Looking for a fast-rising ASX All Ords mining stock tipped for more outsized gains?
Then you might want to look into ASX All Ordinaries Index (ASX: XAO) listed BCI Minerals Ltd (ASX: BCI).
That's according to wealth manager Euroz Hartleys, which recently initiated BCI with a speculative buy rating.
The ASX All Ords mining stock is primarily focused on producing potash and salt.
The company's flagship asset is its 100%-owned Mardie Salt Project, located in Western Australia. The Mardie project covers some 115 kilometres on the Pilbara coast. On completion, it will be the third-largest solar salt project in the world.
Euroz Hartleys points out that the project is globally significant, fully permitted, with a 60-plus year 5.35 million tonne per year production profile.
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How has the ASX All Ords mining stock been tracking?
The BCI share price is down 1.4% in early afternoon trade today, with shares changing hands for 34.5 cents apiece.
That sees shares in the ASX All Ords mining stock up 27.8% year to date. ASX investors have sent the BCI share price up 56.8% since the recent 10 April lows.
And Euroz Hartleys foresees some significant outperformance on the horizon, atop some potential future dividend payouts.
The wealth manager has a price target of 44.0 cents on BCI shares. That's more than 27% above current levels
Why BCI shares could keep charging higher
Commenting on the first reason to buy the ASX All Ords mining stock, Euroz Hartleys analyst Declan Bonnick said:
We believe BCI is at a key inflection point in its development. Construction is >60% complete, fully funded to first salt, and fully permitted post receipt of final Commonwealth approvals in April 2025, with first salt on track for end-CY 2026.
And the wealth manager expects BCI to offer investors long-term returns.
"Given the unlimited reserves life (seawater) and uniqueness as a resources project without orebody risk, once operational we view Mardie as a low risk, annuity-like cash generator," Bonnick said.
He added that strong market dynamics, driven by southeast Asian industrialisation, should support long-term salt prices.
Digging into the financials, Euroz Hartleys said it forecasts the ASX All Ords mining stock will deliver $250 million earnings before interest, taxes, depreciation and amortisation (EBITDA) and $190 million in free cash flow (FCF) generation per year. That's on its base case of US$60 per tonne LT salt pricing.
The wealth manager added, "We view it likely the company integrates a shareholder return/dividend payout policy once operational, providing a foundation for strong long-term returns."
As for the third reason this mining stock is a buy, BCI could boost its earnings outside of its pending salt production.
Bonnick noted:
Upside exists through the planned production of sulphate of potash (SOP), a by-product of salt via low-risk flowsheet additions. SOP integration could lift EBITDA to ~$320m and FCF to ~$240m.
A final investment decision on SOP production is targeted for CY 2026, following completion of FEED studies.
And the fourth reason Euroz Hartleys is bullish on the ASX All Ords mining stock is its quality management, which it noted is "backed by a high-quality, long-term shareholder base including Wroxby (Kerry Stokes, 36%), Australian Super (32%), and Ryder Capital (10%)."
