ASX gold and mining companies have enjoyed a strong 2025.
The S&P/ASX 200 Industrials (ASX:XNJ) is up more than 12% for the year to date. Similarly, the S&P/ASX 200 Materials (ASX:XMJ) index is up more than 10%.
Following earnings season results, broker Macquarie has released fresh guidance on three ASX 200 mining stocks.
Let's see what the broker had to say.
Image source: Getty Images
Sandfire Resources Ltd (ASX: SFR)
Reporting highlights:
- 12% increase in copper equivalent production to 152,000 tonnes for the year
- Underlying EBITDA margin of 45%
- Operating cash flow of US$575 million increased by 55%
This global mineral exploration and development company, largely focused on copper, has enjoyed a share price rise of 34.80% for the year to date.
However broker Macquarie appears to believe this ASX 200 company's share price is now close to fair value.
The broker has a "neutral" rating and 12 month price target of $12.50 on this mining company.
This is slightly below yesterday's closing price of $12.55.
We retain our Neutral recommendation with SFR trading on a full valuation of 7.5x EV/Ebitda in FY26E, and although the maiden capital management framework (and potential for dividends) represents maturisation of the business, we see better value elsewhere.
Perseus Mining Ltd (ASX: PRU)
Reporting highlights:
- FY25 profit after tax of US$422 million, a 16% increase on FY24
- Produced 496,551 ounces of gold, which was at the 77th percentile of production guidance of 469,709 to 504,709 ounces
- Final Dividend 5.00 cents per share (A$)
The ASX 200 gold mining company rose more than 6% on Monday on the back of this news. It has seen its shares rise 54.02% for the year to date.
Macquarie has an overall optimistic view on this ASX 200 gold mining stock.
The broker said the FY25 result was in line on an underlying earnings basis but was mixed compared to MQe/VA below the D&A line. Net cash was in line while the final dividend was a solid beat to VA while the buyback was also renewed.
We make no change to our A$4.10/sh target price (50:50 blend of 1.3x NAV and 7.0x OCF, methodology unchanged).
Macquarie has an "outperform" rating and 12 month price target of $4.10.
From yesterday's closing price of $4.02, this indicates a 2% upside.
Westgold Resources Ltd (ASX: WGX)
- 90% revenue increase to $1,360M (FY24: $716M)
- 84% increase in EBITDA to $498M (FY24: $271M)
- 33% increase in dividends to 3cps (FY24: 2.25cps)
This ASX 200 mining stock is up 28.37% for the year to date, which includes a 7% jump yesterday.
Macquarie has a positive view on the mining company with an "outperform" rating and 12 month price target of $3.80 on Westgold Resources shares.
This indicates a 2.83% upside from yesterday's closing price.
The broker has raised its price target 6% to A$3.80 on longer mine life assumptions at Bluebird which is a key gold mining operation owned by Westgold Resources located in the Meekatharra Goldfield in Western Australia.
The target price raise comes with EPS upgrades (~60%) expected in FY30–31E. While underlying EBITDA beat forecasts, near-term upside hinges on successful delivery, and the upcoming three-year production guidance in September.
