This ASX gold stock is up 80% YTD and tipped to continue!

This broker believes this golden stock isn't finished yet.

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Key points

  • Ramelius Resources has benefited from record-setting gold prices, with shares up 79.15% year to date. 
  • The company reported record financial results for FY25, including a net profit of A$474.2M and substantial increases in EBITDA, earnings per share, and operating cash flow, solidifying its position as a high-margin producer.
  • Morgans has re-initiated coverage on Ramelius Resources with an accumulate rating. 

It appears the 2025 gold rush isn't finished as gold stocks continue to reward investors. 

Last week, bullion notched a new record high of US$3,766.59 (AU$5,688) per ounce.

The commodity price is now 40% higher than January this year. 

Many investors might be kicking themselves for not buying gold stocks earlier in the year. 

However, Morgans has re-initiated coverage on one gold producer that could still have more room to run. 

Let's see what the broker had to say. 

Ramelius Resources Ltd (ASX: RMS)

Ramelius Resources is a gold exploration and production company with exploration activities focused in Western Australia. The company also explores for base metals. Its projects include the Edna May Gold Mine and the Mount Magnet Gold Mine Project. 

Its share price is up approximately 79.15% since the start of the year, riding the tailwinds of record-setting gold prices. 

At the end of August, the company also released FY 25 results, which included: 

  • Record net profit after tax of A$474.2M (FY24: A$216.6M), up 119%
  • Record EBITDA of A$818.6M (FY24: A$451.3M), up 81%
  • Record earnings per share of 41.1 cents (FY24: 19.5 cents), up 111%
  • Record operating cash flow of A$856.4M (FY24: A$445.5M), up 92%
  • Record net cash and bullion of A$809.7M (FY24: A$446.6M), up 81%

Speaking on the outstanding year, Ramelius Managing Director, Mark Zeptner, said:

The record gold production of 301,664 ounces in FY25 has resulted in record financial performance on all metrics.

Our industry leading metric of A$2,304 generated in free cash flow from every ounce produced cements our position as a high-margin producer and demonstrates our commitment to quality ounces and high-grade deposits.

What did Morgans have to say?

Morgans rates this ASX gold stock as their top gold producer pick.  

RMS is our preferred gold pick in the ASX gold producer space, underpinned by consistent cash generation, operational performance, a defined growth pipeline at Dalgaranga (acquired via ASX.SPR) and the 3.2Moz Au Rebecca-Roe project.

The broker said this ASX gold stock's proven ability to maintain margins, combined with SPR's high-grade resources and infrastructure, supports sustained free cash flow. 

Overall, RMS is seen as holding a competitive edge over mid-tier peers through its mix of operating expertise, ore quality, growth projects, and disciplined capital management.

The broker has re-initiated coverage on Ramelius Resources with an accumulate rating and price target of A$4 per share. 

From yesterday's closing price of $3.78, this indicates a further upside of 5.82%. 

Motley Fool contributor Aaron Bell 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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