If you're planning to invest in the resources sector in 2022, then you may want to look at the mining shares listed below.
Both have been named by analysts at Bell Potter as top picks for next year. Here's why they are bullish on them:
Image source: Getty Images
Alpha HPA Ltd (ASX: A4N)
Bell Potter is bullish on this producer of High Purity Alumina (HPA) and aluminium precursor products for the lithium battery market. This is due to its exposure to the global decarbonising and onshoring themes.
The broker has put a speculative buy rating and 87 cents price target on the company's shares.
Bell Potter explained: "A4N's HPA and aluminium precursor products have applications in lithium ion battery, micro-LED and semiconductor manufacturing – technologies at the forefront of the global decarbonising and onshoring themes. The company's proprietary process has produced product samples which have been recognised by a number of end users as the highest purity tested."
"The high purity products and competitive unit costs have the potential to disrupt incumbent production methods and establish A4N as an integral part of rapidly advancing technology supply chains. The company has line of sight to cash flows as operations commence from its Precursor Production Facility from August 2022," it added.
Lake Resources N.L. (ASX: LKE)
This lithium developer could be an ASX mining share to buy in 2021. Bell Potter has placed a speculative buy rating and $1.37 price target on its shares.
The broker is bullish thanks to its lithium exposure and strategic appeal. The latter is due to its uncommitted product offtake and independent share register.
Bell Potter commented: "LKE is developing the Kachi lithium brine project located in north western Argentina. A March 2021 prefeasibility study evaluated a 25.5ktpa lithium carbonate project with average annual EBITDA of $260m and a post-tax NPV8 of US$1,580m."
"Kachi is unique in that LKE is aiming to employ direct lithium extraction through ion exchange technology to recover lithium from its brine Resource. The key advantages of this technology are a smaller environmental footprint, lower carbon emissions and greater process control. A definitive feasibility study for Kachi is due by mid-2022. With uncommitted product offtake and an independent share register, LKE has strategic appeal," it concluded.
