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Bell Potter just upgraded its outlook on this ASX materials stock tipping 30% upside

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A colourfully dressed young skydiver wearing heavy gold gloves smiles and gives a thumbs up as he falls through the sky.

ASX materials stock Alkane Resources Ltd (ASX: ALK) is in focus today after it received a reiterated buy recommendation from Bell Potter. 

The broker also increased its price target on the is a gold exploration and production company.after it released a quarterly update last week. 

What did the company report?

On April 23, this ASX materials stock released a Quarterly Activity Report for the period ending 31 March 2026. 

It reported: 

  • Site operating cash flow of $189 million for the quarter 
  • Q3 FY26 record gold production of 45,776 AuEq oz @ AISC of $2,928/AuEq oz
  • Full Year Group Guidance remains at 160-175kozs AuEq at AISC $2,600-2,900/AuEq oz reflects production from Costerfield and Björkdal from July 2025. 

Managing Director and CEO, Nic Earner, commented: 

It has been another great quarter for Alkane, producing 44,669 ounces of gold and 377 tonnes of antimony (45,776 ounces of gold equivalent) over the full quarter.1 Our site operating cashflow was $189 million for the quarter, resulting in a balance sheet with $374 million in cash, bullion and listed investments at quarter end. Our full year guidance of 160-175kozs gold equivalent remains unchanged.

Despite the positive results, this ASX materials stock fell 10% last week. This included a 5% dip after the company released its quarterly report.

It remains up 100% over the past 12 months. 

Bell Potter maintains positive view

Following the quarterly update, Bell Potter released updated guidance on this ASX materials stock. 

The broker said the March quarter production beat its forecasts and guidance.

This was another strong quarter from ALK that has extended the record-breaking start of the merged asset portfolio. While partially offset by higher input costs and reduced antimony prices in the Mach 2026 quarter, the operational and financial performance to date has been a clear validation of the merger strategy. 

The market’s ongoing rerating of the stock and the recent inclusion of ALK in the ASX200 Index reinforces this further. The successful operational delivery has ALK well-placed to meet FY26 guidance (unchanged) and sustain the strong financial performance.

Healthy upside 

Based on this guidance, Bell Potter has reiterated its buy recommendation on Alkane Resources shares. 

It also increased its price target to 2.10 (previously A$1.95). 

From last week’s closing price of $1.60, this indicates an upside potential of 31%. 

ALK offers multimine gold and antimony exposure across three attractive jurisdictions, a strong balance sheet and an operating platform focused on organic and inorganic growth options.

The post Bell Potter just upgraded its outlook on this ASX materials stock tipping 30% upside 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.

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