Bell Potter names the best ASX mining shares to buy

Lithium and copper are on the menu for this leading broker.

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If you're wanting to add some mining sector exposure to your portfolio, then it could be worth checking out the three ASX mining shares listed below.

That's because analysts at Bell Potter have just picked them out as their favoured picks in the sector.

Here's what the broker is saying about them:

Aeris Resources Ltd (ASX: AIS)

The first ASX mining share that could be a buy is copper miner Aeris Resources.

The broker likes the company due to increasing copper grades and its much-improved balance sheet. It explains:

AIS represents a copper dominant mining exposure whose primary assets are the Tritton Copper Operations in NSW, Cracow Gold Mine in QLD, Mt Colin Copper Mine in QLD. Its near-term outlook is highly leveraged to rising copper grades at the Tritton copper mine, where new high grade ore sources are growing production in FY24. […] Recent refinancings have de-risked the balance sheet and we are of the view that AIS is well positioned to deliver on its production targets.

Bell Potter has a buy rating and 23 cents price target on its shares.


Another ASX mining share that has been given the thumbs up is IGO.

Although lithium prices have been falling, the broker remains very positive. In fact, it feels that its shares have been oversold. Particularly given the low costs of its world-class Greenbushes operation. It said:

The Greenbushes Lithium Mine is the most valuable component of IGO. […] The high average grade of ore (relative to other known deposits) results in low unit cash costs (FY24 guidance: A$280-A$330/t SC6), supporting profitable operations throughout lithium price cycles and providing strong justification for the self-funding (forecast) expansion plans. […] In our view, IGO is oversold given the long-term earnings potential of the lithium assets. IGO offers excellent leverage to lithium prices and the electrification thematic.

Bell Potter has a buy rating and a $11.30 price target on IGO's shares.

Liontown Resources Ltd (ASX: LTR)

Another ASX mining share that could have been oversold is lithium developer Liontown Resources.

However, that may not be the case for long. Bell Potter believes that sentiment could improve in 2024, which could make now the time to buy. It said:

LTR owns the Kathleen Valley (KV) lithium project in Western Australia. KV is in development and set to commence production in mid-2024, supplying into Ford, Tesla and LG Energy Solution offtake agreements. The company is funded to complete KV and has a strong cash buffer over and above remaining development and working capital requirements. We expect lithium market sentiment to improve into 2024 as EV supply chain inventories normalise. KV is highly strategic in terms of being large scale and located in a stable mining jurisdiction.

The broker has a speculative buy and a $2.75 price target on its shares.

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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