2 ASX 200 energy and mining shares hot to buy right now: experts

Energy and mining stocks have absolutely carried the S&P/ASX 200 Index (ASX: XJO) this year while other sectors struggled.

But it’s a familiar story in share markets that a hot sector in one year could deflate the next.

So if you’re buying ASX resources shares right now, discerning selections are the name of the game to avoid a disastrous 2023.

Fortunately, a pair of experts had some ideas this week:

‘Healthy’ boost to production

Morgans investment advisor Jabin Hallihan currently reckons ASX 200 share Karoon Energy Ltd (ASX: KAR) is a prudent purchase.

That’s despite a nice 51% surge upwards since a 7 July trough in the share price.

“The oil and gas producer and explorer operates in Australia and Brazil,” Hallihan told The Bull.

“We retain an add rating, with a $3.75 valuation.”

The advisor is bullish on Karoon from “the steady progress KAR is making on its growth program”.

“Karoon has provided encouraging drilling results at the second Patola well in Brazil,” said Hallihan.

“Given the results, Karoon now expects initial production from Patola to exceed 10,000 barrels of oil a day. This is a healthy short-term boost to group oil production.”

Hallihan’s peers generally agree with him.

According to CMC Markets, seven out of nine analysts that cover Karoon recommend the ASX 200 stock as a buy. Six of them even rate it as a strong buy.

A peaking US dollar could mean a rising gold price

Seneca investment advisor Arthur Garipoli is banking on a rebound in the gold price in his backing for Evolution Mining Ltd (ASX: EVN).

“Potentially slowing interest rate increases and a peaking US dollar should support the gold price, so we believe there’s good value in the gold sector.”

He reckons Evolution is poised to under-promise then over-deliver in 2023.

“Metrics at Evolution projects, including the challenging Red Lake, are improving. We believe guidance is conservative.”

The Evolution share price has enjoyed a tidy 29% rise this month.

“The share price has risen from $2.01 on November 4 to trade at $2.73 on November 24,” said Garipoli.

“We like the company’s outlook and see potential upside from here.”

The professional community is more split on Evolution than Karoon. Currently, nine analysts rate the ASX 200 gold miner as a buy on CMC Markets, while five recommend holding.

Concerningly, three analysts are urging their clients to strongly sell.

The post 2 ASX 200 energy and mining shares hot to buy right now: experts appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 5 things to watch on the ASX 200 on Tuesday
• Up 30% in a month, why the Evolution Mining share price can keep climbing: expert
• Here are the top 10 ASX 200 shares today

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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