Top ASX Fundamentally Strong Shares to Buy for FY25

With markets at record high, amid growing optimism for a rate cut, search of ASX investors looking for Top Stocks to invest in for long term holding may end here.

Austin Engineering Limited (ASX: ANG)?

During the first half of the financial year 2024, Austin Engineering Limited (ASX: ANG) successfully executed its strategy reset, showcasing notable operational efficiency and delivering robust financial and operational results.

The company reported a substantial 26% year-on-year increase in total group revenue, reaching $143.6 million, fuelled by the continued strength of its order book, supported by the expansion of manufacturing facilities. In the Asia-Pacific (APAC) region, revenue saw a strong 19% increase to $77.1 million, while North America reported revenue of $41.9 million, up by 29% compared to the previous year. Austin Chile played a pivotal role in the overall Group's performance, contributing to a 48% increase in revenue, reaching $24.6 million.

The company recorded a remarkable 70% rise in EBITDA to $20.8 million, with an EBITDA margin expanding from 10.7% to 14.5%. Net Profit After Tax (NPAT) surged to $15.0 million, marking a 2.8 times increase compared to the corresponding period last year.

One of the Best ASX Stocks, Austin’s growth is being driven by its increasing copper production in Chile and copper fundamentals outlook. Group order book to end-March 2024 is up ~30% to a multi-year high of ~$201 million.

Capricorn Metals Limited (ASX: CMM)

Capricorn Metals has established itself as a formidable player in the gold industry, driven by its robust operational capabilities and strategic growth initiatives. The Karlawinda Gold Project, renowned for its low-cost operations, and the promising Mt Gibson Gold Project underscore Capricorn with its strong foothold in Australia's gold mining sector marks its entry among best ASX shares

Capricorn Metals Limited’s successful gold production at the Karlawinda Gold Project (KGP) positions it for substantial growth. With the development of the Mt Gibson Gold Project (MGGP), Capricorn has the potential to achieve an annual production of around 270,000 ounces, propelling it into the ranks of the top 10 largest gold producers. Furthermore, this growth trajectory is bolstered by the anticipation of maintaining All-in Sustaining Costs (AISC) within the lowest quartile among ASX listed gold producers. This strategic expansion underscores Capricorn's commitment to maximizing operational efficiency and profitability while solidifying its position as a key player in the gold mining industry.

Capricorn Metals Limited has reduced its gold hedge book by 52,000 ounces, seizing a recent pullback in the A$ gold price. They closed hedge contracts at A$2,327/oz and bought put options at A$3,432/oz, aiming to benefit from potential price increases. The strategy follows a similar move in June 2023, enhancing revenue and reducing downside risk. Current gold forward sales commitments stand at 55,000 ounces at A$2,327/oz, representing a small portion of their total reserves.

Investing in Capricorn Metals Limited presents a compelling opportunity, primarily driven by the promising prospects of the Mt Gibson Gold Project (MGGP). The project's robust economic fundamentals, including a rapid payback period, substantial operating cash flow, and favorable pre-tax NPV, underscore its potential for delivering attractive returns. With an anticipated average annual gold production of 155,000 ounces over the initial years and a lengthy mine life of 11.5 years, the MGGP offers stability and significant revenue potential. Moreover, the project's cost-effective operations, demonstrated by reasonable all-in sustaining costs (AISC), enhance its resilience in varying market conditions. Capricorn Metals' successful execution of development plans, coupled with ongoing exploration activities, positions it well to capitalize on both existing and potential opportunities in the gold market.

Source: Company Reports