For Canadian investors aiming to outperform the broader market, building a diversified portfolio of steadily growing companies across sectors is key. If you have capital to deploy and are searching for significant opportunities, the following two growth stocks listed on the Toronto Stock Exchange (TSX) deserve a close look.
Canada-based gold miner B2Gold, with a market capitalization of approximately $8.6 billion, has seen its stock soar 87% over the past 12 months. The company delivered strong third-quarter results, with production exceeding expectations at its Fekola, Masbate, and Otjikoto mines.
However, operational challenges at its newly commissioned Goose project forced the company to slash the asset’s 2025 production guidance. Benefiting from elevated gold prices, B2Gold reported adjusted earnings of US$0.14 per share and generated US$180 million in operating cash flow before working capital adjustments.
The Goose mine achieved commercial production in October, just three months after its inaugural gold pour. However, crushing capacity shortfalls and delays in accessing higher-grade ore from the Umwelt underground deposit led to revised guidance of between 50,000 and 80,000 ounces for the asset.
The company has deployed temporary mobile crushing units while permanent modifications to the primary crusher and secondary grinding circuits are being designed, with completion expected in 2026. Underground mining at Umwelt commenced in late October and is expected to ramp up quickly through year-end.
Management has maintained near-term targets of approximately 250,000 ounces in 2026 and 330,000 ounces in 2027, estimating an average annual output of 300,000 ounces over the initial six years.
In a further growth move, B2Gold approved the construction of the Antelope underground deposit in Namibia. Pre-production capital costs were optimized to US$105 million, down from the preliminary economic assessment estimate of US$129 million. Production from Antelope is expected to boost Otjikoto’s annual output to roughly 110,000 ounces and extend the mine’s life into the 2030s.
B2Gold ended the quarter with US$367 million in cash after drawing US$200 million on its revolving credit facility to manage working capital timing. Analysts project the company’s adjusted earnings per share to expand from US$0.52 in 2025 to US$1.02 in 2027. Even trading at eight times forward earnings, the stock has the potential to nearly double over the next 12 months.
With a market cap of $146 million, Cardiol Therapeutics is a clinical-stage life sciences company focused on developing anti-fibrotic and anti-inflammatory therapies for heart diseases.
The company’s lead product candidate, CardiolRx, is currently in a Phase III multinational, randomized, double-blind, placebo-controlled study evaluating its efficacy and safety in acute myocarditis and for the treatment of recurrent pericarditis. Cardiol is also developing CRD-38, a subcutaneous injection for heart failure treatment, currently in the preclinical stage.
As a pre-revenue company, Cardiol is forecast to generate revenue of $51.3 million in 2028, growing significantly to $115.2 million in 2029. Analysts also expect the company to turn free cash flow positive by 2028, with FCF projected to improve from $9 million in 2028 to $51 million in 2029.
If Cardiol stock is valued at 10 times free cash flow, its market value could more than triple within the next four years.
Both B2Gold and Cardiol Therapeutics offer substantial upside potential for shareholders looking toward 2026 and beyond. For investors with a higher risk tolerance, these companies represent high-growth opportunities in distinct sectors. Additionally, B2Gold offers diversification benefits, as gold has traditionally been viewed as a hedge against inflation and economic uncertainty.
Of course, high potential returns are accompanied by significant risks. B2Gold faces challenges inherent in mining operations and commodity price volatility. As a clinical-stage biotech firm, Cardiol’s success is entirely dependent on the clinical development and future commercialization of its yet-to-be-approved therapies. Investors should carefully consider their risk tolerance and conduct thorough due diligence before making any investment decisions.
