If you're looking to diversify your portfolio with a little bit of exposure to the mining sector, then you may want to look at the mining shares listed below.
Here's what analysts are saying about them:
Allkem Ltd (ASX: AKE)
The first ASX 200 mining share that could be a good option in January is Allkem. It is the result of the merger of two leading lithium miners – Galaxy Resources and Orocobre.
This merger made the company a top five global lithium miner with a collection of world class operations. 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 puts Allkem in a great position to benefit from the increased demand and strong prices for battery making ingredients thanks to electric vehicle adoption and decarbonisation.
Citi is positive on Allkem and currently has a buy rating and $12.00 price target on its shares.
South32 Ltd (ASX: S32)
Another ASX 200 mining share that analysts rate as a buy is South32. It is a diversified mining and metals company that looks well-placed to benefit from favourable commodity prices in the coming years.
Particularly given its recent acquisition of a major stake in the Sierra Gorda copper mine in Chile. This complements its exposure to aluminium and nickel. Of which, the former is believed to be in the early stages of a multi-year bull market due to strong demand and supply constraints. This bodes well for South32's free cash flows in the near term.
Macquarie is bullish on South32 and has an outperform rating and $5.20 price target on its shares. The broker is also forecasting generous dividend yields over the next couple of financial years, making the total return on offer even more attractive for investors.
