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Rain City Resources, Inc. (TSE:RAIN)
:RAIN
Canadian Market

Rain City Resources (RAIN) AI Stock Analysis

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Rain City Resources

(RAIN)

Rating:38Underperform
Price Target:
Rain City Resources, Inc. struggles with severe financial issues, including zero revenue and increasing losses. The stock is technically weak, trading below all major moving averages. While recent corporate events show promise in lithium extraction, the lack of current financial performance heavily impacts the overall score.

Rain City Resources (RAIN) vs. iShares MSCI Canada ETF (EWC)

Rain City Resources Business Overview & Revenue Model

Company DescriptionRain City Resources, Inc. (RAIN) is a dynamic company operating in the renewable energy sector, specializing in sustainable water management solutions. The company offers a range of products and services designed to optimize water usage and conservation, including advanced rainwater harvesting systems, water recycling technologies, and consulting services for sustainable water management practices. RAIN is committed to promoting environmental sustainability and supporting communities in achieving efficient water resource utilization.
How the Company Makes MoneyRain City Resources, Inc. generates revenue through the sale of its innovative water management products and technologies. The company's primary revenue streams include direct sales of rainwater harvesting systems and water recycling equipment to residential, commercial, and industrial clients. Additionally, RAIN offers consulting services for sustainable water management, which provides another significant source of income. The company also engages in strategic partnerships with governmental and non-governmental organizations to implement large-scale water conservation projects, further contributing to its earnings. RAIN's emphasis on eco-friendly solutions and its ability to adapt to various client needs play a crucial role in its revenue generation.

Rain City Resources Financial Statement Overview

Summary
Rain City Resources, Inc. faces significant financial challenges, with zero revenue, increasing operational losses, and negative cash flows. Despite low debt levels, the lack of revenue generation and negative equity raise concerns about financial sustainability.
Income Statement
10
Very Negative
Rain City Resources, Inc. has consistently reported zero revenue across all examined periods, resulting in the inability to calculate gross profit margin, net profit margin, or revenue growth. The company has shown increasing net losses, with the latest TTM showing a significant negative net income. The lack of revenue and increasing operational losses severely undermine income statement performance.
Balance Sheet
40
Negative
The company maintains a strong equity position relative to liabilities, with a substantial equity ratio driven by low liabilities. However, the consistent recording of zero revenue alongside recurring net losses raises concerns about the sustainability of equity. The absence of debt is a positive aspect, but the negative stockholders' equity in 2023 reflects potential financial distress.
Cash Flow
20
Very Negative
Cash flows indicate negative operating cash flows and free cash flows, reflecting ongoing operational challenges. Although financing activities provided some cash inflow, the negative free cash flow to net income ratio highlights cash management issues. The lack of revenue growth and sustained cash outflows are critical concerns.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
0.000.000.000.000.000.00
Gross Profit
0.000.000.000.000.000.00
EBIT
-501.46K-787.66K-70.18K-152.17K-301.81K-138.01K
EBITDA
-1.25M-663.10K1.13M1.51M-280.31K-138.01K
Net Income Common Stockholders
-1.36M-665.70K-206.37K-1.82M-436.86K-190.19K
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.22K378.74K78.33K206.04K702.41K107.73K
Total Assets
112.65K1.80M107.45K231.32K1.43M324.69K
Total Debt
4.00K0.008.00K0.000.000.00
Net Debt
-2.22K-23.88K6.20K-290.00-64.33K-107.73K
Total Liabilities
142.23K288.94K272.94K190.45K81.83K15.40K
Stockholders Equity
-29.58K1.51M-165.49K40.88K1.35M309.30K
Cash FlowFree Cash Flow
-756.70K-418.37K-34.37K-46.65K-779.78K-130.45K
Operating Cash Flow
-756.70K-418.37K-34.38K-46.65K-269.09K-108.95K
Investing Cash Flow
-971.08K-971.08K12.01K-17.40K-896.77K-21.50K
Financing Cash Flow
1.78M1.41M23.88K0.001.12M233.30K

Rain City Resources Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.02
Price Trends
50DMA
0.03
Negative
100DMA
0.05
Negative
200DMA
0.06
Negative
Market Momentum
MACD
<0.01
Negative
RSI
45.99
Neutral
STOCH
77.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RAIN, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.03, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RAIN.

