The gold price may be at a record high, but that doesn't mean it is too late to invest in the sector.
In fact, the ASX gold stock in this article could be dirt cheap according to analysts at Bell Potter.
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Which ASX gold stock?
The stock that Bell Potter thinks investors should be looking at is Ballard Mining Ltd (ASX: BM1).
It is a gold exploration and development company focused on advancing its Mt Ida asset towards production.
At the last count, it boasted JORC compliant resources of 10.3Mt @ 3.3 g/t Au. This is backed by a strong balance sheet and an experienced team driving the project development.
Bell Potter remains very positive on the small cap ASX gold stock following a visit to the company's tenements. It also highlights that drilling results are expected to flow in the coming months and could support upgrades to its ore reserve estimates. It said:
Catalysts. Drilling results will continue to flow over the coming months at Baldock & Neptune/ Pulsar, alongside target identification on the rest of the Ballard Fault. We anticipate Resource conversion towards the end of 3QFY26/ early 4QFY26 which will seek to upgrade the Indicated portion of Baldock, preceding a Maiden Ore Reserve Estimate in 4QFY26. Permitting for the 1.5Mtpa tailings facility should be imminent.
Big return potential
According to the note, the broker has retained its speculative buy rating and 80 cents price target on the ASX gold stock.
Based on its current share price of 60.5 cents, this implies potential upside of 32% for investors with a high tolerance for risk over the next 12 months.
To put that into context, a $2,500 investment would turn into $3,300 by this time next year if Bell Potter is on the money with its recommendation.
Commenting on its recommendation, the broker said:
We maintain a speculative Buy Recommendation and a $0.80/sh valuation for BM1. Our valuation is supported by a discounted cash flow analysis on a NDS for the Mt Ida Gold project. We have included a nominal value for exploration potential, and a present value for corporate overheads. We assume a capital raise of A$158m at $1.00/sh (in-line with our estimated de-risked valuation at time of FID). We assume the balance of project development requirements are met by debt funding.
