The Toronto Stock Exchange’s highest yearly return in the last 10 years is 21.7%, recorded in 2021. As of October 1, 2025, Canada’s main stock index is up 21.7% year-to-date. The basic materials sector, which is the top-performing sector, has a hefty gain of 79.2%.
Brian Belski, the chief investment strategist at BMO, forecasts the TSX closing the year at 31,500 points (currently 30,107.67). He predicted in mid-2024 that Canadian stocks would enter a prolonged period of outperformance.
The bull run this year resulted in multiple record highs, with mining stocks leading the hot streak. If you’re asking what the top Canadian stock to buy with $500 right now is, one name stands out.
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I Am Gold
IAMGOLD (TSX: IMG) is among the high-flyers in 2025. At $18.20 per share, the market-beating return heading into Q4 2024 is nearly 145%. Had you invested $500 at year-end 2024, your money would be worth $1,224.76 today.
This mid-cap stock was named to the 2025 TSX30, the annual ranking of the top-performing Canadian stocks. IAG ranked 13th, delivering a share price appreciation of 385% (dividend-adjusted) over a three-year period.
Modern gold producer
Renaud Adams, President and CEO of IAMGOLD, said the TSX30 achievement is a testament to the team’s dedication. The recognition also validates IAMGOLD’s emergence as a leading Canadian-focused modern gold producer.
The $10 billion intermediate gold producer and developer has operating mines in North America and West Africa. Its partnership with Sumitomo Metal Mining in the Côté Gold in Ontario promises to be one of the country’s largest gold mines. Moreover, the large-scale open-pit gold mine, with a remaining mine life of 18 years, could be a model for modern mining.
IAMGOLD’s Westwood Gold Mine (Quebec) has a strong track record of resource conversion as well as promising potential for future expansion. The Essakane Gold Mine (Burkina Faso), the sixth-largest gold mine in West Africa, actively invests in local development, especially in agriculture, education, and health.
Also, as a member of the Mining Association of Canada (MAC), IAMGOLD participates in the Towards Sustainable Mining (TSM) initiative at all its operations.
Financial and operating performance
In the first half of 2025, revenues increased 46% year-over-year to $1.1 billion, while net earnings declined 15% to $118.4 million compared to the same period in 2024. However, mine site free cash flow (FCF) rose 50% to $280.1 million from a year ago.
Total attributable production in the first two quarters reached 334,000 ounces. The volume could rise by 20% to 45% to 400,000 and 485,000 ounces. Thus, the company is on track to achieve its full-year production guidance of 735,000 to 820,000 ounces.
Strategic investment
Adams sees an exciting time ahead. Besides the potential to generate significant cash flows and the growth potential of the Canadian portfolio, IAMGOLD can lessen financial leverage or debt to unlock significant value.
Meanwhile, many market analysts believe the gold rush will not come to an end anytime soon. As long as gold prices keep rising to new highs, expect safe-haven assets, especially IAMGOLD, to soar higher. Your $500 investment today could more than double in the near term.
