This buy-rated ASX 200 gold stock has $1 billion in cash

It has been a busy period for ASX 200 gold stocks, with countless quarterly results hitting the wires.

One that has caught the eye of analysts at Bell Potter is Regis Resources Ltd (ASX: RRL).

The broker highlights that after another solid quarter, the gold miner is swimming in cash with a balance now over $1 billion.

What is the broker saying about this ASX 200 gold stock?

Bell Potter notes that Regis Resources delivered production that was a touch softer than expected during the quarter due to the Tropicana operation.

However, the broker believes the ASX 200 gold stock can still achieve its guidance in FY 2026. It said:

RRL has released its March 2026 quarterly report, for which group production was slightly below our forecasts and dropped off following a strong December 2025 quarter. At Duketon, production was a slight beat on our numbers, offset by higher costs. At Tropicana, production was a slight miss offset by lower costs. For the quarter, RRL achieved group production of 90,592oz at AISC of A$2,807/oz (vs BPe 92,158oz at AISC of A$2,731/oz). Overall, it was a solid quarter leaving RRL well placed to meet FY26 guidance and built further on its track record of consistent delivery.

However, the highlight of the quarter was its strong cash generation, which was underpinned by its unhedged exposure to a rising gold price. Bell Potter commented:

RRL’s unhedged exposure to a rising gold price has delivered continued high free cash flows and balance sheet strength. Operating cash flow for the quarter of $422m (vs $419m QoQ) benefitted from a higher gold price offsetting lower production. RRL achieved an average realised price of A$6,977/oz, up 8% QoQ. RRL added $198m to the balance sheet (vs $255m QoQ), or A$2,185/oz for the quarter (vs A$2,640/oz QoQ). RRL holds cash of A$1,128m (from A$930m QoQ) after a lumpy cash tax payment of $92m and remains debt free. Post quarter end RRL paid 15cps ($114m) in dividends.

Should you invest?

According to the note, Bell Potter has retained its buy rating on the ASX 200 gold stock with an improved price target of $9.45 (from $9.35).

Based on its current share price of $7.45, this implies potential upside of 27% for investors over the next 12 months.

In addition, the broker is expecting a big dividend increase, providing an above-average dividend yield of 4.6% over the period.

Commenting on its investment thesis, Bell Potter said:

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 1%, to a rounded $9.45/sh. We retain our Buy recommendation with forecast dividends supporting shareholder returns.

The post This buy-rated ASX 200 gold stock has $1 billion in cash appeared first on The Motley Fool Australia.

More reading

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• What did ASX gold shares Regis Resources, Perseus, and West African report today?
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• Why is everyone talking about Regis Resources, Lynas and Rio Tinto shares on Tuesday?
• ASX 200 share leaps 8% as gold rally drives cash pile past $1.1 billion

Motley Fool contributor James Mickleboro 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.