U.S. president Donald Trump can prevent a global trade war if he makes a U-turn on his protective tariffs. Many trading partners, including Canada, believe the incessant threats are unfounded and could eventually spark a recession. Fortunately, the TSX has endured the headwinds.
The bearish trend also opened buying opportunities. Mandalay Resources (TSX:MND) and Badger Infrastructure Solutions (TSX:BDGI) are two Canadian stocks to watch. Massive financial windfall awaits investors taking positions in this pair of potential multi-baggers.
Long-standing mining tradition
TSX’s materials sector, where metals and mining stocks belong, has shown remarkable performance amid the tariff chaos. Its year-to-date gain is +21.27% compared to the broad market’s -1.03%. However, Mandalay Resources stands out for its +32.99% market-beating return thus far in 2025.
This $505.23 million resource company operates in Australia (gold antimony mine) and Sweden (gold mine), where both locations have significant near-term growth upside. Management’s primary objectives are to grow production, reduce costs, and generate significant positive cash flow.
Mandalay reported record results in 2024. In the 12 months ending December 31, 2024, revenue rose 38.8% year over year to US$240.6 million. Net income soared 507.6% to US$47.7 million versus 2023. Its president and chief executive officer (CEO), Frazer Bourchier, said, “2024 was a milestone year for Mandalay, marked by record financial performance and substantial earnings growth.
The full-year revenue was Mandalay’s highest to date, while the two operating assets generated a record US$69 million free cash flow (FCF). “With a strong cash position, zero debt, and an ongoing commitment to sustainable cash generation, we enter 2025 well-prepared to capitalize on strategic opportunities and drive long-term value creation,” Bourchier added.
Key investments in 2025 will strengthen the company’s operational foundation for the future. According to Bourchier, 2025 is a pivotal year for the two sites due to mine development and capital investment projects. Mandalay has allocated up to US$48 million in sustaining capital this year to enhance mining flexibility and support long-term growth.
At $5.24 per share, the trailing one-year price return is +119.2%. Had you invested $5,000 a year ago ($2.39 per share), your money would be $10,962.34 today. This mining stock has staying power because of the long-standing mining tradition in Australia and Sweden.
Solid earnings growth
Badger Infrastructure is up +3.76 year to date but should gain momentum following the strong financial results in 2024. At $37.05 per share, the industrial stock also pays a decent 2.05% dividend. This $1.24 billion company provides critical non-destructive excavating and related services in North America.
Its key technology is Badger Hydrovac, a non-destructive excavation system with a precise, non-mechanical, non-destructive process. The diverse customer base includes companies in the construction, energy, industrial, telecommunications, and transportation sectors.
In 2024, revenue and net earnings increased 8.9% and 14.6% to US$744.95 million and US$47.87 million compared to 2023. Rob Blackadar, president and CEO of Badger, said, “We finished the year on a strong note. Throughout 2024, we executed on our pricing, commercial, and operational efficiency strategies to continue to scale the business.”
Blackadar sees another year of growth in hydro-vac services across the end markets in 2025. By year-end, Badger should also complete a 4% to 7% fleet expansion.
Investment takeaways
Mandalay Resources and Badger Infrastructure Solutions should be on investors’ radars right now. Besides the scalable business model, both companies have strong fundamentals and visible growth potential.
