ASX materials shares have largely been flat over the last 12 months.
The S&P/ASX 200 Materials Index (ASX: XMJ) is down roughly 3% over that span.
However, broker Bell Potter has placed a buy recommendation on these three growth options.
Let's see what the broker had to say.
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Chalice Mining Ltd (ASX: CHN)
Chalice Mining is an explorer and developer of precious and base metals. The company's portfolio includes its flagship 100%-owned Julimar project in Western Australia, hosting platinum group elements (PGE), nickel, copper, cobalt, and gold.
It has already risen 60.18% YTD, but broker Bell Potter believes there is still room for more growth from its current share price of $1.81.
The broker currently has a price target of $5.75. This indicates an upside of 217.7%.
According to Bell Potter, Chalice Mining is making solid progress on its Gonneville project. It has completed a key technical upgrade to improve metal recovery and has a detailed plan to finish its pre-feasibility study by the end of 2025.
Environmental studies are underway, and the company is targeting a final investment decision by late 2027, giving investors a clear and steady development timeline.
Brazilian Rare Earths Ltd (ASX: BRE)
Brazilian Rare Earths is an Australian-based company focused on exploring rare earth elements and other critical minerals in Brazil.
The company owns and operates a district-scale Tier One Rare Earths Province, located in North Eastern Brazil.
This ASX materials share has seen its price hover for most of the year, rising 2.61% since the start of the calendar year.
Its share price at yesterday's close was $2.36. However, Bell Potter has a price target of $5.00.
This indicates an upside of 111.86%.
The company could be set to benefit from rare earth materials tailwinds from the US.
Investors and governments are looking for rare earths sources outside China, and Brazil offers a stable, mining-friendly jurisdiction. BRE is well-positioned to benefit from this global shift in supply chains.
Capstone Copper Corp (ASX: CSC)
Capstone Copper operates as a copper producer with a diversified portfolio of operating assets focused in the Americas and an extensive pipeline of near-term organic growth opportunities.
Its share price has fallen 13.13% YTD, however, broker Bell Potter sees a turnaround in the near future.
It currently has a buy recommendation and a price target of $12.43.
This indicates a 41.25% upside from its current share price.
The broker is optimistic on the ASX materials company due to its strong balance sheet, reliable production, and lower costs throughout the year.
Capstone's balance sheet remains strong with available liquidity over $1 billion. The company announced an upsized offering of $600 million in senior unsecured notes to refinance higher-cost debt, enhancing flexibility.
