This ASX 300 mining share could deliver a 60%+ return in 2024

Bell Potter believes that big returns are on the cards for this mining stock.

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If you're not averse to investing in the mining sector and are on the lookout for big returns, then it could be worth taking a closer look at one ASX 300 mining share.

That mining share is Develop Global Ltd (ASX: DVP), which is an exploration, development, and underground mining services company.

It owns two advanced Copper-Zinc projects near Port Hedland in the Pilbara region of Western Australia – the Sulphur Springs project and the Whim Creek Project.

In addition, it owns the high-grade zinc-copper-lead-gold-silver Woodlawn project in New South Wales.

Why is it an ASX 300 mining share to buy?

Bell Potter was pleased with the company's performance during the first half, noting that its revenue was ahead of expectations. It commented:

DVP reported revenue of $65.8m was 5% ahead of our $62.5m estimate and up 162% YoY, driven by increased underground development and mining activity at the Bellevue Gold mine. Underlying EBITDA of $6.6m was lower than our $11.2m forecast and higher than -$5.1m in the prior period. This miss was due to higher-than-expected share-based payments and overheads.

Looking ahead, the broker highlights that the ASX 300 mining share is positioned well thanks to growing mining services revenue and the upcoming Woodlawn restart. It adds:

The forthcoming restart of Woodlawn operations (we expect by early CY25) coincides with growing revenue generation from the company's underground mining services business, underpinning a ramp up in earnings FY24-26. A strong balance sheet and funds expected to be raised from deep-in-the-money options de-risks project financing for Sulphur Springs and Pioneer Dome. These developments represent medium term earnings growth drivers.

Big returns

Bell Potter has a buy rating and $4.10 price target on the company's shares.

Based on its current share price of $2.47, this implies potential upside of 66% for investors over the next 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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