The gold sector has been a great place to invest this year.
You only need to look at the performance of the S&P/ASX All Ords Gold index to see why.
Since the turn of the year, this gold index has more than doubled in value.
The good news is that it may not be too late to invest in this side of the market, with Bell Potter picking out one ASX gold share that it thinks could still rise 50%.
Which ASX gold share?
The gold share that Bell Potter is bullish on is Ausgold Ltd (ASX: AUC).
It is focused on the development of its 100% owned Katanning Gold Project (KGP) in the Wheatbelt Region of Western Australia.
Bell Potter notes that its optimised definitive feasibility study (DFS) has outlined an open pit mine development with average production of 118,000 ounce per annum at an all-in sustaining cost (AISC) of A$2,252 per ounce over an initial 10 year mine life.
It also points out that the ASX gold share's largely underexplored 3,500km2 Katanning Greenstone Belt mineral tenure holds potential for significant resource growth and mine life upgrades. This includes the potential for regional, high grade satellite deposits to feed a central KGP processing hub.
Big potential returns
According to the note, the broker has responded to the DFS by retaining its speculative buy rating and lifting its price target to $1.70 (from $1.60).
Based on its current share price of $1.12, this implies potential upside of 52% for investors over the next 12 months.
Bell Potter notes that the ASX gold share's management team has a strong track record of advancing assets from exploration through development. Commenting on the company, it said:
AUC's management team has a demonstrated track record of advancing assets from exploration through development, positioning the company to unlock substantial value as the KGP de-risks toward production. We expect constant updates to include: Drill results (ongoing); permitting & approvals activities (ongoing); updated MRE (midCY26); KGP funding package (mid-CY26); and FID (mid-CY26) for potential first production from late 2027.
Our valuation is based on a potential project development at Katanning, risked for its pre-FID stage of development. AUC is an asset development company with prospective operations and cash flows. Our Speculative risk rating recognises this higher level of risk and volatility of returns.
