If you're looking for some exposure to the mining sector, then read on!
Listed below are two ASX 200 mining shares to buy now according to experts. Here's what they are saying about them:
Image source: Getty Images
Allkem Ltd (ASX: AKE)
The first ASX 200 mining share to consider is Allkem. It is one of the world's largest lithium miners with projects in Argentina, Australia, and North America.
Allkem has bold production expansion plans from these projects. In fact, it is aiming to grow its production four-fold in the coming years in order to maintain a 10% share of global lithium supply over the long term.
Goldman Sachs is positive on Allkem due to the aforementioned production growth and its exposure to several lithium types. This includes moving downstream from spodumene into lithium chemicals, which it sees as a margin accretive opportunity. Goldman commented:
Of our covered Australian lithium companies, Allkem has the best LCE growth outlook with production growing >4x to FY27E with further downstream optionality on carbonate production
Goldman has a buy rating and $15.20 price target on Allkem's shares. This implies potential upside of 34% for investors over the next 12 months.
South32 Ltd (ASX: S32)
Morgans is a big fan of South32 and feels it is one of the best options in the resources sector.
The broker is positive on the diversified miner due to the successful transformation of its portfolio and its positive long term outlook. It advised:
Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.
The broker currently has an add rating and $5.40 price target on the diversified mining company's shares. Based on the latest South32 share price, this suggests potential upside of over 30% for investors this year.
