What happened to the Rio Tinto share price in May?

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.

The Rio Tinto Limited (ASX: RIO) share price moved in circles throughout May, registering a gain of around 1.4%.

In comparison, the S&P/ASX 200 Index (ASX: XJO) fell 3% after investors headed for the exits following a volatile month.

Let’s take a look below at what happened to the mining giant’s shares over the month of May.

What happened to Rio Tinto shares in May?

Rio Tinto shares wobbled last month despite the company delivering its annual general meeting (AGM) address to shareholders.

In the notes, Rio Tinto chair Simon Thompson highlighted the company’s significant progress to grow production in essential materials. This includes copper, lithium, iron ore and aluminium, all of which are vital for the transition to a low carbon economy.

Rio Tinto also mentioned the completed acquisition of the Rincon lithium project for $825 million.

Rincon is a large undeveloped lithium brine project located in the heart of the lithium triangle in the Salta Province of Argentina.

While the AGM was held during the afternoon, investors sold off the Rio Tinto share price in the days after.

A market correction came fast amidst high inflationary fears, the Russia-Ukraine war, and a resurgence of COVID-19 lockdowns in China.

As such, Rio Tinto shares fell almost 8% from 6 May to 10 May.

Nonetheless, after a bumpy ride, investor confidence swung back to action towards the end of the month.

The benchmark ASX 200 index rose 2.1% from 20 May until 31 May.

This led shares in the mining giant to record strong gains at the backend of the month.

Rio Tinto share price snapshot

Since the beginning of 2022, the Rio Tinto share price has gained 16% but is down around 8% for the last 12 months.

The company’s shares reached a 52-week low of $87.28 in November, before zipping 32% higher to the current share price of $116.18.

Rio Tino has a price-to-earnings (P/E) ratio of 6.21 and commands a market capitalisation of roughly $42.24 billion.

The post What happened to the Rio Tinto share price in May? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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