When it comes to investing in mining stocks on the Australian Securities Exchange (ASX), BHP Group Ltd (ASX: BHP) is often the go-to choice for investors. However, for those seeking higher potential returns, another mining stock may be worth a closer look. Analysts at Bell Potter recently recommended Develop Global Ltd (ASX: DVP) as a stock with an 18% upside potential.
Develop Global operates under a unique hybrid model, offering underground mining contracting services while also directly managing two mining assets: the Woodlawn Zinc-Copper Mine and the Sulphur Springs Zinc-Copper Project. Bell Potter has expressed satisfaction with the company’s recent performance, particularly in its latest quarterly report, where mining services revenue reached AUD 51 million—flat compared to the previous quarter but up 14% year-on-year. Revenue for FY2025 is projected at AUD 212 million, exceeding the company’s earlier target of AUD 200 million. Additionally, the quarter saw strong concentrate production, with steady output of copper, zinc, lead, silver, and gold.
Given these positive results, Bell Potter has maintained its “Buy” rating for Develop Global and raised the target price from AUD 5.00 to AUD 5.30. Based on the current share price of AUD 4.50, this implies a potential 18% return for investors over the next 12 months. Analysts are particularly optimistic about the production ramp-up at the Woodlawn mine, expecting it to reach near-full capacity by the December 2025 quarter. This milestone is anticipated to reduce commercial risks and enhance cash flow stability, further driving share price growth.
For investors looking to diversify beyond BHP in the mining sector—or seeking higher growth potential—Develop Global could be a compelling alternative or complementary pick.
