I expected Shopify be at the top when the TMX Group released the 2021 TSX30 listing this month. The third edition of the flagship program which started in 2019 was released on September 14, 2021. But there you have it, the e-commerce giant was back on the list, except that it did not occupy the top spot.
Aura Minerals (TSX: ORA) was number one with its performance of 1,125% over the past three years, while Shopify was second at 846%. The new classification was a surprise, as the mining title has never appeared in the previous lists. Shopify ranked second in 2019, then number one last year. Investors must have seen the huge growth potential of the big name.
Classification change
The TSX30 features the best performing growth stocks over a three-year period. Most of the companies on the inaugural list are no longer part of the current crop of growth stocks. Canopy growth was number one in 2019, along with its industry peers Village farms International (second) and Aphria, now Tilray (sixth). None of the three weed stocks are on the 2021 list. Incidentally, Air Canada was in seventh place.
In 2020, Shopify took the top spot, followed by Ballard Power Systems and Cronos. Besides Shopify, Ballard and Cargo plane are the other names on the three editions of the list. Nearly a dozen mining stocks are on the 2021 list, including Capstone Mining (fifth) and SilverCrest Metals (ninth).
Real questions (16th), Absolute Software (24th), and TECSYS (26th) are the tech stocks that have joined Shopify. Goodfood Market and Real Matters should be on your watch list, as both are on the 2020 and 2021 lists. The only financial stock is kid (seventh).
Rank # 1
Aura Minerals is a $ 994 million gold and copper producer based in Miami, Florida. Mining stock is trading at $ 13.70 per share, and market analysts are forecasting a 53.9% rise to $ 21.50 over the next 12 months. If you had 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 metals projects. Currently, gold and copper production sites are located in Brazil, Honduras, Mexico and northern Arizona in the United States. The Aranzazu site in Mexico has been in continuous operation since 1962.
Aura has four growth plans with compelling economic prospects, according to management. Three are in Brazil and one in Colombia. This year can be seen as a year of recovery, given the clear improvement in the company’s performance. In the first half of 2021, net profit was $ 35.5 million, compared to a net loss of $ 13.7 million for the same period in 2020.
Notably, Aura generated US $ 64.1 million in net cash from operating activities, an increase of 346.9% year-over-year. The company said the second quarter result was a demonstration of stable operations. Total gold production, in particular, increased 68.9% from Q2 2020. Copper prices also rose 77% in the quarter.
Management expects further improvement in operations in the second half of 2021. However, Aura recognizes that fluctuations in the price of gold and copper may impact future profitability, operating cash flow and the financial situation.
Achievements
TMX Group launched the TSX30 program to share success stories across the market. Most of the companies on the list are growth engines, they say. Some names have disappeared from the list, replaced by new growth-oriented companies. The list simplifies the process of selecting growth investors.
Foolish contributor Christopher Liew has no position on any of the stocks mentioned. The Motley Fool owns stock and recommends CARGOJET INC., Shopify, Tecsys Inc., Village Farms International Inc and Village Farms International, Inc. The Motley Fool recommends Absolute Software Corporation, Goodfood Market Corp, Real Matters Inc and TMX GROUP INC. . / TMX GROUP INC. and recommends the following options: January 2023 long calls at $ 1,140 on Shopify and January 2023 short calls at $ 1,160 on Shopify.
