Are you looking for ASX mining stocks to buy outside the status quo of BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO)?
If you are, then it could be worth considering the two in this article.
That's because the team at Morgans has just named them as buys and is predicting major upside over the next 12 months.
Here's what the broker is recommending to clients in the mining sector:
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29Metals Ltd (ASX: 29M)
This copper miner has caught the eye of Morgans following its recent equity raising. The broker believes this leaves 29Metals well-positioned to execute on its growth plans.
This morning, the broker has initiated coverage on the ASX mining stock with a buy rating and 54 cents price target. Based on its current share price of 34 cents, this implies potential upside of almost 60% for investors. It said:
We initiate coverage on 29Metals (29M) with a 12-month target price of A$0.54ps and a BUY recommendation. We expect the Xantho Extended restart and Gossan Valley development at Golden Grove to restore grades and operating flexibility, while a potential Capricorn Copper restart provides medium-term production growth. Following its recent equity raise, 29M is better positioned to execute its plans, with upside potential supported by a constructive long-term copper outlook.
Meeka Metals Ltd (ASX: MEK)
Another ASX mining stock that Morgans is positive on is gold miner Meeka Metals.
It highlights that the company is planning to expand its production capability with a modest capital investment.
While it suspects there could be some short-term production challenges, it believes things will pick up from the fourth quarter.
As a result, it has retained its buy rating and 39 cents price target on its shares. Based on its current share price of 15.7 cents, this suggests that its shares could more than double in value. Morgans commented:
MEK announced an expansion to 800ktpa (equivalent ounce basis) via ore sorting, requiring modest capex of A$6m with commissioning scheduled for Q1FY27. Ore sorting effectively near doubles Andy Well underground head grade, lifting our annual production forecasts by an average of 7% from FY27 onwards.
Open Pit throughput has tracked below DFS forecasts due to moisture-driven variability in open pit ore, an issue expected to resolve with underground stope commencement in 4QFY26. We revise our FY26 production forecast to 37.6koz Au (from 40.2koz), this is below the DFS guidance. We maintain our BUY rating and A$0.39ps price target, acknowledging near-term production softness may weigh on the 3Q result ahead of an anticipated step-change in output in 4Q.
