Rio Tinto Ltd (ASX: RIO) is one of the most popular mining stocks globally and a great way to gain exposure to copper.
But with its shares hitting a 52-week high on Friday, it may not offer much upside over the next 12 months.
For example, this week, Morgans downgraded Rio Tinto shares to a trim rating with a $117.00 price target on valuation grounds.
In light of this, investors might want to consider the ASX stock in this article as an alternative to the large cap miner.
Which ASX stock?
The stock that could offer significantly more upside than Rio Tinto shares is AIC Mines Ltd (Australia) (ASX: A1M). It is a copper production and exploration company focused on its 100%-owned Eloise Copper Project (ECP), which is located in Queensland.
According to a note out of Bell Potter, its analysts think investors should be buying its shares right now. Especially after yet another solid quarterly update. It said:
A1M has extended its track record of meeting production and cost guidance, now established for nine consecutive quarters. Its Eloise Copper Mine in QLD produced 3,324t copper in concentrate plus 1,618oz gold at All-In-Sustaining-Costs (AISC) of A$4.97/lb for the September 2025 quarter (vs BPe 3,158t Cu in concentrate plus 1,519oz Au at A$4.97/lb). This was a good improvement qoq which beat both our forecasts and guidance.
Bell Potter is expecting more of the same in the current quarter, setting it up for a strong year. It said:
This is a good start to the year for A1M and FY26 guidance is unchanged. The mine plan includes higher grades for the December quarter which should see the good production performance continue, potentially at lower costs. This is positive ahead of what can be a weather-disrupted March quarter.
Big potential returns
In response to the quarterly update, the broker has retained its buy rating on the ASX stock with an improved price target of 67 cents (from 60 cents).
Based on its current share price of 46.7 cents, this implies potential upside of 43% for investors over the next 12 months.
Commenting on its buy recommendation, Bell Potter said:
A1M represents leveraged copper exposure via its Eloise Copper Project, where a clear, organic growth strategy is being advanced. A1M's regional exploration shows high potential for success across a large scale, strategic tenement package. The current share price, in our view, represents attractive value for a well-managed, Australian-based copper producer. We retain our Buy recommendation on an NPV-based target price of $0.67/sh.
