If you are looking for exposure to the mining sector outside the status quo of BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO), then it could be worth taking a closer look at the ASX mining shares in this article.
That's because the team at Morgans is positive on them and believes that they could generate strong returns for investors over the next 12 months. Here's what the broker is saying about them:
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Aeris Resources Ltd (ASX: AIS)
This copper miner could be worth a shout according to the broker. Although it has downgraded the copper miner's shares from a speculative buy rating, it still rates it as accumulate and has boosted its valuation materially. It said:
Steady operating result with in-line operating performance at Tritton slightly offset by some misses at Cracow. Importantly, growth at Tritton through the Murrawombie pit is on track and exploration continued to highlight potential for reserve/resource growth at both Tritton and Cracow. Move to an ACCUMULATE rating with a A$0.62ps TP (previously A$0.43).
As it says above, Morgans has put an accumulate rating and 62 cents price target on Aeris Resources' shares. Based on its current share price of 52.5 cents, this implies potential upside of 18% for investors over the next 12 months.
South32 Ltd (ASX: S32)
Another ASX mining share that Morgans has been looking at is diversified miner South32.
It was pleased with its overall performance in the first quarter, but particularly its Worsley, Sierra Gorda and GEMCO operations. Combined with strong commodity prices, it sees a lot of value in its shares at current levels. It said:
Solid start, with most assets coming in ahead of estimates, in particular Worsley, Sierra Gorda and GEMCO posting solid results. All FY26 guidance was maintained. Share price has enjoyed significant support from rising copper, silver and ali prices. Further changes to the portfolio are needed if South32 is to prevent its share price from merely following metal prices up and down through each cycle. We maintain a BUY rating with an updated A$3.75 target price (previously A$3.55).
Morgans has a buy rating and $3.75 price target on South32's shares. Based on its current share price of $3.18, this suggests that upside of 18% is possible between now and this time next year.
In addition, the broker is expecting a 5.1% dividend yield from its shares in FY 2026. This boosts the total potential return to approximately 23%.
