If you think nuclear power is the future and have a high tolerance for risk, then it could be worth considering the ASX uranium stock in this article.
That's because Bell Potter believes this small cap with big dreams could rocket significantly over the next 12 months if everything goes to plan.
Which ASX uranium stock?
The stock that Bell Potter is tipping as a speculative buy is Alligator Energy Ltd (ASX: AGE).
It is an exploration and development company currently advancing four projects at various stages from early exploration through to advanced exploration/early study work.
Its uranium assets are found within Australia (South Australia and Northern Territory), whereas its non-core base metals project is in Northern Italy.
The most advanced project is the Samphire uranium project in South Australia, which recently conducted a scoping study. That study confirmed amenability for in-situ-recovery (ISR) mining, similar to that used at Honeymoon project owned by Boss Energy Ltd (ASX: BOE).
The current mineral resource estimate (MRE) for Samphire is 17.5Mlbs at 640ppm U3O8.
What is the broker saying about this stock?
According to the note, Bell Potter highlights that the ASX uranium stock has been given some good news recently relating to the Samphire uranium project. It said:
AGE announced to the market it has received its Retention Lease (RL), a critical licence which allows, subject to granting of a PEPR (Program for Environment Protection and Rehabilitation), for the commencement of a Field Recovery Trial (FRT) at the Samphire Uranium Project.
The FRT is designed to confirm operating assumptions utilised in the Scoping Study, assess leaching chemistry, hydrology, recoveries of uranium, reagent consumption and additional data which ultimately will inform the next steps for the project.
Shares could double
In response to the news, the broker has reaffirmed its speculative buy rating and 10 cents price target.
Based on its current share price of 3.8 cents, this implies potential upside of approximately 160% for investors over the next 12 months.
The broker then concludes:
We maintain our Speculative Buy recommendation and valuation of $0.10/sh. We make no changes to our valuation in this note. Our valuation for AGE is based on a risked assessment of the Samphire uranium project and assumed values for additional exploration assets within AGE's portfolio. As AGE is yet to produce revenue and cashflow from its projects it is classified as Speculative under our ratings structure.
Near term catalysts for AGE which we believe support our investment thesis include 1) Samphire field recovery trials (FRT) results – 1HFY26, 2) continued Blackbush Resource extension – CY25 and 3) continued drilling at Nabarlek North and Big Lake. In addition to this, we remain confident in our thesis for uranium markets.
