Ramelius Resources (ASX:RMS) is expected to reverse course in fiscal 2027 after ranking as the second worst performing gold producer on the Australian bourse year to date, Euroz Hartleys said in a note on Wednesday.
The investment firm said it is confident that throughout fiscal 2027, the company's superior cashflow outlook compared with peers will drive a re-rating, despite flat production and elevated capital expenditure.
Even after the AU$131 million stamp duty payment related to the Spartan acquisition due in July, the firm expects ongoing cash flow and proceeds from the Edna May sale, representing AU$210 million in cash and AU$90 million in equity, to support the balance sheet.
The brokerage forecasts fiscal 2027 production of 212,000 ounces at AU$1,943 per ounce, compared with consensus forecast of 216,400 ounces at AU$2,185 per ounce.
Euroz Hartleys maintained a buy rating and price target of AU$5.27.