In this article, we will discuss the 7 Explosive Mining Penny Stocks to Watch in 2026.
The S&P Metals and Mining Select Industry Index has gained around 17% year-to-date, outperforming the Nasdaq Composite at 11%, the S&P 500 at 7.6%, and the S&P Banks Select Industry Index at 3%.
The mining industry presents a long-term investment opportunity. The deepening energy transition and ongoing AI infrastructure buildout are some of the factors fueling demand for metals like copper, lithium, and silver. For gold, meanwhile, surging purchases by central banks and investors’ growing interest in safe-haven assets amid global geopolitical instability are driving demand for the yellow metal.
The mining industry is also getting some help from governments. Many Western governments are keen to support domestic mining of critical minerals and metals to secure supply chains from external shocks. The government support comes in various forms, including funding projects and reducing regulatory hurdles.
In a January 24 article, Bloomberg quoted Dilin Wu, a research strategist at Pepperstone Group, as saying:
“Mining stocks have quietly moved from a boring defensive sleeve to an essential portfolio anchor — one of the few sectors positioned to capture both shifting monetary policy dynamics and an increasingly volatile geopolitical landscape.”
This article explores the 7 explosive mining penny stocks to watch in 2026.
Our Methodology
To compile our list of the 7 explosive mining penny stocks to watch in 2026, we used the Finviz stock screener and scanned various ETFs to identify mining stocks trading under $5 as of May 11. We ended up with dozens of stocks in our initial list and applied additional filters to pick out the best. We looked for stocks with at least 30% upside potential and that are favored by elite hedge fund investors. The hedge fund data was sourced from Insider Monkey’s database as of Q4 2025. Finally, we ranked the stocks based on their price upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Explosive Mining Penny Stocks to Watch in 2026
7. Vizsla Silver Corp (NYSEAMERICAN:VZLA)
Stock Price: $3.73
Number of Hedge Fund Holders: 14
Upside Potential: 32.11%
Vizsla Silver Corp (NYSEAMERICAN:VZLA) is one of the explosive mining penny stocks to watch in 2026. The stock has climbed more than 60% in the past year, and Street predictions show it has more room to rise.
On April 23, Vizsla Silver Corp (NYSEAMERICAN:VZLA) announced that it has picked contractors to support the development of its Panuco silver-gold project in Mexico. It said that it awarded the Engineering, Procurement, and Construction Management (EPCM) contract to M3 Engineering. It awarded the mine design project to Mining Plus.
According to Vizsla Silver, M3 Engineering has participated in the construction of several mining projects in Mexico. The firm is a specialist in mineral processing and infrastructure projects. For the Panuco project, M3 Engineering’s scope of work covers surface infrastructure and the processing plant.
The Mining Plus contract covers development capital and ore development over a two-year pre-production period. Vizsla Silver said it has worked with Mining Plus before, including in the development of a test mine at Panuco.
Vizsla Silver CEO Michael Konnert noted that the appointment of the engineering and mine design contractors marks an important step in advancing the Panuco project. According to a feasibility study completed in November 2025, the Panuco project can produce an average of 17.4 million ounces of silver equivalent annually over at least 9 years of mine life.
Canada-based Vizsla Silver Corp (NYSEAMERICAN:VZLA) is a mineral exploration and development company. It’s focused on producing silver and gold. The company’s flagship project is the Panuco silver-gold project located in Sinaloa, Mexico. This high-grade discovery is owned 100% by Vizsla Silver.
6. Gold Royalty Corp (NYSEAMERICAN:GROY)
Stock Price: $3.72
Number of Hedge Fund Holders: 26
Upside Potential: 66.33%
Gold Royalty Corp (NYSEAMERICAN:GROY) is one of the explosive mining penny stocks to watch in 2026. Gold Royalty (GROY) stock has gained more than 140% over the past year, and analysts see it rising by more than 60% more over the next 12 months.
On May 7, H.C. Wainwright raised its price target on Gold Royalty Corp (NYSEAMERICAN:GROY) to $7.75 from $6.75 while keeping a Buy rating on the stock. The firm revised its target for the stock after Gold Royalty reported record revenue for Q1 2026 and reiterated its full-year 2026 outlook. According to H.C. Wainwright analyst Heiko Ihle, Gold Royalty’s production profile provides a solid basis for a premium valuation in light of the current commodity price environment.
In Q1, Gold Royalty’s revenue surged to a record $7.2 million from $3.1 million in the same period a year ago. The company posted a net income of $1.8 million, translating to EPS of $0.01 per share. That compares to a net loss of $1.2 million, or a loss per share of $0.01 a year ago.
In terms of production, Gold Royalty reported 1,920 gold equivalent ounces (GEOs) for Q1, compared to 1,249 GEOs a year ago. For 2026, the company anticipates between 7,500 and 9,300 GEOs.
Gold Royalty finished Q1 in a solid cash position, reporting more than $13.6 million in cash and no debt. Moreover, the company has $150 million available under a credit facility.
Canada-based Gold Royalty Corp (NYSEAMERICAN:GROY) offers financing solutions to the mining industry. It provides capital for gold, silver, copper, and other metals mining projects in exchange for royalties and streaming interests. Therefore, the company gives investors exposure to the mining industry without directly operating mines.
While we acknowledge the potential of GROY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GROY and that has 100x upside potential, check out our report about the cheapest AI stock.
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