In a report released today, from Atrium Research maintained a Buy rating on Rio2 , with a price target of C$2.40.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Atrium Research has given its Buy rating due to a combination of factors surrounding Rio2’s strategic initiatives. The company has announced the signing of two Memorandums of Understanding (MOUs) for the potential supply of desalinated water to the Fenix Gold Mine. This move is crucial as it supports the company’s expansion plans, aiming to increase annual production significantly over the next five years.
Furthermore, Rio2’s recent graduation to the TSX marks a significant milestone, enhancing its market presence and investor appeal. The comprehensive due diligence and negotiations leading to the MOUs indicate a well-thought-out strategy to secure essential resources for expansion. The planned studies and subsequent feasibility assessments are expected to pave the way for a Joint Development Agreement, reinforcing Atrium Research’s confidence in Rio2’s growth potential, justifying the Buy rating and the target price of C$2.40 per share.