Financial column Midas has selected six smaller international companies listed on the London Stock Exchange that are set to deliver top returns for investors.
The selections feature three businesses that have already posted significant share price gains, alongside three further small-cap opportunities operating across mining, energy, telecommunications, and agriculture.
The London Stock Exchange is the primary stock market of the United Kingdom, hosting businesses headquartered and operating across more than 100 countries. This international footprint allows British investors to gain exposure to global markets through domestic equity listings.
Among the previous recommendations, Airtel Africa has risen nearly sixfold since its initial tip, Australia-based Empire Metals has surged more than 300 per cent, and Greenland-focused Amaroq has more than doubled in four years.
Airtel Africa and mobile money expansion
Mobile phone and banking adoption rates in Africa differ sharply from the UK, where over 90 per cent of 16-to-64-year-olds own a smartphone and fewer than 5 per cent of adults rely solely on cash. Across Africa, only one-third of the population holds a bank account, and even fewer own a smartphone.
Airtel Africa operates across 14 countries from Nigeria to Madagascar, providing mobile phone services and mobile money platforms ranging from basic features to advanced systems. Its smartphone division is growing at about 20 per cent annually and is expected to sustain double-digit growth rates.
The group's Airtel Money service allows users to establish virtual wallets on basic mobile phones to transfer funds and pay for goods without cash. The platform processed almost £150 billion in transactions over the past year, benefiting from a scarcity of bank branches and early-stage internet banking across the continent.
Airtel Africa owns 79 per cent of Airtel Money and intends to float the mobile money business on the London Stock Exchange later this year. The company may retain its entire holding or reduce its stake to return proceeds to shareholders.
Airtel Africa originally listed on the main market in 2019 at 80p per share before stock prices fell during the Covid pandemic. Midas recommended the shares in 2020 at 57p, and the stock currently trades at £3.32 under the ticker AAF. The fabulously wealthy Bharti Mittal family holds almost 80 per cent of the shares, providing strong incentive to maintain rising dividend payouts. Further company information is available at airtel.africa.
Amaroq gold and strategic minerals in Greenland
Greenland is an autonomous territory rich in natural mineral deposits. President Donald Trump took office on January 20 last year and had previously staked a claim to Greenland, highlighting the strategic importance of its natural resources.
Founded nine years ago, Amaroq holds exploration and mining licences across Greenland at various stages of readiness. Its main producing asset is the Nalunaq gold project in southern Greenland, which is expected to yield up to 35,000 troy ounces of gold this year and over 45,000 troy ounces in 2027.
While standard gold mines produce less than 5 grams of gold per tonne of ore, Nalunaq delivers nearly 20 grams per tonne. Chief executive Eldur Olafsson is also seeking to develop the nearby Nanoq deposit, which could increase total gold production by at least 20 per cent.
In western Greenland, Amaroq owns the Black Angel mine, which produced zinc, lead, and silver from 1973 until 1990 before lying dormant. Olafsson is reviving the site following the discovery of two strategic minerals, germanium and gallium. Germanium is vital for defence, telecommunications, aerospace, and satellites, while gallium is essential for computer chips and solar panels.
Amaroq moved from the junior AIM market to the main market last month and reported strong interim results, with stockbrokers predicting profits of £31 million this year and more than double that figure in 2027. Shares have climbed from 44p to £1.04 since Midas tipped them in 2022. Amaroq trades under the ticker AMRQ and maintains its website at amaroqminerals.com.
Prospex Energy and European gas production
European energy security has become a critical priority following Russia's invasion of Ukraine in early 2022 and subsequent geopolitical tension involving the United States and Iran. Prospex Energy is an AIM-traded investment company that acquires, improves, and monetises energy assets.
Previous management focused more on asset acquisitions than sales, causing the share price to drop from 74p to 3.7p over a decade. Under new chief executive Tom Reynolds, a Scottish executive, the business has restructured to fund project development without requesting additional capital from shareholders.
