UBS has downgraded Regis Resources to a “sell” rating, following a recent surge in the company’s share price. The financial services firm indicated that it sees greater potential in other mid-cap growth-oriented companies within the sector. Regis Resources is an Australian gold producer with operations in Western Australia and New South Wales. The company focuses on gold mining and exploration activities.
Analyst Levi Spry noted that Genesis Minerals, Perseus Mining, and Vault Mineral present more compelling opportunities for investors. Concurrently, SSR Mining has been downgraded to a ‘neutral’ rating, also driven by recent share price appreciation. These adjustments reflect UBS’s evolving perspective on the relative attractiveness of various players in the resources market.
In addition to the rating changes, UBS has revised its forecast for gold prices. The firm now anticipates that gold will average US$3825 per ounce this year. However, it expects prices to decline to US$3350 by 2028.
UBS projects a peak gold price of US$3900, which, at the current exchange rate, would equate to approximately A$6000. This revised outlook reflects UBS’s analysis of factors influencing the precious metals market.
