In a recent report from Bell Potter, the broker shed light on the exciting ASX small-cap stock, Waratah Minerals Ltd (ASX: WTM).
It has already surged almost 200% in 2025, and completed a $30 million capital raise back in August.
The company is a NSW based, gold-copper exploration and development company.
Its flagship project is its 100%-owned Spur goldcopper project, an advanced stage, pre-resource exploration project set in the East Lachlan region of New South Wales and located ~33km southwest of Orange.
Why is it gaining momentum?
According to Bell Potter, Waratah Minerals' flagship Spur project is showing early indications of delivering scale and grade.
Its strategy has been clear from the outset – targeting the margins of a fertile East Lachlan intrusive complex in search of
epithermal gold and porphyry goldcopper mineralisation.
Recent drilling has returned multiple zones of visible gold, fuelling the company's growth and confidence in the Spur Project
According to Bell Potter, this exploration success shows clear potential for large scale mineralisation. These characteristics are supportive of rapid resource growth and low discovery costs.
The broker also believes the company is led by a management team and board that has a strong track record of value accretive discovery, resource development and divestment.
Nina Hendy, contributing columnist at Bell Potter, said its recent capital raise has drawn investor attention. There has been strong demand coming from existing and new Australian and North American institutional investors.
This has bolstered the shareholder base and lifted shareholder value in a very short space of time.
Recent drilling has returned multiple zones of visible gold, fuelling the company's growth and confidence in the Spur Project. The company has multiple drill rigs on site, with exploration results expected to continue in the coming weeks and months.
How high could it rise?
In a report from Bell Potter in November, the broker said this ASX small-cap is well-funded. It also has a tight capital structure.
The company (as at October 9) held $34m cash and no debt. Bell Potter believes this is sufficient for over two years of exploration at the current rate of expenditure.
The team at Bell Potter initiated coverage in this ASX small-cap with a speculative buy recommendation. It also placed a price target of $0.95 on this ASX small-cap stock.
Waratah Minerals shares closed yesterday at $0.515 each.
From this share price, the target from Bell Potter indicates more than 80% upside.
Elsewhere, TradingView also has a 12 month target price of $0.95.
Online brokerage platform Selfwealth lists the ASX small-cap stock as undervalued by 81%.
