'Sky-high demand': 2 ASX 200 mining shares that could head to the moon

Lithium and gold is where it's at, argues this expert.

| More on:
rocket taking off indicating a share price rise

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Mining shares have carried the S&P/ASX 200 Index (ASX: XJO) over the past 18 months.

But many experts reckon the golden run is far from over for some of those stocks.

Here are two examples that finance expert John-Louis Judges is still keen on:

'A promising investment opportunity'

Despite hiccups in lithium price growth, the Pilbara Minerals Ltd (ASX: PLS) share price is still more than 10% in the black so far this year.

The fervour for the battery ingredient doesn't look like abating anytime soon.

"The sky-high demand for lithium chemicals facilitates growth in lithium ore extraction," Judges told The Bull.

Created with Highcharts 11.4.3Pilbara Minerals PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

"Pilbara's production of over 300,000 dry metric tonnes of spodumene concentrate, at an average realised sales price of US$4,993 per dry metric tonne, further reinforces the company's strong market position."

This prolific production, a stunning 647% in revenue growth and a decent dividend all add up to a buy for Judges.

"It [is] a promising investment opportunity for those seeking exposure to the lithium mining industry," he said.

"Pilbara Minerals' decision to declare a dividend of 11 cents a share demonstrates the company's commitment to returning value to its shareholders."

According to CMC Markets, nine out of 16 analysts currently rate the stock as a buy.

The best bet for a 'safe haven' asset

Judges said that, with gold prices rising in recent times, Silver Lake Resources Ltd (ASX: SLR) is his pick to take advantage.

"Gold has historically been viewed as a safe-haven asset during times of economic uncertainty, and with ongoing geopolitical tensions and concerns of inflation, there is potential for an increase in its demand."

The latest results were "strong" for Silver Lake.

"The company's healthy cash and bullion position of $253 million provides a strong financial foundation for future growth and investment."

Judges praised the gold miner's "operational efficiency and excellent market position".

"The potential for a higher value of gold in the near term makes Silver Lake Resources a good investment opportunity for anyone looking to gain exposure to the gold mining industry."

Other professional investors largely agree with Judges. Four out of the five analysts that cover Silver Lake currently rate the stock as a strong buy.

Motley Fool contributor Tony Yoo 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.

More on Resources Shares

Female miner smiling at a mine site.
Resources Shares

Up 60% this year, this ASX 200 mining stock just smashed production records

Production surge headlines quarterly results.

Read more »

a man in a hard hat and high visibility vest smiles as he stands in the foreground of heavy mining equipment on a mine site.
Resources Shares

After lifting its price target, Macquarie now expects 36% upside from this ASX mining stock

The precious metals producer released better-than-expected production guidance.

Read more »

A miner in a hardhat and high visibility clothing makes a thumbs up symbol.
Resources Shares

4 reasons to buy Rio Tinto shares today

A leading expert forecasts strong growth potential for Rio Tinto shares.

Read more »

Man with rocket wings which have flames coming out of them.
Resources Shares

Why Macquarie expects this ASX All Ords copper stock could surge 38%

With costs coming in below expectations, this ASX All Ords copper stock could rocket higher over the coming months.

Read more »

Iron ore price Vale dam collapse ASX shares iron ore, iron ore australia, iron ore price, commodity price,
Resources Shares

Major miners up as China announces new mega project

Can a new mega-dam absorb iron ore oversupply?

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Broker Notes

Leading broker has just downgraded BHP shares. Is it time to sell?

Macquarie sees little upside. But why?

Read more »

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads some news.
Resources Shares

3 reasons why the BHP share price could be a buy

Here are my optimistic thoughts on BHP.

Read more »

mining asx shares represented by miner writing report on clipboard
Resources Shares

This ASX 200 miner is ramping up copper output as prices reach all-time highs

Copper production leads quarterly update.

Read more »