Rio Tinto (ASX: RIO) held a site visit to Argentina in December, where the company provided further detail on its lithium growth strategy across its Argentinian and Chilean portfolios. Management reiterated its pathway to 200ktpa (kilo tons per annum) of installed lithium production capacity by 2028, underpinned by staged expansions at its Rincon, Fenix and Sal de Vida projects, with additional growth opportunities over the medium-to-long term at Cauchari, Maricunga and Altoandinos. The company emphasised that it would target lower capital intensity, with first production of lithium within 30 months of approval and structurally low operating costs that should position its brine assets at the bottom of the global cost curve. Rio Tinto remains a key holding in the investment portfolio given its catalyst-rich outlook, disciplined capital allocation, portfolio simplification initiatives and a renewed focus on costs under its new Chief Executive Officer.
Whitehaven Coal (ASX: WHC) is a leading Australian coal producer with high quality assets and a robust balance sheet. We increased our holding in Whitehaven Coal as coal prices began to firm after bottoming earlier in the year. The company continues to deliver sound operational results despite a challenging backdrop and is executing cost out initiatives, with increased volumes at Blackwater and Daunia mines expected to drive unit cost reductions from FY2027. Whitehaven Coal also maintains strong capital management flexibility, supporting shareholder returns through buybacks and dividends.