This ASX 200 mining share has 90% upside: broker

A leading broker believes this mining share could almost double your money in 2023…

| More on:
A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're looking for some exposure to the mining sector for your portfolio, then one ASX 200 mining share to buy could be Chalice Mining Ltd (ASX: CHN).

That's the view of analysts at Bell Potter, which are very bullish on the mineral exploration company.

Why is this an ASX 200 mining share to buy?

Bell Potter is very positive on Chalice Mining due to its Julimar project in Western Australia and the globally significant PGE-NiCu deposit found within. This gives the miner exposure to highly sought critical minerals in one of the world's top mining jurisdictions. The broker commented:

CHN's 100%-owned Julimar project is a globally significant PGE-NiCu deposit. Located 70km north of Perth in WA, it represents a unique opportunity to establish new strategic PGE and base metals supply in a top mining jurisdiction.

Bell Potter also highlights that Chalice Mining's minerals feature on the United States' critical minerals lists. It added:

This is reinforced by the inclusion of PGE's nickel and cobalt on Australia's and the USA's critical minerals lists, due to their role in the lithium-ion battery and hydrogen fuel cell production value chain and Russia's market dominance. Exploration and project development updates in 2022 have reinforced the upside at the Gonneville deposit, and the Julimar project.

Major upside potential

According to the note, the broker has a speculative buy rating and $11.73 price target on the ASX 200 mining company's shares.

Based on the current Chalice Mining share price of $6.19, this implies potential upside of almost 90% for investors over the next 12 months.

However, with a speculative rating in the mining sector, this is likely to be an investment option that is only suitable for investors with a high tolerance for risk.

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.

More on Materials Shares

smiling worker stands before power generator technology
Materials Shares

Fortescue shares jump 5% on record performance

This mining giant was in fine form during the quarter.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Materials Shares

Should you buy Pilbara Minerals shares today?

Let's see if analysts think investors should be buying the lithium giant's shares.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Expert says this ASX mining stock could rise almost 30%

Let's see which miner is being tipped as a buy for investors right now.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

BHP shares charge higher on record copper and iron ore production

Let's see how the miner performed during the fourth quarter.

Read more »

A man stands with hands on hips surveying construction of three high-rise buildings.
Materials Shares

Building activity on the rise – will ASX materials shares benefit?

New data from the March quarter shows a sharp rise in building activity. 

Read more »

Man smiling at a laptop because of a rising share price.
Materials Shares

Macquarie predicts 11% upside for this ASX materials stock

Here's why the broker is positive on the stock.

Read more »

Miner and company person analysing results of a mining company.
Materials Shares

Rio Tinto share price falls on Q2 update

Let's see what the mining giant reported for the second quarter.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Materials Shares

Could these 3 ASX materials shares be set to double?

This broker has buy ratings and aggressive price targets for these holdings. 

Read more »