If you're wanting to invest in the mining sector in 2022, then you may want to look at the ASX mining shares listed below.
Bell Potter has just named them among its top picks for 2022. Here's what you need to know:
Mining outlook
Firstly, it is worth highlighting that Bell Potter remains positive on the sector.
It commented: "While the short-term outlook for base metals and iron ore has been dampened by power restrictions and high energy prices in key economies, plus the emergence of new COVID strains, the underlying thematic of tight supply-demand fundamentals remains."
It also believes that while rising interest rates pose a risk to the gold price, it views "the gold price outlook as skewed to the upside."
With all that in mind, here are the picks:
Chalice Mining Ltd (ASX: CHN)
Bell Potter is bullish on this mineral exploration company, largely due to its exciting Julimar project in Western Australia. It has a speculative buy and $11.73 price target on the company's shares.
The broker commented: "The release of CHN's maiden Resource for the Gonneville deposit at its Julimar PGE-Ni-Cu-Au project in WA confirmed its status as a world class discovery. Containing 10Moz 3E (Palladium + Platinum + Gold), 530kt Ni, 330kt Cu and 53kt Co, it remains open and prospectivity remains high. There are further opportunities for significant Resource growth along the 26km strike length of geophysical anomalies associated with the Gonneville mineralisation. We expect the Scoping Study due for release in Q2CY22 will be a material, positive catalyst, setting out a baseline development case that will be likely to grow with the Resource."
Liontown Resources Limited (ASX: LTR)
The broker is also a fan of this lithium developer. It believes its Kathleen Valley lithium project is well-placed to benefit from high lithium prices. Bell Potter has a speculative buy and $2.15 price target on its shares.
Its analysts explained: "LTR is positioned to become a key supplier of battery raw materials and is now capable of funding Kathleen Valley's initial development capital. The project DFS highlighted production of 658ktpa SC6 with potential for conversion into 86ktpa lithium hydroxide (75ktpa lithium carbonate equivalent, LCE). LTR is independent, debt free and with all offtake uncommitted it is in a strong strategic position in a market for lithium facing supply shortages as decarbonisation policies are enacted. Key catalysts are now signing product offtake contracts, project permitting and commencing project development."
Regis Resources Limited (ASX: RRL)
In the gold sector, the broker is bullish on Regis Resources. It currently has a buy rating and $3.81 price target on the company's shares.
Bell Potter commented: "RRL's share price has continued to drift on a forecast slow start to FY22 and a lack of conviction on the gold price. However, RRL continues to be competitive with peers on operating and cost metrics and is relatively cheap on a number of valuation metrics. While Duketon and Tropicana are currently not performing at their best, we expect stronger performances in 1HCY22 and, particularly in Tropicana's case, over the longer term. RRL offers exposure to a long-life, low-cost asset base and the opportunity of organic growth at McPhillamys lifting group production to ~700kozpa. On a riskreward basis, at these levels, we view RRL is a standout in the sector."
