If you have a high tolerance for risk then it could be worth checking out the ASX 300 mining stock in this article.
That's because the team at Bell Potter believes this stock could more than double in value over the next 12 months.
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Which ASX 300 mining stock?
The stock in question is Chalice Mining Ltd (ASX: CHN).
It is the owner of the Julimar PGE-Ni-Cu-Co-Au project located ~70km from Perth in Western Australia.
Bell Potter highlights that Julimar is a major greenfield discovery which has grown to comprise a Resource of 660Mt at 0.79g/t 3E (Pt+Pd+Au), 0.15% Ni, 0.083% Cu, 0.015% Co, containing 17Moz 3E, 960kt Ni, 540kt Cu, 96kt Co.
It notes that with this, the ASX 300 mining stock has been credited with the discovery of the new West Yilgarn Ni-Cu-PGE Province in Western Australia.
What is the broker saying about Chalice Mining?
Bell Potter notes that the company has released an update on the Julimar project. This includes the finalisation of its development timeline. It said:
This is a positive update, confirming the previously signalled development pathway for the Gonneville project. In our view, this lays down a plan that strikes the right balance between value extraction from the Gonneville Resource and the selection of mining and processing routes that minimise CAPEX and funding requirements, reduce technical risk in the processing circuit and stage the project's development to optimise funding and financial performance metrics.
The reiterated PFS completion timeline, update on environmental studies and the setting of an FID target for late CY27 clarify CHN's project development strategy. Overall, this provides the market with greater clarity on project development milestones.
Big potential returns
According to the note, the broker has reaffirmed its speculative buy rating on the ASX 300 mining stock with a reduced price target of $4.10.
Based on its current share price of $1.81, this implies potential upside of approximately 125% for investors over the next 12 months.
Commenting on its speculative buy rating, Bell Potter said:
With this update we have revised our forecast commodity prices and exchange rate, aligning them with our current long-term assumptions. Key drivers include a 14% lower Pd price and 8% higher AUD:USD exchange rate, partially offset by higher Pt and Ni prices.
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 value proposition ahead of any potential transaction or offtake agreement. We retain our Speculative Buy recommendation on a lowered Valuation of $4.10/sh.
