Sunday, November 3, 2024

Bell Potter names the best ASX mining stocks to buy in FY25

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Do you want exposure to the mining sector this financial year?

If you do, then it could be worth looking at the ASX mining stocks that Bell Potter is tipping as top buys.

Here’s what you need to know about them:

Aeris Resources Ltd (ASX: AIS)

Bell Potter thinks that this copper miner could be a great option for investors. Particularly given its improved balance sheet and rising copper grades at the Tritton copper mine. The broker said:

AIS represents a copper dominant mining exposure whose primary assets are the Tritton Copper Operations in NSW, Cracow Gold Mine in QLD, Mt Colin Copper Mine in QLD. Its near-term outlook is highly leveraged to rising copper grades at the Tritton copper mine, where new high grade ore sources are driving production growth through CY24 and exploration success at Constellation is likely to sustain higher production levels over the long term. The Cracow gold mine in QLD offers an unhedged gold exposure that is highly leveraged to a rising gold price. Recent refinancings have de-risked the balance sheet and we are of the view that AIS is well positioned to deliver on its production targets.

Its analysts have a buy rating and 30 cents price target on the ASX mining stock.

Mineral Resources Ltd (ASX: MIN)

The broker also remains positive on this iron ore, energy, and lithium focused miner. This is due largely to its significant production growth plans in the coming years. It explains:

MIN’s business is undergoing considerable growth in the Iron Ore, Lithium and Energy units. Resulting production growth is forecast to increase earnings over the next two years and provide improved leverage to lithium and iron ore prices, from a lower unit cost base. We forecast that MIN’s uncorrelated earnings streams, and internal design and construction capabilities, will provide a sector leading growth platform. In addition to the current growth projects, we expect further news flow late in mid-CY24 relating to future growth projects, including further expansion in iron ore and lithium businesses, as well as first developments in energy.

Bell Potter has a buy rating and $84.00 price target on its shares.

Liontown Resources Ltd (ASX: LTR)

Another ASX mining stock that has been given the thumbs up by analysts at Bell Potter is lithium developer Liontown. It appears to see recent weakness as a buying opportunity, particularly given the quality of its Kathleen Valley Lithium Project. It said:

LTR’s 100% owned Kathleen Valley lithium project remains highly strategic in terms of its stage of development, long mine life and location. The project is on track for first production from mid-2024. LTR has offtake contracts with top tier EV and battery OEMs (Ford, LG Energy Solution and Tesla). Kathleen Valley’s development has benefited from recent sector experience across mining and processing lithium minerals. The asset’s scale and long life provide potential for value-adding downstream lithium chemicals processing integration. Kathleen Valley’s initial production rate is readily scalable as lithium markets recover.

Bell Potter has a speculative buy and $1.85 price target on its shares.

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