Ramelius Resources (ASX:RMS) might be able to achieve the midpoint of its fiscal year 2026 production guidance due to stockpiles at its Dalgaranga and Penny gold operations, Euroz Hartleys said in a Wednesday note.

The company released its March quarter report, with production falling from the previous quarter due to haul road closures and heavy rainfall. It maintained fiscal year 2026 production guidance at 185,000 to 205,000 ounces.

Euroz Hartleys forecasts June quarter production of roughly 55,000 ounces at an all-in sustaining cost of around AU$2,200 per ounce.

"We remain excited for the ramp up of Dalgaranga with first ore one month ahead of schedule," the equity research firm said, adding that a ball mill drive train upgrade will allow a finer grind for the Dalgaranga ore, improving recoveries to above 90% from around 80%. It also pointed to an opportunity for Ramelius Resources to displace low-grade stockpiles with higher-grade mined ore from fiscal year 2028 to fiscal year 2030.

Euroz Hartleys maintained a buy recommendation on Ramelius Resources and lowered its price target to AU$5.27 per share from AU$6.21, mainly due to a lower spot gold price.

Shares of Ramelius fell 5% in recent Thursday trade.