The Australian share market is home to some of the largest mining companies in the world.
In addition, there are countless smaller miners and explorers out there for investors to choose from.
But which ASX 200 mining shares would be great options right now? Listed below are two that analysts are tipping as buys. Here's what they are saying about them:
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Rio Tinto Ltd (ASX: RIO)
The first ASX 200 mining share to look at is Rio Tinto.
This behemoth has operations spanning a number of commodities and geographies. The company explains just where its produce ends up in this summary:
Aluminium for lightweight cars. Copper to help things work more efficiently – from renewables to the power in your home. Iron ore for the steel in our electricity infrastructure. Lithium for electric vehicles and battery storage. And many of the materials we provide are used to make the things in everyday life too: like borates that help crops grow and titanium for paint.
Goldman Sachs is a big fan of the company and has it on its conviction list. The broker currently has a buy rating and $140.40 price target on its shares. This compares nicely to the latest Rio Tinto share price of $115.01.
It is very positive on the company's medium to long term outlook. It commented:
Over the medium to long run, we think the development of Rhodes Ridge has the potential to be significant for RIO's Pilbara business as it could lift mine system capacity by >10% to >360Mtpa, utilise spare rail and port infrastructure, and help close the >US$10 FCF/t gap with BHP by US$6-8/t or by >50% by the end of the decade.
Whitehaven Coal Ltd (ASX: WHC)
Another ASX 200 mining share that has been named as a buy is Whitehaven Coal. It is one of Australia's leading coal miners with operations and development projects in the Gunnedah basin.
Morgans is very bullish on the company and feels that recent share price weakness has created a buying opportunity for investors. It explained:
Ex M&A, WHC looks far too oversold on the recent NEWC correction (FY23F FCF yield +40%, P/NPV 0.69x). We expect the re-tightening of thermal coal pricing dynamics through April to be a key catalyst for WHC.
The broker currently has an add rating and $10.35 price target on its shares. This compares very favourably to the current Whitehaven Coal share price of $6.64. The broker is also expecting a 70 cents per share dividend in FY 2023 and an 80 cents per share dividend in FY 2024. This implies yields of 10.5% and 12%, respectively.
