ASX Penny Stocks To Watch In September 2026

The Australian Securities Exchange (ASX) is facing a challenging period, with the S&P/ASX 200 index recently closing lower amid surging oil prices and rising bond yields. In this context, investors might be drawn to penny stocks as they explore opportunities in smaller or newer companies that could offer surprising value. While the term "penny stock" may seem outdated, these investments can still provide a mix of affordability and growth potential when backed by strong financials.

Here we highlight a subset of our preferred stocks from the screener.

Blackstone Minerals (ASX:BSX)

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

Overview: Blackstone Minerals Limited is involved in the exploration of mineral properties in North America and Vietnam, with a market cap of A$79.27 million.

Operations: Blackstone Minerals Limited has not reported any revenue segments.

Market Cap: A$79.27M

Blackstone Minerals Limited, with a market cap of A$79.27 million, is a pre-revenue company involved in mineral exploration in North America and Vietnam. It has managed to reduce losses over the past five years by 8.6% annually, despite being unprofitable. The company is debt-free and its short-term assets of A$18.7 million comfortably cover both short- and long-term liabilities. Additionally, Blackstone has a cash runway extending over one year if current cash flow trends persist, although its board lacks seasoned experience with an average tenure of just 0.8 years.

• Click here and access our complete financial health analysis report to understand the dynamics of Blackstone Minerals.
• Assess Blackstone Minerals' previous results with our detailed historical performance reports.

Diatreme Resources (ASX:DRX)

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

Overview: Diatreme Resources Limited, along with its subsidiaries, focuses on the exploration and development of mineral properties in Australia and has a market capitalization of A$70.12 million.

Operations: Diatreme Resources Limited has not reported any specific revenue segments.

Market Cap: A$70.12M

Diatreme Resources Limited, with a market cap of A$70.12 million, is pre-revenue and focuses on mineral exploration in Australia. The company reported a net loss of A$3.02 million for the half-year ended June 2026, highlighting its unprofitability. Despite this, Diatreme has reduced its debt-to-equity ratio significantly over five years and maintains more cash than total debt. Its short-term assets (A$2.9M) surpass both short- and long-term liabilities, but it faces less than a year of cash runway based on current free cash flow trends. The stock remains highly volatile compared to most Australian stocks.

• Get an in-depth perspective on Diatreme Resources' performance by reading our balance sheet health report here.
• Examine Diatreme Resources' past performance report to understand how it has performed in prior years.

Legacy Iron Ore (ASX:LCY)

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

Overview: Legacy Iron Ore Limited is an Australian company focused on the exploration, evaluation, and development of mineral properties with a market cap of A$48.81 million.

Operations: The company's revenue is derived from its gold segment, which amounts to A$88.61 million.

Market Cap: A$48.81M

Legacy Iron Ore Limited, with a market cap of A$48.81 million, is pre-revenue and unprofitable, experiencing increased losses over the past five years. Despite this, it maintains a strong financial position with short-term assets (A$13.0M) exceeding both its short- and long-term liabilities. The company is debt-free and has a cash runway exceeding three years due to positive free cash flow trends. However, the stock exhibits high volatility compared to other Australian stocks. Recent board changes include appointing Anurag Kapil as Non-Executive Director, bringing extensive financial management experience from his tenure in Indian Railways and NMDC Limited.

• Take a closer look at Legacy Iron Ore's potential here in our financial health report.
• Gain insights into Legacy Iron Ore's historical outcomes by reviewing our past performance report.

Summing It All Up

• Click this link to deep-dive into the 392 companies within our ASX Penny Stocks screener.
• Searching for a Fresh Perspective? AI is about to change healthcare. These 130 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com