WA1 Resources Ltd (ASX: WA1) shares have been on fire over the last 12 months.
During this time, the ASX mining stock has risen over 800%.
This has been driven by excitement over its West Arunta Niobium project.
Niobium is a critical metal with properties that make it essential as the world transitions to a low-carbon economy. It is primarily used as a micro-alloy in steelmaking, providing significant improvements in strength, corrosion resistance, and heat resistance on the alloyed steel.
Image source: Getty Images
Can this ASX mining stock keep rising?
The good news is that Bell Potter's analysts still see plenty of upside for investors.
According to a note this morning, the broker has initiated coverage on the niobium explorer's shares with a speculative buy rating and a $17.65 price target.
This implies a potential upside of 36% for investors over the next 12 months.
The broker believes that the Luni deposit at the West Arunta Niobium project has the potential to be a globally significant tier-1 asset. It said:
We initiate on WA1 with a Speculative BUY recommendation and a $17.65/sh valuation. WA1 is advancing the West Arunta Niobium project which includes the Luni prospect, in North-Western Australia.
Luni has the potential to be a globally significant Tier-1 asset characterised by its high-grade and scale (BPe Inferred +100Mt at +1% Nb2O5). We believe a maiden Indicated Resource for Luni will support initial development studies, with further expansion looking to support a long-life (BPe ~30 year) globally significant project like Lynas Rare Earths (LYC, Buy $7.20/sh) Mt Weld deposit in the rare earths sector. WA1 are targeting the release of a Maiden Mineral Resource estimate (MRE) in 4QFY24, which we expect will be supportive of our investment thesis.
Bell Potter believes the ASX mining stock could be "generating on average A$427m in annual EBITDA" once Luni is commissioned.
