If you're not against investing in the mining sector and you are looking for some big potential returns for your portfolio, then read on.
That's because listed below are a couple of ASX 200 mining stocks that have not only been named as buys but tipped to rise 40% to 50% from current levels.
That means that if these analysts are on the money with their recommendations, a $20,000 investment could turn into $28,000 to $30,000.
Let's see what they are saying about these ASX 200 mining stocks:
Arcadium Lithium (ASX: LTM)
This beaten down lithium miner's shares could be a bargain buy according to Bell Potter.
The broker currently has a buy rating and $10.40 price target on its shares. This implies potential upside of approximately 53% for investors from where they trade today.
The broker is a big fan of the lithium chemicals company due to its diversified exposure to lithium, growth portfolio, and strong balance sheet. It believes this leaves it perfectly positioned to benefit when the lithium price rout is over. Its analysts explain:
LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance sheet and growth portfolio.
Regis Resources Ltd (ASX: RRL)
Another ASX 200 mining stock that has been tipped to rise very strongly is gold miner Regis Resources.
Despite the gold price recently hitting a record high, Regis Resources shares remain closer to their 52-week low than their 52-week high.
Bell Potter also sees this as a buying opportunity for investors, particularly given its growth opportunities, its Australia-based operations, and its M&A appeal. It said:
As one of the largest ASX listed gold producers, we are attracted to its all- Australian asset portfolio and organic growth options which are unique at this scale. Furthermore, we see key opportunities in the fundamental, medium-term outlook and, in our view, these may also make RRL an appealing corporate target in the current conducive M&A environment.
Bell Potter has a buy rating and $2.60 price target on the miner's shares. If this proves accurate, it will mean a return of approximately 41% over the next 12 months for investors from current levels.
