graphite and manganese. A standout innovation is its Very High Density (VHD) technology, which has attracted interest from European customers eager to secure high-performance materials for batteries and other clean-energy applications.

European interest in GCM’s technology signals its potential as a key supplier in global clean-energy supply chains. Investors are enthusiastic about the company’s commercialisation prospects, particularly if formal offtake agreements or strategic partnerships are secured. On the flip side, GCM must navigate the technical challenges of scaling its operations, obtaining regulatory approvals and competing in a crowded critical-minerals field.

 

Heavy Minerals (ASX: HVY)

Heavy Minerals focuses on the exploration and development of mineral-sands projects in Western Australia, with particular emphasis on garnet, ilmenite and rutile. The company is progressing with its Port Gregory pre-feasibility study (PFS), a significant milestone in moving its key project toward development. Heavy Minerals has also been active on the commercial front, engaging with garnet distributors at the AMPP Conference and executing a non-binding agreement for a new industrial minerals opportunity.

In addition, the company has secured $385,000 in funding through Tranche 1 royalty financing, providing capital to advance its exploration and development work. For investors, Heavy Minerals represents a play on industrial materials critical for the manufacturing, construction and energy sectors. Successful completion of the PFS, securing distribution partnerships and advancing new opportunities could drive further value, though financing and market-demand fluctuations remain key risks.

 

Wellard Ltd (ASX: WLD)

Wellard Ltd is one of Australia’s leading livestock exporters, specialising in the transport of live cattle and sheep across global markets. The company has announced plans for a second return of capital to shareholders in 2025, contingent on completing the sale of its vessel M/V Ocean Drover, expected in July 2025. This marks Wellard’s continued focus on delivering shareholder value through asset optimisation and capital management.

For investors, Wellard provides exposure to the global food and agricultural trade, which, while offering potential upside from rising demand, also carries risks such as trade restrictions, biosecurity concerns and volatile shipping costs. The anticipated asset sale and resulting capital return highlight Wellard’s strategic shift toward a leaner, more focused business model. Future performance will depend on how effectively the company reinvests its remaining assets and navigates regulatory and market pressures.

 

Greenvale Energy (ASX: GRV)

Greenvale Energy is an Australian company engaged in oil-shale and geothermal energy exploration, with a growing focus on uranium. Recently, the company identified multiple uranium anomalies across its Northern Territory exploration sites—a potentially game-changing development given the renewed global interest in nuclear energy as a low-carbon solution. To accelerate its exploration efforts, Greenvale secured a $1.8 million placement, giving it the financial firepower to fast-track resource development.

The uranium discoveries place Greenvale in a strong position to capitalise on the global push for cleaner-energy solutions, especially as more countries revisit nuclear power in their energy mix. Investors are watching closely for exploration updates, drill results and any resource estimates in the coming months. However, uranium exploration also carries geopolitical, regulatory and environmental risks, meaning Greenvale’s success will hinge not just on resource quality but also on navigating these broader factors.

 

Holista CollTech Ltd (ASX: HCT)

Holista CollTech is a biotechnology company focused on the development and commercialisation of natural-health products. Its portfolio includes food ingredients, dietary supplements and infection-control solutions. Recently, Holista raised capital by issuing convertible notes totalling USD 600,000 and AUD 600,000, which will fund ongoing operations and product development.

Holista’s strategy taps into the growing global demand for health and wellness products, driven by consumer preferences for natural and functional solutions. Its product pipeline could capture significant market share, particularly if it secures distribution partnerships or regulatory approvals in key markets. However, like many small-cap biotech firms, Holista faces funding risks, competitive pressures and the need to demonstrate commercial viability across its product range.

 

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FAQs

• What are penny stocks?

  Penny stocks are shares of small public companies that trade at low prices, typically under $5 per share. They are often characterised by high volatility and low liquidity.

• Why invest in ASX penny stocks?

  Investing in ASX penny stocks can offer high growth potential due to the companies’ small market capitalisations. However, they also come with higher risks compared to established companies.

• What are the risks associated with penny stocks?

  Risks include high volatility, low liquidity, limited financial information and the potential for significant losses. It is essential to conduct thorough research before investing.

• How can I mitigate risks when investing in penny stocks?

  Diversify your portfolio, invest only what you can afford to lose and stay informed about the companies and market conditions.

• Are penny stocks suitable for all investors?

  Penny stocks are generally more suitable for experienced investors who can tolerate higher risk levels. Novice investors should approach with caution.