Brendan Jones @bajabus: "𝘼𝙪𝙨𝙩𝙧𝙖𝙡𝙞𝙖𝙣 𝙈𝙞𝙣𝙚𝙧𝙨 𝙝𝙚𝙖𝙩 𝙪𝙥 🟢Australia’s mining..."

Australia

Edited

𝘼𝙪𝙨𝙩𝙧𝙖𝙡𝙞𝙖𝙣 𝙈𝙞𝙣𝙚𝙧𝙨 𝙝𝙚𝙖𝙩 𝙪𝙥 🟢Australia’s mining giants are under the spotlight again as global demand for battery metals intensifies, even as iron ore headwinds bite. Recently announcing a solid quarterly update, Rio Tinto $RIO.ASX (Rio Tinto Group) and BHP $BHP.ASX (BHP Group Limited) continue to invest in their Pilbara iron operations despite softening prices, signalling confidence in long life and scale for these projects. eg Rio and partners are expanding investment and allocating US$733 million to sustain output and extend mine life at West Angelas. Both stocks are up 15% and 17%, respectively, in the past 6mths. 🟢That said, traditional iron ore is showing signs of strain. Analysts have highlighted that China is past “peak steel” and iron ore prices may stay under pressure. In response, Rio and BHP have been quietly steering more of their capital and exploration into battery metals and low-carbon technologies. 🟢Which brings us to Pilbara Minerals $PLS.ASX (Pilbara Minerals Limited ) a standout in Australia’s lithium boom, 𝘂𝗽 𝟵𝟬% in 6mths. Its Pilgangoora lithium-tantalum project in WA just saw a 23% increase in resource size, bringing it to ~446 million tonnes at 1.28% lithium oxide. The company also reported that its June quarter lithium production jumped 77 percent year over year. To support future growth, PLS has been commissioning world-scale ore-sorting systems to improve recovery and energy efficiency. Further to this, there are plans to double its spodumene output via a ~AUD$1.2 billion injection of funds. 🟢From an investment perspective, PLS presents a significant opportunity to capitalize on the global transition to electric vehicles and battery storage, albeit with increased execution and commodity risk. RIO and BHP offer more balanced exposure, with cash flows from conventional operations helping support their bottom line. All three are worth considering as part of a diversified portfolio. 𝘽𝙧𝙚𝙣𝙙𝙖𝙣 𝗧𝗿𝗮𝗱𝗲 𝗦𝗮𝗳𝗲 | 𝗟𝗶𝘃𝗲 𝗪𝗲𝗹𝗹 ref: Mining Magazine, Reuters, Australian Resources & Investment $NSDQ100 $AUS200 @bajabus