Are you wanting to diversify your portfolio? If you are, then you might may 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:
IGO Ltd (ASX: IGO)
The first ASX 200 mining share to look at is IGO. It is focused on discovering, developing, and delivering products critical to clean energy.
The company owns and operates the Nova nickel-copper-cobalt operation in Western Australia and is invested in a lithium focused joint venture with Tianqi Lithium Corporation. The latter comprises a 51% stake in the Greenbushes Lithium Mine and 100% interest in a downstream processing refinery at Kwinana which is producing battery grade lithium hydroxide.
Goldman Sachs is very positive on IGO. It currently has a buy rating and $10.00 price target on the company’s shares. Goldman believes its shares are trading at a very attractive level. Particularly in comparison to other lithium miners.
South32 Ltd (ASX: S32)
Another ASX 200 mining share that is highly rated 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.
Goldman Sachs is also very positive on South32. This is due largely to the company’s exposure to aluminium through its operations in Australia, South Africa, and South America.
The broker believes that aluminium is in the early stages of a multi-year bull market and expects South32 to benefit greatly from higher prices.
As a result, Goldman has a conviction buy rating and $3.60 price target on the company’s shares. It is also forecasting very generous dividend yields in the coming years. This includes double digit yields from FY 2023 through to FY 2026.