Prospex holds an interest of almost 40 per cent in a Po Valley gas project in Italy, its most profitable asset. One well is currently operational, with plans to add four more wells, though Prospex may introduce external partners to contribute to future cash calls.
In Spain, Prospex wholly owns a producing asset near Seville that is seeking permits for expansion, alongside a 7.5 per cent stake in a Rioja asset expected to deliver improvements next year. In Poland, the company acquired two licences this year, including a site where oil was discovered during the Soviet era that could enter production within two years.
Prospex carries a stock market valuation of just over £16 million, but its combined assets could be worth more than £200 million if management plans succeed. At a share price of 3.7p under ticker PXEN, the stock is rated as a buy for adventurous investors. Further details are listed at prospex.energy.
Empire Metals and titanium deposit in Australia
Titanium dioxide is a key ingredient in paints, packaging, paper, cosmetics, and sunscreen. Pure titanium metal is essential for aerospace, defence, hip and knee replacements, dental implants, and joint screws, leading the US, UK, and EU to designate it a critical mineral.
The global titanium market is valued at approximately £15 billion annually and is projected to expand by 20 per cent over the next five years, with high-grade supplies constrained and largely controlled by China.
AIM-traded Empire Metals operates across a 400-square-mile site in Western Australia. The company recently announced the discovery of eight billion tons of ore containing almost 350 million tons of high-grade titanium dioxide, marking the world's largest known resource.
Unlike standard low-grade deposits that require costly and polluting processing, Empire's high-grade material allows lower processing costs and cleaner production. Interim results confirmed operational progress, and the company plans to secure a dual listing in Australia while retaining its London listing.
Empire shares have risen from 9.5p to 42p since January 2024. Stockbrokers suggest long-term value near 80p. The company trades under the ticker EEE and operates its website at empiremetals.com.
Nippon Active Value Fund and Japanese equities
Approximately 4,000 companies are listed on the Japanese stock market, nearly double the number on the New York Stock Exchange. Regulators estimate half of these firms could be taken over or dissolved due to management stagnation and governance issues among older leadership.
Nippon Active Value Fund (NAVF) was established to acquire stakes in underperforming small and medium-sized companies listed on the Nikkei exchange and push for corporate restructuring. Its portfolio includes 29 companies, ranging from chocolate manufacturer Ezaki Glico to cleaning materials firm Stellar Chemifa, which supplies nuclear power plants and semiconductor manufacturers.
NAVF previously acquired a stake in TV group Fuji Media when it was led by former chairman Hisashi Hieda, doubling its investment following boardroom resignations after a corporate scandal. NAVF partners with US investment funds Dalton and NAVF Select to build larger voting positions.
Valued at £103 million at its launch in 2020, NAVF's market value has grown to almost £450 million under chairman Paul Ffolkes Davis. Trading on the main market at £2.28 under ticker NAVF, the stock is rated as an intriguing buy. Additional details are available at nipponactivevaluefund.com.
MP Evans and sustainable palm oil production
Palm oil is utilized in 50 per cent of packaged foods including biscuits, bread, ice cream, and Nutella, as well as in cosmetics and biofuel. While the industry faces criticism over environmental degradation, Indonesia-based MP Evans focuses on sustainable production using certified audits, designated wildlife corridors, and local community partnerships.
Global palm oil prices have risen by more than 25 per cent this year, driving increased demand across consumer and industrial sectors. Midas first recommended MP Evans in 2011 at £4.20 per share, and the stock has since climbed to £17.70 following increases in land acreage and operational efficiency.
Chief executive Matthew Coulson expects annual profits of $134 million (£98 million) this year, with potential for higher returns. Scheduled dividend payouts stand at 62.5p per share this year, rising to 65p next year.
MP Evans maintains a market capitalization near £1 billion. Edwin Hadsley-Chaplin joined the business in 1947 and served for decades; his son Peter Hadsley-Chaplin now serves as chairman, and the family holds approximately 10 per cent of company shares. Trading on AIM under ticker MPE, the stock is rated as a buy for long-term investors. Company details can be found at mpevans.co.uk.
