Bell Potter says this ASX mining stock is a top buy

The broker thinks this miner could deliver big returns for investors.

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Investors that are on the lookout for mining sector exposure, might want to check out the ASX stock in this article.

It has just been named as one to buy with market-beating potential by analysts at Bell Potter.

Which ASX mining stock?

The ASX mining stock that has caught the eye of Bell Potter is Genesis Minerals Ltd (ASX: GMD).

It is a Western Australian gold production and development company with a focus on the Leonora District.

It owns two gold processing plants (Leonora and Laverton) and estimates that it has 15 million ounces of contained gold in mineral resources and 3.3 million ounces in ore reserves across four mining centres.

The ASX mining stock embarked on a major acquisition spree over the past couple of years. Management believes this leaves it well-positioned to grow its production to 325,000 ounces per annum by FY 2029 and then 350,000 ounces by FY34. This represents a significant increase on its FY 2024 production of 135,000 ounces.

Why is it a buy?

Bell Potter has been pleased with the company's operational performance so far in FY 2025. Commenting on its quarterly update, the broker said:

Gold production was 36koz (vs BPe of 38koz). Gold sales were 36.9koz. The average gold sale price was A$3,723/oz (vs BPe A$3,430/oz). AISC was A$2,628/oz, and was previously flagged to be in line with the June 2024 Quarter (A$2,698/oz). […] Guidance was maintained at 190koz to 210koz of production at AISC of A$2,200/oz to A$2,400/oz.

And with Bell Potter now expecting the gold price to be higher than it was previously forecasting, this has led to a hefty bump to its earnings estimates for the ASX mining stock. It said:

With this update we increase our gold price forecasts to FY25: A$3,820/oz, FY26: A$3,621/oz, FY27: A$3,415/oz, increases of FY25: 11%, FY26: 10% and FY27: 5%. The resulting EPS changes are: FY25 +40%, FY26 +45% and FY27 +36%.

Big returns

In response to the above, this morning the broker has reaffirmed its buy rating on the gold miner's shares with an improved price target of $2.80 (from $2.55).

Based on its current share price of $2.39, this implies potential upside of 17% for investors over the next 12 months.

Overall, the broker believes this could be a great option for investors looking for exposure to the sky high gold price. Particularly given its strong growth outlook. It concludes:

GMD's long term growth plan outlines gold production of ~325koz and an aspiration to get to 400kozpa. The quarterly report highlighted numerous work streams being progressed to extract another 75kozpa from the existing portfolio (a 23% uplift).

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.

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