If you have a high tolerance for risk and want some big returns, then it could be worth considering the ASX 300 stock in this article.
That's because two leading brokers believe that its shares could more than double in value from current levels.
Which ASX 300 stock?
The stock in question is Chalice Mining Ltd (ASX: CHN).
It is a mineral development company behind the Gonneville Project in Western Australia. This is the largest undeveloped palladium-nickel-copper project in the western world.
The company notes that Gonneville has a tier-1 scale resource containing approximately 17 million ounces of platinum group elements (PGEs), 960,000 tonnes of nickel, 540,000 tonnes of copper, and 96,000 tonnes of cobalt, making it the largest PGE discovery in Australian history.
The team at Morgans believes its shares are dirt cheap at present. Though, it concedes that it is a risky play and not suitable for all investors.
Morgans has a speculative buy rating and $2.90 price target on its shares. Based on its current share price of $1.14, this implies potential upside of 150% over the next 12 months.
Commenting on the ASX 300 stock, the broker said:
CHN has announced additional enhancements to the metallurgical processing of its 100%-owned, 17Moz 3PGE Gonneville deposit. The latest test work builds on February's breakthrough, demonstrating improved recoveries for all contained metals from Year 5 onward, and incremental gains in palladium, nickel, and copper recoveries specifically in Year 5.
New data also indicates the potential to produce a saleable iron byproduct, further enhancing the project's economic viability. We maintain our SPECULATIVE BUY rating and lift our target price to A$2.90ps (previously A$2.80ps), underpinned by improved metallurgical recoveries and continued leverage to palladium prices.
Who else is bullish?
Another broker that is bullish on this ASX 300 stock is Bell Potter. It believes its shares can go even higher. Though, once again it warns that this is high risk option for investors.
Bell Potter has a speculative buy rating and lofty $5.75 price target on its shares. This is a whopping 400% higher than where they currently trade.
It appears to believe that the market is seriously undervaluing its "globally significant" Gonneville project. The broker explains:
CHN's Gonneville project continues to offer exposure to a globally significant, critical minerals PGE-Ni-Cu-Co Project in a Tier 1 jurisdiction. It has designation at both State and Federal levels as a Major Project, conferring dedicated co-ordination and support for the project through statutory approvals processes.
CHN is sufficiently funded to complete its PFS by end CY25 and lay out a clear case for the project's value to the market ahead of any potential transaction via its strategic MOU with Mitsubishi Corporation. We make no changes to our valuation with this update and retain our Speculative Buy recommendation and Valuation of $5.75/sh.
