(Reuters) - Shares of Rio Verde Minerals Development Corp RVD.TO fell as much as 23 percent after the miner said it did not find potash at a second drill hole at its Sergipe potash project in Brazil.
Analysts at Stonecap Securities cut their price target on the company’s stock to 65 Canadian cents from 90 Canadian cents citing “increased uncertainty in terms of cost, size, and timelines to prove a resource at Sergipe”.
The company found potash in the first drill hole at the Sergipe project, which is spread over 112,000 hectares, last November.
The brokerage, however, maintained its “outperform” rating and said any weakness in the stock price could be a buying opportunity.
Shares of Rio Verde, which develops fertilizer projects in Brazil, touched a low of 20 Canadian cents in early trade on Tuesday on the Toronto Stock Exchange.
Reporting by Maneesha Tiwari in Bangalore; Editing by Roshni Menon