Regis Resources Ltd (ASX: RRL) shares have been on fire over the past 12 months.
During this time, the ASX 200 gold stock has rocketed 150% higher.
This means that a $10,000 investment a year ago would now be worth approximately $25,000 today.
Can its shares keep rising or have they now peaked? Let's see what analysts at Bell Potter are saying.
What is the broker saying about this ASX 200 gold stock?
Bell Potter notes that it has recently taken part in a site visit to the Duketon Gold Project and the Tropicana Gold Project.
It highlights that management is now turning its focus underground for gold. It said:
The trip encompassed tours of the open-pit operations, underground mines, process plants and core sheds at both projects. Takeaways primarily relate to the increasing focus on underground operations as open-pit mines come to the end of their lives.
The good news is that the broker sees potential for its underground mines to support production over the long term. It adds:
In the absence of new discoveries, we expect open-pit mining to be largely complete by 1HFY29 at both Duketon and Tropicana. Both projects are targeting the development of 3-4 underground operations to sustain production over the longer term. At Duketon we anticipate this to be in the range of 160-240kozpa and at Tropicana in the range of 220-260kozpa.
Both projects are highly prospective for underground Resource growth, particularly Tropicana where the deepest intersections demonstrate a down-plunge extent of 2.4km. Both projects also have a demonstrated track record of Resource growth, conversion and replacement. Post completion of open-pit mining, we see an opportunity for RRL to acquire the 70% balance of Tropicana, with it potentially becoming non-core to AngloGold.
Can its shares keep rising?
According to the note, its analysts feel that the ASX 200 gold stock is close to peaking.
This morning, the broker has retained its hold rating on Regis Resources shares with an improved price target of $4.82.
Based on its current share price of $4.62, this implies modest upside of 4.3% for investors over the next 12 months.
The broker concludes:
EPS changes in this report are: FY25: -6%, FY26:-7% and FY27: -7%. We remain attracted to RRL's all-Australian, multi-mine asset portfolio, its demonstrated leverage to the gold price, sector leading cash generation and its fully unhedged, debt free position. Our NPV-based target price lifts 2%, to $4.82/sh. We maintain our Hold recommendation.
