Chalice Mining Ltd (ASX: CHN) shares could have major upside potential.
That's the view of analysts at Bell Potter, which believe the ASX 200 mineral exploration share is seriously undervalued at current levels.
What is the broker saying about this ASX 200 share?
According to a note, the broker has been pleased with recently released results from ongoing drill programs at its 100%-owned Gonneville Ni-Cu-PGE project in Western Australia.
It highlights that the latest results confirm high grade extensions, reinforcing the potential for high grade underground mining. This adds optionality to project development scenarios and supports the case for a smaller scale, higher grade starter operation.
Bell Potter also notes that the company has received all key approvals to allow the commencement of the next phase of exploration drilling across the full >30km strike length of the interpreted Julimar Complex.
It points out that "this is a major, positive milestone that CHN has been anticipating for several months." In addition, it believes that "the potential for exploration work to return high grade results and demonstrate significant Resource growth" are likely to be positive share price catalysts.
Big gains ahead
The note reveals that Bell Potter has reiterated its speculative buy rating and $5.40 price target on the ASX 200 share.
Based on its current share price of $1.71, this implies a potential upside of 215% for investors over the next 12 months.
To put that into context, if Bell Potter is on the money with its recommendation, $10,000 today would turn into approximately $31,500 in 2024.
It concludes:
We can see scope for the company's exploration to considerably expand the extent of the PGE-Ni-Cu mineralisation at Julimar, with potential for it to deliver significant growth. Our valuation reflects the potential for Julimar to emerge as a globally significant and strategic PGE-Ni-Cu deposit and production operation.
