If you're wanting to diversify your portfolio with a little bit of exposure to the mining sector, then you may want to look at the ASX 200 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 in the buy zone in February is Allkem. It is the company that was formed from the merger of two leading lithium miners – Galaxy Resources and Orocobre.
Allkem is now 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.
Morgans is bullish on Allkem and recently upgraded its shares to an add rating with a $13.25 price target. The broker notes that the company is its "preferred stock for lithium exposure." This is due to it having a "strong December quarter and a long growth runway." The Allkem share price was fetching $9.04 at Friday's close.
BHP Group Ltd (ASX: BHP)
Another ASX 200 mining share to look at is BHP. It is one of the world's largest mining companies with a collection of world class operations across a number of regions and commodities.
BHP's operations span across Petroleum, Potash, Copper, Iron ore, Coal and Nickel. And while the company is in the process of spinning out its petroleum assets via a merger with Woodside Petroleum Limited (ASX: WPL), shareholders will be given a slice of the new company.
In addition, the Big Australian has been tipped to go on an M&A spree now that it has freed up capital following its unification. This could be supportive of earnings and dividend growth in the coming years.
The team at Macquarie is very positive on BHP. It has an outperform rating and $51.00 price target on the company's shares.
In addition, the broker expects some generous dividend payments over the next couple of years. It has pencilled in fully franked dividends of ~$3.59 in FY 2022 and ~$2.62 in FY 2023. Based on the current BHP share price of $46.92, this will mean yields of 7.6% and 5.6%, respectively.
