This ASX 200 gold stock jumped 187% in 12 months: Buy, sell, or hold?

ASX 200 gold stocks have had a mixed performance so far in 2026. Some have surged to record highs, others have stagnated, and some have tumbled.

But this ASX 200 gold stock has outperformed the rest, and it doesn't look like the rally is over yet.

Minerals 260 Ltd (ASX: MI6) shares have rocketed 187% higher over the past 12 months, to 80.5 cents a piece at the time of writing.

Its annual share price gain puts it in first place as the best-performing ASX 200 gold stock, and the second-best performer across the entire S&P/ASX 200 Index (ASX: XJO) over the past 12 months.

For context, the ASX 200 Index is tracking about 2% lower than it was 12 months ago.

What caused the enormous rally of Minerals 260 shares?

The company's huge resource growth and substantial capital has been the key driver behind the share price surge.

The company has rapidly scaled its gold resource base at its 100%-owned Bullabulling Gold Project, near Kalgoorlie in Western Australia, through several successful drilling programs.

Just yesterday, in a quarterly activities and cash flow report for the September quarter, the gold miner confirmed that its initial ~26,000m grade-control drilling program indicated overall gold grades sufficient to underpin its 6.2Moz Mineral Resource Estimate (MRE).

Its definitive feasibility study (DFS) is also on track for the first quarter of 2027.

The company also confirmed that it has additional drilling programs planned for late 2026 and 2027, focused on further upgrading its existing resources and exploring new zones. 

New exploration areas include the Endeavour Prospect Maiden Resource Target in the same area as Bullabulling, and the Kraken-to-Endeavour Corridor, which sits within the same Bullabulling exploration zone. 

The company also confirmed that it has secured $170 million in royalty funding and a $30 million equity investment with Franco-Nevada. This brings Franco-Nevada's total investment in Minerals 260 to $420 million, their largest investment in Australia. 

Gold prices have also played their part

Higher gold prices this year have also helped to significantly boost Minerals 260's share price. 

According to Trading Economics, gold peaked at around US$5,278 per ounce in February. While the price of the precious metal has slid lower to around US$4,060 per ounce at the time of writing, that's still around 3% higher than 12 months ago and nearly double gold's trading price through 2024.

Is the ASX 200 gold stock a buy, sell, or hold?

According to expert forecasts, we'll see a lot more upside out the ASX 200 gold shares over the next 12 months as the company continues to scale up its resources.

Market Index data shows all brokers have a strong buy rating on the shares. The $1.35 average target price implies an upside of around 75%.

According to TradingView data, some think the shares could climb even higher. All analysts have a buy/strong buy rating on the shares. The average $1.39 target price implies a potential 72% upside at the time of writing. The $1.57 maximum target price implies the shares could jump 95% over the next 12 months.

The post This ASX 200 gold stock jumped 187% in 12 months: Buy, sell, or hold? appeared first on The Motley Fool Australia.

Motley Fool contributor Samantha Menzies 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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