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Ramelius Resources stock rating cut to Underperform by RBC on production concerns

Published 10/10/2025, 09:26
Ramelius Resources stock rating cut to Underperform by RBC on production concerns
GC
0.89%
RMS
1.27%

Investing.com - RBC Capital downgraded Ramelius Resources (ASX:RMS) (OTC:RMLRF) from Sector Perform to Underperform while raising its price target to AUD2.80 from AUD2.70.

The downgrade comes as RBC analyst Alexander Barkley cited concerns about falling production that has stretched the company’s near-term valuation. The firm also noted that market consensus could be overestimating early production at Dalgaranga and overall group production.

RBC specifically highlighted potential discrepancies in production estimates for FY27, where RBC estimates 175,000 ounces versus a consensus of 205,000 ounces, and for FY28, where RBC projects 232,000 ounces compared to consensus expectations of 332,000 ounces.

While acknowledging the strategic merit of Ramelius’s Spartan acquisition, RBC expressed concern that market expectations for "strong concurrent delivery of multiple projects" could create downside risk potential for the stock.

The new price target of AUD2.80 suggests approximately 30% downside potential, with RBC indicating it prefers alternative gold exposure in the sector. The firm also cautioned that upcoming December quarter project studies could miss expectations by potentially being conservative.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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