Top 12 Small-Cap Stocks to Watch in 2025: Part 1 – AMRQ, AVCT, ECR, FCM, GGP & HVO

Welcome to the first instalment of our series spotlighting 12 small-cap stocks that could shape the investment landscape in 2025. Though often flying under the radar, small-cap companies are frequently at the forefront of innovation and growth, making them a compelling—albeit riskier—choice for investors.

In this segment, we delve into six companies spanning mining, energy, and biotech, industries critical to addressing emerging global challenges such as renewable energy demands and advancements in healthcare. These companies are leveraging cutting-edge technologies, strategic acquisitions, and unique approaches to position themselves as potential disruptors in their sectors. However, with their growth comes inherent challenges, from market volatility to operational hurdles. Let’s explore these businesses to understand both the opportunities they present and the risks they carry.

Amaroq Minerals: Unlocking Greenland’s Mineral Wealth

Amaroq Minerals Ltd is a Canadian mining company with a focus on gold and strategic mineral resources in Southern Greenland. At the heart of its operations is the Nalunaq Gold Mine, a flagship project set to begin production by the end of 2024. This marks a pivotal moment not just for Amaroq but also for Greenland, as the region seeks to capitalize on its abundant mineral wealth.

Amaroq has taken decisive steps to bolster its financial stability in preparation for this milestone. In September 2024, the company converted US$22.4 million in convertible notes into approximately 38.2 million common shares. This move simplified Amaroq’s capital structure, reduced cash interest obligations, and provided greater financial flexibility to support upcoming operations. Earlier in the year, Amaroq raised roughly $74.52 million in funding to accelerate mining activities at Nalunaq and fuel ongoing exploration efforts.

Exploration is a key pillar of Amaroq’s growth strategy. At Nalunaq, 2,895 meters of drilling were completed in the Target Block Extension Zone, aiming to expand the mine’s gold reserves. Amaroq has also conducted scout drilling at its Nanoq project, targeting high-grade gold systems. Beyond gold, the company is exploring strategic minerals critical for the energy transition. At the Stendalen Cu/Ni project, over 4,700 meters of drilling has focused on identifying magmatic sulphide bodies, while the South Greenland Copper Belt has revealed promising copper and copper-gold targets through reconnaissance and drilling efforts.

Operationally, progress at Nalunaq has been steady. Key infrastructure, including plant pad earthworks and civil construction, is complete, and the company has assembled its own mining team in preparation for the first gold pour. Amaroq’s commitment to sustainability is reflected in initiatives to offer gold to local Greenlandic communities and its exploration of renewable energy options to power its mining operations.

While Amaroq’s future appears promising, it is not without risks. Mining projects in remote Arctic regions face logistical and operational challenges, from harsh weather conditions to higher transportation costs. Additionally, securing permits and complying with Greenland’s stringent mining regulations can add complexity. Like all mining companies, Amaroq is sensitive to fluctuations in commodity prices, particularly gold, which is a key driver of its revenue potential.

Despite these hurdles, Amaroq is positioning itself as a significant player in Greenland’s mining sector. With gold production on the horizon and ongoing exploration into strategic minerals, the company is striving to unlock the region’s vast resource potential.

Learn more about Amaroq Minerals here…

Avacta: Redefining Cancer Treatment with Precision

Avacta, a British biotech company, is gaining recognition for its innovative approach to cancer treatment. Its proprietary pre|CISION™ platform is at the core of this innovation, enabling cancer drugs to activate only within tumours, minimizing systemic side effects and enhancing patient outcomes.

The company’s lead drug candidate, AVA6000, has demonstrated promising results in Phase 1 trials, showing tumour shrinkage and improved tolerability compared to traditional chemotherapy. In September 2024, Avacta presented updated data at the European Society for Medical Oncology (ESMO) Congress, showcasing durable responses across different patient profiles. Following this momentum, the company expanded its pipeline with two new pre|CISION™-based therapies, AVA6103 and AVA7100, designed to target a broader range of cancers with reduced toxicity.

Financially, Avacta is in a strong position, with over £32 million in cash reserves supported by revenues from its Diagnostics Division, which is currently being divested to focus exclusively on oncology. The company’s collaboration with Tempus AI adds another layer of strategic advantage, providing access to advanced clinical data and AI-driven insights to accelerate drug development. Leadership changes, including the appointment of Dr. Michelle Morrow as Chief Scientific Officer, further underscore Avacta’s commitment to driving its therapeutic pipeline forward.

