What happened to the Rio Tinto share price in May?

Despite the volatility last month, Rio Tinto shares ended in positive territory.

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

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Rio Tinto shares edge 1.4% higher for the month of May 
  • The company released its notes from the AGM which highlighted its progress throughout the year 
  • Market volatility weighed down Rio Tinto shares for a majority of May 

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 9% 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 8.95 and commands a market capitalisation of roughly $43.04 billion.

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.

More on Resources Shares

A wide-smiling businessman in suit and tie rips open his shirt to reveal a green t-shirt underneath
Resources Shares

‘Self-interested billionaires’: Fortescue share price climbed today despite union war of words

Fortescue’s hydrogen plans received some negative attention today.

Read more »

A woman lies back and relaxes in her boat with a big smile on her face as it floats on the rising tide.
Resources Shares

Why is the Lake Resources share price rebounding 5% on Monday?

Why have Lake Resources shares shot up 5% today?

Read more »

a man in a high visibility vest and hard hat holds a thumbs up at a mine site with heavy equipment in the background.
Resources Shares

3 ASX mining shares soaring between 6% and 20% on new finds

We take a look at what these three ASX mining shares discovered.

Read more »

Three coal miners smiling while underground
Resources Shares

Why India can’t get enough of Aussie coking coal and which ASX shares have exposure

Some ASX coal mining shares could benefit from India’s strong demand for coal.

Read more »

a man in high visibility vest and hard hat at the wheel of heavy mining machinery looks backwards out of the cabin window.
Resources Shares

How did the Fortescue share price respond last earnings season?

Here's what happened to the Fortescue share price when the company dropped its first-half results.

Read more »

A man sits nervously at his computer with his mouth resting against his hands clasped in front of him as he stares at the screen of his computer on a home desk.
Resources Shares

Here’s why I dig the Rio Tinto share price right now

There’s a good reason to go hunting for shares of this ASX miner right now.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Is the Santos share price a buy following the energy giant’s latest acquisition?

Santos has slipped, should investors seize the opportunity?

Read more »

A woman sits at her computer in deep contemplation with her hand to her chin and seriously considering information she is receiving from the screen of her laptop regarding the Xero share price
Resources Shares

Looking to buy BHP shares? Here’s what to watch when the mining giant reports this week

What kinds of things should investors be looking at in the Big Australian's upcoming result?

Read more »