Rio2 (RIO) AI Stock Analysis

• Market Cap: C$1.72B
• Dividend Yield: N/A
• Average Volume (3M): 559.14K
• Price to Earnings (P/E): 390.7
• Beta (1Y): 1.62
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 185
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.01
• Shares Outstanding: 429,873,780
• 10 Day Avg. Volume: 672,684
• 30 Day Avg. Volume: 559,138
• PEG Ratio: 180.96
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.27
• 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$4.57
• Price Target Upside: 20.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: C$3.50 ▼(-7.65% Downside)

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.

Positive Factors

Project Advancement

The advancement of the Fenix Gold Project towards production is a key positive, indicating progress in operational capabilities and potential future revenue generation.

Strong Cash Position

A strong cash position provides financial resilience, allowing the company to fund ongoing project development and manage operational expenses without immediate revenue.

Sustainable Mining Practices

Commitment to sustainable mining practices enhances long-term viability and aligns with regulatory and community expectations, potentially easing future project approvals.

Negative Factors

Lack of Revenue Generation

Consistent lack of revenue generation poses a significant risk to financial sustainability, as it relies heavily on external financing and cash reserves for operations.

Negative Cash Flow

Negative cash flow highlights operational inefficiencies and the need for external funding, challenging the company's ability to sustain operations long-term.

Consistent Losses

Ongoing financial losses erode shareholder value and limit the company's ability to invest in growth opportunities, impacting long-term competitiveness.

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 incorporated in 1990 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Rio2 Limited generates revenue primarily through the development and eventual production of gold from its mining projects. The company focuses on advancing its Fenix Gold Project towards production, which involves exploration activities, securing necessary permits, and constructing mining facilities. Once operational, the company will earn money by extracting gold from the mine and selling it in the global commodities market. Revenue streams are also supported by any strategic partnerships or joint ventures that may provide funding or operational synergies. The company's earnings are influenced by factors such as gold market prices, cost management, and efficient project execution.

Rio2 Financial Statement Overview

Summary

Balance sheet strength (very low leverage and a sizable equity base) supports financial stability, but operating performance is still weak with negative EBIT and free cash flow remaining negative despite positive operating cash flow. Revenue is shown as $0 across periods, limiting visibility into the underlying business scale and profitability quality.

Income Statement

Profitability has improved recently, with TTM (Trailing-Twelve-Months) net income turning positive (about $1.7M) after multiple years of losses (2020–2024). However, operating performance remains weak: TTM operating profit is still meaningfully negative (EBIT about -$12.7M), indicating earnings are not yet supported by core operations. Revenue is reported as $0 across all periods, which limits visibility into true business scale and makes margin-based assessment unreliable.

Balance Sheet

The balance sheet looks conservatively financed, with very low debt relative to equity (TTM debt-to-equity around 0.002x) and sizable equity base (about $121M TTM). Total assets have grown versus prior years (about $269M TTM vs. ~$174M in 2024), supporting a stronger asset position. The main weakness is that returns remain modest—TTM return on equity is only ~1.3% and was negative in prior years—suggesting the company has not consistently generated strong profits on its capital base.

Cash Flow

Cash generation is mixed. TTM operating cash flow is strong (about $64.3M) and more than covers net income, but free cash flow is still negative (about -$13.5M TTM), implying heavy investment or spending requirements. Free cash flow has also deteriorated versus the prior period (TTM free cash flow growth about -66%), and the company has a history of negative free cash flow in earlier years, which can pressure funding needs if sustained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	585.89K	-96.28K	-2.32M	-2.28M	-76.17K	-78.62K
EBITDA	3.08M	2.61M	-8.83M	-11.23M	-12.96M	-11.89M
Net Income	1.66M	-21.00K	-12.33M	-2.30M	-10.53M	-8.94M
Balance Sheet
Total Assets	269.22M	173.80M	108.42M	115.06M	95.70M	73.49M
Cash, Cash Equivalents and Short-Term Investments	45.76M	45.01M	4.60M	4.73M	21.39M	3.43M
Total Debt	191.00K	289.00K	465.33K	713.40K	485.31K	479.99K
Total Liabilities	148.26M	48.69M	35.21M	33.23M	7.33M	6.37M
Stockholders Equity	120.96M	125.11M	73.21M	81.83M	88.36M	67.11M
Cash Flow
Free Cash Flow	-13.49M	-16.49M	-2.28M	-35.47M	-15.20M	-15.28M
Operating Cash Flow	64.27M	-12.03M	1.99M	-3.87M	-9.33M	-8.45M
Investing Cash Flow	-84.66M	-8.97M	-1.95M	-31.60M	-2.13M	2.37M
Financing Cash Flow	47.30M	61.89M	-181.00K	25.88M	30.97M	3.98M

Rio2 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3.79 is above the 20-day moving average (MA) of 3.60, above the 50-day MA of 3.02, and above the 200-day MA of 1.93, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 63.77 is Neutral, neither overbought nor oversold. The STOCH value of 74.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RIO.

