There are a lot of options for investors in the mining sector. But with so much choice, it can be hard to decide which ones to buy over others.
Don't worry, because the team at Morgans has been busy picking out the best ASX shares to buy this month. Two ASX mining shares that the broker has on its list are named below.
Here's why they could be top mining options for investors:
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Mineral Resources Ltd (ASX: MIN)
This mining and mining services company is on Morgans' list again in March. The broker continues to believe that Mineral Resources is the perfect option for investors looking for exposure to China's reopening from the pandemic. The broker explained:
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 $102.00 price target on Mineral Resources' shares. The broker is also forecasting a double digit dividend yield next year.
South32 Ltd (ASX: S32)
The other ASX 200 mining share that makes the list this month is South32. Morgans is bullish on the diversified mining giant due to its belief that it is well-placed for the future thanks to its portfolio transformation. It commented:
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 currently has an add rating and $5.60 price target on South32's shares. The broker expects an almost 5% dividend yield this year.
