If you are looking for exposure to the mining sector, then read on.
That's because the team at Bell Potter has named two ASX mining shares as top picks this month.
Here's what it is recommending to clients and why they could be top options for a $2,000 investment:
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BHP Group Ltd (ASX: BHP)
The first ASX mining share that could be worth a look is BHP.
Bell Potter has named the Big Australian in its Core Portfolio, which is a diversified, benchmark aware portfolio of 25-35 Australian shares, with a bias towards growth-orientated, quality companies.
Commenting on BHP, the broker said:
BHP Group is the world's largest diversified miner, with a portfolio increasingly oriented toward commodities with structural demand tailwinds from energy transition and data centre buildout. The investment case centres on a copper volume upgrade cycle, with FY26 group production guidance recently lifted and further upgrades flowing through to FY27, underpinned by record throughput at Escondida and a pipeline of Tier 1 growth projects.
Longer-dated optionality is provided by the Jansen potash project, with first production expected mid-2027. The balance sheet is in excellent shape, supporting a material step-up in the interim dividend and a portfolio expected to generate significant free cash flow over FY26-30, providing capacity to sustain strong shareholder returns through the cycle.
Nickel Industries Ltd (ASX: NIC)
Another ASX mining share that gets the thumbs up is Nickel Industries.
It is the largest listed pure-play nickel producer globally with an 80% economic interest in four operating RKEF plants in Indonesia.
Bell Potter has named it among its Australian equities small cap panel. This is its panel of favoured small cap Australian equities that it believes offer attractive returns over the long term.
Bell Potter believes the nickel producer is well-placed to deliver a major uptick in production and cash flow generation in the coming years. It said:
NIC is the only material ASX way to gain exposure to the nickel price, has a growth story, and is diversifying earnings to span Type 1 and Type 2 nickel. NIC continues to generate positive cash flows in a tough nickel market and is set to deliver major growth milestones in CY25 across its highest margin nickel operations.
All up, given the forecast high production growth and potential for a very large free cash flow uplift in the next 2 years or so, NIC presents a compelling story and appears cheap at current valuation.
