Rio Tinto Ltd (ASX: RIO) shares are a popular way to gain exposure to copper.
However, with the mining giant's shares hitting a record high this week, the upside from here could be limited.
But don't worry, because Bell Potter has identified another way to get that copper exposure.
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Which ASX copper share?
Bell Potter is recommending Develop Global Ltd (ASX: DVP) shares to clients this week following the release of its quarterly update.
Commenting on the quarterly update, the broker said:
Woodlawn delivered a material QoQ uplift in contained metal production: copper +92%; zinc +43%; lead +42%; and silver +118%. The increased metal production reflects higher processing rates and feed grade. Processed materials, grades and recovery rates are anticipated to lift further as Woodlawn delivers its first quarter of steady-state production and as stoping advances to the Kate lens core (see Figure 1 for a break-down of Kate lens grade by level).
Quarterly Woodlawn revenue is estimated to be ~$19.0m (December 2025 quarter: $39.1m) with sale slippage into early April due to impacted ship availability arising from the Middle East conflict. DVP noted that $33m of mine and port stockpiles had accumulated at quarter-end, with $28.9m shipped in April.
Looking ahead, Bell Potter highlights that two other projects are close to final investment decisions (FIDs), which bodes well for its cash flow generation in the coming years. It adds:
Both projects are expected to see major milestones announced this quarter for offtake, financing and FID. These milestones will pave the way for construction commencement of the Sulphur Springs processing plant in early FY27, and earlier realisation of cash flow generation at Pioner Dome under a DSO development pathway. The significant interest in DSO offtake observed suggests DVP has leverage in negotiating a favourable pricing framework.
Potential market-beating returns
According to the note, in response to the quarterly update, the broker has retained its buy rating on the ASX copper share with an improved price target of $6.60.
Based on its current share price of $5.76, this implies potential upside of almost 15% for investors over the next 12 months.
Commenting on its buy recommendation, Bell Potter said:
DVP is well positioned to deliver commodity price leverage in the current elevated copper, zinc and silver price environment. Expanding free cash flow generation will support near-term project financing for Sulphur Springs and Pioner Dome.
