Rio2 Limited (RIO) has received a new Buy rating, initiated by Atrium Research analyst, Ben Pirie.
Ben Pirie has given his Buy rating due to a combination of factors related to Rio2 Limited’s strategic positioning and financial backing. The company owns the Fenix Gold Project, which stands out as the largest fully permitted and financed gold heap leach project in the Americas. This significant project is backed by a recent $174 million construction financing package, ensuring that the company has the necessary funds to move forward with construction and reach initial production by early 2026.
Additionally, Rio2’s management team brings a track record of success, having been part of Rio Alto, which was successfully merged with Tahoe Resources. The stock is currently trading at a lower valuation of $26 per ounce compared to its peers, which average $88 per ounce, indicating potential for upside. The Fenix Gold Project is expected to generate substantial EBITDA in its second year of production, further supporting the Buy rating with a target price of C$1.40 per share.
Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RIO in relation to earlier this year.