2 excellent ASX 200 (ASX:XJO) mining shares that could be buys

These mining shares could boost your portfolio in 2021…

| More on:
A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall

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

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.

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

More on Resources Shares

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Resources Shares

Down 14% in 2024, why is the BHP share price sliding again today?

ASX 200 investors are bidding down the BHP share price on Wednesday.

Read more »

A mining employee in a white hard hat cheers with fists pumped as the Hot Chili share price rises higher today
Resources Shares

These ASX 200 mining stocks could rise 40% to 50%

Analysts think these miners are dirt cheap at current levels.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Fortescue share price leaps 5% as electric machinery makes a milestone

Fortescue is charging ahead with its electric mining ambitions.

Read more »

rising mining asx share price represented by happy woman miner in hard hat
Resources Shares

Why the BHP share price crushed the benchmark this week

BHP shareholders enjoyed a rewarding week.

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.
Dividend Investing

Here is the profit forecast to 2026 for BHP shares

Let’s unearth how much profit this miner could make.

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the worst of the selling now over for ASX iron ore shares?

ASX iron ore giants like BHP, Rio Tinto and Fortescue rebounded this week after falling hard in 2024.

Read more »

Three satisfied miners with their arms crossed looking at the camera proudly
Resources Shares

Why are ASX 200 mining shares smashing the benchmark on Wednesday?

Rio Tinto, BHP and Fortescue shares are all charging higher today.

Read more »

Two miners standing together.
Resources Shares

Why is the South32 share price getting battered today?

ASX 200 investors are bidding down South32 shares today.

Read more »