If you’re wanting to diversify your portfolio, then you might want to look at adding a little exposure to the resources sector.
But which ASX 200 mining shares should you consider? Two that could be worth considering are listed below. Here’s why they are highly rated:
Mineral Resources Limited (ASX: MIN)
The first ASX 200 mining share to look at is Mineral Resources. It is a mining and mining services company with a world class portfolio of operations across lithium and iron ore.
Thanks to strong demand for iron ore from steel makers and for lithium from the electric vehicle market, Mineral Resources has been tipped to deliver bumper profits in the near term.
For example, analysts at Macquarie are very bullish on its prospects. So much so, the broker currently has an outperform rating and $75.00 price target on the company’s shares. This compares favourably to the current Mineral Resources share price of $59.50.
In addition, Macquarie is expecting some generous dividend payments over the next couple of years with yields greater than 5% at current prices.
South32 Ltd (ASX: S32)
Another ASX 200 mining share that is highly rated right now is South32. It is a diversified mining company with exposure to a range of commodities. These include alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.
The team at Goldman Sachs are very bullish on South32 due to its exposure to aluminium. In fact, the broker has a conviction buy rating and $3.80 price target on the company’s shares. This compares to the latest South32 share price of $2.96.
Goldman believes that aluminium is in the early stages of a multi year bull market and expects South32 to benefit greatly. Its analysts expect this to underpin growing dividends over the coming years.