Are you on the search for big returns? If you are, then it could be well worth looking to the mining sector.
That's because analysts believe these ASX mining stocks could deliver market-thumping returns over the next 12 months. Here's what they are saying:
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Bellevue Gold Ltd (ASX: BGL)
Goldman Sachs thinks that Bellevue Gold could be an ASX mining stock to buy now.
Its analysts think that the gold miner's shares are cheap compared to peers. They explain:
Relative to peers, BGL remains relatively underappreciated in our view, trading at of ~0.85x NAV and pricing ~US$1,600/oz LT gold (peer average ~1.15x NAV and ~US$1,940/oz). While near-term FCF yields are impacted by the accelerated development spend, we see these returning to double digit by FY26/27E, and remaining attractive vs. peers, supporting upside to the outlook for possible future capital returns once the expansion ramps up (despite ~25% of medium-term gold sales being hedged at ~A$2,700-2,900/oz, and 31.5koz of A$3,500/oz puts in FY25).
Goldman has a buy rating and $1.70 price target on its shares. This implies potential upside of 40% for investors over the next 12 months.
Coronado Global Resources Inc (ASX: CRN)
The team at Bell Potter sees significant value in this coal miner's shares. Particularly given that it has reached a turning point in respect to production and costs. Combined with supply constraints in the metallurgical coal market, it is feeling very positive about its outlook. It explains:
CRN's production and cost profile has reached a turning point, following substantial self-funded investment across its Australian and US operations over the past two years. The company should generate improved free cash flow and shareholder returns going forward. Our Buy recommendation is underpinned by a supply constrained met coal environment, supporting long term prices.
Bell Potter has a buy rating and $1.70 price target on its shares. This suggests that upside of 65% for investors from current levels.
Nickel Industries Ltd (ASX: NIC)
Bell Potter also thinks that nickel producer Nickel Industries is a dirt cheap ASX mining stock.
It likes the company due to its low costs, strong production growth outlook, and big dividend yield. It explains:
NIC is the only pure-play producer of scale on the ASX providing exposure to the nickel price, with earnings diversified across Type 1 and Type 2 nickel. Its aggressive growth profile is fully funded, it is currently moving through the peak CAPEX phase which we forecast to drive strong earnings growth in CY25 and CY26. NIC has long-life assets with demonstrated ability to make money through the nickel price cycle while also sustaining a supportive (unfranked) dividend which we forecast to grow. At these levels it trades on undemanding valuation multiples.
The broker has a buy rating and $1.41 price target on its shares. This implies potential upside of 64% for investors over the next 12 months.
