Looking for big returns and exposure to the mining sector? Then look no further!
Listed below are two ASX 200 mining stocks that have been named as buy this week. Here's what analysts are saying about them:
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Gold Road Resources Ltd (ASX: GOR)
Bell Potter thinks that Gold Road Resources could be an ASX 200 mining stock to buy this week.
The broker has responded to the gold miner's FY 2023 results with a buy rating and improved price target of $1.85. This implies potential upside of 23% for investors over the next 12 months.
Its analysts explained why they are bullish on the company. They said:
GOR is a debt-free, unhedged, free-cash generating, single asset gold producer, with targeted attributable production of a sustainable 175 kozpa (attributable) out to 2032. GOR pays dividends, targeting dividends of 15-to-30% of free-cash-flow, subject to a minimum cash balance of $100m. Earnings from Gruyere provide an excellent foundation for GOR's growth ambitions i) a 100% owned project, and ii) Tier 1 gold assets.
Lynas Rare Earths Ltd (ASX: LYC)
Another ASX 200 mining stock that has been named as a buy this week is rare earths producer Lynas.
Goldman Sachs remains very positive on the miner and has its shares on its coveted conviction list with a buy rating and $7.40 price target. This implies potential upside of 25% for investors over the next 12 months.
A couple of reasons why Goldman is so bullish are as follows:
Undervalued: the stock is trading at ~0.8x NAV (A$7.78/sh) and pricing in US$67/kg NdPr vs. spot at ~US$53/kg and our long run US$83/kg (real $, from 2028) NdPr price forecast.
NdPr market balanced over medium term but deficits over long run on higher Chinese supply, but we see upside to current NdPr spot China at ~US$53/kg where we forecast US$60/kg across CY24 based on our SD model.
