Wanting some exposure to the gold sector after recent weakness? If you are, it could pay to listen to what Bell Potter is saying about the ASX gold stock in this article.
That’s because the broker believes its shares could rise materially from current levels.
Which ASX gold stock?
The gold stock that is rated highly by Bell Potter is Minerals 260 Ltd (ASX: MI6).
It is the Western Australia-based exploration and development company behind the Bullabulling Gold Project (BGP). It currently has a mineral resource estimate (MRE) of 4.5Moz. However, Bell Potter believes that recent drilling activities could support an increase in its resource estimate.
Commenting on this, the broker said:
The results are both infill and extension drilling and will be included in the August 2026 MRE update. They continue to confirm and upgrade the confidence within the current MRE and build the case for extensions beyond it. In the August MRE we primarily expect an upgrade from Inferred to Indicated categories, making more of the Resource available for conversion to Reserves, supporting the Definitive Feasibility Study (DFS) ahead of an FID in early CY27.
The additional opportunity emerging is the continuity and increasing geological understanding of high-grade zones within the footwall zones at the Phoenix and Bacchus deposits. We see potential for an improved development case that brings high grade ounces into the mine plan earlier than expected.
Bell Potter was also pleased to see the commencement of early construction and development activities at the project. It adds:
This shows a strong focus on project development and production readiness. These are key milestones that de-risk the development schedule by kicking them off as early as possible and locking in costs. We note that a key enabler is the strategic funding agreement with Franco Nevada, which sees MI6 with $250m cash (end March 2026).
Big potential returns
In light of this, Bell Potter has retained its speculative buy rating and $1.35 price target on the ASX gold stock.
Based on its current share price of 84 cents, this implies potential upside of 60% for investors over the next 12 months.
Commenting on its investment thesis, the broker said:
MI6 offers gold exposure via the 4.5Moz Bullabulling Resource, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production. It holds ~$250m cash, sufficient to fund to Final Investment Decision (FID) in early CY27, long-lead items and early site works. We retain our $1.35/sh Valuation and Speculative Buy recommendation.
The post This ASX gold stock could be a cheap buy with 60% upside appeared first on The Motley Fool Australia.
Should you invest $1,000 in Minerals 260 right now?
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* Returns as of 16 June 2026
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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.