Rio2 Limited (RIO) AI Stock Analysis

• Market Cap: C$312.45M
• Dividend Yield: N/A
• Average Volume (3M): 499.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: N/A
• EPS Growth: -92.22%
• Country: CA
• Employees: 70
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Mining
• EPS (TTM): -0.06
• Shares Outstanding: 416,606,380
• 10 Day Avg. Volume: 556,735
• 30 Day Avg. Volume: 499,272
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -37.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$1.40
• Price Target Upside: 79.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Rio2 Limited's overall stock score is low, primarily due to significant financial challenges including zero revenue and negative profitability. While technical indicators suggest a potential for near-term upward movement, the company's weak financial performance and valuation issues overshadow these signals.

Rio2 Limited Business Overview & Revenue Model

Company Description

Rio2 Limited is a Canadian mining company focused on developing its flagship asset, the Fenix Gold Project, located in Chile. The company operates within the metals and mining sector, with a primary emphasis on gold exploration and development. Rio2 is committed to advancing the Fenix Gold Project towards production while maintaining a strong focus on sustainability and community engagement.

How the Company Makes Money

Rio2 Limited generates revenue primarily through the exploration and development of its gold mining assets. The company's key revenue stream is expected to be the sale of gold extracted from the Fenix Gold Project once it reaches production. As a development-stage company, Rio2 does not yet have significant operating revenue but focuses on increasing the value of its assets through exploration activities and feasibility studies. Partnerships with local communities and stakeholders, as well as securing necessary permits and project financing, are critical factors that contribute to the company's future earnings potential.

Rio2 Limited Financial Statement Overview

Summary

Rio2 Limited is experiencing severe financial difficulties, with no revenue and ongoing losses affecting profitability. Although the balance sheet shows limited leverage, the negative cash flow from operations underlines the need for strategic adjustments and improved cash generation.

Income Statement

Rio2 Limited has faced significant challenges in generating revenue, with zero revenue reported consistently over multiple periods. The net profit margin is negative, and the company is incurring substantial losses, as indicated by the negative net income figures. Gross profit and EBIT margins are also negative, reflecting operational inefficiencies. The lack of revenue growth is a major concern for future profitability.

Balance Sheet

The company's balance sheet reveals a moderate level of financial stability, with a low debt-to-equity ratio indicating minimal leverage. However, the return on equity (ROE) is negative due to persistent losses, which raises concerns about shareholder returns. The equity ratio is relatively healthy, showcasing a solid equity base compared to total assets. However, the company's ability to convert equity into profit remains a challenge.

Cash Flow

Rio2 Limited's cash flow statement highlights issues with cash generation, particularly in operating activities, which are consistently negative. The free cash flow growth rate is negative, and the cash flow ratios indicate difficulty in converting net income into cash. Despite positive financing cash flow, likely from debt or equity issuance, the reliance on external funding is not sustainable long-term.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-913.20K	―	-2.28M	-76.17K	-78.62K	-39.08K
	EBIT
-5.73M	―	-13.74M	-13.25M	―	―
	EBITDA
-6.45M	―	972.44K	-12.96M	-11.89M	-9.01M
	Net Income Common Stockholders
-9.10M	-12.33M	-2.30M	-10.53M	―	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
808.77K	4.60M	4.73M	21.39M	3.43M	14.91M
	Total Assets
52.26M	108.42M	115.06M	95.70M	73.49M	72.00M
	Total Debt
0.00	465.33K	713.40K	485.31K	479.99K	0.00
	Net Debt
-808.77K	-4.09M	-3.97M	-20.86M	-2.12M	-4.14M
	Total Liabilities
1.78M	35.21M	33.23M	7.33M	6.37M	2.96M
	Stockholders Equity
50.48M	73.21M	81.83M	88.36M	67.11M	69.04M
Cash Flow		Free Cash Flow
-5.81M	-2.28M	-35.47M	-15.20M	―	―
	Operating Cash Flow
-3.88M	-331.23K	-3.87M	-9.33M	―	―
	Investing Cash Flow
-1.93M	-1.95M	-31.60M	-2.13M	2.37M	―
	Financing Cash Flow
15.53M	-180.55K	25.88M	30.97M	3.98M	22.90M

Rio2 Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RIO, the sentiment is Positive. The current price of 0.78 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.70, and above the 200-day MA of 0.62, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 70.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RIO.

Rio2 Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRB	52 Neutral	C$342.60M	―	-113.17%	―	―	2.31%
GQC	48 Neutral	C$122.09M	―	-26.93%	―	―	25.41%
Sector *	47 Neutral	$2.64B	-3.82	-29.05%	3.32%	2.72%	-29.50%
RIO	40 Underperform	C$312.45M	―	-17.85%	―	―	-92.22%
AUMN	34 Underperform	$1.77M	―	-1307.49%	―	-98.16%	64.61%

Rio2 Limited Corporate Events

Rio2 Limited Resumes Construction at Fenix Gold Mine

Rio2 Limited has resumed construction activities at its Fenix Gold Mine after the Environmental Impact Assessment (EIA) was approved following an appeal process. The company has secured financing and aims to complete construction by November 2025, with first gold production expected in January 2026. The project’s capital expenditure for 2025 is estimated at USD 122 million, excluding refundable Chilean VAT. This development marks a significant step forward in Rio2’s operational plans and could enhance its position in the gold mining sector.

Rio2 Limited Advances Fenix Gold Mine Construction

Rio2 Limited is making significant progress on its Fenix Gold Mine in Chile, including hiring a local workforce and starting construction activities. The company has secured a fixed-price contract for plant construction and is set to implement SAP’s ERP solution to enhance business operations. These steps aim to streamline operations and improve efficiency as they look forward to the first gold production.

Rio2 Limited to Present at Virtual Investor Conference

Rio2 Limited is set to present at the Clean Energy & Precious Metals Virtual Investor Conference, showcasing their Fenix Gold Project in Chile. The event allows investors to interact with the company in real-time and learn more about Rio2’s commitment to responsible mining. This virtual participation emphasizes Rio2’s strategic focus on advancing their mining operations efficiently.