Which ASX lithium and uranium shares should I buy?

Wanting lithium or uranium exposure? Then check out these shares.

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If you're looking for exposure to lithium or uranium, then you may want to check out the ASX mining shares listed below.

Both these exciting ASX mining shares have been named as buys by analysts at Bell Potter. Here's what the broker is saying:

Delta Lithium Ltd (ASX: DLI)

Bell Potter is feeling very positive on this ASX lithium share. Particularly following news that Mineral Resources Ltd (ASX: MIN) has increased its stake in the lithium explorer and the mining giant's founder and CEO Chris Ellison has been named as Delta Lithium's new chair.

Its analysts feel this de-risks things significantly. It also isn't ruling out a takeover in the future. It said:

[W]e expect an integrated scenario to exceed our DLI risk-adjusted independent valuation, given MIN's capabilities and existing operations significantly de-risk DLI's development pipeline, and accelerate earnings potential. In our view, given MIN's clear interest in DLI's projects, any weakness in DLI's share price could result in a full takeover offer. We expect a number of potential catalysts for DLI in late CY23 / early CY24, including i) Mt Ida development plans, ii) Yinnetharra initial Mineral Resource estimates, and, iii) Jamesons Prospect exploration commencement.

Bell Potter has a speculative buy rating and a $1.35 price target on Delta Lithium's shares. This implies a potential upside of almost 70%.

Paladin Energy Ltd (ASX: BOE)

Bell Potter believes this Namibia-based ASX uranium share could be a good option for investors with a high-risk tolerance.

The broker is feeling very positive on the uranium price and believes Paladin Energy is well-positioned to benefit thanks to its Langer Heinrich Mine (LHM). It commented:

We reiterate our investment thesis on PDN being 1) LHM is a proven asset in a known uranium mining jurisdiction with a comparatively low restart risk, 2) At full capacity LHM will be a top ten producer supplying 6Mlbs pa by FY26 (BPe), and 3) uranium market fundamentals remain robust, with 118Mlbs in long-term offtake contracted CYTD (124Mlbs CY22), PDN is fully contracted for the first year of operations and substantially contracted for the second year, we anticipate demand for PDN's material will increase over the next 6-12m leading to more long-term offtake contracts.

Bell Potter has a speculative buy rating and a $1.12 price target on its shares. This suggests a potential upside of 20% for investors.

Motley Fool contributor James Mickleboro 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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