If you are looking for exposure to the mining sector, then BHP Group Ltd (ASX: BHP) shares are likely to be front of mind.
However, investors could get bigger returns by looking elsewhere.
For example, the ASX mining stock in this article has been tipped to surge significantly higher than where it trades today by the team at Bell Potter.
Which ASX mining stock?
The mining stock that has been given the thumbs up by Bell Potter is Develop Global Ltd (ASX: DVP).
It operates under a hybrid model as an underground mining contractor and the operator of two mining assets. The latter are the Woodlawn Zinc-Copper Mine and the Sulphur Springs Zinc-Copper Project.
Bell Potter notes that the ASX mining stock recently released its quarterly update and was pleased with what it saw. It said:
Mining Services division update: Quarterly Mining Services revenue was $51.0m (BPe $51.5m), consistent QoQ and up 14% YoY. FY25 revenue was $212m, exceeding the company's $200m guidance. DVP is currently in discussion with prospective clients regarding upcoming mining services contract tenders.
Woodlawn production ramps-up: First shipments of copper, zinc and lead concentrate were delivered with production ramped up to near nameplate capacity. Quarterly concentrate production was 12,689t for: 969t of Cu; 2,340t of Zn; 545t of Pb; 68koz of Ag; and 812koz of Au metal. Recoveries are tracking in line with DVP's expectations, with peak recoveries achieved for Cu 85%; Zn 84%; and 65% for Pb, Ag and Au.
Big potential returns
According to the note, the broker has retained its buy rating on the ASX mining stock with an improved price target of $5.30 (from $5.00).
Based on its current share price of $4.50, this implies potential upside of 18% for investors over the next 12 months.
Bell Potter is feeling positive about the company due to the Woodlawn operation nearing nameplate capacity. Commenting on its buy recommendation, it said:
With Woodlawn production approaching nameplate capacity by the December 2025 quarter, commercial derisking is now in focus (i.e. cash flow generation and profitability). Upcoming catalysts should maintain the momentum in DVP's share price: Sulphur Springs development updates; Woodlawn and Sulphur Springs exploration updates; and positive commercial outcomes from Woodlawn.
Overall, this could make Develop Global a good alternative (or complement) to BHP shares right now for Aussie investors looking for exposure to the mining sector.
