Rock Tech Lithium (RCK) AI Stock Analysis

• Market Cap: C$132.63M
• Dividend Yield: N/A
• Average Volume (3M): 74.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: N/A
• EPS Growth: 36.48%
• Country: CA
• Employees: 11
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.02
• Shares Outstanding: 115,328,156
• 10 Day Avg. Volume: 77,914
• 30 Day Avg. Volume: 74,757
• PEG Ratio: 0.14
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.70
• 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: 48 Neutral
• Price Target: C$1.00 ▲(11.11% Upside)

The score is held down primarily by weak financial performance (pre-revenue, ongoing losses, and negative free cash flow), despite improving loss and cash-burn trends and low debt. Technicals are supportive with strong momentum and price above key moving averages, but overbought signals temper that benefit. Valuation provides limited support given the negative P/E and no dividend yield.

Positive Factors

Conservative leverage

Extremely low leverage provides durable financial flexibility for a capital‑intensive buildout. With limited debt burden the company can prioritize project development, access financing on better terms if needed, and better withstand cyclical slowdowns during multi‑year construction.

Improving loss and cash‑burn trends

Meaningful narrowing of losses and reduced operating cash burn indicates management is gaining control of operating costs and moving toward a more sustainable cash profile. That trend, if sustained, improves runway and reduces near‑term financing needs while executing project milestones.

Integrated supply‑chain strategy

A vertically integrated model—sourcing spodumene and converting to battery‑grade lithium hydroxide—targets structural supply security for EV battery makers. Owning conversion capability in Europe aligns with long‑term regional OEM demand and can create durable customer stickiness and margin capture.

Negative Factors

Pre‑revenue status

Remaining pre‑revenue is a fundamental constraint: the firm must fund development and scale without product cashflows, prolonging execution risk. Long lead times to commercial production raise dilution and financing uncertainty, which can impair ability to deliver large industrial projects.

Sustained negative free cash flow

Persistently negative free cash flow reflects capital intensity and current inability to self‑fund growth. Continued outflows necessitate recurring external financing, increasing dilution risk and potentially delaying project timelines or reducing investment in critical development milestones.

Limited operational scale / execution capacity

A very small employee base raises durable execution and scaling concerns for complex, multi‑jurisdictional plant construction and commissioning. Reliance on external contractors or partners increases coordination risk and could slow delivery, increasing cost and timing uncertainty for commercialization.

Rock Tech Lithium Business Overview & Revenue Model

Company Description

Rock Tech Lithium Inc. engages in the exploration and development of lithium properties. It holds a 100% interest in the Georgia Lake lithium project comprising 277 claim units and 41 mining leases located in the Thunder Bay Mining District of Ontario. The company was formerly known as Rock Tech Resources Inc. and changed its name to Rock Tech Lithium Inc. in April 2010. Rock Tech Lithium Inc. was incorporated in 2010 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Rock Tech Lithium generates revenue primarily through the exploration, development, and eventual sale of lithium hydroxide, a critical component for lithium-ion batteries used in electric vehicles and energy storage systems. The company's revenue model involves extracting spodumene concentrate from its mining operations, which is then processed into lithium hydroxide. Rock Tech plans to establish partnerships with battery manufacturers and automotive companies to secure off-take agreements, ensuring a steady demand for its products. Additionally, the company may engage in joint ventures or strategic partnerships to enhance its production capabilities and market reach, contributing to its earnings.

Rock Tech Lithium Financial Statement Overview

Summary

Financials remain weak overall: the company is still pre-revenue with persistent operating losses and negative free cash flow. Positives include a meaningful narrowing of losses and cash burn versus 2022–2023 and very low leverage, but ongoing negative profitability and cash outflows keep the score low.

Income Statement

Across annual periods and TTM (Trailing-Twelve-Months), the company reports no revenue and persistent operating losses (negative gross profit, EBIT/EBITDA, and net income). Losses have narrowed meaningfully versus 2022–2023, with TTM net loss improving to about -$11.9M from -$15.3M in 2024 and -$28.6M in 2023, but the core issue remains: the business is still pre-revenue with ongoing negative profitability.

Balance Sheet

The balance sheet is conservatively levered, with very low debt relative to equity (debt-to-equity roughly 0.014 in TTM (Trailing-Twelve-Months)). Total assets are supported primarily by equity, which provides financial flexibility. The main weakness is continued value erosion from losses, reflected in consistently negative returns on equity (TTM about -35%), and equity has trended down from 2022–2024, indicating ongoing burn.

