Investing in early-stage miners like this is dangerous business. Zinnwald isn’t set to begin producing lithium from Saxony in Germany until 2023. So the company isn’t revenues generating and could see its balance sheet stretched if it encounters any development problems. In this scenario, shareholders can be tapped for cash and/or debt can be taken on.

As I say though, the upside of investing in Zinnwald Lithium is that it gives me exposure to the EV sector. And, more specifically, it could make me a lot of money if lithium supplies run low and prices soar.

Last week, the head of Stellantis Carlos Tavares — manufacturer of brands like Peugeot, Fiat and Jeep — warned that a shortage of batteries is set for around 2025 or 2026.

The rate at which EV sales are tipped to soar could make lithium stocks like Zinnwald some of the hottest mining shares to own for the next decade.

A gold stock I’d buy

I think buying gold mining stocks is a clever idea too as inflation soars across the globe. I am thinking of doing this by investing in Brazilian gold explorer and producer Serabi Gold (LSE: SRB).

Gold prices are caught in the crosswinds at the moment. Demand is being supported by some shocking inflation gauges from across the globe and rising inflationary warnings from economists and central banks. Fears over the impact of rampant price rises on the economic recovery is also fuelling the safe-haven metal.

However, at the same time, rising bond yields and a resurgent US dollar are hampering gold prices. A stronger dollar effectively makes it more expensive to buy buck-denominated assets like bullion.

There’s a risk that gold prices could continue retreating (they recently dipped to three-month lows just above $1,800 per ounce). And especially if central banks hike interest rates fiercer than expected. But it’s my belief that metal prices should rise as inflation moves to eye-popping levels.

The European Commission is the latest major institution to raise its forecasts. In recent days, it supercharged its inflation forecasts from just a few months ago. It now expects inflation to average 6.1% in 2022, up significantly from 3.5% previously.

And it’s possible that inflation will beat even these revised forecasts as the war in Ukraine drags on.

Holding stocks like Serabi Gold are a good insurance policy for investors like me as insurance for when economic shocks happen. And buying this particular penny stock today could be a good idea as production from Serabi’s Palito mine recovers strongly following disruptions earlier in 2022.

Buying on the dip

I’m considering investing in Serabi Gold (LSE: SRB) following severe gold price weakness that’s pulled its share price lower.

Serabi — which produces the metal from multiple mines in Brazil — plunged to its cheapest since June 2019 in recent sessions. This was prompted by gold values sinking back below $1,900 per ounce.

This shows the risks associated with buying commodities stocks like this. If the price of the underlying raw material falls in value then listed producers can also drop.

It’s quite possible that Serabi’s price could keep falling in respect of this too. Gold has fallen in value because of a strong US dollar and bond yields. A flurry of severe interest rate rises by the Federal Reserve could keep these trends running.

A cheap penny stock

I still think buying Serabi Gold could be a good idea though. At current values of 42.5p per share, the penny stock trades on a forward price-to-earnings (P/E) ratio of just 4.2 times.

I think this is particularly great value, given the range of factors that could send gold values soaring again. The war in Ukraine is creating huge macroeconomic and geopolitical waves that could turbocharge demand for the safe-haven asset again.

There’s also the fact that inflation continues to soar (and often beyond market expectations) despite rate rises by central banks across the globe. Finally, the resurgence of Covid-19 cases in China could push gold through the roof again.

I think there could be plenty of upside for Serabi’s share price right now.

Another cheap UK share on my radar!

Screw, bolt and fasteners manufacturer Trifast (LSE: TRI) faces severe uncertainty as consumer spending sinks. Demand for the products it makes for sectors like consumer electronics could come under significant pressure as a result.

It’s also important to note the difficulties it could face if auto production rates continue to slump. Latest data for the UK, for example, shows manufacturing slump by 100,000 vehicles year-on-year in the first quarter.

