Investors with a high tolerance for risk might want to hear what Bell Potter is saying about the ASX share in this article.
That's because if the broker is on the money with its recommendation, this speculative ASX share could more than triple in value.
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Which ASX share could be cheap?
Bell Potter is tipping Chalice Mining Ltd (ASX: CHN) shares to rocket from current levels.
The broker was pleased to see the company continuing to progress its 100%-owned Gonneville Pd-Ni-Cu Project in Western Australia.
It notes that Gonneville has emerged as the largest and lowest cost undeveloped palladium-nickel-copper reserve in the western world and a globally significant strategic minerals asset.
Commenting on recent work, it said:
Multiple workstreams are underway for the completion of the Gonneville Feasibility Study, which has a budget of $25m and is due for completion in 2HCY27. Ongoing activities include: a comprehensive 8-week pilot plant operation program to test the process route design; permitting and approvals, including the Environmental Review Documents (ERD) submission in 2HCY26; the investigation of multiple secondary funding options including with potential offtake partners.
CHN is also assessing strategic partnership and investment opportunities with several parties having commenced due diligence. Early indications on project financing are that up to 60- 70% of pre-production CAPEX could be funded with debt, including from sovereign/govt sources, due to the long-life, low cost and strategic nature of Gonneville.
Huge potential returns
According to the note, Bell Potter has retained its speculative buy rating and $4.00 price target on the ASX share.
Based on its current share price of $1.15, this implies potential upside of approximately 250% for investors over the next 12 months.
To put that into context, a $2,500 investment would be worth $8,750 by this time next year if Bell Potter has made the correct call.
Commenting on its buy thesis, the broker said:
CHN's Gonneville project continues to offer exposure to a globally significant, critical minerals PGE-Ni-Cu-Co Project in a Tier 1 jurisdiction. It has designation at both State and Federal levels as a Major Project, conferring dedicated co-ordination and support for the project through statutory approvals processes. CHN is sufficiently funded to reach FID in 1HCY28. We retain our Speculative Buy recommendation on an unchanged Valuation of $4.00/sh.
