If you are on the lookout for some huge returns for your portfolio and have a high tolerance for risk, then it could be worth checking out the small-cap ASX mining stock in this article.
That's because one analyst is tipping its shares to rise over 150% from where they trade today.
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Which small-cap ASX mining stock could rocket?
The ASX mining stock in question is Meteoric Resources NL (ASX: MEI).
Meteoric Resources is a rare earth company that is progressing its flagship Caldeira Project in Minas Gerais, Brazil.
Management highlights that the Caldeira Project is a true ionic adsorbed clay (IAC) deposit with above-industry total rare earth oxide (TREO) grades and excellent metallurgical recoveries using a standard ammonium sulphate (AMSUL) wash flowsheet.
It notes that these grade and recovery characteristics allow a simple flowsheet to be developed to produce a mixed rare earth carbonate (MREC) with an anticipated low capital and operating costs.
In light of this, Meteoric Resources is aiming to become a significant volume, low-cost producer and is committed to supporting and integrating into western supply chain opportunities.
Earlier this month, the company entered into a non-binding memorandum of understanding (MOU) with Neo Performance Materials Inc. (TSX: NEO) for an offtake of 3,000 metric tonnes (MT) of TREO per year from the Caldeira Project.
Neo is a manufacturer of advanced industrial materials. These are magnetic powders and magnets, specialty chemicals, metals, and alloys, which are critical to the performance of many everyday products and emerging technologies.
According to the MOU, this offtake will be used by Neo to supply its magnet manufacturing plant in Estonia. Neo will also hold a right of first refusal to purchase additional material when the Caldeira Project produces more than 6,000 MT of TREO per year.
Big returns
According to the Bull, John Edwards from Novus Capital is feeling very positive about the small-cap ASX mining stock and has named it as a buy this week.
Commenting on the company, Edwards said:
The company recently upgraded the resource estimate for its Caldeira rare earth element project in Brazil after completing additional infill diamond and aircore drilling. The global mineral resource now stands at 545 million tonnes at 2561 parts per million total rare earth oxides. These results support the Caldeira project's potential to become a significant long-life supplier of rare earths, which are crucial for global electrification.
Novus Capital currently has a buy rating and 50 cents price target on the ASX mining stock. Based on its current share price of 18.5 cents, this implies a potential upside of 170% for investors over the next 12 months.
