There are plenty of options in the gold sector for investors to choose from. 

But one ASX gold stock that could have huge upside potential according to Bell Potter is named below.

ASX gold stock tipped to triple

The gold stock that Bell Potter is positive on is Forrestania Resources Ltd (ASX: FRS).

Bell Potter notes that the company has just signed a transformational deal with Ramelius Resources Ltd (ASX: RMS) for the Edna May Gold Hub. It commented:

FRS has entered into a binding agreement to acquire 100% of the Edna May Gold Hub from Ramelius Resources Limited (ASX: RMS, not rated) for total consideration of A$300m, comprising A$210m in cash and A$90m in FRS scrip (225m shares at A$0.40/sh) (Transaction). The Transaction is accompanied by a A$310m two-tranche equity raising at A$0.40/sh. 

Edna May comprises a 2.9Mtpa conventional CIL processing plant (C&M since April 2025), 945koz Au Mineral Resource Estimate (MRE), ~1,000km² of tenements including the Tampia and Symes satellite deposits, a 185-room accommodation village, airstrip, tailings storage facility and grid power connection. The Transaction is conditional on FRS shareholder approval, regulatory approvals (potentially ACCC), assignment of third-party agreements including the Evolution Mining SPA, and completion of the equity raising. Completion is targeted for September 2026.

‘Transformational transaction’

The broker believes this positions the gold stock to grow its production to 200,000 ounces per annum within 18 months. It explains:

This is a transformational transaction for FRS. The acquisition of a second permitted processing hub at Edna May, combined with the 3.2Mtpa Lake Johnston plant, establishes FRS as a dual-hub operator with targeted combined milling capacity of 6.1Mtpa by H1 CY27. On a pro-forma basis, FRS will have a MRE base of approximately 2.7Moz (incl. Dulcie, ZNC), and a contiguous tenure position spanning the Southern Cross, Forrestania, Westonia and Eastern Goldfields regions. 

The enlarged entity has a credible pathway to steady-state production of >200kozpa across both hubs within 12-18 months, assuming successful commissioning and ramp-up at both plants. FRS will hold pro-forma cash of A$132m and a proposed A$100m debt facility to sufficiently fund the ramp-up period across both hubs.

Big potential returns

According to the note, Bell Potter has retained its speculative buy rating with an improved price target of $1.25. 

Based on its current share price of 38 cents, this implies potential upside of approximately 230%.

Commenting on its investment thesis, Bell Potter said:

The Transaction consideration implies an EV/Resource multiple of approximately A$317/oz based on the 945koz Edna May MRE (or A$100/t installed milling capacity). Adjusting for the ~A$300m replacement value of the existing plant and infrastructure (per FRS), the implied acquisition cost of the resource ounces is effectively negligible on a look-through basis, in our view. Incorporating the Edna May transaction, dualhub production profile, and revised cost and CAPEX assumptions, we raise our Valuation to $1.25/sh and maintain our Speculative Buy recommendation.

The post This ASX gold stock could rocket 200%+ after ‘transformational’ deal appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• $650 million in cash and gold, guidance hit: Why this ASX 200 stock is still falling
• Ramelius Resources achieves FY26 guidance, grows cash flow and completes Edna May sale
• This ASX gold stock could soar 60% thanks to a big announcement
• 6 ASX gold stocks Morgans rates as a buy

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.

Warren Buffett has been one of the world’s greatest investors over the last several decades, helping Berkshire Hathaway (NYSE: BRK.B) become of the largest businesses in the world. Would such a great investor be interested in CSL Ltd (ASX: CSL) shares today?

Berkshire Hathaway has invested in a variety of industries over the years, including railroads, banks, Apple (NASDAQ: AAPL), insurance, oil and gas, soft drink, and so on. There’s nothing to say that Berkshire Hathaway wouldn’t be open to buying shares in a biotech company.

Let’s look at what Warren Buffett might think of CSL shares.

Is CSL a wonderful company?

There have been few businesses on the ASX that have expanded as much internationally as CSL over the last 20 years. It has been a great Australian success story.

However, the CSL share price has suffered a big decline in the past year, falling by around 50%. The market doesn’t seem to think as much of the business as before.

Are the current difficult conditions CSL is facing temporary or is this now a permanent, lower growth environment for the company? You’d need a crystal ball to truly know the answer to that question.

But, when it comes to market confidence, Warren Buffett has said some potentially very useful advice in the past. For example, he has said generally about markets:

Be fearful when others are greedy, and greedy when others are fearful.

By that logic, investors may have been too fearful about the CSL share price earlier this year. But the CSL share price has risen by around 33% since the 2026 low in June – it’s not as cheap as it was, even though it has fallen heavily over the longer term.

