Why investors should buy the dip on this ASX mining stock

This rare earths miner is still a value.

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One of the hottest ASX mining stocks to own over the last year has been Viridis Mining and Minerals Ltd (ASX: VMM). 

It is an ASX listed exploration and development company. 

The business has seven projects across three countries, however the majority of the value in the business is focused on its Colossus ionic adsorption clay (IAC) project in Minas Gerais Brazil.

In the last 12 months, this ASX mining stock has rocketed 780% higher. 

That includes 100% year to date.

However, today, its share price has dipped more than 5%. 

A new report from Bell Potter indicates it could be an opportunity to buy a quality stock at a value. 

A man and a woman sit in front of a laptop looking fascinated and captivated.

Image source: Getty Images

Why has this mining stock been rising?

Veridis has been advancing its Colossus rare earths project in Brazil. The project is situated within the highly prospective Poços de Caldas rare earths complex.

Colossus is viewed as one of the most economically compelling rare earths developments worldwide.

A recent economic assessment indicates a potential 20-year initial mine life, alongside a relatively short two-year payback period for a proposed operation at the project.

In addition, rising geopolitical tensions heightened concerns over global supply, with China accounting for around 60% of global rare earths production and more than 90% of refining capacity.

This makes Viridis an attractive rare earths miner. It is well positioned as a potential Western-aligned alternative source of supply. This is along with a large-scale, relatively low-payback project.

What is Bell Potter's updated view

The broker said the recent 3QFY26 report highlighted the meaningful progress made in derisking the Colossus Rare Earth Project (Colossus) in Minas Gerais, Brazil. 

All equipment for the CPTR/MREC demonstration plant was delivered to site with building works completed and utilities installed, with commissioning targeted for early May 2026.

Bell Potter said VMM had a very busy quarter. Additionally, it is making solid progress across several important parts of its project.

Key workstreams like the feasibility study, engineering contracting, approvals, and commissioning are all approaching important milestones. 

Because multiple steps are advancing at the same time, it lowers the risk that a single problem could cause major delays.

Overall, the message is that the project is tracking well toward its expected final investment decision around Q3 2026.

Speculative buy rating retained

Based on this guidance, Bell Potter has retained its speculative buy rating on this ASX mining stock. 

The broker also has an unchanged price target of $4.30. 

This ASX mining stock has dipped more than 5% this morning, which has created more value moving forward. 

From today's share price of approximately $2.55, this indicates an upside potential of more than 68%. 

Motley Fool contributor Aaron Bell 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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