Rio2 Limited (TSE:RIO)
TSX:RIO
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Rio2
(TSX:RIO)
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Rating:58Neutral
Price Target:
C$3.00
▲(3.09% Upside)
Action:Reiterated
Date:05/18/26
The score is driven primarily by improving TTM financial performance and a manageable leverage profile, but it is capped by weak cash conversion (negative free cash flow) and a volatile multi-year earnings history. Technicals are moderately supportive, while valuation is a drag due to a negative P/E and no dividend information.
Positive Factors
Conservative leverage / sizable equity base
A low trailing debt-to-equity (~0.25) and a large equity base provide durable financial flexibility for project financing and permit-to-construction phases. This conservatively levered balance sheet reduces immediate refinancing pressure and supports staged capital deployment for Fenix development over months.
Negative Factors
Negative free cash flow
Negative free cash flow (~-$15M TTM) despite strong operating cash indicates heavy capex or working-capital absorption tied to development. This structural cash-conversion gap raises funding and timing risk for construction and ramp phases unless capex is curtailed or financing is secured.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage / sizable equity base
A low trailing debt-to-equity (~0.25) and a large equity base provide durable financial flexibility for project financing and permit-to-construction phases. This conservatively levered balance sheet reduces immediate refinancing pressure and supports staged capital deployment for Fenix development over months.
Read all positive factors
Rio2 (RIO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.30B
Dividend YieldN/A
Average Volume (3M)559.14K
Price to Earnings (P/E)15.6
Beta (1Y)2.18
Revenue GrowthN/A
EPS GrowthN/A
CountryCA
Employees185
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)0.02
Shares Outstanding429,873,780
10 Day Avg. Volume672,684
30 Day Avg. Volume559,138
Financial Highlights & Ratios
PEG Ratio-11.09
Price to Book (P/B)11.85
Price to Sales (P/S)0.00
P/FCF Ratio-575.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$5.50Price Target Upside89.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.31
Revenue Forecast (FY)C$449.00M
Rio2 Business Overview & Revenue Model
Company Description
Rio2 Limited engages in the exploration, development, and mining of mineral properties in Canada, Peru, and Chile. Its flagship project is the Fenix Gold Project covering an area of approximately 16,050 hectares located in Chile. The company was i...
How the Company Makes Money
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Rio2 Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
71
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 64.78M | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | 23.32M | -669.52K | -96.28K | -2.32M | -2.28M | -76.17K |
| EBITDA | 16.29M | -13.57M | 2.61M | -8.83M | -11.23M | -12.96M |
| Net Income | 8.49M | -13.88M | -21.00K | -12.33M | -2.30M | -10.53M |
Balance Sheet | ||||||
| Total Assets | 1.22B | 467.96M | 173.80M | 108.42M | 115.06M | 95.70M |
| Cash, Cash Equivalents and Short-Term Investments | 93.19M | 46.72M | 45.01M | 4.60M | 4.73M | 21.39M |
| Total Debt | 84.63M | 152.72K | 289.00K | 465.33K | 713.40K | 485.31K |
| Total Liabilities | 883.70M | 345.10M | 48.69M | 35.21M | 33.23M | 7.33M |
| Stockholders Equity | 332.59M | 122.85M | 125.11M | 73.21M | 81.83M | 88.36M |
Cash Flow | ||||||
| Free Cash Flow | -14.95M | -2.53M | -16.49M | -2.28M | -35.47M | -15.20M |
| Operating Cash Flow | 108.24M | 89.28M | -12.03M | 1.99M | -3.87M | -9.33M |
| Investing Cash Flow | -168.28M | -97.48M | -8.97M | -1.95M | -31.60M | -2.13M |
| Financing Cash Flow | 111.60M | 9.65M | 61.89M | -181.00K | 25.88M | 30.97M |
Rio2 Technical Analysis
Negative
2.91
Price Trends
2.79
Positive
3.11
Negative
2.58
Positive
Market Momentum
0.09
Negative
47.87
Neutral
52.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RIO, the sentiment is Negative. The current price of 2.91 is above the 20-day moving average (MA) of 2.86, above the 50-day MA of 2.79, and above the 200-day MA of 2.58, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 47.87 is Neutral, neither overbought nor oversold. The STOCH value of 52.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RIO.
Rio2 Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | C$2.41B | -152.36 | -3.39% | ― | ― | ― | |
58 Neutral | C$1.30B | 15.56 | 4.55% | ― | ― | ― | |
50 Neutral | C$1.29B | 5.34 | -10.60% | ― | 1249.52% | 40.47% | |
49 Neutral | C$963.14M | -8.05 | -22.69% | ― | ― | -1.42% | |
47 Neutral | C$1.73B | -4.05 | -66.87% | ― | 135.64% | 18.28% | |
44 Neutral | C$1.93B | -33.44 | -43.84% | ― | ― | 4.09% |
* Basic Materials Sector Average
TSE:RIO
Rio2
2.85
1.79
168.87%
TSE:RUP
Rupert Resources
9.90
4.75
92.23%
TSE:ODV
Osisko Development
3.87
1.24
47.15%
TSE:NFG
New Found Gold
2.64
0.93
54.39%
TSE:IAU
i-80 Gold Corp
2.01
1.25
164.47%
TSE:CNL
Collective Mining
21.38
6.72
45.84%
Rio2 Corporate Events
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Rio2 Cuts Condestable Debt and Strengthens Management Bench
Positive
Apr 1, 2026
Rio2 has voluntarily paid US$20 million plus interest toward the vendor debt linked to its acquisition of the Condestable copper mine, extinguishing the US$10 million mezzanine note and reducing the senior promissory note balance to US$45 million....
Business Operations and Strategy
Rio2 to Highlight Growth Plans at BMO Mining Conference and PDAC
Positive
Feb 20, 2026
Rio2’s leadership team, led by Executive Chairman Alex Black and President and CEO Andrew Cox, will present the company’s growth plans for its Fenix Gold Mine and newly acquired Condestable Mine at BMO’s 35th Global Metals, Minin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.