Fortunately in the current environment, there are lots of ASX gold stocks for Australian investors to choose from on the local share market.
One that Bell Potter thinks has just become an even stronger buy is named below. Let's see why the broker has just upgraded its valuation.
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Which ASX gold stock?
The gold miner that Bell Potter is bullish on is Alkane Resources Ltd (ASX: ALK).
Following its merger with Mandalay Resources last year, the company owns the Costerfield gold-antimony mine in Victoria, the Björkdal gold mine in Sweden, and the Tomingley Gold Operation in Australia.
Bell Potter was very pleased with the ASX gold stock's performance in the second quarter, with its costs and production slightly better than expected. It said:
ALK released its December 2025 quarterly report, for which group production and costs tracked ahead [of] our forecasts and guidance. Group production was 43,633oz gold equivalent (Aueq) inclusive of 267t antimony (Sb) for the first full quarter of consolidated production from the merged ALK and Mandalay assets. This compared with our forecast of 41,291oz Au plus 227t Sb and guidance of ~42koz Aueq for the full quarter.
All-In-Sustaining-Costs (AISC) were A$2,739/oz, marginally below our forecast of A$2,780/oz and within guidance A$2,600-A$2,900/oz. Production improved at all assets, with higher grades a feature. AISC were well controlled and benefitted from a high by-product credit contribution on higher antimony prices.
Overall, the broker believes management deserve a lot of credit for this strong performance. It adds:
This is a very strong quarterly report and a great first full quarter of operations and integration for ALK. The improved operational performances across the asset portfolio through a period of change are a credit to ALK, from its mine operators to top level management.
Time to buy
According to the note, the broker has retained its buy rating on this ASX gold stock with an improved price target of $1.95 (from $1.40). Based on its current share price of $1.59, this implies potential upside of 23% for investors over the next 12 months.
This valuation upgrade has been driven largely by significant increases to its earnings per share (EPS) estimates to reflect higher gold price forecasts. It explains:
EPS changes in this report are: FY26: +37%; FY27: +69% and FY28: +58%, largely driven by our increased gold price forecasts. ALK offers multi-mine gold and antimony exposure, a strong balance sheet and platform focussed on organic and inorganic growth options. With this update our NPV-based target price increases 39%, to $1.95/sh,.
