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Highlights

  • Shaw and Partners assigns BUY rating with a target price of AUD 3.14, implying 32.49% upside

  • Macquarie Research issues OUTPERFORM call with a AUD 3.10 target, indicating 30.80% potential gain

  • FY25 production of 301,664oz and A$207.8M in quarterly free cash flow likely to underpin investor confidence.

Ramelius Resources Ltd (ASX:RMS) has attracted BUY-side sentiment from top analysts, supported by record production results and exceptional financial performance for FY25. Notably, Shaw and Partners analyst Dorab Postmaster and Macquarie Research's Andrew Bowler have reiterated their BUY and OUTPERFORM ratings, respectively, suggesting upside potential of over 30% from current levels.

The company's shares closed 4.22% higher at AUD 2.47 on 8 July. Shaw and Partners has placed a target price of AUD 3.14 on the stock, while Macquarie Research set its estimate at AUD 3.10—representing a 32.49% and 30.80% upside, respectively, from the latest market price.

Production Surpasses Guidance, Boosting Financial Confidence

In FY25, Ramelius delivered a standout full-year gold production figure of 301,664 ounces, beating its upgraded guidance of 290,000–300,000 ounces. The June quarter alone contributed 73,454 ounces, also above the quarterly guidance range of 62,000–72,000 ounces.

This operational outperformance translated into exceptional free cash flow, with A$207.8 million generated in the June quarter alone. For the full year, underlying free cash flow reached A$694.9 million—more than double the A$315.8 million recorded in FY24. The company’s total cash and gold holdings stood at A$809.7 million as of 30 June 2025.

Ramelius has now delivered on its production and cost guidance for five consecutive years. Full-year all-in sustaining costs (AISC) are expected to land at the lower end of the revised guidance range of A$1,550 to A$1,650 per ounce.

BUY Ratings Driven by Operational Consistency and Strategic Growth

The company is in the final stages of a merger with Spartan Resources, expected to be completed by 31 July 2025. The acquisition is aimed at leveraging Spartan’s exploration strengths, particularly its high-grade, undeveloped gold project located near Ramelius' operations.

Macquarie analyst Andrew Bowler, who rated the stock as OUTPERFORM on 26 March 2025, noted the stock’s consistent delivery on guidance and favourable cost profile. Similarly, Dorab Postmaster of Shaw and Partners issued a BUY rating on 19 June 2020.

Outlook

With gold prices remaining favourable and Ramelius executing both operationally and strategically, investor sentiment continues to strengthen.