Are you wanting to gain exposure to the mining sector? If you are, then read on!
Listed below are two ASX 200 mining shares that analysts are tipping as buys. Here's what they are saying about them:
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Iluka Resources Limited (ASX: ILU)
The first ASX 200 mining share that could be in the buy zone is Iluka. It is a mineral sands and rare earths producer with a number of operations across South Australia and Western Australia.
Analysts at Goldman Sachs are very positive on the company. This is due partly to the favourable outlook for mineral sands, and its exposure to rare earths.
Goldman commented:
We are positive on ILU's project pipeline and forecast >30% production growth in mineral sands volumes, c.18ktpa of Rare Earths (~3.5-4ktpa of high value NdPr). We think ILU's Eneabba RE refinery is a strategic asset considering it will be only the third western world RE refinery.
The broker currently has a conviction buy rating and $12.50 price target on Iluka's shares.
Santos Ltd (ASX: STO)
Another ASX 200 mining share that could be a buy is Santos.
Thanks to its recent merger with Oil Search, it is now one of the world's largest energy producers with a collection of world class operations and projects.
The team at Morgans is positive on the company due to its growth prospects and diversified earnings base. The broker commented:
The resilience of STO's growth profile and diversified earnings base see it well placed to outperform against the backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa's development.
Morgans has the company on its best ideas with an add rating and $8.60 price target.