Cash Flow

Cash generation remains weak, with negative operating cash flow and negative free cash flow in every period provided. TTM (Trailing-Twelve-Months) operating cash flow improved to about -$8.9M versus -$12.4M in 2024 and -$25.9M in 2023, showing a smaller cash burn, but free cash flow is still deeply negative (TTM about -$9.7M) and the latest free cash flow growth is sharply negative. Free cash flow is roughly in line with reported losses, indicating cash outflows remain substantial for the current scale of operations.

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	-432.45K	-425.06K	-479.00K	-276.00K	-77.41K	-1.40K
EBITDA	-11.48M	-14.74M	-28.23M	-61.45M	-21.65M	-3.01M
Net Income	-11.91M	-15.29M	-28.62M	-61.64M	-22.16M	-3.04M
Balance Sheet
Total Assets	39.08M	35.94M	46.85M	64.97M	72.02M	13.43M
Cash, Cash Equivalents and Short-Term Investments	6.38M	3.68M	14.71M	34.84M	55.76M	8.99M
Total Debt	491.68K	615.56K	749.91K	1.02M	263.12K	30.00K
Total Liabilities	3.23M	3.09M	5.42M	8.65M	9.80M	781.10K
Stockholders Equity	35.85M	32.85M	41.42M	56.31M	62.22M	12.65M
Cash Flow
Free Cash Flow	-9.70M	-14.17M	-30.97M	-69.93M	-17.53M	-1.73M
Operating Cash Flow	-8.90M	-12.40M	-25.91M	-57.72M	-14.57M	-1.32M
Investing Cash Flow	-914.94K	-1.77M	-5.06M	-12.89M	-2.97M	-405.87K
Financing Cash Flow	11.43M	3.04M	10.93M	49.65M	64.27M	9.06M

Rock Tech Lithium Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCK, the sentiment is Positive. The current price of 0.9 is below the 20-day moving average (MA) of 1.01, above the 50-day MA of 0.85, and below the 200-day MA of 0.91, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 62.86 is Neutral, neither overbought nor oversold. The STOCH value of 58.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RCK.

Rock Tech Lithium Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LIS	52 Neutral	C$57.28M	-11.86	-32.98%	―	―	31.55%
RCK	48 Neutral	C$132.63M	-9.57	-34.52%	―	―	36.48%
ETL	47 Neutral	C$96.37M	-8.31	-20.41%	―	―	-2.52%
WLF	46 Neutral	C$13.29M	-66.67	-32.86%	―	―	86.96%
LIT	45 Neutral	C$20.63M	-1.50	-24.07%	―	―	76.16%
LBNK	42 Neutral	C$29.50M	-2.93	-122.87%	―	―	-692.49%

Rock Tech Lithium Corporate Events

Rock Tech Lithium Supports Ontario’s Critical Minerals Processing Fund Launch

Rock Tech Lithium has welcomed the launch of Ontario’s $500 million Critical Minerals Processing Fund (CMPF), which aims to enhance the province’s critical minerals processing capacity and strengthen its position in the global battery materials supply chain. The company’s proposed Lithium Conversion Facility in Red Rock, Ontario, aligns with the CMPF’s goals, aiming to deliver domestic lithium conversion capacity and reduce reliance on offshore processing. This initiative is expected to catalyze investment, create jobs, and provide long-term economic benefits in Ontario, positioning Rock Tech’s Converter as a technically mature project in North America.

Rock Tech Lithium Partners with ICP Securities for Market Making Services

Rock Tech Lithium has engaged ICP Securities Inc. to provide automated market making services using ICP’s proprietary algorithm, ICP Premium™, to improve liquidity and trading of the company’s shares. This partnership is expected to address temporary imbalances in the supply and demand of Rock Tech’s shares, potentially enhancing the company’s market presence and stability.

Rock Tech Lithium Positioned for Growth with EU’s ResourceEU Plan

Rock Tech Lithium’s CEO, Mirco Wojnarowicz, announced that the European Commission’s ResourceEU Plan is a significant boost for the company, as it is recognized as a strategic raw materials project within the EU. The plan aims to enhance Europe’s raw materials strategy, focusing on lithium and other critical materials for battery production, with up to three billion euros in funding for strategic projects. This positions Rock Tech to contribute to Europe’s strategic sovereignty by accelerating lithium value creation and supporting the continent’s energy transition.