A great long-term buy

Still, it’s my opinion that these dangers could be baked into Trifast’s rock-bottom valuation. At 105p per share, this ‘nearly’ penny stock trades on an ultra-low price-to-earnings growth (PEG) ratio of 0.4 times.

As a long-term investor there’s a lot to like about Trifast. I think profits could soar as technologies like electric cars, renewable energy, 5G and electronics rise over the next decade. The business operates all across Europe, the US and Asia too, giving it excellent opportunities to win contracts with major global OEMs.

I think Trifast’s highly cyclical operations leave it well-placed to capitalise on the post-coronavirus economic recovery.

A top gold stock

Buying gold stocks in anticipation of a fresh gold rush could be a good idea for me next month.

Investor tension remains high as inflation soars, central banks hike interest rates and the war in Ukraine continues. These factors all drove inflows into gold-backed exchange traded funds (or ETFs) to 269 tonnes in Q1. This was the highest quarterly inflow for 18 months, the World Gold Council said.

With inflationary pressures worsening and geopolitical tension persisting I think buying Serabi Gold (LSE: SRB) could be a good idea. I feel the stage could be set for bullion prices to test summer 2020’s record highs above $2,000 per ounce.

Gold prices to rise

Having said that, it’s possible that frantic central bank policy tightening could cause gold values to sag. This could push the US dollar higher, in effect making it more expensive to buy buck-denominated assets like this.

It’s my opinion though that this risk is baked into Brazil-focused Serabi’s dirt-cheap share price. At current prices, the penny stock trades on a forward price-to-earnings (P/E) ratio of just 4.9 times.

I also think Serabi could be a bargain given the success of recent exploration work and the huge potential of its Coringa asset. Development work is continuing with a view to producing maiden material in 2023. When it’s up and running Coringa will transform the penny stock into a multi-project business and double its production.

A lithium stock on my radar

I also think buying lithium stocks is a wise idea as electric vehicle (EV) sales soar.

One way I’m considering doing this is by buying Atlantic Lithium (LSE: ALL) shares. This commodities business is focused on developing the giant Ewoyaa lithium deposit in Ghana.

It’s important to note first off that this mining stock could be considered more risky than Serabi. It doesn’t have any revenues coming in to help bring Ewoyaa on-line. Any setbacks at the development stage could see it struggle to get that first lithium out without raising fresh funds from shareholders or taking on more debt.

Another great penny stock

Still, in my opinion the risks of owning Atlantic Lithium are outstripped by the potential benefits. The lithium market is set for spectacular growth over the next decade as EV sales take off. Profits at this firm could explode as a result.

The boffins at McKinsey & Company think lithium carbonate equivalent (LCE) demand will surge to between 3m and 4m tonnes by 2030. That compares with around 500,000 tonnes today.

I also think Atlantic in particular could be a great lithium stock to buy owing to the quality of Ewoyaa. Drilling work remains encouraging and in late March, resource estimates at the project were lifted by a whopping 42%.

A top e-commerce share

Online shopping is predicted to carry on growing strongly in the post-pandemic era. So I’m continuing to pay Attraqt Group (LSE: ATQT) close attention. This UK tech stock allows internet retailers to create a personalised experience for their cyber shoppers.

Giving the best customer service is becoming ever-more critical as competition online grows. So I expect demand for this penny stock’s services to grow strongly over the next decade. Indeed, the penny stock chalked up 35 more multi-year contract renewals in 2021. This was on top of the 38 it sealed the year before.

I am concerned about the impact of runaway inflation on online retailers and by extension orders at Attraqt Group. Also, while Attraqt is expected to finally move into profit in 2022, the business trades on a high forward price-to-earnings (P/E) ratio of 105 times. Such a high multiple could cause a sharp share price reversal if trading shows signs of cooling down.

Playing the gold boom with penny stocks

I’d also stock up on Serabi Gold (LSE: SRB) shares as the outlook for gold improves. Sinking bullion prices around the turn of the year meant that this mining stock is 21% cheaper than it was at this time last year. As a long-term investor, I think this represents an attractive buying opportunity.

