Rain City Resources (RAIN) AI Stock Analysis

• Market Cap: C$828.26K
• Dividend Yield: N/A
• Average Volume (3M): 277.99K
• Price to Earnings (P/E): ―
• Beta (1Y): -2.34
• Revenue Growth: N/A
• EPS Growth: 3.49%
• Country: CA
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 82,826,416
• 10 Day Avg. Volume: 599,577
• 30 Day Avg. Volume: 277,991
• PEG Ratio: -0.05
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.62
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• 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.

Positive Factors

Strategic Initiatives in Lithium Extraction

The launch of the ACCELi pilot plant for lithium extraction positions Rain City Resources to capitalize on the growing demand for lithium, a critical component in battery technology. This strategic move could enhance the company's market position in the renewable energy sector.

Successful Financing for Expansion

The successful completion of a private placement raising $454,450.05 provides Rain City Resources with the necessary capital to advance its lithium extraction projects, supporting operational expenses and future growth opportunities in the industry.

Partnerships and Market Positioning

The agreement with Avonlea Lithium Corporation to deploy a pilot plant in Pennsylvania strengthens Rain City's partnerships and market positioning, potentially establishing it as a leader in low-cost lithium extraction, crucial for long-term industry competitiveness.

Negative Factors

Zero Revenue and Increasing Losses

The persistent lack of revenue and increasing losses raise concerns about Rain City's financial sustainability. This ongoing issue undermines the company's ability to fund operations and invest in growth, posing a significant risk to long-term viability.

Negative Cash Flow

Negative cash flows highlight Rain City's struggles with cash management and operational efficiency. This financial strain limits the company's ability to invest in strategic initiatives and may hinder its capacity to respond to market opportunities.

Negative Stockholders' Equity

Negative stockholders' equity indicates financial distress and challenges in maintaining a healthy balance sheet. This situation can deter investors and limit Rain City's access to capital, impacting its long-term growth prospects and financial stability.

Rain City Resources Business Overview & Revenue Model

Company Description

Rain City Resources Inc. engages in the acquisition and exploration of mineral properties in Canada. It has an option to acquire a 100% interest in the Northern Champion property located in British Columbia, Canada; and Bro Property located in Yukon. The company was founded in 2015 and is based in Vancouver, Canada.

How the Company Makes Money

Rain 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

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

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

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	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	0.00	0.00	0.00	0.00	0.00	0.00
EBITDA	-972.79K	-663.00K	1.13M	1.51M	-280.00K	-138.00K
Net Income	-1.25M	-666.00K	-206.00K	-1.82M	-437.00K	-190.00K
Balance Sheet
Total Assets	2.03M	1.80M	107.45K	231.32K	1.43M	324.69K
Cash, Cash Equivalents and Short-Term Investments	78.51K	378.74K	78.33K	206.04K	702.41K	107.73K
Total Debt	0.00	0.00	8.00K	0.00	0.00	0.00
Total Liabilities	234.14K	288.94K	272.94K	190.45K	81.83K	15.40K
Stockholders Equity	1.79M	1.51M	-165.49K	40.88K	1.35M	309.30K
Cash Flow
Free Cash Flow	-894.20K	-418.37K	-34.37K	-46.65K	-779.78K	-130.45K
Operating Cash Flow	-894.20K	-418.37K	-34.38K	-46.65K	-269.09K	-108.95K
Investing Cash Flow	-1.21M	-971.08K	12.01K	-17.40K	-896.77K	-21.50K
Financing Cash Flow	2.14M	1.41M	23.88K	0.00	1.12M	233.30K

Rain City Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.75 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CAPR	45 Neutral	C$10.99M	-11.18	-38.26%	―	―	-10.81%
RAIN	38 Underperform	C$828.26K	-0.60	-68.29%	―	―	3.49%
EDDY	36 Underperform	C$1.20M	-1.36	-9.82%	―	―	46.67%
ULT	32 Underperform	C$2.87M	-0.61	-58.50%	―	―	-123.85%
FMR	32 Underperform	C$5.01M	-1.81	-427.77%	―	―	-89.35%

Rain City Resources Corporate Events

EMP Metals Extends and Converts Tembo Loan Facility, Issuing Warrants as Arrangement Fee

EMP Metals Corp. has amended its existing US$3 million loan facility with Tembo Capital Holdings by converting it into a convertible loan agreement, extending the loan’s maturity from December 31, 2025 to June 30, 2027 and granting Tembo the right to convert any or all of the principal and accrued interest into common shares at a price of $0.425 per share. The loan will bear interest at 13.5% annually while outstanding, and as part of the revised terms EMP Metals will pay Tembo an arrangement fee of US$150,000 via 485,294 common share purchase warrants exercisable at C$0.425 for two years, a structure that strengthens the company’s near- to medium‑term financing flexibility while introducing potential equity dilution as Tembo gains an option to increase its equity stake.

