If you are wanting exposure to the gold price, then it could be worth looking at the gold miner in this article.
That's because Macquarie Group Ltd (ASX: MQG) believes it could provide investors with outsized returns over the next 12 months.
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Which ASX mining stock?
The stock that Macquarie is recommending to clients is DPM Metals (ASX: DPM). It is a gold miner with mines and development projects in the Balkans, Europe.
The broker notes that DPM is undergoing significant growth with production increasing from ~300k ounces in 2025 to up to 600k ounces in 2029 once its Coka Rakita operation commences production.
Macquarie was pleased with the company's recent update, noting that its revenue and net profit after tax (NPAT) were ahead of expectations thanks to a strong realised gold price. It said:
Revenue of US$267m was a 14% beat due to strong realised gold prices of US$3,635/oz (5% higher than VA). It is possible that Vares was not included in VA revenue estimates (DPM reported 1 month of attributable production for Vares in 3Q, with associated revenue of US$41.8m). Lower taxes of US$12.4m (vs VA US $20.5m) also helped to drive the NPAT beat.
Looking ahead, the broker points out that the fourth quarter is filled with potential catalysts. It said:
DPM indicated that it is expecting to release the outcomes of the Coka Rakita Feasibility Study (FS) in 4QCY25 only ~9 months following the release of the PFS, where we forecast initial construction in 2HCY26. Additionally, DPM will release a maiden mineral resource estimate (MRE) for Rakita Noth, Frasen, and Dumitru Potok in 4QCY25 all of which are located within the vicinity of Coka Rakita. We are particularly excited to see the potential of Dumitru Potok which has previously released drilling results including 131m at 3.93% CuEq and 190m at 3.09% CuEq and could one day underpin an upsized production profile at Coka Rakita which is not currently in our base case.
Time to buy
According to the note, the broker has retained its outperform rating with an improved price target of $49.00.
Based on its current share price, this implies potential upside of 23% for investors over the next 12 months.
Commenting on its outperform recommendation, Macquarie said:
Maintain Outperform: As outlined in our Initiation report we see DPM as attractive as it screens well for value, offers both FCF and growth and is strategically positioned in the emerging Balkan mining region.
