2 small-cap growth stocks that could still make you brilliantly rich

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Investing in the FTSE 100

With the FTSE 100 closing in on a new record high, it is becoming more difficult to find stocks with wide margins of safety. This is perhaps unsurprising, since many share prices are now trading at close to their highest-ever levels.

However, there are still a number of companies which could post impressive share price performance. You just have to look for them. Here are two smaller stocks that could fall into that category. While potentially riskier and more volatile than their large-cap peers, the upside is that they could also offer significant potential rewards over the long run.

Bright future

Reporting on Wednesday was Highland Gold Mining(LSE: HGM). The company announced its operating results for the third quarter of the year today and said production at its MNV, Novo and Belaya Gora projects was 71,767 ounces of gold and gold equivalent, versus 62,601 ounces in the same period of the prior year. This represents an increase of 14.6%, with its production in the first nine months of the year being 6.6% up on the same period of the previous year.

The company recorded an average realised gold price of $1,280 per ounce. It is on track to deliver total production of gold and gold equivalent at the upper end of its guidance range of 255,000-265,000 ounces for the full year.

Looking ahead, Highland Gold is forecast to post a rise in its bottom line of 35% in the current year, followed by further growth of 18% next year. This puts the stock on a price-to-earnings growth (PEG) ratio of just 0.5, which suggests it offers high growth at a very reasonable price.

Furthermore, with a dividend yield of 6.4% from a payout which is covered 1.6 times by profit, its income potential remains exceptionally high. With the potential for a higher gold price should global geopolitical risks increase, Highland Gold Mining could be a star performer in the long run.

Recovery potential

Also reporting on Wednesday was producer of titanium minerals and zircon Kenmare Resources(LSE: KMR). The company's third quarter was another record three months for its ilmenite production and this keeps it on track for its highest ever annual production. Chinese demand for ilmenite is improving again following a slower period in recent months. And with the zircon market having performed strongly and further price increases anticipated in the second half of the year, the company's outlook is relatively strong.

Looking ahead, Kenmare Resources is expected to move back into profitability in the current year. In 2018, it is forecast to almost double its earnings, which puts it on a PEG ratio of just 0.1. This suggests that now could be a good time to buy it ahead of what may prove to be a period of improving investor sentiment as the market begins to price in its improved financial performance.

Top growth stock

Despite this, there's another stock that could be an even better buy. In fact it's been named as A Top Growth Share From The Motley Fool.

The company in question could make a real impact on your bottom line in 2017 and beyond. It could help you to beat the FTSE 100 and generate high returns for your portfolio.

Click here to find out all about it - doing so is completely free and comes without any obligation.

Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.