Why this ASX mining stock could be a strong buy after major milestone

If you are hunting for exposure to the mining sector, then it could be worth considering the ASX mining stock in this article.

That’s because the team at Bell Potter believes it could be a strong buy following the achievement of a major milestone.

Which ASX mining stock?

The stock that has caught the eye of Bell Potter is Develop Global Ltd (ASX: DVP).

It notes that the company operates under a hybrid model as an underground mining contractor and owner of three mining assets. These are the Woodlawn Zinc-Copper Mine, the Sulphur Springs Zinc-Copper Project, and Pioneer Dome. The latter is a hard rock lithium deposit.

Bell Potter highlights that the ASX mining stock has achieved steady-state production ahead of its nameplate processing capacity rate. It said:

DVP announced steady-state production exceeded the nameplate processing capacity rate of 850ktpa during the March 2026 quarter. Mined tonnes grew 46% QoQ to 181,973t, with stoping tonnes rising 53% QoQ and processed tonnes lifted 25% QoQ to 176,550t (BPe 185,000t). During March, mined ore was 80,510t (966ktpa annualised) and processed ore was 77,741t (933ktpa annualised).

Metal concentrate tonnes rose 50% QoQ to 14,219t and metal concentrate value rose 66% QoQ. We are expecting to see historically low zinc TC/RC and negative copper TCs translate into an expansion in Net Smelter Returns and net revenue.

The good news is that this comes at a time when commodity prices are looking favourable for Develop Global.

But the positives may not end there. Bell Potter highlights that there are a number of upcoming catalysts that could be a boost to its share price. It adds:

Upcoming catalysts: 1) Demonstration of Woodlawn earnings and FCF growth (at least consistent with BPe); 2) updates on Woodlawn exploration; 3) Sulphur Springs FID and financing package finalisation; 4) a third Mining Services contract award; and 5) Pioneer Dome offtake and financing.

Strong potential returns

According to the note, Bell Potter has retained its buy rating on the ASX mining stock with an improved price target of $6.50.

Based on its current share price of $5.51, this implies potential upside of 18% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

Woodlawn steady-state production is coinciding with favourable copper, zinc and silver market fundamentals, bolstering the case for consensus outperformance. The strong operational track-record at Woodlawn should give investors comfort in DVP’s ability to deliver similar timely outcomes at Sulphur Springs and Pioneer Dome.

The post Why this ASX mining stock could be a strong buy after major milestone appeared first on The Motley Fool Australia.

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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 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.