3 High-Growth Stocks, Not Bitcoin, Should Be on Your Buy List

Three high-growth mining stocks are better investment choices in 2022 than the highly volatile Bitcoin.

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Bitcoin is up 64% as of December 28, 2021, although the crypto is on a downtrend. The price is US$47,588.86, or 29.57% lower since peaking at US$67,566.83 on November 8, 2021. If you’re thinking of investing in January 2022, the world’s most popular digital asset shouldn’t be on your buy list.

The Toronto Stock Exchange has a wide selection of growth stocks. In the 2021 TSX30 List, 14 of the top 30 performers are mining stocks. Aura Minerals (TSX:ORA) stole the thunder from tech superstar Shopify to rank number one. Capstone Mining (TSX:CS) was fifth, while SilverCrest Metals (TSX:SIL) placed ninth. All three delivered parabolic returns in the last three years.

TSX30 winner

Aura Minerals focuses on the development and operation of gold and base metal projects in the Americas. The $738.26 million mid-tier gold and copper production company owns and operates gold and copper mines in Brazil, Honduras, and Mexico. Management’s immediate plan is to improve and grow its current operations in 2022.

Its president and CEO, Rodrigo Barbosa, said, “Our 2021 production guidance indicates an increase of nearly 30% compared to 2020.” He added that its 2022 to 2024 updated guidance confirms Aura’s solid and consistent plan to double production by 2024. The annualized production target is between 400,000 and 480,000 ounces of GEO (gold equivalent ounces).

In the nine months ended September 30, 2021, Aura’s net revenue and income increased 64.72% and 91.76% versus the same period in 2020. The share price is $10.20, while the dividend yield is a decent 4.49%.

Soon-to-be premier copper producer

Capstone Mining investors are up 131.51% year to date ($5.46 per share). In the last three years, this mining stock has delivered an eye-popping total return of 846.55%. The $2.34 billion base-metals producer has two producing copper mines: Pinto Valley in the U.S. and Cozamin in Mexico.

In the first three quarters of 2021 (quarter ended September 30, 2021), revenue increased 89.4% to US$578.8 million versus the same period in 2020. Nearly 99% of revenue came from copper. Capstone’s net income soared to US$211.4 million from a US$15.2 million net loss a year ago.

On November 30, 2021, management announced an agreement to combine with Mantos Copper (Bermuda) Limited to form Capstone Copper, a premier copper producer. Once the transaction is complete, the new entity will apply to list on the TSX.  

High-grade precious metal discoveries

SilverCrest Metals trade at a discount (-29.25% year to date), so the current share price of $10.14 is a good entry point. Market analysts recommend a buy rating and forecast an upside potential between 49.8% and 67.85%. The $1.43 billion precious metals exploration company is focused on new discoveries, value-added acquisitions, and targeting production in the historic precious metal districts of Mexico.

While the company incurred a net loss of $14.8 million in the nine months ended September 30, 2021, management looks forward to commence the mine construction at the Las Chispas Mine in mid-2022. The Vancouver-based miner is the first company to successfully drill-test the historic Las Chispas Property resulting in numerous high-grade precious metal discoveries.

Outsized returns

Bitcoin is for investors with very high-risk appetites. The TSX’s high-growth mining stocks could deliver outsized returns, as they did in the last three years.  

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin and Shopify.

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