Firstly, let’s look at the gold price picture. The precious metal recently hit its most expensive since September 2020, above $1,970 per ounce as the tragic conflict in Ukraine escalated. Further sizeable gains for the safe-haven metal can’t be ruled out as the war continues, either. Indeed, analysts at Goldman Sachs now think the yellow metal will reach new record highs of $2,150 in the coming months.

It’s not just the worrying geopolitical landscape that’s forcing investors to run for cover with gold. Western sanctions placed upon Russia have raised fears over inflation rising still higher as energy prices have jumped. In fact co-ordinated financial action over the weekend has increased the chances of a ‘stagflationary’ storm, i.e., one of fast-rising prices and weak economic growth. This is the perfect scenario for gold prices to thrive in.

As I say, though, I’m a long-term share buyer. So I’d buy Serabi not solely on the gold price outlook for the next year or so. Mining for metal is a highly complex business that’s fraught with danger to a company’s profits. Output issues can hit revenues hard and drive costs through the roof. But I’m excited by the progress Serabi is making on the operational front. Total output rose 7% year-on-year in 2021. And development of its high-quality Coringa asset is coming along nicely too.

City analysts think earnings at the company will rise 4% in 2022. This leaves the penny stock trading on a forward P/E ratio of just 4.9 times. I think this could make it too cheap for me to miss.

Ready to shine

I think Serabi Gold (LSE: SRB) is a great defensive share to own as insurance for when times go bad. History shows that on average a bear market happens every seven years or so. So there’s a pretty good chance that having exposure to gold — an asset which tends to rise strongly when economic conditions become tough — will pay off big time.

My main concern with owning Serabi shares is the possibility that central banks might raise rates more sharply than expected. Such a scenario would curb inflation, a natural driver for precious metal prices. On Thursday, US Federal Reserve official James Bullard said he’d like to see the central bank raise interest rates by a further 1% between now and July. This could be seriously damaging for precious metal values.

However, from a long-term perspective I still think Serabi Gold’s an attractive share to own. Forget for a moment its role as an insurance policy for investors. I’m looking beyond the possibility that gold prices could march higher if inflationary pressure keeps increasing.

I’m encouraged by the significant improvement of grades at Serabi’s Palito gold mine and the promising results from recent exploration work there. And I’m excited as the business prepares to start constructing its Coringa asset later this year. Serabi hopes to eventually produce 100,000 ounces of the yellow metal each year (the Brazilian miner produced 33,848 ounces in 2021).

At current prices of 54.5p per share Serabi trades on a forward price-to-earnings ratio of just 4.7 times. I think this is far too cheap given the company’s impressive production performance of late and its bright growth prospects. City analysts think earnings will rise 4% in 2022 before shooting 29% higher next year.

Another dirt-cheap penny stock I’d buy

I believe DP Eurasia (LSE: DPEU) is another bargain penny stock worth serious attention today. Forecasters think earnings here will rise around 500% in 2022 and by a further 50% next year. This leaves the takeaway giant trading on a forward price-to-earnings growth (PEG) ratio of 0.1 at its current price of 81p. A reminder that any reading below 1 suggests a stock could be undervalued.

I like DP Eurasia for various reasons. The online food delivery market is expected to continue rising strongly in the post-pandemic era. Growth is tipped to be especially strong in emerging markets where personal wealth levels are rising, too. Indeed, sales at DP Eurasia — which operates in Turkey, Russia, Azerbaijan, and Georgia — soared 51.5% in 2021.

I’m also a big fan of DP Eurasia because its products are especially popular with the public. As the master franchisee of the Domino’s Pizza brand in all four of its markets, it commands a considerable brand power advantage over its rivals. It’s true that the business operates in a highly-competitive arena. And consequently it will have to work tirelessly to grow profits. But I still think it could significantly bolster my wealth in the years ahead.

