2 highly rated ASX mining shares that could be buys

Looking at the resources sector? Take a look at these shares…
The post 2 highly rated ASX mining shares that could be buys appeared first on The Motley Fool Australia. –

If you’re looking to diversify your portfolio, then you might want to look at adding a little exposure to the resources sector.

But which shares should you consider? Two that could be worth considering are listed below. Here’s why they are highly rated:

Mineral Resources Limited (ASX: MIN)

Mineral Resources is a mining and mining services company with a world class portfolio of operations across lithium and iron ore. These are two of the hottest commodities around at the moment and are experiencing very strong demand from electric vehicle and steel making markets, respectively.

In respect to lithium, Mineral Resources owns the Wodgina operation. It is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years. The company also has the Mt Marion Lithium project in its portfolio. This project is operated by Mineral Resources under a life-of-mine mining services contract and is jointly owned by it and Jiangxi Ganfeng Lithium.

As for iron ore, the company’s portfolio includes the Iron Valley Iron Ore project and the Koolyanobbing Iron Ore project in Western Australia.

Analysts at Macquarie are very positive on the company. So much so, they have an outperform rating and lofty $73.00 price target on its shares. This compares to the latest Mineral Resources share price of $55.54. Macquarie is also forecasting big dividends in the near term and estimates yields greater than 5% over the next two years.

Orocobre Limited (ASX: ORE)

Another mining share to consider is Orocobre. It is a lithium miner with operations in Argentina. This includes the Olaroz Lithium Project in the Jujuy Province of northern Argentina and Borax Argentina in the Salta-Jujuy region.

But perhaps best of all, is that Orocobre is potentially weeks away from merging with Galaxy Resources Limited (ASX: GXY). The latter’s shareholders will be voting on the merger next month.

If everything goes to plan, management believes the combined entity will be a new force in the global lithium sector. It will also be the world’s fifth largest lithium chemicals company with a diversified production base and exciting growth platform. Positively, management sees scope to unlock significant synergies in the future.

One broker that is particularly positive on Orocobre is Citi. It recently put a buy rating and $7.60 price target on the company’s shares.

The post 2 highly rated ASX mining shares that could be buys appeared first on The Motley Fool Australia.

Should you invest $1,000 in Orocobre right now?

Before you consider Orocobre, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Orocobre wasn’t one of them.

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*Returns as of May 24th 2021

More reading

5 best ASX 200 mining and resource shares of financial year 2021

These were the best performing ASX 200 shares last week

Galaxy (ASX:GXY) and Orocobre (ASX:ORE) shares rise on merger update
The Mineral Resources (ASX:MIN) share price rose 16% in June. Here’s why
Meet the best performing ASX 200 shares of FY21. Are yours on the list?

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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