With the mining sector booming thanks to China's reopening, investors may be keen to gain some exposure to this side of the market.
But which ASX 200 mining shares should you buy? Listed below are a couple of miners that have been named on the best ideas list of Morgans for the month of February.
Here's why they could be top options for investors:
Mineral Resources Ltd (ASX: MIN)
Morgans is very positive on this mining and mining services company. The broker believes the company's exposure to iron ore and lithium leaves it well-placed to benefit from China's reopening. In addition, its analysts like the company due to its organic growth opportunities. They commented:
MIN is a founder-led business and top tier miner and crusher that has grown consistently despite barely issuing a share over the last decade. Also helping our investment view is that MIN's diversification leaves it far more capable of tolerating volatility in lithium markets than its peers in the sector. We see MIN's lithium / iron ore market exposures as an ideal combination to benefit from the China re-opening increase in demand during 1H'CY23. We also see MIN as well placed to grow into its valuation, even if we see unexpected metal price volatility, given the magnitude of organic growth in the pipeline.
Morgans has an add rating and $99.40 price target on Mineral Resources' shares.
South32 Ltd (ASX: S32)
Another ASX 200 mining share for investors to buy this month is South32 according to Morgans. It likes the diversified miner due to its portfolio transformation, which it believes has left it well-positioned for growth. It explained:
S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32's risk and ESG profile. Unlike its peers amongst ASX listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.
Morgans has an add rating and $5.60 price target on its shares.