Looking ahead, Avacta is exploring a potential NASDAQ listing to support its growth ambitions. However, as a clinical-stage biotech company, it faces inherent risks, including uncertainties in drug trials and the substantial financial demands of scaling its operations. While the company’s progress is noteworthy, the journey from clinical trials to regulatory approval remains unpredictable.

Avacta’s work exemplifies the potential of cutting-edge cancer therapies. With its innovative platform and growing pipeline, the company is striving to redefine oncology treatments, although the road ahead will undoubtedly require navigating significant challenges.

Learn more about Avacta here…

ECR Minerals: Tapping Australia’s Gold and Critical Minerals

ECR Minerals plc, a UK-based exploration company, is focused on gold and critical minerals across Australia. Through its subsidiary Mercator Gold Australia, the company holds licenses for projects in Victoria and Queensland, regions known for their mineral wealth.

Among its portfolio, the Lolworth Project in Queensland stands out, yielding high-grade gold samples, including results as high as 75.6 g/t Au. In addition to gold, Lolworth has shown potential for critical minerals like niobium and tantalum, essential components in energy storage and electronics. The Blue Mountain Project in Queensland has delivered similarly exciting results, with bulk sampling revealing gold grades up to 192.15 g/t and a confirmed recovery rate of 91.7%. These findings could pave the way for an on-site production plant.

In Victoria, ECR is advancing multiple projects, including Tambo, which is undergoing a maiden drilling campaign to target high-grade gold zones. Historical assays have revealed grades of up to 52.2 g/t Au. Other projects, like Bailieston and Creswick, have highlighted opportunities in antimony exploration, with grades as high as 32% Sb, and additional gold intercepts.

Financially, ECR is exploring the sale of Mercator Gold Australia, which holds A$75 million in tax losses. If successful, the transaction could provide a significant cash injection to fund ongoing exploration. The company’s budget for 2024 is fully funded, ensuring progress across its portfolio.

ECR’s prospects are not without challenges. As an early-stage exploration company, its valuation is tied to the discovery of economically viable deposits, and results can vary. Regulatory approvals, logistical complexities, and fluctuations in commodity prices also present hurdles. However, the company’s focused strategy and leadership team, led by Chairman Nick Tulloch, Managing Director Mike Whitlow and Chief Geologist Adam Jones, continue to guide its exploration efforts.

With its diverse portfolio and ambitious exploration agenda, ECR is navigating an exciting phase of growth. While risks remain, the potential rewards of uncovering high-grade deposits make this a company to watch.

Learn more about ECR Minerals here…

First Class Metals: Unlocking Ontario’s Untapped Potential

First Class Metals (FCM), a UK-listed exploration company, has set its sights on the rich mineral landscapes of Northern Ontario, Canada. With a strategic portfolio of projects spanning gold, lithium, nickel, and other critical minerals, FCM aims to uncover high-value deposits in some of the region’s most promising geological terrains. The company’s focus on exploration aligns with the growing global demand for critical metals and precious minerals, positioning it as a noteworthy contender in the small-cap mining sector.

Strategic Projects Across Ontario

FCM’s flagship property, North Hemlo, lies in close proximity to Barrick’s renowned Hemlo gold mine, which has produced over 23 million ounces of gold. North Hemlo’s Dead Otter Trend has shown promising signs of gold mineralization, with grab samples reporting grades as high as 19.6 g/t Au. Ongoing stripping and sampling along the 4.5 km gold-anomalous trend are expected to guide FCM’s next drilling campaign. The project’s geological profile suggests potential for both precious and base metals, underpinned by a strong correlation to pathfinder elements like molybdenum and telluride.

The Sunbeam Gold Project further strengthens FCM’s gold-focused portfolio. This historically producing mine is surrounded by a 70 km² property hosting multiple mineralized structures. Modern exploration, including channel sampling and diamond drilling, has confirmed high-grade gold mineralization. Intercepts include 93.3 g/t Au over 0.44m, validating the project’s potential for significant resource expansion.

FCM’s Zigzag Lithium Project, located in Ontario’s emerging lithium belt, has also attracted attention. Recent drilling has identified high-grade lithium (Li2O) intercepts, such as 5.5m at 2.4% Li2O, alongside elevated concentrations of tantalum, rubidium, and gallium—key components for the battery and electronics industries. With an exploration permit in place and strong results from initial campaigns, Zigzag represents a compelling opportunity in the rapidly growing lithium market.

