Buy this 'unique' ASX mining stock for a 17% return: Bell Potter

Let's see why the broker is bullish on this stock.

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If you are looking for exposure to the mining sector, then it could be worth considering Develop Global Ltd (ASX: DVP) shares.

That's the view of analysts at Bell Potter, which believe this unique ASX mining stock could be a top buy.

Miner and company person analysing results of a mining company.

Image source: Getty Images

What is the broker saying?

Bell Potter has been busy updating its forecasts after revising its commodity price deck. It said:

Prices for copper, zinc and silver have exhibited a significant rally in FY26TD, with current spot prices up 43%, 11% and 156% YoY, respectively. We mark-to-market December 2025 quarter prices: copper 9% higher than BPe; zinc 20%; and silver 31%.

Looking ahead, we raise our FY26-27 price forecasts by: 9% / 5% for copper to US$10,980/t / US$11,000/t (consensus: US$10,718/t / US$10,918/t); 13% / 10% for zinc to US$3,050/t / US$2,950/t (consensus: US$2,969/t / US$2,841/t); and 23% / 51% for silver to US$54/oz / US$62/oz (consensus: US$40/oz / US$51/oz). To help contextualise the materiality of these upgrades for Woodlawn, mine site revenue mix over FY26-27 averages 50% for copper, 25% for zinc and 12% for silver.

Bell Potter also highlighted a number of tailwinds for the mining stock's Woodlawn project. It adds:

Watch out for these Woodlawn tailwinds: 1) Sustainment of elevated silver prices will accelerate the paydown of the silver stream liability with Sandstorm Gold (capped at $27m); and 2) benchmark copper TC / RCs have reportedly collapsed to US$0/dmt for CY26 due to excess smelting capacity and scarcity of concentrate supply, while zinc TC / RCs are forecast to see a modest recovery during the year. We expect lower aggregate TC / RCs in CY26 to enhance Woodlawn EBITDA generation and margins.

But the catalysts don't stop there. It adds:

Near-term catalysts: 1) Woodlawn operational update, outlining achievement of steady-state production, and subsequent financial updates (quarterly revenue, EBITDA and margins); 2) exploration updates at Woodlawn; 3) Sulphur Springs FID and financing package finalisation; and 4) a potential Mining Services contract award.

Should you buy this ASX mining stock?

In light of the above, Bell Potter has retained its buy rating on the ASX mining stock with an improved price target of $5.80 (from $5.20).

Based on its current share price of $4.96, this implies potential upside of 17% for investors over the next 12 months.

The broker concludes:

With Woodlawn de-risking behind us, DVP presents a unique small-cap copper-zinc exposure that is relatively undervalued compared with peers in the Resources space.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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