Rio2 (RIO) AI Stock Analysis

• Market Cap: C$560.98M
• Dividend Yield: N/A
• Average Volume (3M): 451.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: N/A
• EPS Growth: 83.41%
• Country: CA
• Employees: 185
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 424,988,340
• 10 Day Avg. Volume: 529,312
• 30 Day Avg. Volume: 451,992
• PEG Ratio: 0.13
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.32
• 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: 6.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: ―

The overall stock score for Rio2 Limited is 50. The company's main strengths lie in its technical analysis, suggesting potential upward momentum, and corporate events, with positive developments in the Fenix Gold Project. However, these are significantly offset by poor financial performance, with no revenue and consistent losses. Valuation remains a concern, with a negative P/E ratio and no dividend yield, indicating risks for investors.

Positive Factors

Cost Management

The total project spend is under budget, which indicates effective cost management.

Financial Position

The Fenix Gold Project is the largest fully permitted and financed gold heap leach project in the Americas.

Project Progress

Construction at the Fenix Gold Project is 19% complete and remains on track and on budget for first gold production.

Negative Factors

Market Valuation

RIO trades at only $26/oz compared to its peers at $88/oz.

Safety Concerns

There was one Lost Time Incident for a finger injury, resulting in a Lost Time Incident Rate of 1.52.

Rio2 Business Overview & Revenue Model

Company Description

Rio2 Limited is a mining company primarily engaged in the exploration and development of mineral properties in the precious metals sector. The company focuses on advancing its flagship Fenix Gold Project located in Chile, which is one of the largest undeveloped gold oxide projects in the Americas. Rio2's core business involves the discovery, development, and potential production of gold resources, aiming to create value through strategic project management and sustainable mining practices.

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

Rio2 Limited faces significant financial challenges with no revenue generation and consistent net losses. While the strong cash position provides some resilience, the lack of operational cash flow and reliance on financing highlight sustainability concerns.

Income Statement

The income statement reveals significant challenges for Rio2 Limited. The company has reported zero revenue consistently, indicating a lack of income generation, which is critical for operational sustainability. The gross profit margin is negative, and the net income has been negative for multiple years, reflecting ongoing financial losses. The absence of revenue growth and negative margins across EBIT and EBITDA further highlight the financial distress and operational inefficiencies.

Balance Sheet

The balance sheet presents a mixed picture. On the positive side, the company maintains a strong cash position, evidenced by a substantial amount of cash and equivalents, which provides a buffer against financial difficulties. However, the debt-to-equity ratio is low due to minimal debt, but this is partially offset by the ongoing net losses which erode stockholders' equity. The equity ratio is reasonably strong, indicating reliance on equity financing rather than debt, which could be a prudent approach given the financial challenges.

Cash Flow

Cash flow analysis indicates considerable difficulties. The operating cash flow is negative, suggesting the company is not generating sufficient cash from its operations to cover expenses. Free cash flow is also negative, highlighting the cash deficit and reliance on external financing. Despite this, there is a significant inflow from financing activities, which has helped maintain liquidity, but it is not a sustainable long-term strategy.

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
209.20K	-96.28K	-2.32M	-2.28M	-76.17K	-78.62K
	EBIT
-9.36M	-12.01M	-5.70M	-13.74M	-13.25M	-9.59M
	EBITDA
2.08M	2.61M	-8.83M	-11.23M	-12.96M	-11.89M
	Net Income Common Stockholders
-419.00K	-20.97K	-12.33M	-2.30M	-10.53M	-8.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.27M	45.01M	4.60M	4.73M	21.39M	3.43M
	Total Assets
205.90M	173.80M	108.42M	115.06M	95.70M	73.49M
	Total Debt
254.00K	289.00K	465.33K	713.40K	485.31K	479.99K
	Net Debt
-48.02M	-44.72M	-4.09M	-3.97M	-20.86M	-2.12M
	Total Liabilities
82.05M	48.69M	35.21M	33.23M	7.33M	6.37M
	Stockholders Equity
123.85M	125.11M	73.21M	81.83M	88.36M	67.11M
Cash Flow		Free Cash Flow
-7.06M	-16.49M	-2.28M	-35.47M	-15.20M	―
	Operating Cash Flow
5.70M	-12.03M	1.99M	-3.87M	-9.33M	―
	Investing Cash Flow
-24.53M	-8.97M	-1.95M	-31.60M	-2.13M	2.37M
	Financing Cash Flow
61.98M	61.89M	-181.00K	25.88M	30.97M	3.98M

Rio2 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.32
• 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 1.32 is above the 20-day moving average (MA) of 1.18, above the 50-day MA of 1.05, and above the 200-day MA of 0.77, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 69.69 is Neutral, neither overbought nor oversold. The STOCH value of 62.81 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 *	51 Neutral	$2.04B	-1.23	-21.09%	3.96%	2.90%	-30.45%
RIO	50 Neutral	C$560.98M	―	-0.28%	―	―	83.41%
GQC	50 Neutral	C$230.81M	―	-30.68%	―	―	―
PRB	47 Neutral	C$505.92M	―	-177.01%	―	―	10.27%
AUMN	38 Underperform	$2.74M	―	-322.42%	―	-100.00%	54.27%

Rio2 Corporate Events

Rio2 Advances Fenix Gold Project Towards 2026 Production

Rio2 Limited has announced that construction of its Fenix Gold Project in Chile is 19% complete and remains on track for first gold production in January 2026. The project, which is one of the largest undeveloped gold oxide heap leach projects in the Americas, represents a significant investment of approximately $235 million and is expected to contribute positively to the Atacama Region and Chile. The project is designed with modern mining practices, focusing on minimizing environmental impact, and is expected to generate significant employment during both construction and operational phases.

Spark’s Take on TSE:RIO Stock

According to Spark, TipRanks’ AI Analyst, TSE:RIO is a Neutral.

Rio2 Limited faces critical financial challenges due to the lack of revenue generation and consistent losses. Despite a strong cash position, the company’s reliance on financing is unsustainable. Technical indicators offer some hope of upward momentum, while the start of the Fenix Gold Mine construction is a positive corporate development that could improve future financial prospects. However, valuation concerns remain significant due to a negative P/E ratio and no dividend yield.

To see Spark’s full report on TSE:RIO stock, click here.

Rio2 Limited Commences Construction of Fenix Gold Mine

Rio2 Limited announced the official start of construction for its Fenix Gold Mine in the Maricunga Gold Belt, marking a significant milestone for the company. The event highlighted the project’s importance, attended by government officials, indigenous community representatives, and industry leaders, which underscores its potential impact on local economic development and the mining sector.