It has been a very positive month for the Rio Tinto Ltd (ASX: RIO) share price.
As things stand, the mining giant is on course to record a gain of approximately 7% in June.
This compares very favourably to the performance of the ASX 200 index, which is up approximately 1.5% over the same period.
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Why is the Rio Tinto share price smashing the market this month?
Investors have been buying the mining giant's shares this month following a series of positive announcements relating to its future production.
One of those announcements came in the middle of the month and revealed that Rio Tinto will invest US$1.1 billion to expand its state-of-the-art AP60 aluminium smelter equipped with low-carbon technology at Complexe Jonquière in Canada.
This expansion, which coincides with the gradual closure of pot rooms at the Arvida smelter on the same site, will allow Rio Tinto to continue meeting customers' demand for low-carbon, high-quality aluminium for use in transportation, construction, electrical and consumer goods.
What else?
Another announcement that went down well with the market advises that Rio Tinto is investing in its Kennecott operation near Salt Lake City, Utah.
This is with the aim of strengthening its supply of copper in the United States by increasing production from underground mining and improving the health of key assets.
A total of US$498 million of funding was approved. This will deliver underground development and infrastructure. Production will commence in 2024 and is expected to ramp up over two years, to deliver around 250,000 tonnes of additional mined copper over the next 10 years alongside open-cut operations.
Anything else?
It is also worth noting that analysts at Goldman Sachs were speaking very positively about the Rio Tinto share price this month. They said:
With the sector trading at a discount, we see this current period as a particularly compelling buying opportunity for the major miners such as RIO (Buy, CL), BHP & S32.AX (both Buys).
Goldman has Rio Tinto on its conviction list with a buy rating and a $130.70 price target. This suggests a potential upside of 14% from current levels.
This could be a sign that there are more gains to come from this mining share. Here's hoping July is just as successful for shareholders.