Meanwhile, the Kerrs Gold Project adds diversity to FCM’s portfolio with a 386,000-ounce NI-43-101 gold resource in Timmins, a prolific mining district. This project complements FCM’s broader focus on gold exploration, offering a defined resource with room for expansion through additional drilling.

Financial Backing and Strategic Partnerships

FCM’s financial position is bolstered by a mix of equity raises, grants, and strategic funding agreements. Notably, the Ontario Junior Exploration Program (OJEP) has provided non-dilutive funding to support exploration at North Hemlo, highlighting the project’s regional importance. In 2024, the company deepened its relationship with the 79th Group, increasing its loan facility to £500,000 to advance key exploration activities.

FCM’s partnerships also extend to operational collaborations. Its West Pickle Lake Project, held in joint venture with Palladium One, is a drill-proven nickel-copper sulphide discovery. The project has already seen significant drilling progress, with mineralization remaining open along strike, offering potential for further resource expansion.

Challenges and Risks

Like all early-stage exploration companies, FCM faces inherent risks. The company’s success is contingent on discovering economically viable deposits, and exploration results can be unpredictable. Additionally, the remote locations of its properties in Northern Ontario present logistical challenges, including higher transportation and operational costs.

Financial sustainability is another key consideration. While FCM has secured various funding sources, its reliance on external capital to support exploration activities introduces a degree of uncertainty. Fluctuations in commodity prices, particularly for gold and lithium, could also impact the company’s valuation and ability to raise additional funds.

Regulatory hurdles, such as obtaining permits and navigating environmental guidelines, add further complexity. However, FCM has made significant strides in engaging with First Nations communities, securing exploration agreements, and obtaining necessary permits for its key projects.

Outlook for 2025

First Class Metals is poised for an active year ahead, with plans to advance multiple projects across its portfolio. Key milestones include drilling at North Hemlo’s Dead Otter Trend, expanding exploration at Zigzag Lithium, and refining resource estimates at Esa, Kerrs and Sunbeam. The company’s diversified focus on gold, lithium, and nickel positions it to capitalize on rising demand for both precious and critical metals.

While the journey from exploration to production is fraught with challenges, FCM’s strategic approach, experienced leadership, and high-potential properties make it a company to watch in 2025. As the global appetite for metals continues to grow, First Class Metals’ exploration efforts could unlock significant value in Ontario’s mineral-rich landscape.

Learn more about First Clase Metals here…

Exploring Greatland Gold: Opportunities and Risks for Retail Investors

Greatland Gold plc stands on the brink of a transformative moment in its journey from an exploration-focused small-cap to a major Australian gold and copper producer. At the heart of this transition is the company’s ambitious plan to consolidate ownership of the Havieron gold-copper project and the nearby Telfer mine, two cornerstone assets located in Western Australia’s resource-rich Paterson Province. For investors, Greatland offers a compelling mix of opportunity and uncertainty, making it a company worth watching—and carefully considering.

Havieron and Telfer: Cornerstones of Growth

Discovered in 2018, the Havieron project has emerged as a world-class underground gold-copper deposit. Boasting 8.4Moz gold equivalent resources as of December 2023, Havieron represents a rare find in an increasingly competitive global mining sector. Its proximity to the Telfer processing plant, just 45km away, creates synergies that significantly reduce development costs and operational risks.

Greatland’s move to consolidate 100% ownership of Havieron and acquire the Telfer mine from Newmont Corporation is pivotal. Scheduled for completion by late 2024, this acquisition not only brings existing production and cash flow from Telfer but also secures the infrastructure needed to bring Havieron into full-scale production. The acquisition positions Greatland as a vertically integrated operator, capable of leveraging Telfer’s processing facilities while avoiding the capital outlay of building new infrastructure from scratch. This strategic advantage could accelerate Havieron’s timeline to profitability, a major milestone expected in 2025.

Exploration and Broader Ambitions

While Havieron and Telfer form the backbone of Greatland’s immediate growth, its ambitions stretch far beyond these flagship assets. The company holds an extensive exploration portfolio spanning 4,500km², with notable projects such as Paterson South (in partnership with Rio Tinto), the Juri JV, and Scallywag.

This exploration strategy reflects Greatland’s long-term goal of becoming a multi-mine resources company, with a diversified portfolio of precious and base metals. Partnerships with major players like Rio Tinto and Newmont enhance its access to advanced geological data and exploration expertise, bolstering its ability to unlock new mineral resources in underexplored regions.

