ASX Penny Stocks To Watch In December 2025

As the Australian market shows signs of a potential rally to close out the year, investors are keenly watching for opportunities that align with these shifting dynamics. Penny stocks, often seen as relics from past market eras, continue to attract attention due to their affordability and growth potential. By focusing on those with strong financial foundations and clear paths forward, investors may uncover promising opportunities among these smaller or newer companies.

Top 10 Penny Stocks In Australia

Click here to see the full list of 427 stocks from our ASX Penny Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Argosy Minerals (ASX:AGY)

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

Overview: Argosy Minerals Limited, with a market cap of A$145.91 million, is involved in the exploration and development of lithium properties in Argentina and the United States.

Operations: Argosy Minerals Limited does not currently report any revenue segments.

Market Cap: A$145.91M

Argosy Minerals, with a market cap of A$145.91 million, is pre-revenue and has recently become profitable, marking a significant milestone for the company. The stock exhibits high volatility, higher than 75% of Australian stocks over the past year. Despite this volatility, Argosy's financial health appears solid with no debt and short-term assets exceeding both long-term and short-term liabilities. The company's board is experienced with an average tenure of 3.7 years. Its outstanding Return on Equity at 66.2% suggests strong profitability potential relative to its peers in the industry despite being pre-revenue.

• Unlock comprehensive insights into our analysis of Argosy Minerals stock in this financial health report.
• Gain insights into Argosy Minerals' past trends and performance with our report on the company's historical track record.

Aurelia Metals (ASX:AMI)

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

Overview: Aurelia Metals Limited is an Australian company involved in the exploration and production of mineral properties, with a market capitalization of A$440.07 million.

Operations: Aurelia Metals generates revenue from its operations at the Peak Mine (A$290.14 million), Hera Mine (A$31.32 million), and Dargues Mine (A$22.01 million).

Market Cap: A$440.07M

Aurelia Metals, with a market cap of A$440.07 million, has transitioned to profitability in the past year, supported by revenues from its Peak (A$290.14 million), Hera (A$31.32 million), and Dargues Mines (A$22.01 million). Its financial health is robust, with cash exceeding total debt and short-term assets covering liabilities comfortably. The company's interest payments are well covered by EBIT at 7.6 times coverage, indicating strong operational efficiency despite a low Return on Equity of 13.5%. Recent board changes highlight an ongoing search for seasoned leadership to guide future growth strategies effectively.

• Navigate through the intricacies of Aurelia Metals with our comprehensive balance sheet health report here.
• Explore Aurelia Metals' analyst forecasts in our growth report.

Ora Banda Mining (ASX:OBM)

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

Overview: Ora Banda Mining Limited is an Australian company focused on the exploration, operation, and development of mineral properties, with a market cap of A$2.53 billion.

Operations: The company generates revenue from its gold mining operations, amounting to A$404.29 million.

Market Cap: A$2.53B

Ora Banda Mining, with a market cap of A$2.53 billion, has shown impressive financial performance, driven by substantial revenue from its gold mining operations totaling A$404.29 million. The company's earnings have grown significantly over the past year, outpacing industry averages and achieving an outstanding Return on Equity of 65%. Its short-term assets surpass both short- and long-term liabilities, indicating strong financial stability. Despite recent insider selling, Ora Banda's debt is well covered by operating cash flow and interest payments are comfortably managed. Recent executive changes include Doug Warden's appointment as CFO and Joint Company Secretary.

• Click here to discover the nuances of Ora Banda Mining with our detailed analytical financial health report.
• Evaluate Ora Banda Mining's prospects by accessing our earnings growth report.

Where To Now?

• Dive into all 427 of the ASX Penny Stocks we have identified here.
• Interested In Other Possibilities? We've found 13 US stocks that are forecast to pay a dividend yeild of over 6% next year. See the full list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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