If you are wanting some exposure to copper for your investment portfolio, then it could be worth checking out the ASX share in this article.
That's because analysts at Bell Potter believe it could more than double in value over the next 12 months.
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Which ASX copper share?
The share that Bell Potter is bullish on is Austral Resources Australia Ltd (ASX: AR1).
It is a Queensland based copper production and development company with assets centred around the Mt Isa and Cloncurry regions.
Bell Potter believes there is a lot to like about this ASX copper share. It said:
AR1's primary asset is the operating Mt Kelly Heap Leach facility and Solvent-Extraction-Electro-Winning (SX-EW) plant for oxide ore processing, with nameplate capacity of 30ktpa copper. The recently acquired Rocklands Project, with its 3.0Mtpa processing plant, is the subject of a refurbishment and optimisation program, targeting production in CY27.
These assets will underpin two strategic processing hubs, with ore to be sourced from multiple historic producing mines, several expansion / restart projects and numerous exploration targets and mineralised prospects across a tenement package covering ~2,200km2 of Australia's most active copper exploration and production province.
In addition, the broker highlights that Austral Resources is close to completing a major recapitalisation, which will leave it well-placed for the future. It adds:
AR1 is nearing the completion of a comprehensive recapitalisation process which will leave it with ~$103m cash, no corporate debt and a strategic asset base targeting 50ktpa of copper production.
Big potential returns
According to the note, Bell Potter has initiated coverage on the ASX copper share with a speculative buy rating and 17 cents price target.
Based on its current share price of 6.9 cents, this implies potential upside of almost 150% over the next 12 months.
Commenting on its initiation, the broker said:
AR1 has the objective of leveraging its strategic asset base to target sustainable production of 50ktpa of copper metal over 20 years. It is implementing a unique dual processing strategy over a large-scale regional footprint to unlock the value in its own asset portfolio and otherwise stranded third party projects.
AR1's refreshed management team and Board has a strong track record of operational management. It presents as one of just a handful of pure copper exposure companies on the ASX and is positioned for a period of aggressive production growth over the next three years. We initiate coverage with a Valuation of $0.17/sh and Speculative Buy recommendation.