Financial Strength and Execution Risk

Financially, Greatland has demonstrated an ability to secure substantial funding, raising US$325 million through an equity placement earlier this year. This capital injection ensures the company can finance the Havieron-Telfer acquisition and fund ongoing development without immediate liquidity concerns. However, the high debt-to-equity ratio of 82% raises some red flags, particularly for risk-averse retail investors. While manageable in the context of expected future cash flows, this level of leverage introduces sensitivity to fluctuations in commodity prices and operational disruptions.

The integration of Telfer’s operations and workforce adds another layer of complexity. Successfully managing this transition, alongside the development of Havieron, will require seamless execution. Any delays in dewatering challenges at Havieron, further regulatory hurdles, or operational missteps could erode investor confidence and impact near-term stock performance.

Risks for Investors

For retail investors, Greatland’s journey presents both exciting opportunities and notable risks. The company’s reliance on high commodity prices—particularly gold and copper—leaves it exposed to market volatility. A dip in global demand for these metals could strain profitability, especially given the company’s significant financial commitments. Additionally, Greatland’s valuation remains heavily tied to the success of its exploration programs. While the Paterson Province is highly prospective, exploration is inherently uncertain, with no guarantee of commercially viable discoveries.

Shareholder dilution is another factor to consider. Recent equity raises have significantly increased the company’s share count, potentially diluting future gains for existing investors. Although these funds are being put to strategic use, dilution remains a downside for those looking at short-term returns.

The Case for Optimism

Despite these risks, Greatland’s prospects are undeniably compelling. The Havieron deposit’s exceptional grades and scalability, combined with the Telfer mine’s near-term cash flow, create a strong foundation for growth. Moreover, Greatland’s leadership team has a proven track record of executing large-scale projects, and its collaborative approach with partners like Newmont and Rio Tinto enhances its credibility.

The potential for significant shareholder returns lies in Greatland’s ability to deliver on its vision of becoming a multi-mine operator. If the company can integrate its assets, manage debt effectively, and achieve its exploration goals, it could emerge as one of Australia’s leading mid-tier miners.

A Balanced Perspective

For retail investors, Greatland Gold is a classic high-risk, high-reward opportunity. The company’s transformative strategy and high-quality assets position it for substantial upside, particularly as it nears profitability. However, the risks—ranging from commodity price fluctuations to operational challenges—should not be underestimated. Greatland’s stock may appeal most to investors with a higher risk tolerance and a long-term outlook, as the coming years will be critical in determining whether the company can fulfill its ambitious potential.

In a market where few small-cap miners boast the same combination of flagship assets and exploration upside, Greatland offers an intriguing case. As with any investment, due diligence is key, and investors should weigh the company’s strengths against the inherent uncertainties of the mining sector. For those willing to embrace the volatility, Greatland could offer a golden opportunity.

Learn more about Greatland Gold here…

hVIVO: A Leader in Human Challenge Trials with Diverse Services and Investor Potential

hVIVO plc has carved a niche as the global leader in human challenge trials, a field that accelerates the development of vaccines and therapeutics for infectious and respiratory diseases. Through innovative methodologies and an expanding service portfolio, the company continues to redefine early-stage clinical research. While the growth prospects are substantial, potential investors must also consider the risks associated with this specialized industry.

hVIVO’s Core Strengths: Human Challenge Trials

At the heart of hVIVO’s operations are human challenge trials—controlled studies where participants are exposed to pathogens under strict medical supervision. This unique approach allows pharmaceutical companies to gather early efficacy and safety data faster and more cost-effectively than traditional clinical trials. With 11+ challenge models covering conditions such as influenza, RSV, asthma, and even malaria, hVIVO serves as a trusted partner to some of the world’s largest biopharma companies. Recent successes, such as positive results for RSV antiviral candidates, demonstrate the impact and efficiency of this methodology.

A Comprehensive Service Portfolio

While human challenge trials remain hVIVO’s flagship offering, the company’s broader service portfolio showcases its versatility in supporting drug and vaccine development. Its specialist virology and immunology laboratory, hLAB, plays a pivotal role in preclinical and clinical research. Equipped with state-of-the-art facilities, including a CL-3 laboratory at Canary Wharf, hLAB enables advanced testing on high-risk pathogens like Omicron and hMPV. The recent launch of standalone hLAB services has expanded its offerings, creating additional revenue streams through field trial biologistics and biobanking.

