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Analysts name 2 ASX 200 mining stocks to buy


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Investors looking to diversify their portfolio with some exposure to the mining sector may want to check out the two ASX 200 stocks listed below.

Both were named as the best options for investors in sectors with significant growth potential. Here’s what you need to know about these mining stocks:

The first ASX 200 mining stock to be named a buy is BHP.

Big Australian is certainly one of the world’s largest miners with a collection of high-quality operations across a range of commodities. This includes coal, copper, iron ore and nickel.

The Morgans team is optimistic about the mining giant. That’s thanks to the company’s diverse operations, which they believe make it a lower-risk option for investors. The broker commented:

We view BHP as relatively low risk given its excellent diversification relative to its major global mining peers. BHP’s spread also provides some protection against the direct impact of COVID-19 on income investors. While there is more leverage sensitive to a global recovery scenario, we believe BHP has an attractive combination of growth sensitivity, balance sheet strength and sustainable dividend profile.

Morgan has a buy rating and a $48.00 target price on shares of BHP.

Another ASX 200 mining stock for investors to consider is Iluka.

It is a mineral sands and rare earths company with a number of quality projects in South and Western Australia. One of them is the exciting Eneabba project, where the company is developing a fully integrated rare earth refinery.

Goldman Sachs is very positive about Iluka. This is due to the prospects for strong production growth and the impact of rare earth elements, which are in demand. The broker commented:

We are bullish on ILU’s pipeline of projects and forecast >40% growth in mineral sands production, about 18k REEs per year (~3.5k-4k per year of high-grade NdPr). We believe the ILU Eneabba RE refinery is a strategic asset given that it will be only the third RE refinery in the Western world

Goldman Sachs currently has a strong buy rating and a $13.30 target price on shares of Iluka.


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