The gold price has been on fire over the past 12 months, which has been very good news for many ASX mining stocks
The better news is that it is not too late to gain exposure to the precious metal.
In fact, the team at Macquarie believes that one mining stock could still deliver market-beating returns over the next 12 months.
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Which ASX mining stock?
The stock that Macquarie is tipping as a buy to its clients is Resolute Mining Ltd (ASX: RSG).
It is an Africa-focused gold miner that owns the Syama gold mine in Mali and the Mako gold mine in Senegal.
According to the note, Macquarie was relatively pleased with the ASX mining stock's performance during the second quarter of FY 2025. It notes that its production was in line with expectations thanks to the Mako gold mine. It said:
Prod'n of 76koz was 0%/20% above MQe/Visible Alpha (VA) consensus, with a strong quarter at Mako offset by weakness at Syama. RSG noted explosive supply-chain issues (political disruption) in Mali continue to have an impact on Syama's output. AISC of US$1,668/oz in line with both MQe/VA but higher at Syama and lower at Mako.
In light of this, the broker believes that the company is on track to achieve the mid-point of its production guidance range in FY 2025. It said:
RSG retains CY25 guidance of 275-300koz (MQe: 287koz) at a group AISC of US$1,650-1,750/oz (MQe: US$1,773/oz). YTD production is 53% of guidance mid-point, while YTD AISC of US$1,688/ oz is within range. Syama/Mako are tracking toward the bottom/top of their respective guidance ranges. Minimal change to our CY25 group production/AISC estimates, despite asset-level variability.
Should you invest?
Macquarie sees plenty of value on offer with this ASX mining stock.
The note reveals that its analysts have retained their outperform rating and 75 cents price target on its shares. Based on its current share price of 65 cents, this implies potential upside of 15% for investors over the next 12 months.
Commenting on its outperform rating, the broker said:
Outperform. 2Q production and AISC were in line with MQe/VA consensus. While we adjust our asset-level forecast, our CY25E is materially unchanged. We view the Doropo DFS as a key item to watch.
Catalyst: i) Regulatory stability in Mali, ii) delivery of the (pushed back) Syama expansion, iii) extension of Mako mine life, iv) Doropo DFS (4Q CY25).
