mining and critical minerals

Short Trading Strategy – Commodity & Energy Theme Objective Capture cyclical outperformance from the commodity supercycle, energy transition, and geopolitical supply constraints. Combine cash-flow stability with asymmetric upside. Portfolio Structure • Core (≈60–65%) Large, diversified producers with strong margins and dividends: BHP, Rio Tinto, Boliden, Antofagasta, Aurubis, Albemarle, Barrick. Purpose: reduce volatility, generate steady cash flow. • Satellites (≈25–30%) Growth and thematic exposure: Lithium & REEs (Pilbara, Standard Lithium, Vulcan, Lynas, MP Materials), Uranium (Cameco, NexGen), battery materials (Umicore). Purpose: upside from demand growth, policy support, and supply tightness. • Optional Hedge (≈5–10%) Precious-metal royalties (Franco-Nevada, Wheaton) as inflation and risk hedge. Balancing • Quarterly rebalancing: partially rotate satellite gains into the core. Risk Management • Max position size: 7–8% (satellites 3–5%). • Thesis-based stops: project delays, cost inflation, regulatory or policy setbacks. • Maintain liquidity for opportunistic entries. One-Line Thesis Diversified commodity exposure with a cash-flow-heavy core and selective growth optionality, actively managed across cycles and volatility.