Brokers name 2 ASX 200 mining shares to buy

Female miner smiling while inspecting a mine site with another miner.

Image source: Getty Images

If you’re looking for exposure to the mining sector, then you may want to check out the two ASX 200 mining shares listed below.

Here’s why brokers rate them as buys:

Iluka Resources Limited (ASX: ILU)

The first ASX 200 mining share for investors to look at is Iluka. It is a mineral sands and rare earths producer with a number of quality operations across South Australia, Western Australia, and Sierra Leone.

Analysts at Goldman Sachs are very positive on the company. The broker highlights the company’s attractive valuation, the favourable outlook for mineral sands, and its exposure to rare earths.

Goldman commented:

“We are Buy rated on mineral sands/rare earth producer ILU (on CL) on attractive valuation and compelling Zircon and TiO2 price upside and Rare Earth growth potential. ILU is trading at a >50% discount to RE peers and >10% discount to min sands/pigment peers on an EV/EBITDA basis.

The broker currently has a conviction buy rating and $13.90 price target on Iluka’s shares.

The Santos share price has been soaring in 2022 thanks to strong oil prices. But don’t worry, one leading broker doesn’t believe it is too late to invest in this ASX 200 share. In fact, it sees material upside ahead for investors.

According to a recent note out of Morgans, its analysts have retained their add rating with a slightly trimmed price target of $10.00 on the company’s shares. This compares to the current Santos share price of $8.09.

Morgans commented:

We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.

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