A tasty growth share

The turbulence striking the Turkish economy poses a risk to DP Eurasia (LSE: DPEU), the master franchisee of the Domino’s pizza brand in Turkey (as well as Russia, Georgia and Azerbaijan). Today the Turkish lira plunged to record lows and more weakness could be expected as the central bank there cuts rates.

It’s my opinion, though, that DP Eurasia could still enjoy strong profits growth next year. This is because the food delivery segment in its emerging markets is swelling rapidly, and this penny stock has the brand name to exploit this opportunity to the maximum.

City analysts think DP Eurasia’s earnings will leap 322% in 2022. This leaves it trading on a forward price-to-earnings growth (PEG) ratio of 0.1, well inside bargain-basement territory of 1. At these levels I’m seriously considering adding the company to my portfolio.

Cheap for good reason?

2022 growth projections over at De La Rue (LSE: DLAR) have also caught my attention recently. City analysts think earnings here will also rise more than 300% in the fiscal year to March 2022. This leaves the banknote printer trading on a forward price-to-earnings (P/E) ratio of 11 times.

A bleak outlook for cash, however, means I won’t touch De La Rue with a 10-foot barge pole. Technological improvements, from the advent of e-commerce to the development of contactless cards, have smacked note and coin circulation over the past decade. Concerns over infection have hit usage even further since the Covid-19 outbreak last year. And the rise of cryptocurrencies like Bitcoin is further damaging demand for physical money.

It’s why the Bank of England deputy governor recently commented that “cash is going to disappear” in a conversation about central-bank-minted digital currencies. De La Rue’s expertise in areas like passports and physical security labels could offer decent growth opportunities, of course. But in my opinion, these are could be offset by the threat to its traditional cash printing business.

A better cheap UK share

I think buying a gold producer like Serabi Gold (LSE: SRB) is a better idea for me. This particular UK mining share is anticipated to enjoy a 20% earnings rise in 2022. Consequently it trades on a rock-bottom forward P/E ratio of 4.8 times.

Gold demand is soaring today as concerns over runaway inflation and the ongoing Covid-19 crisis rattle investor nerves. Precious metals retailer The Pure Gold Company says the number of people buying its physical bars and coins has leapt recently. Numbers are up 278% in the past four weeks compared to the 2021 monthly average. I’m expecting yellow metal interest to remain strong into next year too, amid predictions that global inflation could head even higher.

That said, I’m mindful that gold prices can go down as well as up. Progress in the fight against the coronavirus, or an intense period of central bank rate rises could put gold prices under severe pressure. Still, it’s my opinion that these risks are reflected in Serabi Gold’s low valuation.

Copper colossus

Investing in early-stage mining companies can be a risky business. By the time a certain commodity is ready to be hauled out of the ground, the prices which it can command could be much lower than expected. There’s also the problem than smaller operators don’t tend to have the financial clout to weather significant setbacks. This leaves shareholders in peril of being tapped for cash.

So where does this leave Phoenix Copper (LSE: PXC)? Well, I say the risks of investing in firms like this are high. But I also think the possible rewards here could be explosive.

Let’s look at the outlook for copper demand first of all. Copper will be the “main beneficiary of the energy transition,” according to World Bank analysts, with consumption set to increase “for electric vehicles, charging, renewables generation, and grid storage.” This has the capacity to drive prices significantly higher over the latter half of the decade, in my opinion.

A top-quality mining resource

Then there’s the quality of Phoenix Copper’s Empire Mine, which is due to come online next year. As well as containing significant quantities of copper, the company’s Idaho asset also houses decent amounts of zinc and gold. It’s also been suggested that Phoenix Copper could have access to a high-grade copper sulphide resource below the open pit and a vast molybdenum and tungsten system.

