The Globe and Mail reports in its Tuesday, June 28, edition that Raymond James analyst Craig Stanley has lowered his recommendation for Rio2 to "market perform" from "strong buy." The Globe's David Leeder writes in the Eye On Equities column that Mr. Stanley whacked his share target back by $1.10 to 40 cents. Analysts on average target the shares at $1.64. Mr. Stanley sees "permitting uncertainty" at Rio2's Fenix gold project weighing on the stock. The Chilean Environmental Assessment Service recommended a rejection of Rio2's environmental impact assessment report. Mr. Stanley says in a note: "The Consolidated Evaluation Report notes that Fenix 'fulfills all the applicable environmental regulations and meets the environmental requirements for the granting of applicable sectorial environmental permits' however, the company 'has not provided enough information during the evaluation process to eliminate adverse impacts over the chinchilla, guanaco, and vicuna.' We note Gold Fields Salares Norte gold project was permitted but subsequently sanctioned over a botched relocation of 20 chinchillas."
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