This ASX 200 gold stock could be a top buy after a 'transformational' year

With the gold price booming again, now could be a good time to buy the ASX 200 gold stock in this article.

This is especially the case after a "transformational" year according to the team at Bell Potter.

Which ASX 200 gold stock?

The stock in question is Alkane Resources Ltd (ASX: ALK).

Bell Potter was impressed with the company's performance in FY 2026, highlighting that it delivered record results and growth across all key metrics. It said:

ALK reported an FY26 financial result that delivered record results and substantial YoY growth across all key financial metrics, together with a maiden dividend of 2cps. This followed the merger with Mandalay Resources (MND:TSX), completed in August 2025 and consecutive quarters of record production from the combined portfolio. Key metrics included revenue of $936m (vs BPe $946m), EBITDA of $471m (vs BPe $473m), and NPAT $229m (vs BPe $238m). 

The maiden dividend of 2cps ($27m payout) was accompanied by the announcement of a share buyback of up to $50m, in a further commitment to returning capital to shareholders and a signal on the value ALK sees in its paper. EBITDA margins lifted from 36% to 50% YoY on higher gold and antimony prices, as well as the dilution of ALK's out-of-the-money hedge book. At end FY26, ALK held cash and bullion of $439m (vs $190m at completion of the MND merger) and no drawn bank debt. FY27 guidance was reaffirmed, for 163-177koz at AISC of A$2,900-$3,200/oz, implying steady production and ~5% higher costs YoY.

Time to buy

According to the note, in response to the results, Bell Potter has retained its buy rating on the ASX 200 stock with an improved price target of $2.15.

Based on its current share price of $1.85, this implies potential upside of 16% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

EPS changes in this report are: FY27: -3%; FY28: -2% and FY29: -5%, reflecting a lower antimony price, higher CAPEX and D&A over the medium term. We also incorporate a sustainable dividend into our modelled assumptions. ALK offers multi-mine gold and antimony exposure across three attractive jurisdictions with a strong balance sheet and available liquidity that provides a platform for growth. Our Target Price lifts 2% to $2.15/sh. Valuation metrics remain undemanding and we retain our Buy recommendation.

The post This ASX 200 gold stock could be a top buy after a 'transformational' year appeared first on The Motley Fool Australia.

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.

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