Experts say these small ASX shares have big growth potential

There has been a lot of volatility recently, which has created opportunities in certain ASX shares. Experts have picked out a couple of very interesting stocks.

The fund managers in charge of the listed investment company (LIC) WAM Active Ltd (ASX: WAA) have picked out a miner and an electrical contractor as compelling ideas.

WAM Active looks for mispricing opportunities in the Australian market. Let's look at two that could be materially mispriced.

Viridis Mining and Minerals Ltd (ASX: VMM)

Viridis Mining is a resource exploration and development company, with assets in Brazil, Canada, and Australia. A key project is Colossus, which is on track to become an important rare earths asset for the business. It also has projects focused on gold, nickel, copper, and platinum.

Wilson Asset Management highlighted that the ASX mining share increased in October (up 9%) after the company announced its quarterly update on 27 October 2026, which highlighted continued progress at its Colossus rare earths project in Brazil.

It has transitioned the project from the feasibility stage to the execution stage following the completion of its definitive feasibility study (DFS). The DFS outlined an after-tax net present value (NPV) of US$1.2 billion, an internal rate of return (IRR) of 36.4%, and a 2.7-year payback period.

WAM also noted that the company has secured commitments for up to approximately US$120 million in strategic equity funding, meeting its targeted equity funding requirement, and has secured senior debt financing and a binding offtake agreement with Solvay.

The investment team concluded:

We remain positive on Viridis Mining and Minerals as it advances engineering, procurement and financing towards a final investment decision to commence full development of Colossus, with first production targeted for 2028.

Maas Group Holdings Ltd (ASX: MGH)

The other ASX share that WAM highlighted was Maas. The business is a diversified industrial group that includes electrical work.

WAM noted that the Maas share price fell sharply in October (more than 45%) after Firmus Technologies withdrew its initial public offering (IPO), weighing on investor sentiment.

The fund manager noted that Maas holds a 3.2% stake in Firmus Technologies and has significant exposure to contracted electrical infrastructure work with the company, including approximately $700 million in outstanding contracted work, amid uncertainty about Firmus Technologies' ability to fund that spending following the withdrawal of the IPO.

Separate to the Firmus drama, Maas confirmed on 16 October 2026 the completion of the sale of its construction materials division, receiving $1.61 billion in proceeds and repaying its Australian syndicated bank facilities, which "materially strengthened the company's balance sheet".

WAM believes the delay of the Firmus Technologies IPO is "prudent", given that the market appears less confident about the outlook for artificial intelligence (AI)-exposed sectors.

The fund manager said it understands Firmus Technologies is in the process of securing additional funding in private markets. WAM concluded that "as one of the only AI factory companies globally with Nvidia offtake support, along with strategic advantages in where capacity is being bought online, this positions them well and is a key potential catalyst to provide the market with confidence that the broader pipeline will be executed."

The post Experts say these small ASX shares have big growth potential appeared first on The Motley Fool Australia.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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