There's no hiding from the fact that the lithium industry has been an awful place to invest over the last 12 months.
With the price of the battery material sinking to low levels, investors have been rushing to the exits and driving share prices lower and lower.
And it isn't hard to see why. Core Lithium Ltd (ASX: CXO) recently suspended production because prices are just too low, whereas Pilbara Minerals Ltd (ASX: PLS) posted an 82% decline in first-half profit after tax to $220 million.
But every cloud has a silver lining. The silver lining here is that there could be some ASX mining stocks now trading at very cheap prices, offering investors a compelling risk/reward.
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Which ASX mining stock offers the best value?
The team at Bell Potter appear to believe that Arcadium Lithium (ASX: LTM) could be one of the best ASX mining stocks to buy right now.
This is due to its diversified exposure to lithium and very strong growth portfolio. It commented:
LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance sheet and growth portfolio.
Big returns could be on the cards
Bell Potter has a buy rating and $10.40 price target on the ASX mining stock.
Based on its current share price of $6.73, this suggests a potential return of 54% for investors over the next 12 months.
To put this into context, if you were to invest $10,000 into the lithium miner's shares, it would turn into over $15,000 if Bell Potter is on the money with its recommendation.
