The ASX 200 index is home to plenty of mining stocks. But with so much choice, it can be hard to decide which ones to buy over others.
The good news is that the team at Morgans has been busy picking out the best ASX shares to buy in June and its list contains a couple of miners.
According to Morgans, these are the ASX 200 mining stocks to buy this month:
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Mineral Resources Ltd (ASX: MIN)
The first ASX 200 mining stock that could be a buy is Mineral Resources.
It is a mining and mining services company with exposure to lithium, iron ore, and energy. Morgans continues to believe that Mineral Resources is the perfect option for investors looking for exposure to China's reopening. 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 $93.00 price target on Mineral Resources' shares.
South32 Ltd (ASX: S32)
Another ASX 200 mining stock that Morgans has on its list is South32.
The broker likes the diversified mining giant due to its belief that it is well-placed for the future thanks to its portfolio transformation. It also expects some attractive yields due to its dividend policy. 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.