Warren Buffett has also suggested that it’s better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Before 2025, I think most investors would have been happy to describe CSL as a wonderful company with its ability to grow its core business, create new products with research and development (R&D), and deliver rising profit.

Is CSL still a wonderful company? The market doesn’t seem convinced.

Warren Buffett’s Circle of competence

For me, what could be the deciding factor in whether Warren Buffett would buy CSL shares is what he likes to call a circle of competence.

In other words, he only invests in businesses that he understands. That’s why he famously avoided various technology businesses over the years. It’s important to understand the potential gains, the competitive pressures and risks.

I think that same investment thought process would mean Buffett would be hesitant to invest in CSL – biotechnology is a difficult industry to understand, and it may be challenging to get to grips with how the research and development (R&D) pipeline could play out and what the financial rewards could be. Therefore, there are other ASX shares that I think Warren Buffett would be more interested in.

The post Would Warren Buffett buy CSL shares? appeared first on The Motley Fool Australia.

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• CSL shares are up 35% since early June. Is the recovery here to stay?
• Where could CSL shares go next? Here’s what brokers are predicting
• How to go from zero to $50,000 with ASX shares
• 3 ASX blue-chip shares that could be strong long-term value plays
• Up 36%: Can CSL shares keep rebounding?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway, and CSL. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Rio Tinto Ltd (ASX: RIO) shares have been climbing again in 2026.

But after a strong move from their lows, investors may be wondering whether the ASX mining giant is still worth buying today.

For a $5,000 investment, I think the answer is yes.

Here’s why.

The valuation looks reasonable

Based on the current share price, a $5,000 investment would buy about 30 Rio Tinto shares, before brokerage.

According to consensus estimates, Rio Tinto is expected to generate earnings per share of $11.88 in FY26 and $12.39 in FY27.

That puts the stock on a price-to-earnings ratio of around 13.8 times FY26 earnings and 13.3 times FY27 earnings.

For a large global miner, I think that looks reasonable. Rio Tinto is still exposed to commodity cycles, so investors should not treat those earnings forecasts as guaranteed. But the valuation does not look stretched to me, especially if copper demand remains strong.

The dividend profile also adds to the appeal. Rio Tinto is expected to pay fully franked dividends per share of $6.54 in FY26 and $6.81 in FY27. That implies forward dividend yields of around 4% and 4.1%.

On a $5,000 investment, that would mean roughly $199 in FY26 dividends and $207 in FY27 dividends, before franking credits.

Why I like Rio Tinto shares

My answer is yes, I would invest $5,000 into Rio Tinto shares for resources sector exposure.

The main reason is copper. Rio Tinto is still heavily associated with iron ore, and that remains a major part of the business. But I think the company’s long-term appeal increasingly comes from its exposure to commodities needed for electrification, energy infrastructure, data centres, and industrial development.

In its May presentation, Rio Tinto pointed to energy transition and artificial intelligence as dual demand drivers across its portfolio. The company also highlighted expected copper demand growth of 30% between 2025 and 2035.

That is where Rio Tinto looks attractive to me. Its copper operations include major low-cost assets such as Oyu Tolgoi, Kennecott, and Escondida. The company’s Oyu Tolgoi underground project is complete and Rio Tinto expects the mine to become the world’s fourth-largest copper mine around the end of the decade.

It is also targeting 40% to 50% production growth at Kennecott from 2025 to 2028.

Low-cost operations are valuable in mining because commodity prices can move sharply. A producer with strong assets and lower costs has a better chance of generating cash through weaker periods and benefiting strongly when prices are favourable.

What to watch

There are still risks to consider. Rio Tinto remains exposed to iron ore, China, commodity prices, project execution, cost inflation, and currency movements.

The share price is also much closer to its yearly high than its yearly low. Investors who bought near $109 have already captured a much more attractive entry point.

That is why I would treat a $5,000 investment as a long-term resources position rather than a short-term trade.

Foolish takeaway

I think Rio Tinto shares are a buy for investors who want exposure to high-quality mining assets and long-term copper demand.

The valuation looks reasonable, the forecast dividend yield is attractive, and the company has several ways to benefit from demand linked to electrification, energy infrastructure, and AI-related investment.

The share price could easily be volatile because this is still a cyclical resources business.

But if I were looking to invest $5,000 into the sector today, Rio Tinto would be one of the ASX mining shares I would be happy to buy.

The post Should I invest $5,000 into Rio Tinto shares? appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares downgraded by analysts this week
• China’s CPI and PPI data drops today. Here is the potential impact for these ASX shares
• How Rio Tinto, Fortescue and BHP shares stacked up in June
• 6 ASX 200 large-cap shares that rose 60% to 275% in FY26
• How to get started with a portfolio delivering $500 a week in passive income

Motley Fool contributor Grace Alvino 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.