2 ASX 200 mining shares named as buys

Check out these ASX 200 mining shares…

| More on:
two smiling men in high visibility vests and miners helmets stand side by side with a large mound of earth and mining equipment behind them.

Image source: Getty Images

If you’re looking to diversify your portfolio with a little bit of exposure to the mining sector, then the 2 shares listed below could be worth a closer look.

Here’s what you need to know about these ASX 200 mining shares:

Orocobre Limited (ASX: ORE)

The first ASX 200 mining share to consider is Orocobre. It is a dynamic global lithium carbonate supplier and an established producer of boron.

Following its merger with Galaxy Resources, the company has a number of high-quality assets in its portfolio. These include Olaroz, the Cauchari Lithium Project Joint Venture, Mt Cattlin, the Sal de Vida brine project, and the James Bay spodumene project.

Combined, this makes Orocobre a top 5 global lithium mining company. This puts it in a great position to benefit from the increased demand and strong prices for battery-making ingredients.

Citi is a big fan of Orocobre. It currently has a buy rating and an $11 price target on its shares.

South32 Ltd (ASX: S32)

Another ASX 200 mining share to consider is South32. It is a diversified mining and metals company producing bauxite, alumina, aluminium, energy and metallurgical coal, manganese, nickel, silver, lead, and zinc. It has operations in Australia, Southern Africa, and South America.

The company has also recently announced a key earnings accretive acquisition that gives it exposure to copper through the Sierra Gorda copper mine in Chile.

But the commodity that is getting investors particularly excited right now is aluminium. With the metal believed to be in the early stages of a multi-year bull market, South32 has been tipped to benefit greatly from strong prices in the coming years.

It is for this reason that Goldman Sachs has a conviction buy rating and a $4.40 price target on its shares. Goldman is also forecasting double-digit dividend yields through to at least FY 2026.

Should you invest $1,000 in South32 right now?

Before you consider South32, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and South32 wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro owns shares of Orocobre Limited. 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