BHP Group Ltd (ASX: BHP) shares are widely seen as one of the strongest options in the mining sector. However, the potential upside from current levels could be somewhat limited for new investors. That has analysts scanning the wider market for names with sharper upside potential. This BHP shares outlook 2026 Australia review looks at BHP alongside one smaller contender drawing broker attention.
Figure 1: Mining operations in Australia [Courtesy: BHP]
Investors chasing the strongest ASX mining stocks to watch 2026 Australia are increasingly weighing size against upside. Bell Potter says one smaller gold developer could more than double in value within 12 months. And this piece is all about that tension between blue-chip stability and speculative upside.
About the Companies
About BHP
BHP is one of the world’s largest diversified resource companies with exposure to iron ore, copper and potash. The Company has spent decades building scale that few competitors can match. Its size gives it options many smaller resource companies simply do not have.
About Minerals 260
Minerals 260 Ltd (ASX: MI6) is a Western Australian gold developer advancing its Bullabulling Gold Project. The Project is 100 per cent owned by the Company and sits within the Goldfields region. Minerals 260 has released an updated mineral resource estimate, a pre-feasibility study, and a maiden ore reserve estimate for the Project.
BHP Share Price Target Australia 2026
Bell Potter continues to view BHP favourably, though it flags more limited upside from current price levels. The broker’s attention has instead shifted toward smaller mining names offering steeper potential returns.
Figure 2: BHP corporate logo [Courtesy: StockLight]
For investors specifically tracking a BHP share price target Australia 2026, that more modest upside outlook is a key consideration. It does not diminish BHP’s standing, but it does reframe where the bigger short-term gains may sit.
Why Minerals 260 Is Drawing Broker Attention
Bell Potter rarely gets this excited about a name most investors have never heard of.
Figure 3: Operations in Western Australia [Courtesy: Minerals 260]
The Bullabulling Gold Project
The Bullabulling Gold Project holds a 6.2 million-ounce mineral resource estimate in Western Australia. Minerals 260 recently delivered a maiden ore reserve estimate of 2.5 million ounces at the Project. Bell Potter describes this reserve as the largest undeveloped gold reserve in Australia not owned by an existing producer.
Key Project Metrics
The pre-feasibility study outlines a long life, high margin operation. Key figures that support the broker’s confidence in the development pathway of the Project.
- Maiden ore reserve estimate: 90 million tonnes at 0.86 grams per tonne gold for 2.5 million ounces
- Processing capacity: 5.0 million tonnes per annum
- Annual average production: 150,000 ounces in years one to ten
- All in sustaining costs of A$2,520 per ounce for years one to ten
- Mine life: 19 years
- Pre FID capital expenditure: A$180 million
- Post FID, pre-production capital expenditure: A$675 million
- Project net present value: US$2.3 billion at a US$3,800 per ounce gold price
- Internal rate of return: 43 per cent
Share Price Snapshot
| Metric | BHP Group Ltd (ASX: BHP) | Minerals 260 Ltd (ASX: MI6) |
|---|---|---|
| Last Price | A$56.260 | A$0.585 |
| Market Capitalisation | A$292.23 billion | A$1.44 billion |
| 52 Week Range | A$37.740 to A$65.980 | Not provided |
| Broker Price Target | – | A$1.40 per share |
BHP Share Price Target Australia 2026 Versus MI6 Upside
Investors comparing the BHP share price target Australia 2026 against smaller peers will notice a clear contrast in potential upside. Minerals 260 currently offers a steeper growth curve.
Figure 4: Share price and investment performance concept [Courtesy: Magnific]
Bell Potter has retained its speculative buy rating on Minerals 260. It raised its price target for the stock to A$1.40 a share from A$1.35.
This implies potential upside of 120 per cent over the next 12 months at the Company’s share price of A$0.635. This is far steeper than typical moves expected under the BHP share price target Australia 2026 outlook.
Industry Outlook
Gold developers with large, undeveloped reserves are increasingly attracting broker attention across the ASX. According to the sources mining sector activity has remained firmly focused on gold project advancement this year.
Investors weighing ASX mining stocks to watch 2026 Australia are watching how projects like Bullabulling progress toward a final investment decision. As per the ASX announcement, ASX gold sector interest tends to build once a project clears its pre-feasibility milestones.
Future Direction and Impact on Investor Portfolios
For BHP and smaller developers like Minerals 260, the impact on portfolios is starkly different. BHP offers scale and stability, providing a steadier outlook for BHP shares for cautious investors in Australia in 2026. Minerals 260 offers a higher risk, higher reward profile tied to a single project reaching production.
Readers comparing blue-chip miners against smaller developers may find this guide to ASX resource sector trends useful. A broader look at how gold project milestones influence share prices can add further context here. Investors specifically tracking a BHP share price target Australia 2026 may also want to review recent broker notes on ASX mining stocks.
Minerals 260 holds around A$250 million in cash, which the Company says is sufficient to reach a final investment decision in early calendar year 2027. Bell Potter has retained its speculative buy rating on the stock, lifting its price target to A$1.40 per share.
ALSO READ: Culpeo Minerals Launches Entitlement Issue to Fund Copper Exploration Growth in Chile
FAQs
Q1. Does BHP still suit long-term investors?
Ans. Yes, BHP remains a stable pick, though near-term upside looks more limited.
Q2. Why is Minerals 260 attracting broker attention?
Ans. Its Bullabulling Gold Project holds one of Australia’s largest undeveloped gold reserves.
Q3. What is the analyst target price for Minerals 260?
Ans. Bell Potter has a price target of A$1.40 per share.
Q4. How does this affect the wider BHP shares outlook 2026 Australia view?
Ans. BHP remains the steadier option, while smaller developers offer sharper speculative upside.
Q5. When could Minerals 260 reach a final investment decision?
Ans. The Company expects to reach that decision in early calendar year 2027.
Disclaimer
This article is meant only for informational purposes. If you are an investor watching BHP Group Ltd or Minerals 260 Ltd closely, all data published in this content is sourced from the referenced article and public share price information. Kindly verify all information related to share price and market data independently. Any investment decision should be made at the investor’s own risk. Colitco does not hold any position in either of the above-mentioned companies.
Source
- https://www.fool.com.au/2026/07/09/bhp-shares-may-not-double-in-12-months-but-this-asx-mining-share-could/
- https://www.asx.com.au/markets/company/MI6
- https://www.asx.com.au/markets/company/BHP
Elizabeth Jones is a finance and mining content specialist with over 10 years of experience creating clear, SEO-driven content across fintech, investing, banking, insurance, cryptocurrency, and resource markets. She transforms complex financial data and industry trends into engaging, reader-focused articles that improve understanding and audience engagement.
