If you want to supercharge your Tax-Free Savings Account (TFSA) in 2026, Versamet Royalties Corporation (TSX:VMET) deserves a serious look.
The Canadian mining stock trades at just 9.8 times its 2027 forecasted cash flow, a meaningful discount relative to royalty peers trading anywhere from 16 to 23 times. Yet its gold equivalent ounce (GEO) production is growing faster than nearly every comparable company in the space.
That combination is rare. And inside a tax-free account, its upside potential becomes even more attractive.
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The maximum TFSA contribution room is $109,000
In 2026, the maximum cumulative TFSA contribution room has increased to $109,000. The Canada Revenue Agency set the 2026 annual limit at $7,000, matching the pace set in 2024 and 2025.
To put that in perspective, here is how quickly the TFSA lifetime limit has grown in recent years:
- 2023: $88,000
- 2024: $95,000
- 2025: $102,000
- 2026: $109,000
The account is among the most powerful tools available to Canadian retail investors. Every dollar of capital gains, dividends, and interest that grows inside the registered account is completely sheltered from tax. So, if you are parking cash in a savings account inside your TFSA, you are leaving serious money on the table.
The goal is to put this room to work with quality investments that compound over time.
Why Versamet Royalties is a top TFSA buy
Versamet is not a mining company in the traditional sense. It owns royalties and streams on mines operated by others, shielding the company from direct exposure to operating costs or capital spending blowouts.
The company launched in June 2022 with two royalty portfolios acquired from Equinox Gold and Sandstorm, when gold traded near US$1,830 per ounce.
Since then, it has completed seven acquisitions totaling well over US$750 million in deal value. Gold prices have more than doubled over the past four years, while the TSX stock is up 180% in the last 12 months.
Versamet’s portfolio spans 29 assets across Canada, West Africa, Latin America, Namibia, and beyond. Seven mines are under production while five are in near-term development. The rest offer long-term optionality at no additional cost to Versamet.
In 2025, Versamet produced 9,815 GEOs (gold equivalent ounces). In 2026, the company is guiding for 20,000 to 23,000 GEOs, representing over 100% year-over-year growth. Analysts forecast production to touch 40,000 GEOs by 2028, indicating a compounded annual growth rate of 97%.
A key driver of future growth is the Eskay Creek gold stream, acquired in April 2026 for US$360 million. Versamet secured a 3.5% life-of-mine stream on the project, which is located in British Columbia’s Golden Triangle.
Operator Skeena Gold and Silver confirmed construction is 49% complete as of February 28, 2026, with first production targeted for Q2 2027.
Based on the project’s feasibility study, Eskay Creek is expected to produce over 300,000 ounces of gold annually in its first five years. Versamet’s share of that is expected to average more than 10,000 gold ounces per year.
It also carries a life-of-mine, uncapped stream structure with no step-downs or buyback provisions. That means Versamet participates fully for the entire mine life.
Is the TSX mining stock undervalued?
Analysts tracking the TSX mining stock forecast revenue to expand from US$34.8 million in 2025 to US$179 million in 2028. In this period, adjusted earnings are forecast to expand from US$0.04 per share to US$0.66 per share. If Versamet is priced at 25 times forward earnings, it could return 50% within the next 20 months.
Inside a TFSA, the royalty business model makes even more sense. When Eskay Creek begins contributing gold ounces in 2027, the resulting cash flow growth will directly support Versamet’s per-share value. Any capital gains you earn as the stock re-rates toward peer valuations are entirely tax-free.
Royalty companies also tend to be more resilient than traditional miners in down cycles, given their limited cost exposure. That makes Versamet suitable for long-term TFSA positions where you want quality compounders rather than speculation.
Whether your TFSA sits at $30,000 or $90,000, the goal remains the same: put every available dollar into investments that can genuinely grow over time. Versamet is one of the more compelling options available to Canadian investors right now.
