Swot Analysis Of Rio Tinto- One Of The Biggest Mining Corporations

Good Essays

Assignment- Part A

Prepared by: Harsimran Kaur Rattan

1.0 Introduction
The report highlights the operations of Rio Tinto- one of the biggest mining corporations in the world. The purpose of this report is to compare the performance and share prices of the overall stock market index S&P/ASX200 and Rio Tinto during 1 January 2013- 1 January 2017. The report also illustrates the weekly returns of S&P/ASX200 and RIO TINTO to measure the percentage change in share prices from one week to the next during the same 4year period.
Another aspect that the article focuses on is the key events and trends in the global financial markets affecting the overall Australian market and Rio …show more content…

The company has a manpower of about 50,000 spread throughout 35 countries, and believes in working in partnership and think beyond the business to achieve its goals. The company participates in global initiatives like Extractive industries transparency initiative. “Rio Tinto” (2017).

3.2 Market performance of Rio Tinto shares relative to the overall market index from 2013 – 2016
Following are the key points that can be noticed: -
 2013 showed ups and downs in the share prices of the company and the overall market. During 2013, the share price of RIO TINTO went down to $42per share in July from $52 per share in February. Whereas the share price of the overall market started at $23 per share in January 2013, recovered in May, and then went back to $23 in July.
 In April 2015, the share price of S&P ASX/200 was maximum at $64 per share. However, both the share prices later declined until the start of 2016. The minimum share price for RIO was $35.
 2016 was a period of recovery. The RIO share price recovered drastically from January 2016 to October 2016. The maximum share price for RIO went up to $61. For S&P ASX/200, the price ended up at $55 per share.

The comparison can be used for determining investor uncertainty. It allows us to compare the size of the variation of the returns.
 Rio Tinto has larger upswings and downswings than a diversified portfolio of shares in the stock market index. During the period 2013-14, there was less

Get Access