Past performance is not always a reliable indicator of future success. However, I find the steady stream of positive exploration and development news coming out of Phoenix Copper highly encouraging. I’m also reassured by its strong balance sheet, one which sets it apart from many other early-stage mining plays and potentially lessens the chances of it tapping its investors for cash. It might be riskier than many other UK shares, but I’m still tempted to buy this penny stock today.

Another penny stock on my radar

Serabi Gold’s (LSE: SRB) another mining share on my radar today. It’s not just due to soaring precious metal output at its Palito mine rocketed 34% year-on-year between June and August. It’s also not because operations at its Coringa project have just got under way. It marks an important stage in the firm’s objective to produce 100,000 ounces of gold.

I also like the Brazil-focused business due to the bright outlook for gold prices. In particular, I think yellow metal prices will rise as global inflation shoots through the roof. Consumer price inflation in the US clocked in at 6.2% in October, the highest reading for 31 years. Inflation in China meanwhile, just shot to 13-month highs of 1.5%.

Gold prices can go down as well as up, of course. Progress in the fight against Covid-19, in tandem with severe central bank policy tightening, could well serve to drive precious metals prices much lower. Still, all things considered, I think Serabi Gold could still deliver terrific shareholder profits now and in the future.

Here are two cheap UK shares that have caught my attention.

The fashionable penny stock

There’s a lot I like about N Brown Group (LSE: BWNG) as a retail share. This clothing stock — whose offerings sees it concentrate on fashion and other products for larger-sized and older customers — sells its products at lower price points than some of its competition. This gives it the same sort of growth potential as Associated British Foods’ Primark, a business which is growing rapidly as modern shoppers demand more and more bang for their buck.

Clearly N Brown’s niches give it an edge in an incredibly-competitive retail sector. And they give the penny stock exposure to two fast-growing segments of the market too. But that will count for little if current supply chain problems persist. Office for National Statistics figures show that 11.1% of clothing retailers were unable to obtain goods to sell in August.

Still, N Brown trades at 52.5p per share. That means it carries a rock-bottom forward price-to-earnings (P/E) ratio of 7 times, well inside the bargain benchmark of 10 times and below. I think this is great value considering the retailer’s long-term outlook.

A cheap UK mining share on my radar

I think Serabi Gold (LSE: SRB) is another stock to buy today. This isn’t just because production is soaring right now (its output between April and June came in at its highest since 2019). Nor is it because the UK mining share continues to release excellent exploration results for its Brazilian assets. It’s because I think precious metal prices could be on the cusp of soaring again.

Inflationary pressures continue to grow not just in Britain but across the globe. It’s the result of frantic money printing by central banks and intense supply chain problems. And it bodes well for gold, a safe-haven asset that rises as the value of paper currencies erode. However, rising prices aren’t the only phenomenon I think could send precious metals prices soaring. Fresh geopolitical tension between China and the West, and a slowdown in the economic recovery as Covid-19 cases rise, are other reasons why gold demand could rocket.

There’s no guarantee that Serabi Gold will be in a position to capitalise on a positive price environment, of course. The nature of pulling metal out of the ground is extremely complex and production stoppages are common. However, I’d argue that these threats are reflected by Serabi Gold’s low share price. The penny stock trades at 64.5p currently. This leaves it dealing on a forward P/E multiple of just 6 times.

This leaves this UK share trading on a forward price-to-earnings growth (PEG) multiple of 0.2. A reading below 1 suggests a stock could be undervalued.

Naturally, these bright forecasts could be blown off course if coronavirus cases head through the roof again. But I think this threat is baked into the Coats Group share price at recent levels. Demand for so-called fast-fashion is tipped to keep growing strongly. Also, this penny stock’s broad global footprint will allow it to benefit from steady population growth too.

Mining for mega returns

Precious metals miner Serabi Gold (LSE: SRB) is another penny stock I’m considering adding to my own portfolio today. Having exposure to gold is a good idea for investors to protect themselves against unforeseeable events (as the Covid-19 crisis and accompanying stock market crash last year proved). I think this UK share, one which trades on a forward PEG ratio of 0.6, is a good way to go about this.

