2 battered ASX mining shares to buy for cheap right now

The global economy is set to improve in the coming year. That's why one expert is seeing a huge 58% upside in one resources stock.

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The fortunes of ASX mining shares tend to be, generally, closely linked to how the global economy is faring.

That's because demand for raw materials dies down during periods of low consumption, which pushes commodity prices lower. And that means less earnings for the miners.

So after a year or two of struggles, it's not unreasonable to think that, with interest rate cuts possibly on the horizon, resources stocks could now have some upside as the economy improves.

Here are two such stocks that experts are fancying at the moment:

Lots of cash and gold bullion, with no debt

The Perseus Mining Ltd (ASX: PRU) share price has lost more than 31% since mid-April 2023.

Novus Capital stock broker John Edwards told The Bull that the company was "a profitable West African gold producer with three operating mines".

"Perseus Mining guided to second half gold production of between 226,000 ounces and 254,000 ounces in fiscal year 2024 at an all-in-sustaining cost of between US$1,180 and US$1,340 an ounce."

Edwards, who disclosed that he personally owns Perseus shares, is bullish on the mining shares.

"The company had available cash and a bullion balance of US$642 million and no debt at the end of the second quarter."

He has a stock price target of $2.80, which is a whopping 58% upside from the current level.

According to CMC Invest, four out of seven analysts currently rate Perseus shares as a buy.

Lithium business is still profitable

Mineral Resources Ltd (ASX: MIN) shares have plunged almost 34% since last March.

BW Equities equities salesperson Tom Bleakley described the outfit as "a diversified mining services business", which is also involved in producing iron ore and lithium in its own right.

And it's the plummeting global prices for that battery material that's keeping the stock price depressed.

A recent update reassured Bleakley, though.

"While lithium prices have nosedived, Mineral Resources' January update showed its lithium operations are still profitable."

"The iron ore price is buoyant."

With batteries crucial to the transition to lower carbon emissions, this could be a buying opportunity for long-term investors.

"In our view, Mineral Resources is poised to benefit from any recovery in the lithium price."

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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