I’d expected Shopify to be at the top when the TMX Group released the 2021 TSX30 list this month. The third edition of the flagship program that started in 2019 came out on September 14, 2021. But, lo and behold, the e-commerce giant was on the list again, except not in the top spot.
Aura Minerals (TSX:ORA) was number one with its 1,125% performance in the last three years, while Shopify was second with 846%. The new ranking was a surprise, because the mining stock was never in the previous lists. Shopify ranked second in 2019, then was number one last year. Investors must have seen the massive growth potential of the top name.
Changing rankings
The TSX30 showcases the top-performing growth stocks over a three-year period. Most of the companies on the inaugural list are no longer in the present crop of growth stocks. Canopy Growth was number one in 2019, along with industry peers Village Farms International (second) and Aphria, now Tilray (sixth). None of the three weed stocks are in the 2021 list. Incidentally, Air Canada was in seventh place.
In 2020, Shopify claimed the top spot, followed by Ballard Power Systems and Cronos. Besides Shopify, Ballard and Cargojet are the other names on all three editions of the list. Nearly a dozen mining stocks are on the 2021 list, including Capstone Mining (fifth) and SilverCrest Metals (ninth).
Real Matters (16th), Absolute Software (24th), and TECSYS (26th) are the tech stocks that joined Shopify. Goodfood Market and Real Matters should be on your watchlist ,as both are on the 2020 and 2021 lists. The lone financial stock is goeasy (seventh).
Rank #1
Aura Minerals is a $994 million gold and copper producer based in Miami, Florida. The mining stock trades at $13.70 per share, and market analysts forecast 53.9% upside to $21.50 in the next 12 months. Had you invested $10,000 on September 22, 2018, your money would be worth $113,223.14 today.
The multinational mining company develops and operates gold and base metal projects. Currently, the gold and copper production sites are in Brazil, Honduras, Mexico, and northern Arizona in the United States. The Aranzazu site in Mexico has been continuously active since 1962.
Aura has four growth projects with compelling economics in the pipeline, according to management. Three are in Brazil and one in Colombia. This year may be considered a turnaround year, given the vast improvement in business performance. In the first half of 2021, net income was US$35.5 million compared to the $13.7 million net loss in the same period in 2020.
Notably, Aura generated US$64.1 million in net cash from operating activities — a 346.9% year-over-year increase. The company said the second-quarter result was a demonstration of stability in operations. Total gold production, in particular, increased 68.9% versus Q2 2020. Copper prices also increased by 77% during the quarter.
Management expects further improvement in operations in the back half of 2021. However, Aura is aware that the price movements of gold and copper can impact future profitability, operating cash flows, and financial position.
Success stories
TMX Group started the TSX30 program to share success stories across the market. Most of the companies that make the list are engines of growth, they say. Some names disappeared from the list, replaced by new, growth-oriented companies. The list simplifies the selection process for growth investors.
