Why we own BHP and Rio Tinto

July 2026

Australia’s two best-known mining companies, BHP Group and Rio Tinto, are both long-term holdings in a parcel of around 30 direct shares that sits within the flagship Cornerstone portfolio.

Both miners tap into long term trends driving the future of the global economy. BHP’s increased focus on copper production, for example, means it’s well placed to profit from growth in AI data centre demand, electric vehicles and sustainable infrastructure.

Copper prices per tonne have risen by almost half since April last year and BHP’s share price rose alongside it to record highs, though the company recently told investors it expects its copper production to dip in the year ahead.

Like Rio Tinto, it is also an iron ore producer that feeds China’s demand for steel used in construction and manufacturing. China’s appetite for iron ore has remained more resilient than some forecasts, which is a positive for both companies.

As a reminder, Cornerstone’s parcel of direct shares is created by a quantitative model which uses algorithms to pick assets. The model identifies stocks to trade based on characteristics that our research shows are more likely to deliver returns over the long term. These five characteristics – or “factors” in technical terms – are value, quality, low volatility, momentum and growth.

The underlying principle is that a selection of shares which each display some of these characteristics can be brought together in a parcel of holdings which outperforms over time.

BHP Group qualifies for inclusion because it offers both quality and momentum characteristics – and makes up around 11.5% of our direct shareholdings. Rio Tinto also fits into those categories, as well as into the value category. It comprises around 2.6% of the direct shares in our flagship portfolio.

Ironbark Advice is the sponsor of the Cornerstone Financial Group Pty Ltd.

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