This ASX small-cap gold stock could surge 136% according to Bell Potter

The market frenzy that swept ASX gold stocks in 2025 and into the start of 2026 seems to have subsided. 

Investors were pouring into the safe-haven sector over the last 18 months. However it now appears many see opportunities elsewhere. 

Despite this shifting sentiment, the team at Bell Potter has just identified a new ASX gold stock and initiated coverage with significant optimism. 

The company in focus is Aurum Resources Ltd (ASX: AUE). 

Company overview 

Aurum Resources is a Perth-based gold exploration and development company. It is focused on its two projects in Côte d’Ivoire, West Africa:

• The flagship Boundiali Gold Project (BGP) and;
• The more recently acquired Napié Gold Project (NGP). 

According to Bell Potter, Aurum Resources is well funded, with a cash balance of $61.5m at end March 2026. 

It is undertaking an aggressive exploration and Resource growth strategy with the objective of building a substantial multi-asset gold business in Côte d’Ivoire. 

Current funding is sufficient to achieve key upcoming milestones of a Pre-Feasibility Study (imminent), Resource updates (2HCY26) and completion of a Definitive Feasibility Study (4QCY26).

Like many ASX small-cap stocks, it has experienced plenty of volatility this year. 

At the time of writing, it is down 23% year to date. 

However Bell Potter believes it can double in the next 12 months. 

Strong ownership and value mindset 

Bell Potter believes the ASX gold stock’s management and board are strongly aligned with shareholders.

According to the broker, the company is committed to cost effective strategies. 

A clear example is AUE’s owned and operated fleet of 16 diamond drill rigs which operate at a fraction of the cost of third-party rigs and under the direct control of AUE, bringing multiple benefits.

Bell Potter estimates that more than 90% of Aurum Resources’ spending in FY26 year-to-date has gone directly into exploration and evaluation activities, rather than overheads.

Aurum Resources has grown its mineral resources from 3.28 million ounces of gold in July 2025 to 4.38 million ounces by May 2026 at an estimated discovery cost of only A$15–17 per ounce. This is considered very cost-effective for the gold industry.

Significant upside for this ASX gold stock

Bell Potter has initiated coverage on this ASX gold stock with a speculative buy recommendation. 

The broker has also placed a price target of $1.30 on the company, which indicates an upside potential of 136% from current levels. 

AUE is one of the most successful gold exploration companies active in West Africa. Its management team has a demonstrated track record of discovery, Resource growth, project construction, development, operation and divestment. AUE is well funded, shows exploration upside and ongoing successful, value accretive drilling.

The post This ASX small-cap gold stock could surge 136% according to Bell Potter appeared first on The Motley Fool Australia.

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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.