These ASX 200 gold stocks can rise 25% to 30%

Golden returns could be on offer with these shares according to Bell Potter.

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Although the gold sector has been booming this year, it doesn't necessarily mean that it is too late to invest.

That's the view of analysts at Bell Potter, which have just picked out two ASX 200 gold stocks that they believe can rise strongly from current levels.

Here's what the broker is saying about these miners:

Capricorn Metals Ltd (ASX: CMM)

Bell Potter is feeling very bullish about this gold miner and has just reiterated its buy rating with an improved price target of $6.50.

Based on its current share price, this implies a potential upside of 25% for investors over the next 12 months.

Its analysts like the ASX 200 gold stock due to the quality of is operations, its growth opportunities, and its strong balance sheet. The broker explains:

CMM is a sector leading gold producer with a strong balance sheet, clear organic growth options and a management team with an excellent track record of delivery. The MGGP continues to be advanced toward development and will position CMM as a ~270kozpa, top-10 ASX-listed gold producer – one of only a handful with all its assets in Australia which we see as strategically attractive. Our NPV-based valuation is up 6% to $6.50/sh and we retain our Buy recommendation.

Gold Road Resources Ltd (ASX: GOR)

Another ASX 200 gold stock that has been given the seal of approval by the broker is Gold Road Resources.

On Monday, its analysts retained their buy rating with an improved price target of $2.10. Based on its current share price, this suggests that a potential upside of over 30% is possible over the next 12 months.

The broker believes that recent share price weakness due to weather-related disruption has created a very attractive buying opportunity for investors. It explains:

GOR has underperformed the sector due to mining issues over the last two quarters. As the issues are now resolved, we expect a share price recovery, supported by gold price tailwinds.

In addition, it highlights that the company has its eyes on a highly attractive asset in North America. It adds:

GOR is participating in a sale process for a 40% stake in Greenstone Gold Mines (Ontario, Canada). Greenstone is a Gruyere lookalike, with a 10Mtpa processing plant, from which ~400kozpa of gold are planned to be produced over a 14- year mine life (40% attributable would be 160kozpa to GOR, doubling attributable gold production), with production to start in 2HCY24. We expect competition for Tier 1 gold assets to remain strong, so there is no guarantee of success. Currently, the 19.9% holding in DEG is valued at ~A$500m, which GOR could sell to fund a transaction, and the company has liquidity of ~A$300m. Accordingly, a transaction with the rumoured billion-dollar price tag is comfortably in reach, potentially with minimal equity dilution.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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