Rock Tech Lithium (RCK) AI Stock Analysis

• Market Cap: C$103.80M
• Dividend Yield: N/A
• Average Volume (3M): 74.76K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• 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: 46 Neutral
• Price Target: C$0.72 ▼(-20.56% Downside)

The score is held down primarily by weak financial performance (pre-revenue, ongoing losses and negative free cash flow), with only partial offset from a low-debt balance sheet and improving burn trends. Technicals are neutral-to-weak given the stock remains below key longer-term moving averages, while valuation provides limited support due to negative earnings and no dividend. Corporate updates are positive (project cost reductions and strategic positioning) but remain secondary to the company’s need to execute and finance development.

Positive Factors

Partnership with GEA

Collaboration with GEA enhances operational efficiency and production quality, supporting Rock Tech's competitive edge in lithium production.

Leadership Strengthening

New leadership with expertise in strategy and sustainability can drive strategic initiatives and strengthen market position.

Strategic Project Status

The EU designation enhances Rock Tech's access to funding and policy support, bolstering its strategic position in the lithium supply chain.

Negative Factors

Operational Challenges

Significant operational challenges and inability to generate income reflect inefficiencies and hinder profitability improvement.

Negative Cash Flow

Ongoing cash consumption without inflows raises concerns about sustainability and reliance on external financing for operations.

Financial Instability

Persistent financial challenges with no revenue generation and negative cash flows threaten long-term viability and growth prospects.

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

Rock Tech Lithium faces severe financial challenges with no revenue, substantial losses, and negative cash flows. Despite low leverage, declining equity and assets indicate financial instability.

Income Statement

Rock Tech Lithium has reported no revenue over the past years, resulting in negative gross profit and net income. The company consistently incurs high EBIT and EBITDA losses, reflecting significant operational challenges and an inability to generate income from its activities. The financials show no signs of revenue growth or profitability improvement, which significantly impacts its income statement score.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio, suggesting limited leverage. Despite this, the consistent decrease in stockholders' equity indicates financial strain. The equity ratio is relatively stable, but the declining asset base and persistent net losses present risks to financial stability. The balance sheet reflects a need for improved financial management and strategic investment.

Cash Flow

Rock Tech Lithium shows substantial negative operating and free cash flows, highlighting ongoing cash consumption without corresponding inflows. The free cash flow growth is negative, indicating worsening cash flow conditions. The reliance on financing activities to fund operations raises concerns about long-term sustainability. The cash flow statement needs improvement to support business viability.

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: Negative
• 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 above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.79, and below the 200-day MA of 0.92, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 67.02 is Neutral, neither overbought nor oversold. The STOCH value of 77.36 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%
LIT	53 Neutral	C$26.14M	-2.51	-24.07%	―	―	76.16%
LIS	52 Neutral	C$51.36M	-11.86	-32.98%	―	―	31.55%
ETL	47 Neutral	C$97.24M	-8.46	-20.41%	―	―	-2.52%
RCK	46 Neutral	C$103.80M	-7.87	-34.52%	―	―	36.48%
WLF	45 Neutral	C$18.27M	-95.83	-32.86%	―	―	86.96%
LBNK	39 Underperform	C$44.25M	-2.70	-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.

Rock Tech Lithium Reduces Costs for Guben Converter Project

Rock Tech Lithium has announced a significant reduction in the estimated capital expenditures for its Guben Lithium Converter project, lowering the cost from €730 million to €680 million. This reduction, alongside a previously announced 23% decrease in operating expenditures, is expected to enhance the project’s international competitiveness and improve its financing readiness, positioning Rock Tech as a strong player in the lithium refining industry.