If you want to diversify your portfolio, then having some exposure to the mining sector could be one way to do it.
But which ASX mining stocks could be good options for investors right now?
Let's take a look at a couple that have been named as best buys by brokers this month. They are as follows:
Regis Resources Ltd (ASX: RRL)
The first ASX mining stock to look at buying is Western Australia-based gold miner Regis Resources.
The team at Bell Potter is feeling very positive about the company's outlook and sees a lot of value in its shares at current levels. Especially given its all-Australian operations and takeover appeal. It currently has a buy rating and a $2.80 price target on its shares. The broker commented:
RRL is an established multi-mine gold producer with all its operating mines located in Western Australia. The Duketon Gold Project (located in the Laverton region 350km north, north-east of Kalgoorlie in WA) is RRL's flagship project and comprises the Duketon North Operations (DNO) and the Duketon South Operations (DSO) which produce a combined ~300kozpa. 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.
South32 Ltd (ASX: S32)
Another ASX mining stock that could be a buy according to analysts is South32. It is a diversified miner with operations across a number of future-facing metals. This includes aluminium, copper, nickel, and zinc.
Morgans is a fan of the company due partly to the transformation of its portfolio and favourable commodity prices. It currently has South32 on its best ideas list with an add rating and a $4.10 price target. The broker commented:
S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32's risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.
