Regis Resources Ltd (ASX: RRL) shares have been among the best performers on the Australian share market over the past 12 months.
During this time, the gold miner's shares have risen 145%.
The good news is that analysts at Bell Potter don't believe it is too late to invest and see potential for market-beating gains in 2026.
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What is the broker saying?
Bell Potter was pleased with Regis Resources' performance during the second quarter. It highlights that the gold miner delivered production ahead of expectations and costs that were largely in line.
In light of this, the broker believes the company is well-positioned to achieve its guidance in FY 2026. It said:
RRL has released its December 2025 quarterly report, for which group production lifted ahead of our expectations and costs were broadly in-line. Overall, it was a solid quarter with RRL well placed to meet FY26 guidance and continue to build on its track record of consistent delivery. For the quarter, RRL achieved group production of 96,556oz at AISC of A$2,839/oz (vs BPe 92,158oz at AISC of A$2,718/oz).
Operating cash flow for the quarter of $419m was up 44% from $290m QoQ, demonstrating RRL's exceptional leverage to the gold price. RRL achieved an average realised price of A$6,436/oz, up 19% QoQ from A$5,405/oz. This drove a further lift in cash generation, with $255m added to the balance sheet (equivalent to $2,640/oz produced, vs $1,750/oz QoQ). RRL holds cash of $930m (from $675m QoQ) after the payment of $38m in dividends and remains debt free.
Dividends incoming?
In light of its strong performance and significant cash generation, Bell Potter thinks that Regis Resources could increase its dividends. It adds:
RRL's accelerating cash generation, $930m cash balance, no debt and no major budgeted capital projects shifts the focus to shareholder returns. RRL recommenced dividend distributions at end FY25. It will publish a formal capital management policy with the 1HFY26 results to be released in February 2026. We consider the likelihood of increased dividends to be high.
Major upside
According to the note, the broker has retained its buy rating on Regis Resources shares with an improved price target of $8.85 (from $7.05).
Based on its current share price of $7.58, this implies potential upside of 17% for investors over the next 12 months.
The broker also expects a 2% dividend yield, which boosts the total potential return to 19%.
Commenting on its buy recommendation, Bell Potter 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 26%, to $8.85/sh. We retain our Buy recommendation.
