CHAR Technologies And 2 Other Canadian Growth Stocks To Watch

With markets again pricing in a possible US Fed rate hike in December, cash on the sidelines faces a tougher hurdle to grow. Higher rates reward patience, but they also punish investors who stick only to low yielding accounts while inflation keeps nibbling away. This is where fast growing Canadian businesses with strong internal growth plans come in. This article highlights three such high conviction stocks from our screener.

The three examples in this article are a starting sample only. The full High Growth High Conviction screen surfaced 6 more Canadian companies with equally compelling narratives that are not covered below. To see the rest of the field and analyze them side by side, head straight into the High Growth High Conviction screener

CHAR Technologies (TSXV:YES)

CHAR Technologies focuses on turning woody materials and organic waste into renewable natural gas, green hydrogen and biocarbon products like SulfaCHAR and CleanFyre. It currently records about CA$3 million in revenue, mainly from pollution and treatment control products, and carries a market cap near CA$29 million.

CHAR Technologies fits within the High Growth High Conviction theme through its push into renewable natural gas and green hydrogen. This is backed by earnings forecasts that point to rapid improvement but are built on a small revenue base and a short cash runway. Investors watching this stock are essentially monitoring how the situation evolves when one crucial funding and execution pressure is resolved.

When that funding pressure finally breaks, you will want the full story, so go straight to the 2 key rewards and 3 important warning signs (1 is major!) for what could be changing under the surface.

Cambria Gold Mines (TSXV:CAMB)

Cambria Gold Mines is a Vancouver based explorer focused on precious and base metals, with its growth story anchored to the 100% owned Premier Gold project near Stewart, BC, an advanced development asset that underpins a market cap of about CA$264 million.

Forecast earnings growth of 85.25% a year and revenue growth of 79.8% a year tie Cambria Gold Mines directly to the High Growth High Conviction theme. However, the business is still unprofitable and relies on external funding, so the payoff depends on what happens when Premier moves from promise toward production.

As Premier edges toward that inflection point, review the 2 key rewards and 2 important warning signs (2 are major!) to see how growth expectations compare with funding pressure and execution risk.

Allied Gold (TSX:AAUC)

Allied Gold operates producing and development stage gold and silver mines in Africa, tied directly to the High Growth High Conviction theme through its flagship Sadiola project in Mali. Recent revenue is anchored in the Sadiola mine at about $746 million, with Bonikro at roughly $455 million and Agbaou near $345 million, supporting a market value of about CA$4.6b.

Allied Gold sits in this High Growth High Conviction screen as a concentrated bet on a producer aiming to scale output and lower costs at the same time, with the flagship Sadiola project and the Kurmuk build giving investors a clear operational scoreboard to track.

"Capital already secured from the minority investment lifts Allied Gold’s cash position to just under US$0.5b, creating room for a more aggressive timetable on Kurmuk completion and Sadiola expansion than many models assume. The 20 year US$0.04 per kWh power agreement for Kurmuk and the shift to a solar plus modern diesel power solution at Sadiola create a low cost power platform that can support plant optimizations and throughput increases without matching rises in energy expense."

This raises the question of what happens if that expansion and cost profile hold while one less visible constraint on future production and margins quietly eases.

If that constraint is easing in the background, read the full narrative for Allied Gold to see whether Allied Gold’s growth story is quietly accelerating beyond today’s power and funding headlines.

Seeking Alternatives Before Momentum Flies

Fresh ideas move first. By the time every screen is crowded, the best entry points are gone. Scan these focused shortlists while they are still under the radar for now and get in early.

• Track early income plays that aim to keep yields above inflation with the 3 dividend fortresses before prices move and the most attractive entry points are caught by faster buyers.
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