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Analysts rate these ASX lithium miners as buys

These lithium mining shares have been named as buys…
The post Analysts rate these ASX lithium miners as 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 lithium miners that could be worth considering are listed below. Here’s why they are highly rated:

Galaxy Resources Limited (ASX: GXY)

The first ASX mining share to consider is Galaxy. It is a leading lithium producer that owns the world class Mt Cattlin operation in Western Australia. It also has the James Bay asset in Canada and Sal De Vida asset in Argentina.

In addition, Galaxy is on the verge of merging with rival Orocobre Limited (ASX: ORE). 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.

If the merger goes ahead as planned, management believes it will create a new force in the global lithium sector. The merged entity will also be the world’s fifth largest lithium chemicals company with a diversified production base and exciting growth platform. Management also sees opportunities to unlock significant synergies in the future.

Macquarie is very positive on Galaxy as well. Last week it put an outperform rating and $4.90 price target on the company’s shares. It also put an outperform rating and $8.60 price target on Orocobre’s shares.

Mineral Resources Limited (ASX: MIN)

Another ASX mining share to look at is this mining and mining services company.

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.

Another commodity the company has exposure to its iron ore. This is through the Iron Valley Iron Ore project and the Koolyanobbing Iron Ore project in Western Australia.

Demand for these two commodities is very strong at the moment. As a result, they are commanding very high prices, which bodes well for Mineral Resources’ profits and dividends.

It is for this reason that Macquarie is very positive on Mineral Resources. The broker currently has an outperform rating and $75.00 price target on its shares.

The post Analysts rate these ASX lithium miners as buys appeared first on The Motley Fool Australia.

Should you invest $1,000 in Mineral Resources right now?

Before you consider Mineral Resources, 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 Mineral Resources wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Here’s why the Mineral Resources (ASX:MIN) share price is up 27% in the last month
Guess which sector this week’s top performing ASX 200 shares come from

Brokers name 3 ASX shares to buy today

Why BHP, Damstra, Galaxy, & Piedmont Lithium shares are racing higher

Why the Pilbara Minerals (ASX:PLS) share price is up 9% this Thursday

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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