'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.

"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

A miner holding a hard hat stands in the foreground of an open cut mine
Resources Shares

A close look at BHP shares. What is the mining giant's next move?

Let's take stock of what the experts think.

Read more »

Miner looking at a tablet.
Resources Shares

Short bets on Pilbara Minerals shares are declining. Is now the time to buy?

Could the trade be unwinding?

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

'I hate what I have done': Mineral Resources share price down as Ellison laments actions

Managing Director Chris Ellison says he deeply regrets the impact of his 'error of judgement'.

Read more »

A man in shirt and tie uses his mobile phone under water.
Resources Shares

The Lake Resources share price is sinking yet again. Here's why

The longer-term downtrend continues.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

With a P/E ratio of 6, is the Fortescue share price a bargain?

Let’s dig into whether Fortescue shares are good value or not, in my eyes.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Down 15% this year, where's the next stop for Rio Tinto shares?

Where to next for the miner?

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

Can Pilbara Minerals shares cross the $3 mark?

Lithium stocks continue to split opinion.

Read more »

Female miner smiling in front of a mining vehicle as the Pilbara Minerals share price rises
Resources Shares

'Encouraging signs' for Fortescue shares heading into 2025

This leading investment expert forecasts brighter days ahead for Fortescue shares.

Read more »