The Rio Tinto Limited (ASX: RIO) share price was out of form on Wednesday.
The mining giant's shares fell almost 3% to $118.30.
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Why did the Rio Tinto share price tumble?
Investors were selling down the Rio Tinto share price in response to the release of the mining giant's first quarter update.
As you might have guessed from the market's reaction, that update was softer than analysts were expecting.
For example, Goldman Sachs commented: "RIO reported a softer 1Q vs. GSe/consensus, with iron ore and copper both down 15%/5% QoQ respectively."
This was due to iron ore tie-in and commissioning activities in the Pilbara continuing to be impacted from labour shortages and equipment issues. Copper production was also impacted by lower mill throughput related to labour shortages.
One positive, though, is that Rio Tinto has reaffirmed its full year production guidance despite its soft start to the financial year.
Is this a buying opportunity?
While Rio Tinto's first quarter update disappointed Goldman Sachs, its analysts remain positive on the company's outlook.
So much so, the broker has retained its buy rating, albeit with a slightly trimmed price target of $135.10.
Based on the current Rio Tinto share price, this implies a potential return of 14% for investors before dividends.
Goldman said: "Despite ongoing operational issues and concerns over future growth (Pilbara heritage and replacement mines, Simandou, Oyu Tolgoi, Resolution) and uncertainty over decarbonisation capex, we rate RIO a Buy."
The broker's buy rating is based on Rio Tinto's attractive valuation (~0.9x NAV), strong iron ore outlook, production growth potential, low emission aluminium exposure, and strong free cash flow. Goldman expects the latter to underpin double digit fully franked dividend yields in FY 2022 and FY 2023.
All in all, this could make Rio Tinto's shares worth considering if you're looking for exposure to the resources sector right now.
