Tuesday, February 13, 2024

Good Morning!

Last week I interviewed Alex Black, the founder & current Chairman of Rio2. Alex previously founded and led Rio Alto to a US $1.1 Billion acquisition in 2015. 

After a painful 18-months, Rio2 in December received the critical environmental approval to build its Fenix Gold mine in Chile.

The company has a market of only US $67 Million and a project that can produce 95K-100K oz Au/yr at a steady state. But the Fenix deposit contains over 6M oz Au and the mine has the potential to expand to 250K-300K oz Au/yr.  

In this interview, Alex Black discusses the company's objectives this year, raising the capital to build the mine and then its long-term expansion potential. 

Click below to listen to the interview.

Video: Junior Developer's Path to 250K oz Au/yr (25 Min)

Below is a daily bar chart of Rio2 on the TSX-V.

The stock surged up to C$0.44 after the news of environmental approval. In recent days the stock has held above support at C$0.30. The lowest trade was C$0.31.

The financing is a near-term headwind but the company can afford to wait. Successfully raising the capital to build the mine and the Gold price will be the drivers over the next 9 months.   

For more analysis on Rio2 and other stocks, subscribe to TheDailyGold Premium.