Australian gold equities experienced a robust December quarter in the 2026 fiscal year, according to RBC Capital Markets analyst Alex Barkley. Equities within Barkley’s coverage rose approximately 25 per cent, driven by a 13 per cent increase in gold prices. While valuations may not be as inexpensive as before, Barkley suggests they remain at acceptable levels when considering the continued strength of gold.
Barkley favours gold miners demonstrating substantial near-term production growth. He anticipates that the second quarter will show marked improvements following a softer, maintenance-focused first quarter. A significant factor in the second quarter will be cash tax outflows, as companies utilise existing loss credits and subsequently transition to paying taxes.
Northern Star, Evolution, Ramelius, and Westgold are expected to be particularly affected by these tax implications. However, Barkley notes that balance sheets across the sector remain strong, providing support for self-funded growth commitments. Barkley suggests that investors should shift their focus toward growth opportunities rather than prioritizing operational safety within the gold mining sector.
