An investment of $300 on stocks could grow 10-fold with the right stock choices. Despite its underperformance year to date, the TSX has simple yet profitable options for Canadians with limited capital to invest. Two smart buys right now belong to the 2022 TSX30 List.
Aura Minerals (TSX:ORA) ranked number one in 2021 and is the top growth stock once more in 2022. Obsidian Energy (TSX:OBE) is no longer an obscure name following its number two ranking in the fourth edition of the annual program that showcases the top 30 TSX growth stocks.
The mining stock trades at only $8.20 per share, while the share price of the energy stock is $10.94.
Back-to-back TSX30 winner
Aura Minerals engages in the development and operation of gold and base metal projects in the Americas. The $596.83 million mid-tier gold and copper production company has producing assets in Honduras, Brazil, and Mexico plus one gold project in Colombia.
The mining stock topped the 2022 TSX30 List for its 683% price appreciation (adjusted by dividends) in the last three years. Had you invested $300 in September 2019, your money would be worth $2,411.96 today. As of this writing, Aura is down 20.41% year to date. However, it should attract more investors after the back-to-back wins in 2021 and 2022.
Its president and chief executive officer (CEO) Rodrigo Barbosa said, “It is with great pride that we receive this award, now for the second time. Since our IPO [initial public offering] in Brazil, we have announced a clear pipeline for growth to exceed 400,000 ounces of production through our greenfield projects and new acquisitions.”
Barbosa added the award recognizes Aura’s potential to deliver shareholder value in a volatile environment with the pandemic and high inflation. In the first half of 2022, production (10.1%) and sales (12.3%) fell versus the same period in 2021.
Profit declined 13.5% year over year to $43.86 million. Management expects production for the full-year 2022 to be between 260,000 and 275,000 gold equivalent ounces.
Since Aura Minerals is a dividend payer, you can also earn recurring passive income. In the first half of 2022, the company paid more than $15 million in semi-annual dividends. If you invest today, the dividend yield is 7.69%.
The energy sector is having a banner year because of rising crude prices. Obsidian Energy is one of 14 energy producers that made it to the TSX30 List in 2022. Loui Anastasopoulos, the TSX’s CEO, said. “We’re seeing an interest in the sector that we haven’t seen in years.”
Obsidian Energy placed second this year owing to its +537% three-year performance. Like most energy companies, the $898.73 million mid-size oil and gas company is flush with cash. Because of higher production and commodity prices, free funds flow from operations (FFO) in the second quarter (Q2) of 2022 soared 271% to $157 million versus Q2 2021. Management also reduced net debt by 21% to $343 million.
This TSX30 winner is up nearly 110% year to date and should sustain the upward trajectory if oil prices remain elevated. Obsidian Energy is a non-dividend payer, but the massive capital gains should compensate for that.
Aura Minerals and Obsidian Energy are awesome picks if you only have $300 to invest. Furthermore, both stocks should be on the radars of growth investors.