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Rio2 ( (TSE:RIO) ) just unveiled an update.
Rio2 Limited has completed the acquisition of a 99.1% interest in the Condestable copper mine in Peru from Southern Peaks Mining, marking a major step in its strategy to become a diversified and highly profitable Latin American miner. Management highlighted the mine’s strong operational track record over the past twelve years and expects a six-month integration period to rationalize and optimize the management team while maintaining current operations and targeting annual production of about 27,000 tonnes of copper equivalent. To fund the deal, Rio2 converted 86.1 million subscription receipts into common shares following the satisfaction of escrow release conditions, unlocking C$191.1 million in gross proceeds from a previously closed bought-deal equity financing, with funds used partly for acquisition cash consideration and the remainder allocated to working capital and general corporate purposes.
The most recent analyst rating on (TSE:RIO) stock is a Buy with a C$4.70 price target. To see the full list of analyst forecasts on Rio2 stock, see the TSE:RIO Stock Forecast page.
Spark’s Take on TSE:RIO Stock
According to Spark, TipRanks’ AI Analyst, TSE:RIO is a Neutral.
The score is held back mainly by uneven fundamentals—operating losses and negative free cash flow—despite a very strong, low-debt balance sheet. Technicals are a key positive with a clear uptrend and positive momentum, while valuation is a notable risk due to an extremely high P/E and no indicated dividend support.
To see Spark’s full report on TSE:RIO stock, click here.
More about Rio2
Rio2 Limited is a Latin America-focused mining company listed in Toronto, Lima and on the OTCQX, aiming to build a diversified portfolio of highly profitable operations. The company is expanding beyond its existing asset base through acquisitions and project development, with a particular focus on copper and other base metals in the region.
Average Trading Volume: 1,153,439
Technical Sentiment Signal: Buy
Current Market Cap: C$1.72B
For an in-depth examination of RIO stock, go to TipRanks’ Overview page.