‘Buying opportunity’: 2 ASX 200 mining shares ripe to snap up now

Two miners standing together.Two miners standing together.

Through a sea of volatility, mining shares have managed to thrive while most other sectors struggled over the past 18 months.

But, believe it or not, there are some resource stocks in the S&P/ASX 200 Index (ASX: XJO) that are still great value and have potential for future gains.

Here are two that experts named as buys this week:

‘An appealing mix’ offered at a discount

Metals producer South32 Ltd (ASX: S32) has seen its share price drop more than 13.2% since 3 March.

According to Shaw and Partners senior investment advisor Jed Richards, now is the time to pounce.

“The recent share price retreat represents a buying opportunity, as South32 offers an appealing mix of raw material and base metal exposures,” Richards told The Bull.

He attributed the weakness in the share price over the past couple of months to its short-term outlook.

“The miner increased production by 12% in the first half of fiscal year 2023,” he said.

“However, the results were weaker than expected, and guidance has been downgraded at several operations.”

However, Richards believes this weakness will be offset by market forces.

“China re-opening its economy should boost commodity prices.”

According to CMC Markets, a stunning 13 out of 16 analysts currently rate South32 shares as a buy.

Production ramping up

Sayona Mining Ltd (ASX: SYA) has been a victim of the cooling lithium price in recent times, as its share price has fallen more than 21% over the past six months.

BW Equities equity salesperson Tom Bleakley is more than happy with its business progress, though.

“Sayona recently announced commercial spodumene concentrate production had resumed at the jointly owned North American Lithium project in Quebec,” he said.

“Sayona is targeting annual production of 226,000 metric tonnes a year, with first commercial shipments expected in the third quarter of fiscal year 2023.”

Bleakley’s peers agree. All three analysts who currently cover Sayona recommend the lithium stock as a buy, as surveyed on CMC Markets.

It’s not just the current production but potential for future expansion as well.

“Sayona is growing its resource base in Australia and Canada through an aggressive exploration campaign.”

The post ‘Buying opportunity’: 2 ASX 200 mining shares ripe to snap up now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. 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 Scott Phillips.

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