Rain City Resources Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSARQ
68
Neutral
C$5.86M11.1140.64%58.36%
51
Neutral
$2.04B-1.15-21.37%3.64%2.88%-30.57%
TSMNO
45
Neutral
C$274.35M-120.17%-22.62%
38
Underperform
C$2.06M-118.90%-187.10%
36
Underperform
C$57.87M-65.77%6.96%
TSXIM
31
Underperform
C$7.44M-785.02%40.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:RAIN
Rain City Resources
0.02
-0.05
-71.43%
TSE:MNO
Meridian Mining SE
0.80
0.30
60.00%
TSE:NILI
Surge Exploration Inc
0.33
-0.05
-13.16%
TSE:XIM
Ximen Mining
0.13
0.02
18.18%
TSE:ARQ
Argo Gold
0.08
<0.01
14.29%

Rain City Resources Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Rain City Resources Launches ACCELi Pilot Plant for Lithium Extraction
Positive
Apr 8, 2025

Rain City Resources Inc. has announced the commencement of operations at its ACCELi mineral extraction pilot plant in Springfield, Pennsylvania. The plant, operated by Avonlea Lithium Corp., aims to extract lithium and other critical minerals from wastewater brine associated with natural gas production in the Marcellus Shale Formation. This initiative aligns with Rain City’s strategy to establish a domestic supply of lithium in response to increasing tariffs on imported lithium-ion batteries, positioning the company at the forefront of North American lithium extraction and processing.

Spark’s Take on TSE:RAIN Stock

According to Spark, TipRanks’ AI Analyst, TSE:RAIN is a Underperform.

Rain City Resources, Inc. struggles with severe financial issues, including zero revenue and increasing losses. The stock is technically weak, trading below all major moving averages. While recent corporate events show promise in lithium extraction, the lack of current financial performance heavily impacts the overall score.

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

Private Placements and FinancingBusiness Operations and Strategy
EMP Metals Issues Warrants to Tembo Following Loan Drawdown
Neutral
Apr 7, 2025

EMP Metals Corp. has issued 216,000 common share purchase warrants to Tembo Capital Holdings as part of a loan agreement. This move follows a drawdown of US$1,000,000 from a non-revolving loan facility, which is to be repaid by the end of 2025, potentially impacting EMP Metals’ financial strategy and stakeholder interests.

Spark’s Take on TSE:EMPS Stock

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

EMP Metals faces significant financial challenges with no current revenue and continuous losses. While its balance sheet is stable, the negative cash flow and reliance on external funding are concerns. Technically, the stock shows a bearish trend. However, recent positive corporate events related to potential lithium production offer a glimmer of hope for future revenue opportunities, slightly lifting the overall outlook.

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

Private Placements and FinancingBusiness Operations and Strategy
Rain City Resources Completes Private Placement to Fund Lithium Projects
Positive
Apr 4, 2025

Rain City Resources Inc. has successfully completed its non-brokered private placement, raising a total of $454,450.05 through the issuance of 6,059,334 common shares. The funds will be utilized to support operational expenses at their pilot plant in Pennsylvania and to advance project discussions in Chile and Argentina, positioning the company for future growth in the lithium extraction industry.

Private Placements and Financing
EMP Metals Amends Loan Agreement with Tembo Capital
Neutral
Mar 11, 2025

EMP Metals Corp., a company involved in the resource sector, has amended its loan agreement with Tembo Capital Holdings to extend the drawdown deadline for a US$3 million loan facility. The amendment allows EMP Metals to access an additional US$1 million until March 14, 2025, with an interest rate of 13.5% per annum. The agreement also includes a provision for drawdown fees payable in common share purchase warrants if the loan is not repaid promptly. Tembo Capital, which holds a significant stake in EMP Metals, may adjust its investment based on various market and company conditions.

Private Placements and FinancingBusiness Operations and Strategy
Rain City Resources Advances Lithium Extraction with Successful Financing
Positive
Mar 11, 2025

Rain City Resources Inc. has successfully closed the first tranche of its non-brokered private placement, raising $305,700 through the issuance of 4,076,000 common shares. The funds will be used to support operational expenses at their pilot plant in Pennsylvania and further project discussions in Chile and Argentina. This financing marks a significant step in advancing their ACCELi Direct Lithium Extract technology, which is being tested at the Kendra II Springville brine transfer site in Pennsylvania.

Private Placements and FinancingBusiness Operations and Strategy
Rain City Resources Secures $500,000 Financing for Expansion
Positive
Feb 24, 2025

Rain City Resources Inc. announced a non-brokered private placement financing to raise up to $500,000 by issuing 6,666,667 shares at $0.075 each. The funds will support operational expenses at their pilot plant in Pennsylvania, third-party analysis, and ongoing project discussions in Chile and Argentina, potentially impacting the company’s operational capabilities and market positioning in the lithium extraction industry.

Product-Related AnnouncementsBusiness Operations and Strategy
Rain City Resources to Launch Lithium Extraction Pilot in Pennsylvania
Positive
Feb 12, 2025

Rain City Resources Inc. has announced an agreement with Avonlea Lithium Corporation and Kendra II to deploy their ACCELi Direct Lithium Extraction pilot plant in Pennsylvania. This initiative marks a significant step towards commercializing their technology, with the plant expected to operate by late March/early April 2025, processing brine from the Marcellus Shale formation, potentially positioning Rain City as a leading low-cost lithium extraction company.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.