BHP Group Ltd (ASX: BHP) shares have been very strong performers over the past 12 months.
During this time, the mining giant’s shares have risen an impressive 45%.
While this is great for shareholders, it could mean that non-shareholders have missed the boat.
But don’t worry, because Bell Potter believes another ASX mining stock could be a top buy this month.
Which ASX mining stock?
The stock that Bell Potter is tipping as a buy this month is Develop Global Ltd (ASX: DVP).
It operates a hybrid model as an underground mining contractor and operator of three mining assets. These are the Woodlawn Zinc-Copper Mine, the Sulphur Springs Zinc-Copper Project, and Pioneer Dome.
It is the latter project that has caught the eye of Bell Potter. It said:
We believe a spodumene DSO mining operation at Pioneer Dome is optimal with respect to the group’s capital management while delivering the fastest route to market for the project. Observed variability in DSO demand during prior cycles suggests acute sensitivities to lithium chemical and spodumene concentrate prices.
As such, we envisage Pioneer Dome production cadence to be highly responsive to lithium chemical supply-demand imbalances. A relatively simple mine, crush and haul operation at Pioneer Dome would have a relatively short ramp-up and ramp-down timeline. We therefore see Pioneer Dome’s economics based on favourable short-term lithium market fundamentals, operating only when DSO offtake and pricing underwrite a restart.
Bell Potter notes that Pioneer Dome could be important for the ASX mining stock. It points out that the cash flow it generates could be used to pay down debt at Woodlawn and fund the construction of Sulphur Springs. The broker explains:
Pioneer Dome’s importance should be seen through the lens of short-term operating cash flow generation. Pioneer Dome operating cash flows could be used to settle outstanding Woodlawn debt, partly finance the construction of Sulphur Springs’ processing plant and provide balance sheet flexibility to enable another mining asset acquisition.
Strong potential returns
According to the note, Bell Potter has retained its buy rating and $6.60 price target on the ASX mining stock.
Based on its current share price of $5.38, this implies potential upside of 23% for investors over the next 12 months.
Commenting on its buy recommendation, Bell Potter said:
Pioneer Dome’s importance lies in its ability to provide timely liquidity for the Group, supporting de-leveraging and financing of Sulphur Springs construction. The resulting financial flexibility would allow DVP to act nimbly on any forthcoming organic and inorganic opportunities.
The post Forget BHP shares, this ASX mining stock could rise 20%+ appeared first on The Motley Fool Australia.
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More reading
- 5 things to watch on the ASX 200 on Monday
- Buying ASX 200 mining shares? Here’s how Rio Tinto, Fortescue and BHP stacked up in April
- I’d buy BHP and these ASX 200 shares with $5,000 in May
- Big gains for BHP shares in April, but is the best still to come?
- How are Australia’s biggest ASX stocks really tracking in 2026?
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.