Guess which ASX copper stock could rocket 75% higher

Bell Potter has just slapped a buy rating on this miner.

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Copper has been getting a lot of fanfare this year. For example, BHP Group Ltd (ASX: BHP) appears convinced that the base metal is going to be the next big thing for miners and has been seeking to increase its exposure to it.

So much so, earlier this year the miner failed in its attempt to acquire Anglo American with a blockbuster US$39 billion (A$59 billion) offer.

The good news is that you don't need to pay anywhere near that to gain exposure to the metal. In fact, less than 50 cents will get you one share in an ASX copper stock.

Which ASX copper stock?

The stock in question is AIC Mines Ltd (ASX: A1M). It owns the Eloise copper mine, which is a high-grade underground mine located in North Queensland.

During the last quarter, AIC Mines produced 3,213 tonnes of copper in concentrate from Eloise at an all-in sustaining cost (AISC) of A$5.05 per pound of copper sold.

This appears to have caught the eye of analysts at Bell Potter, which have just initiated coverage on the ASX copper stock.

What is the broker saying?

Bell Potter is feeling bullish about the company due to its positive production growth outlook, exploration opportunities, and its experienced management team. It said:

A1M is concurrently implementing a disciplined growth strategy, having acquired the nearby Jericho copper deposit in January 2023 and which is now being developed. Combined with an expanded processing plant it supports a clear pathway to 20,000tpa copper production. A1M also holds a strategic tenement package covering ~2,000km2 over a highly prospective region surrounding the ECP, positioning it as a strategic, foundation asset able to leverage new discoveries and third party stranded assets.

A1M's management team is led by Managing Director, Aaron Colleran and Chairman, Josef-El-Raghy. Both have a strong track record of value accretive acquisition and asset development. In our view, the team has added significant value since acquiring the ECP in a $27m cash and scrip transaction in August 2021.

Big returns

Bell Potter has initiated coverage with a buy rating and 60 cents price target. Based on its current share price of 34.2 cents, this implies potential upside of 75% over the next 12 months.

Overall, Bell Potter sees this ASX stock as a great way to gain exposure to copper. It concludes:

A1M represents leveraged copper exposure through its Eloise Copper Project which is now advancing a clear organic growth strategy. A1M is also boosting regional exploration, with high potential for success across its large scale, strategic tenement package. The current share price, in our view, represents an excellent entry point into a well-managed, Australian based copper producer. We initiate with a Buy recommendation and NPV-based target price of $0.60/sh.

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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