If you want to gain exposure to the sky-high gold price, then Regis Resources Ltd (ASX: RRL) shares could be worth considering.
That's the view of analysts at Bell Potter, which highlight that this ASX 200 gold stock is "rolling in dough" right now.
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What did the broker say?
Bell Potter was relatively pleased with the company's performance in the first quarter, noting that it was largely in line with expectations. It said:
RRL has released its September 2025 quarterly report, broadly in-line with our expectations. Group production was marginally lower than our forecasts and AISC marginally higher, but overall, it was a solid quarter with RRL well placed to meet FY26 guidance. For the quarter, RRL achieved group production of 90,361oz at AISC of A$2,861/oz, compared with our forecast of 92,158oz at AISC of A$2,705/oz. Overall it was a consistent performance that has further reinforced a track record of delivery to guidance that RRL is rebuilding in the market.
The broker also points out that its fully unhedged exposure to the gold price means that it is generating significant cash flow right now. It expects this to strengthen its balance sheet, providing flexibility growth and shareholder returns.
Bell Potter also sees potential for earnings upgrades in the near term. It adds:
The consistent production and cost performance saw RRL continue to benefit from its fully unhedged exposure to the gold price, with operating cash flow for the quarter of $290m up 12% from $260m qoq. The addition of $158m equates to a free-cash-flow margin of 35%, illustrating the extraordinary profitability of the current market.
Even following the recent gold price correction, the spot price is ~A$900/oz higher than RRL's average received price for the September quarter. We expect RRL's balance sheet to continue to strengthen and provide significant flexibility on growth and shareholder returns. We also see upside potential for earnings upgrades, including compared with our own forecasts.
Time to buy this ASX 200 gold stock
According to the note, Bell Potter has put a buy rating and $7.05 price target on Regis Resources shares.
Based on its current share price of $6.15, this implies potential upside of almost 15% for investors over the next 12 months.
Bell Potter also expects a 2% dividend yield in FY 2026, which boosts the total potential return closer to 17%. It concludes:
We remain attracted to RRL's all-Australian, multi-mine asset portfolio, its demonstrated leverage to the gold price, highly competitive cash generation and its fully unhedged, debt free position. Our NPV-based valuation lifts 12%, to $7.05/sh. We retain our Buy recommendation.
