After carrying the S&P/ASX 200 Index (ASX: XJO) last year, mining shares have generally gone sideways in 2023.
Worries about the global economy, with steeply rising interest rates in Western nations and potential deflation in China, are depressing the demand for commodities.
However, this means there are some mouthwatering buying opportunities to pick up quality resources stocks at the cheap end of the cycle.
The idea is that they will bear fruit once economic sentiment turns around, which it will inevitably do.
Let’s take a look at two mining shares from the ASX 200 that experts are rating as buys this week:
‘A company we believe offers a brighter outlook’
Western Australia’s IGO Ltd (ASX: IGO) is best known as a nickel producer.
But Seneca Financial investment advisor Arthur Garipoli pointed out it also has a nice side hustle.
“IGO also has a stake in the Greenbushes lithium mine via a joint venture.”
The latest financial update was positive, Garipoli told The Bull.
“The company recently reported underlying EBITDA of $636 million for the June quarter, an increase of 19% on the previous quarter. Group nickel production was up 14%.”
The IGO share price, however, has tumbled 14% since 14 July.
Now is the time to pounce, as far as Garipoli is concerned.
“The recent price fall follows a non-cash impairment of Western Areas nickel assets,” he said.
“But the fall provides an attractive entry point to a company we believe offers a brighter outlook.”
‘Bullish on copper prices moving forward’
BW Equities equity salesperson Tom Bleakley’s current pick is BHP Group Ltd (ASX: BHP).
Although the Big Australian is known for its iron ore production, Bleakley is bullish because of its extraction of a different in-demand mineral.
“Copper is the dominant mineral required in the transition to electric vehicles,” he said.
“We’re bullish on copper prices moving forward. This global miner appeals given its leverage to copper and iron ore.”
Bleakley was satisfied with BHP’s direction after its most recent operational update.
“It revealed company performance is in line with production and cost guidance for fiscal year 2023.”
Moreover, the stock is even more alluring if you consider the 8.5% dividend yield it pays out, fully franked.
