The Bank of Montreal Investment Survey revealed that more than 65% of Canadians are concerned about a potential recession in 2025. Nonetheless, despite this worry, the mindset of those with Tax-Free Savings Accounts (TFSAs) is to utilize and continue contributing to the tax-advantaged account.
While the stock market is often considered the gauge of a country’s economic health, it is not a perfect measure. The Toronto Stock Exchange has bucked significant headwinds, including U.S. tariffs and the Middle East conflict. As of this writing, Canada’s primary equities market is up nearly 8% at the close of June.
If you haven’t used your 2025 TFSA contribution limit, deploy $7,000 in the top performers. Tenaz Energy (TSX: TNZ) in the energy sector and gold miner Aura Minerals (TSX: ORA) have beaten the broad market thus far this year. Both stocks could increase the value of your investment tenfold, given their unstoppable momentum.
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Growth-and-income model
Tenaz Energy develops crude oil and natural gas at Leduc-Woodbend in Alberta and is the second-largest offshore gas producer in the Dutch North Sea. At $19.95 per share, the small-cap stock boasts a 42.2% year-to-date gain following a 53.9%-plus surge in the last three months.
The trailing one-year price return is 449.6%. Had you invested $7,000 on June 27, 2024, your money would be $38,471.07 today. TNZ’s overall return in three years is an astronomical 786.7%, representing a 106.4% compound annual growth rate (CAGR).
This $560.9 million energy company aims to become a leading intermediate-sized E&P (exploration and production) through its acquire-and-exploit strategy. Tenaz targets conventional and semi-conventional assets in overseas markets with the highest return opportunities.
The regions of focus are Europe, South America, and MENA (Middle East and North Africa). Management will capitalize on the sizeable market opportunity. It also aims to prioritize free cash flow (FCF) to support a balanced growth and income model.
Anthony Marino, President and CEO of Tenaz, said, “Our business model seeks to secure advantage in two ways that are differentially present in the international asset market.” Assets outside of North America have higher base rates of return on the initial acquisition investment. As the operator of the acquired assets, there is greater opportunity to improve the production and unit cost profile.
“Despite macro volatility, we believe market conditions remain favourable for disciplined acquisitions,” Marino added.
High-growth stock
Aura Minerals owns and operates gold and copper mines in Brazil, Honduras, and Mexico. The $2.7 billion mining company focuses on project development and operations in the Americas. Currently, it has four operating mines, two projects in development, two projects in the exploration phase, and a robust growth pipeline.
ORA ranked number one in the 2022 TSX30 List, the flagship program for Canada’s top 30 growth stocks. Its 10-year overall return is 8,296%-plus. At $35.66 per share, current investors are enjoying a 109.4%-plus market-beating return. A $7,000 investment at year-end 2024 would be worth $14,657.66 today. Additionally, this mining stock offers a lucrative 4.9% dividend yield.
In Q1 2025, Adjusted EBITDA reached US$295 million, a third consecutive record high. Aura’s ongoing exploration strategy focuses on near-mine expansion and resource conversion. Long-term growth will come from regional discoveries and strategic mergers and acquisitions.
Multi-baggers
Tenaz Energy and Aura Minerals are multi-bagger stocks, evidenced by their generous returns. Both remain solid investment prospects due to their strong growth potential.
