Rio Tinto Ltd (ASX: RIO) shares are jumping higher again today. At the time of writing, the shares are up 4.7% to $168.92 a piece.
Today's uptick means the shares are now up 14.4% year to date and 44.3% over the past year.
It hasn't been smooth sailing for the ASX miner, though.
The share price spiked at an all-time high of $169.74 in mid-February.
But then war in the Middle East broke out later in the month, sending shockwaves across markets and reigniting inflation and interest rate concerns.
It caused Rio Tinto's share price to crash nearly 15% in the first three weeks of March as investors sold up their ASX shares over fears of commodity price weakness and operational disruptions.
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If I bought $7,500 worth of Rio Tinto shares 10 days ago, what are they worth now?
After a sharp investor sell-off, investors have started buying back in and causing a rebound in the share price.
Since reaching a 10-week low of $144.1 per share on the 23rd of March, Rio Tinto shares have surged 16.8% higher to the trading price at the time of writing.
The turnaround means that $7,500 invested in Rio Tinto shares in the dip 10 days ago is already worth $8,760.
Meanwhile, investors who bought $7,500 of shares 12 months ago would be jumping for joy. Today, that investment would be worth $10,822.50.
Why have Rio Tinto shares rebounded?
There hasn't been any price-sensitive news out of the miner recently to explain the share price recovery.
But the S&P/ASX 200 Materials Index (ASX: XMJ) fought back last week, posting a 4.6% gain. It seems like investors are taking advantage of the sell-off and are buying in the dip in the hope that Iran and the US will come to an agreement, which will end the war.
The long-term outlook for mining shares is incredibly positive, with some stating that Australia is in the early stages of a new mining boom. This boom is expected to be driven mostly by a transition to green energy, which could support a huge long-term demand for metals.
At the same time, Western countries want to become more self-sufficient in key resources, manufacturing, and energy supply.
Can we expect more upside ahead?
Analysts are mostly positive about the outlook for Rio Tinto shares over the next 12 months.
TradingView data shows that seven out of 15 analysts have a buy or strong buy rating on the miner's shares. Another seven have a hold rating, and 1 a sell rating.
Analysts expect a maximum target price of $190.42, which implies a potential 13% upside at the time of writing.
