Watch this ugly duckling ASX 200 gold stock in 2026

Some brokers see a further 50% upside for the soaring gold share.

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Key points

  • The ASX 200 gold stock has surged to a record $4.20 after a 102% gain last year, transforming into an $8bn ASX heavyweight.
  • Ramelius' Spartan/Dalgaranga acquisition, including the high-grade Never Never deposit, has turbocharged scale, resources, and ambition.
  • Strong cash flow, buybacks, higher dividends, and broker price targets around $4.70, with some seeing 50%+ upside for 2026.

For years, this ASX 200 gold stock sat awkwardly at the gold table. Ramelius Resources Ltd (ASX: RMS) was not quite a dud, but rarely the star.

Now the gold mining share has climbed to an all-time high to close Friday at $4.20, starting the new year 3.4% higher. This gain comes on top of last year's surge of 102%.

As a result, the underperforming small speculative Perth miner is now an $8 billion company.

Intriguing mid-tier miner

The ASX 200 gold stock, like many of its rivals, soared on the back of record gold prices. Gold reached record highs in 2025 as lower interest rates in most major economies boosted its performance. 

Ramelius is a Western Australian gold producer through and through. Its engine rooms are Mt Magnet and Edna May, supported by a stable of satellite pits and underground operations.

However, Ramelius Resources has also quietly rebranded itself and is evolving into one of Australia's more intriguing mid-tier gold producers. At its core, the company mines, processes, and sells gold from a range of WA operations.

Never Never deposit

The real plot twist for this ASX 200 gold stock came with the acquisition of Spartan Resources and its Dalgaranga Gold Project. Suddenly, Ramelius wasn't just steady — it was ambitious.

Dalgaranga brings scale, high-grade optionality and the tantalising Never Never and Pepper deposits. These have quickly become one of the more talked-about discoveries in the mid-tier gold space.

The ASX 200 gold stock has grown its mineral resources every year since 2016 and continues to spend strongly on exploration, with a budget of $80 to $100 million earmarked for exploration this financial year.

Buy-now gold share

That's why Ramelius is suddenly a buy-now candidate. Management is openly targeting a move towards 500,000 ounces a year by the end of the decade.

That would push Ramelius out of the awkward middle ground and into proper mid-tier territory. A place where institutions start taking you seriously and valuation multiples tend to behave better.

The strengths are stacking up. Ramelius runs a concentrated, low-risk WA portfolio, generates strong operating cash flow and now boasts a much larger resource base post-merger.

Of course, it's not all glitter. Costs have crept higher, as they have across the sector. Integrating Dalgaranga won't be instant or painless, and execution risk remains the biggest swing factor. And like every gold miner, Ramelius lives and dies by the gold price in the short term.

So, what do analysts think?

The tone has shifted. Brokers are warming to the growth story.

The ASX 200 gold stock enjoyed a big boost last month after announcing it intends to buy back up to $250 million in shares over the next 18 months. The Ramelius board also revealed an increase in the minimum dividend to 2.0 cents per share each year.

That's why most brokers are sporting strong buy recommendations and 12-month target prices clustered around $4.70. This points to an 11% upside.

However, the most optimistic analysts see potential gains for the ASX 200 gold stock of over 50% in 2026.  

Motley Fool contributor Marc Van Dinther 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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