This ASX copper stock could be cheap compared to BHP and Rio Tinto shares

Bell Potter is tipping this copper miner as a buy after another impressive quarter.

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With copper prices expected to be strong over the long term due to increasing demand, having a little exposure to the base metal could be a good thing for a portfolio.

And while mining giant's BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) offer an easy way to do it, the upside on offer there could be limited after they recently hit record highs.

Another way could be with the ASX copper stock in this article.

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

Image source: Getty Images

Which ASX copper stock?

Bell Potter has named AIC Mines Ltd (ASX: A1M) shares as a buy this week.

It is a Western Australia-based copper production and exploration company focused on its 100%-owned Eloise Copper Project (ECP).

The broker was pleased with the ASX copper stock's recent quarterly update, highlighting that it once again met its guidance. It said:

A1M has extended its track record of meeting production and cost guidance, now established for eleven consecutive quarters. At its Eloise Copper Mine in QLD, production for the March 2026 quarter was 3,432t copper in concentrate plus 1,591oz gold at All-In-Sustaining-Costs (AISC) of A$4.18/lb (vs BPe 3,024t Cu in concentrate plus 1,591oz Au at A$4.62/lb). Lower mining volumes and mill throughput were more than offset by higher head grades as the mine plan took in higher grade zones.

A1M is tracking to beat FY26 production and cost guidance, which remains unchanged at 12.8-13.1kt Cu plus 6.0-6.5koz gold at AISC of A$4.85-A$5.25/lb. Cost inflation risks of ~A$0.40/lb-$0.50/lb have been flagged for the June 2026 quarter due to increasing diesel costs. Allowing for this, we still forecast the lower end of AISC guidance to be met or beaten.

Overall, the broker has described the performance as "excellent" and highlights that it beat guidance and its own forecasts despite inclement weather. It adds:

This was an excellent result, beating both guidance and our forecasts in a heavily rain-affected quarter that disrupted other mines and logistics in the region. A1M has built an exceptional track record of delivery, particularly for a single-asset company operating a relatively small-scale mine. The quarter also included a meaningful Resource and Reserve upgrade which has allowed us to add 18 months to our assumed life-of-mine. The new Jericho underground is progressing ahead of schedule and achieved the milestone of first ore production during the quarter.

Time to buy?

According to the note, Bell Potter has retained its buy rating on the ASX copper stock with an improved price target of 85 cents (from 80 cents).

Based on its current share price of 62 cents, this implies potential upside of approximately 37% for investors.

The broker concludes:

A1M represents leveraged copper exposure via its Eloise Copper Project with a clear, organic growth strategy being advanced. The current share price, in our view, represents attractive value for a well-managed, Australian-based copper producer. We retain our Buy recommendation on an increased, NPV-based target price rounded to $0.85/sh.

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 recommended BHP Group. 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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