'Good entry point': 2 ASX 200 mining shares now ready to buy

The trouble with cyclical stocks is that the entry point is make-or-break, even for long-term investors.

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ASX mining shares are notoriously cyclical.

The fortunes of these stocks are closely tied to the global prices for the commodity the underlying businesses produce. In turn, the mineral price fluctuates up and down according to how well the client economies are faring.

This means the appropriate entry price for mining shares is crucial to avoid getting burnt, even for long-term investing.

Here are two mining stocks from the S&P/ASX 200 Index (ASX: XJO) that one expert reckons are ripe to buy at the moment:

'Expect the stock to attract more buyers at recent prices'

The Lynas Rare Earths Ltd (ASX: LYC) share price crashed 37.5% in just two months from February to early April.

But the rare earths producer has bounced back nicely to rocket 23% since 3 May.

Fairmont Equities managing director Michael Gable attributed that to doubts over the future of Lynas' Malaysian operations.

"Lynas shares were recently oversold on the back of concerns that production would be impacted when Lynas switched to its new processing plant in Kalgoorlie," Gable told The Bull.

"With an extension granted to its Malaysian plant, Lynas won't lose any production time."

He now feels like the company can put that uncertainty behind it and the next move for the stock will be upwards.

"Combined with improving sentiment in the resources space, we expect the stock to attract more buyers at recent prices."

The wider professional community also loves Lynas shares at the moment.

According to CMC Markets, a whopping 11 out of 14 analysts currently rate the stock as a buy. Ten of those reckon Lynas is a strong buy.

The share price for this resources giant is 'bottoming'

Mineral Resources Ltd (ASX: MIN) shares have also plunged this year, to the tune of 29.5% since 24 January.

Gable blamed that on "weaker iron ore and lithium prices", but the situation has now turned around.

"Recently, lithium and iron ore prices appear to be finding support," he said.

"The share price of this diversified resources company is also bottoming on the chart. Mineral Resources is potentially a good entry point around recent levels."

Earlier this month, The Motley Fool's Bronwyn Allen also expressed her bullishness for Mineral Resources.

"Following a 25% slide in the Mineral Resources share price over the past four months, I think a buy-the-dip opportunity may exist here," she said.

"Iron ore will be needed to make steel for decades yet, despite decarbonisation, and the move to electric vehicles is a global trend that is only in its infancy."

Nine out of 18 analysts currently surveyed on CMC Markets rate Mineral Resources shares as a buy.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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