As reporting season kicks off, the team at Shaw and Partners have had a look at the mining sector and come up with four stocks they believe could outperform now and into the future.
In particular focus, perhaps not surprisingly, is the gold sector, with the price of the precious metal hitting record highs in Australian dollar terms.
The Shaw team went on to say:
The favourable environment is further bolstered by the sector's relatively clean hedge books, operational efficiency and disciplined cost control. Bullion has surged to unprecedented levels, particularly in the latter half of 2025 and early 2026, with the average price in the six months to January 2026 up 70% compared to the same six-month period prior. For domestic producers, this translates into even higher revenues due to a favourable AUD/USD exchange rate and significantly expanded profit margins.
The Shaw team said that inflation has been a concern, but "the gold sector has demonstrated remarkable cost discipline'', with all-in sustaining costs of production relatively stable over the past four quarters.
So who do they like in the sector:
Ramelius Resources (ASX: RMS)
The Shaw team said that Ramelius is embarking on a heavy investment phase over the next four years, "yet our revised gold price outlook suggests they will maintain a robust upward trajectory in liquidity, with free cash flow yields tripling by 2030''.
Shaw believes the market is underestimating the production potential at the company's Dalgaranga project, "and given management's history of conservative forecasting, further discoveries at Cue or Magnet could easily push performance beyond current expectations''.
Shaw has a $6.50 target price on Ramelius compared with $4.34 currently.
Genesis Minerals (ASX: GMD)
The Shaw team said that Genesis' fourth quarter was "robust" with the company eliminating all debt and maintaining $629 million in liquidity.
They added:
While FY26 production guidance remains unchanged, growth capex increased to $220-$240m as Tower Hill development is fast-tracked. GMD is currently tracking toward the top of its production range and the lower end of cost estimates.
Shaw has a $10 price target on Genesis Minerals compared with $6.65 currently.
And outside of gold companies, Shaw and Partners likes the following.
AIC Mines (ASX: A1M)
The Shaw team said AIC is undergoing a "transformational'' 2026, "recently achieving a major milestone by reaching the high-grade Jericho copper deposit via a new 2.4km underground access drive''.
This development, they said, supports the ongoing expansion of the company's processing plant, with the company aiming to achieve annual production of more than 25,000 tonnes of copper.
Shaw has an 80-cent price target on AIC compared with 55 cents currently.
Paladin Energy (ASX: PDN)
This uranium producer is rapidly scaling up production, Shaw said, with a 16% quarterly increase in the December quarter at its Langer Heinrich mine in Namibia.
This meant that the company was likely to track close to the upper end of its production guidance of 4.4 million pounds.
Paladin also recently completed the acquisition of Fission Uranium, "adding the high-grade Patterson Lake South project in Canada to its global development pipeline''.
Shaw has a $10.40 price target on Paladin shares compared with $11.01 currently.
The post Four mining stocks to watch ahead of reporting season appeared first on The Motley Fool Australia.
Motley Fool contributor Cameron England 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.
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