I've been taking another look at three popular ASX shares.
There are things I like about each of them, but I wouldn't necessarily buy all three today.
Here's how I would rate them.
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BHP Group Ltd (ASX: BHP)
BHP shares are firmly on my buy list. One reason I like the mining giant is that its portfolio is becoming increasingly geared towards commodities with attractive long-term demand prospects.
Copper is particularly important here. BHP already has substantial copper operations, and I think demand for the metal could increase considerably as the world invests in electricity networks, renewable energy, and digital infrastructure.
The company also has a pipeline of copper growth projects that could help it capitalise on that demand over the coming decade.
I also like the progress being made at its Jansen potash project in Canada, which should eventually give BHP another meaningful source of earnings.
Of course, commodity prices will fluctuate, and BHP's profits will move with them.
But I think its combination of scale, diversification, and growth opportunities makes it one of the best ASX mining shares to own for the long term.
DroneShield Ltd (ASX: DRO)
DroneShield is another buy for me, although I would approach it with considerably more caution.
The company operates in a market that I think could experience enormous growth over the coming years.
Recent conflicts have demonstrated how drones are changing modern warfare, creating an urgent need for technology capable of detecting and defeating them.
DroneShield has developed a range of solutions to address these threats, and its growing international presence puts it in a position to compete for defence contracts.
I am particularly encouraged by its progress in the United States, where it recently secured access to a major counter-drone procurement programme. The opportunity now is to convert that access, alongside its broader sales pipeline, into substantial orders.
There are still uncertainties surrounding defence procurement, competition, and the company's ongoing regulatory scrutiny. And with DroneShield shares prone to sharp price movements, I would expect considerable volatility.
Nevertheless, I think the long-term growth potential makes it worth considering for investors comfortable with higher risk.
Lynas Rare Earths Ltd (ASX: LYC)
Lynas is a hold in my view. I recently suggested that the shares could be a buy for investors with diversified portfolios who specifically want exposure to the rare earths industry.
I still stand by that assessment. Lynas has established itself as an important rare earths producer outside China, giving it a valuable position as governments seek to diversify supply chains.
Its proposed acquisition of Meteoric Resources Ltd (ASX: MEI) could also strengthen its long-term growth prospects by expanding its access to rare earths resources.
But developing new projects requires substantial investment, and the company's earnings remain sensitive to rare earths prices. That creates a more concentrated set of risks than I would ideally want from a core mining investment.
For someone specifically looking to benefit from the growing importance of rare earths, I think Lynas remains worth considering.
But if I were simply looking to increase my exposure to the mining sector, I would prefer a company with a broader commodity portfolio. That is why I would hold Lynas shares rather than add to my position today.
Foolish takeaway
BHP shares would be my preferred choice for long-term mining exposure, while DroneShield offers a more speculative opportunity to benefit from growing defence spending.
I remain positive on Lynas' future, but I would be more comfortable adding to a diversified mining business at this stage. For me, that leaves two buys and one hold.
