$500 in seed capital appears small but is enough to get started in the stock market. Some low-priced Canadian stocks could deliver enormous returns regardless of the investment amount. You’re lucky because two names with high growth potential are buying opportunities today.
New Gold (TSX: NGD) outperforms its peers in the top-performing basic materials sector. The mid-cap mining stock is up 70.31% year to date and soaring thus far in 2024. In the technology sector, Quarterhill (TSX: QTRH) is absurdly cheap at $1.76 per share but well-positioned for a breakout.
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Golden opportunity
New Gold flies under the radar or is lesser known than Barrick Gold and Agnico Eagle Mines. However, the sector giants have not delivered as much like the smaller industry player. The current share price of $3.27 is 135.25% higher from a year ago.
The $2.58 billion intermediate gold mining company is Canadian-focused and relies on two core producing assets. The Rainy River in Ontario is a gold-silver mine, while New Afton Mine in British Columbia is a gold-copper mine. Another asset, Cerro San Pedro in Mexico, is a gold-silver mine under reclamation.
Management targets 42% production growth from 2024 to 2026. Gold and copper production in the next three years is forecasted to be 35% and 60%, respectively. Given the pipeline of opportunities and exploration upside, New Gold can extend mine lives into the next decade with modest capital investment.
Its president and chief executive officer (CEO), Patrick Godin, said the first-quarter (Q1) 2024 results were according to plan, notwithstanding lower revenue and higher net loss. In the three months ended March 31, 2024, revenue fell 5% year over year to US$192.1 million, while net loss rose 37% to US$43.5 million compared to Q1 2023.
Godin noted the significant progress from the major growth project in each of New Gold’s core operating mines. They will deliver the above production growth targets over the next three years. Moreover, Godin is confident about extending the mine lives and achieving the sustainable production of around 600,000 gold equivalent ounces annually until 2030.
New Gold’s main objective for Rainy River is to convert it from mineral resources to mineral reserves and explore for new mining zones. The New Afton Mine has three promising opportunities for potential mineral reserves conversion.
Niche player
Quarterhill is a niche player operating in the intelligent transportation systems industry. This $202.8 million technology holding company designs, develops and deploys technology systems. The customer base is government agencies, toll operators, and private industries in North America and Europe.
In Q1 2024, revenue and gross profit climbed 23% and 69% year over year to US$34.9 million and US$6.4 million, while net loss thinned 63% to US$4.2 million compared to Q1 2023. Notably, the revenue backlog reached US$500 million during the quarter.
Quarterhill acquired Red Fox I.D., a leading Automatic Vehicle Detection and Classification software provider, to enhance its technology and transportation software capabilities. Its CEO, Chuck Myers, said that Quarterhill can do more to drive efficiency and effectiveness throughout the business.
Myers added that the revenue backlog and sales pipeline with new and existing customers provide good visibility in 2024.
Double your money
New Gold and Quarterhill will not seriously dent your pocket. Instead, your $500 could double or triple in 2024 and beyond if you invest in either stock or both today.