Rio2 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RUP	60 Neutral	C$1.78B	―	―	―	―	―
RIO	59 Neutral	C$1.72B	390.72	3.01%	―	―	―
NFG	56 Neutral	C$1.52B	-19.43	-50.06%	―	―	28.06%
IAU	56 Neutral	C$2.06B	-7.68	-37.59%	―	70.93%	37.37%
CNL	52 Neutral	$2.30B	-30.85	-89.81%	―	―	―
ODV	49 Neutral	$1.33B	-3.35	-46.07%	―	-1.73%	37.26%

Rio2 Corporate Events

Rio2 Limited Secures C$14 Million in Private Placement Funding

Rio2 Limited has successfully closed a brokered private placement, raising gross proceeds of C$14 million through the sale of 6,306,300 common shares to investors in Peru and Chile. The funds will be allocated towards working capital and general corporate purposes, positioning the company for growth and supporting its operational goals, particularly its efforts to advance the Fenix Gold Project in Chile to production.

The most recent analyst rating on (TSE:RIO) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Rio2 stock, see the TSE:RIO Stock Forecast page.

Rio2 Secures C$191 Million in Upsized Bought Deal for Mine Acquisition

Rio2 Limited has successfully closed an upsized bought deal financing, raising C$191 million to fund the acquisition of the Condestable Mine and for general corporate purposes. This financing, underwritten by major financial institutions, positions Rio2 to strengthen its operational capabilities and market presence, with the acquisition expected to complete in January 2026.

The most recent analyst rating on (TSE:RIO) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Rio2 stock, see the TSE:RIO Stock Forecast page.

Rio2 Advances Condestable Mine Acquisition with Equity Financing

Rio2 Limited has filed a prospectus supplement related to its ‘bought deal’ equity financing to support the acquisition of a 99.1% interest in the Condestable mine in Peru. This strategic move is expected to enhance Rio2’s operations and market positioning, with the equity financing subject to customary closing conditions and TSX approvals.

The most recent analyst rating on (TSE:RIO) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Rio2 stock, see the TSE:RIO Stock Forecast page.

Rio2 Upsizes Financing to C$166 Million Amid Strong Demand

Rio2 Limited has announced an increase in its previously declared ‘bought deal’ financing from C$140 million to C$166 million due to strong investor demand. This upsized equity financing, led by Raymond James Ltd., Stifel Nicolaus Canada Inc., and BMO Nesbitt Burns Inc., is expected to close around December 15, 2025, pending customary approvals. The additional funds are anticipated to bolster Rio2’s operations, particularly in advancing the Fenix Gold Project, thereby potentially enhancing its market position and stakeholder value.

The most recent analyst rating on (TSE:RIO) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Rio2 stock, see the TSE:RIO Stock Forecast page.

Rio2 Expands in Latin America with Acquisition of Condestable Mine

Rio2 Limited has announced the acquisition of a 99.1% interest in the Condestable mine in Peru from Southern Peaks Mining, marking a significant step in its evolution from a gold developer to a diversified producer in Latin America. This acquisition, supported by a C$140 million equity financing, is expected to provide immediate cash flow and enhance Rio2’s growth strategy, with the potential for expansion in both gold and copper production, reinforcing its presence in top-tier mining jurisdictions like Peru and Chile.

The most recent analyst rating on (TSE:RIO) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Rio2 stock, see the TSE:RIO Stock Forecast page.

Rio2 Expands Stake in Royal Road Minerals Through Private Placement

Rio2 Limited has increased its stake in Royal Road Minerals Limited by participating in a non-brokered private placement, acquiring 4,166,667 ordinary shares for $750,000. This acquisition raises Rio2’s ownership to approximately 15% of Royal Road’s issued shares, aligning with its investment strategy and maintaining its pro rata ownership rights.

The most recent analyst rating on (TSE:RIO) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Rio2 stock, see the TSE:RIO Stock Forecast page.

Rio2 Secures Final $50 Million for Fenix Gold Project Development

Rio2 Limited has received a final deposit of $50 million from Wheaton Precious Metals International, which will be used to advance the construction of the Fenix Gold Project in Chile. The project, one of the largest undeveloped gold oxide heap leach projects in the Americas, represents a significant investment in Chile’s gold mining sector, with expected benefits including job creation and minimal environmental impact due to its design, which omits crushing and tailings storage facilities.

The most recent analyst rating on (TSE:RIO) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Rio2 stock, see the TSE:RIO Stock Forecast page.

Rio2 Advances Fenix Gold Project Towards January 2026 Production

Rio2 Limited has announced that construction of its Fenix Gold Project in Chile is 63% complete and on track for first gold production in January 2026. The project has seen significant progress, including the installation of geosynthetics on the leach pad and completion of key infrastructure such as haul roads and the PLS pond. The project is expected to positively impact the Atacama Region and Chile, with a focus on technical, environmental, and social considerations.

The most recent analyst rating on (TSE:RIO) stock is a Buy with a C$2.40 price target. To see the full list of analyst forecasts on Rio2 stock, see the TSE:RIO Stock Forecast page.