Through its Venn Life Sciences brand, hVIVO provides comprehensive consultancy services that encompass every stage of drug development. From chemistry, manufacturing, and controls (CMC) to preclinical research and clinical trial execution, the company’s expertise allows it to function as a full-service contract research organization (CRO) for early-phase clinical research.

A critical element of hVIVO’s success is its volunteer recruitment arm, FluCamp. Operating out of facilities in London and Manchester, FluCamp leverages decades of experience and a robust database to efficiently recruit and screen healthy volunteers, ensuring seamless execution of human challenge studies.

Beyond controlled trial environments, hVIVO has broadened its capabilities to include support for Phase II and III field trials. This expansion covers patient recruitment, trial site management, and logistics, offering clients a comprehensive suite of clinical development solutions.

The company’s biobank, approved by the UK Research Ethics Committee, adds yet another dimension to its services. By providing access to an extensive repository of biological samples, the biobank supports cutting-edge research in vaccine development, immunology, and respiratory diseases, cementing hVIVO’s reputation as an industry leader.

State-of-the-Art Facilities and Innovation

hVIVO’s new Canary Wharf facility, the largest human challenge trial unit in the world, reflects the company’s commitment to operational excellence. The 50-room quarantine unit, advanced labs, and outpatient services provide a seamless environment for conducting complex studies. With this expansion, hVIVO has tripled its laboratory capacity, allowing it to meet rising demand and diversify its offerings.

Why hVIVO Appeals to Investors

hVIVO’s position as a global leader in human challenge trials places it in a high-growth sector with significant barriers to entry, offering the company a unique competitive advantage. With few direct competitors, its established expertise and expanding client base create a strong foundation for sustained growth in a niche market.

The company’s diversified revenue streams enhance its resilience and growth potential. While human challenge trials are its core business, complementary services such as hLAB’s laboratory expertise, Venn consultancy, and field trial support provide additional pathways for revenue generation. This multifaceted approach strengthens hVIVO’s market presence and broadens its appeal to clients across the pharmaceutical industry.

Financially, hVIVO has demonstrated impressive performance, reporting record revenues of £35.6 million in H1 2024 and maintaining EBITDA margins exceeding 24%. Its £71 million order book ensures visibility into future earnings, underscoring investor confidence and the company’s ability to deliver on its commitments.

Innovation remains a driving force behind hVIVO’s growth. The ongoing development of new challenge models and its expansion into areas of high demand, such as CL-3 pathogens, highlight the company’s commitment to staying at the forefront of medical research. This focus on cutting-edge science not only enhances its service offerings but also solidifies its reputation as an industry leader in early-stage clinical development.

Risks and Challenges for Investors

While hVIVO presents a compelling growth narrative, potential investors should carefully consider the associated risks. Regulatory dependence is a significant factor, as the company’s operations rely on obtaining and maintaining approvals for its challenge models and laboratory services. Delays or restrictions in this area could hinder operations and impact timelines.

The nature of human challenge trials also brings ethical sensitivities, which may influence public perception and client relationships. Despite stringent medical oversight, these trials can attract scrutiny that could affect stakeholder confidence.

As a specialist CRO, hVIVO operates within a niche segment of the pharmaceutical industry, making its revenue stream more vulnerable to fluctuations in market demand. This focused exposure, while a strength in its expertise, also creates an inherent vulnerability to shifts in client priorities or industry trends.

Additionally, rapid growth and operational expansion come with scaling challenges. As hVIVO continues to grow its services and facilities, maintaining quality and efficiency under increased demand could strain resources and operational capacities. Addressing these challenges will be key to sustaining its position as an industry leader.

A Bright Future with Considered Risks

hVIVO’s leadership in human challenge trials and its expanding portfolio of services position it as a transformative player in healthcare innovation. For investors, the company represents an opportunity to participate in a high-growth, high-impact sector. However, the niche nature of its market, combined with ethical and regulatory considerations, underscores the importance of a balanced investment approach.

As hVIVO continues to innovate and grow, it remains a compelling, albeit specialized, prospect for those seeking to invest in the future of clinical research and drug development.

Learn more about Hvivo here…

As we conclude this first part of our series, it’s clear that the featured companies—while distinct in their sectors and strategies—share a common thread of ambition and innovation. From pioneering advancements in renewable resources and healthcare to uncovering untapped mineral wealth, these small-cap players illustrate the potential for high rewards that come with navigating high-risk ventures. In Part 2, we’ll continue our focus and explore six more watchlist small-cap stocks making waves and looking for a successful 2025. Stay tuned as we uncover the next wave of opportunities for 2025 and beyond.