EMP Metals Advances Project Aurora with Construction Milestone and Stock Options Grant

EMP Metals Corp. has completed the exterior construction of its Project Aurora lithium refining demonstration plant at the Viewfield Project in Saskatchewan. The plant, developed in partnership with Saltworks Technologies, aims to produce ultra-high purity lithium chloride using advanced Gen II DLE technology, which enhances purity and reduces capital expenditure. The company also announced the grant of 100,000 incentive stock options to a consultant, reflecting ongoing strategic developments.

EMP Metals Secures $2.1 Million in Oversubscribed Financing

EMP Metals Corp. has successfully closed an oversubscribed non-brokered private placement financing, raising $2.1 million through the issuance of 5,250,000 units. The proceeds will be used for the development of its lithium brine properties in Saskatchewan and general working capital. Tembo Capital Holdings UK Ltd. participated in the offering to maintain its interest, acquiring 1,000,000 units. This transaction is considered a related party transaction under regulatory guidelines. The financing strengthens EMP Metals’ position in the lithium exploration industry, potentially enhancing its operational capabilities and market presence.

EMP Metals Corp. Announces $2 Million Private Placement to Bolster Lithium Exploration

EMP Metals Corp. has announced a non-brokered private placement financing to raise up to $2,000,000 through the issuance of 5,000,000 units, each consisting of one common share and one share purchase warrant. The funds will be allocated for annual concession fees, potential land acquisitions, and general working capital, with the offering subject to necessary regulatory approvals. This move is expected to support EMP Metals’ strategic objectives in the lithium exploration sector, potentially enhancing its market position and operational capabilities.

Rain City Resources Expands South American Footprint with Strategic Partnership

Rain City Resources has announced a strategic partnership with the Pontifical Catholic University of Chile to test its DLE technology on high-grade lithium brines in South America. This collaboration aligns with Chile’s National Lithium Strategy and aims to validate Rain’s technology, which is designed for net-zero water consumption, thereby reducing perceived technology risks for investors and stakeholders. The agreement includes a 12-month timeline for establishing operational agreements, positioning Rain at the forefront of sustainable innovation in the lithium industry.

Rain City Resources Takes Lead Role in Chile’s Lithium & Energy Summit 2025

Rain City Resources Inc. has been named the main sponsor of the Third Lithium & Energy Summit 2025 in Santiago, Chile, positioning itself at the forefront of Latin America’s lithium innovation ecosystem. This sponsorship is expected to enhance Rain’s commercial discussions with regional partners and highlights its focus on water-conscious DLE technology, which is crucial for addressing water scarcity challenges in lithium extraction. The company’s participation in the summit, including presenting the Lithium Roadmap 2025-2030 and moderating a panel on investments in DLE and clean energy, underscores its strategic engagement with industry and academic leaders.

EMP Metals and Saltworks Unveil Advanced Lithium Extraction Technology

EMP Metals Corp., in collaboration with Saltworks Technologies, has announced the release of a second-generation Direct Lithium Extraction (Gen-II DLE) technology as part of their Project Aurora. This new technology, which will be implemented at the Viewfield Project in Saskatchewan, enhances lithium extraction efficiency by improving eluate purity and reducing capital expenditure. The Gen-II DLE process is designed for hub-and-spoke operations, allowing for significant lithium chloride concentration gains and minimizing chemical inputs and waste. This advancement positions EMP Metals and Saltworks as leaders in scalable and cost-effective lithium extraction solutions, with plans to develop a modular commercial refinery capable of producing over 3,000 tonnes per year.

Rain City Resources Partners with Y-TEC to Advance Zero-Water Lithium Extraction in Argentina

Rain City Resources Inc. has signed a Memorandum of Understanding with YPF Tecnología S.A. to scale its zero-water Direct Lithium Extraction technology in Argentina. This partnership aims to produce battery-grade Lithium Iron Phosphate, crucial for EV batteries and energy storage, and aligns with Rain City’s joint venture with Lithium Argentina Investments SA. The collaboration is expected to strengthen global battery supply chains, promote environmentally responsible energy solutions, and set the stage for future commercial agreements.

Saskatchewan Sets Competitive Lithium Royalty Rate at 3%

The Saskatchewan government has approved amendments to the Subsurface Mineral Royalty Regulations, setting the provincial royalty rate for lithium production at 3%. This new framework, which includes a two-year royalty holiday for new productive capacity, aligns with Saskatchewan’s existing Crown royalties for other minerals and is competitive internationally. EMP Metals’ CEO, Karl Kottmeier, expressed optimism about the impact of this development on the company’s Project Aurora, highlighting the positive implications for financial modeling and the overall business case.