The City thinks annual earnings will rise 10% in 2021. I’m confident of strong and sustained bottom-line growth too, thanks to Serabi’s impressive record on the exploration and production fronts. And then factor in the bright outlook for gold prices. Indeed, news yesterday that eurozone inflation has hit 10-year highs underlines the favourable environment for precious metal values.

Digging for metals is often problematic. So companies like Serabi can be hit by a double whammy of unexpected large costs and revenues setbacks. Still, at current prices, I think this penny stock remains an attractive stock to buy today.

Another attractive penny stock

Now Sportech (LSE: SPO) doesn’t sport low earnings ratios that makes Serabi such a great buy. In fact, the company isn’t even expected to turn a profit this year. And while it’s expected to move into the black in 2022, this results in a price-to-earnings (P/E) ratio of around 78 times. Bad news flow around the company could therefore send investors sprinting for the exits.

That said, I think this penny stock could still be a great buy today. Sportech operates 14 gaming and sports venues in Connecticut in the US as well as digital betting services. It’s therefore well-placed to ride the booming American sports gambling market.

The company had previously been denied a sports betting licence in Connecticut. But it traversed the problem this month by inking a 10-year partnership agreement with Connecticut Lottery Corporation to provide sports betting across its venues.

I’m tipping this to be an important turning point in the Sportech’s fortunes. It’s now set to ramp up retail betting across the state to latch onto this fast-growing entertainment sector.

Gold star

2020’s Covid-19 outbreak proved that having exposure to gold as insurance against unforeseen catastrophes is a good idea. While stock markets crashed as investor confidence sank, demand for safe-haven assets like precious metals rocketed. Consequently, gold prices soared to record highs and investors in UK gold mining shares watched the value of their stock balloon.

Gold prices have slipped back from those peaks, but I think another charge higher could be around the corner. I expect prolonged US dollar weakness and inflationary fears to keep bullion prices bubbling nicely. Signs of renewed trade hostilities and setbacks in the pandemic battle could also spook people into buying gold.

I’d buy penny stock Serabi Gold (LSE: SRB) to play this theme. Despite the risky nature of metals excavation that can hit profits, I think at 62.5p the company could be too cheap to miss. It trades on a forward price-to-earnings growth (PEG) reading of 0.6.

The plus-size penny stock

I also think N Brown Group (LSE: BWNG) could be one of the best stocks to buy for the next 10 years. This isn’t just because value retail continues to go from strength to strength, as I mentioned again recently. It’s because its brands such as Jacamo and Simply Be give the penny stock a leading position in the fast-growing plus-size clothing market. According to Allied Market Research, this market will be worth $696.7bn by 2027. That compares with $481bn in 2019.

It’s certainly true that retailers like N Brown face a colossal challenge as stock shortages worsen. According to the CBI, stock levels in relation to predicted sales are at their lowest since 1983. The body’s latest survey suggests stock levels will remain low in August as well. Still, at current prices, I think the UK retail share still looks mighty attractive. It trades on a forward price-to-earnings (P/E) ratio of just 7 times at current prices of 50.1p.

Growth + dividends

Cairn Homes (LSE: CRN) is another top penny stock that offers plenty of bang for a investor’s buck. City analysts think annual earnings at the Irish housebuilder will double in 2021. This means the company trades on a PEG 0.2. What’s more, at current prices of 92p, Cairn Homes carries a meaty 3.7% dividend yield, one that beats the 3% FTSE 100 average by a decent margin.

Just like in the UK, Ireland is suffering from an extreme shortage of new properties as homebuyer demand soars. Official data just showed average home prices on the Emerald Isles rise at their fastest pace for two-and-a-half years. And I expect sales to remain strong as interest rates in the country will likely remain at rock-bottom levels for some time. I’d buy Cairn Homes despite the damage an economic downturn could cause to the penny stock’s profits.