Rock Tech Lithium (RCK) AI Stock Analysis

• Market Cap: C$117.63M
• Dividend Yield: N/A
• Average Volume (3M): 34.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: N/A
• EPS Growth: 55.89%
• Country: CA
• Employees: 11
• Sector: Technology
• Sector Strength: 48
• Industry: Mining
• EPS (TTM): -0.18
• Shares Outstanding: 104,096,535
• 10 Day Avg. Volume: 59,874
• 30 Day Avg. Volume: 34,429
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -9.10
• P/FCF Ratio: 5081.60
• 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

Rock Tech Lithium's overall stock score reflects significant financial struggles, particularly with zero revenue and negative cash flows, despite a strong balance sheet. The technical analysis presents mixed signals, with possible oversold conditions. The valuation is weak with a negative P/E ratio, yet the recent corporate partnership offers some optimism for future profitability and cost savings.

Rock Tech Lithium Business Overview & Revenue Model

Company Description

Rock Tech Lithium (RCK) is a cleantech company focused on the development and production of lithium hydroxide, a critical component for batteries in electric vehicles and renewable energy storage. Headquartered in Vancouver, Canada, the company operates primarily in the mining and materials sector, with projects aimed at extracting and refining lithium to meet the growing demand for sustainable energy solutions.

How the Company Makes Money

Rock Tech Lithium generates revenue through the extraction and sale of lithium hydroxide. The company engages in mining operations to extract lithium-bearing spodumene ore, which is then processed into lithium hydroxide. This refined product is sold to manufacturers of lithium-ion batteries, particularly those in the electric vehicle (EV) and energy storage industries. Key revenue streams include long-term supply agreements and spot sales to battery producers and other industrial clients. Strategic partnerships with battery manufacturers and automotive companies play a significant role in securing consistent demand and pricing for their products.

Rock Tech Lithium Financial Statement Overview

Summary

Rock Tech Lithium faces significant financial challenges, including zero revenue, persistent net losses, and negative cash flows. Despite a strong equity position relative to debt, the company's ability to generate cash and achieve profitability remains concerning.

Income Statement

Rock Tech Lithium has consistently reported zero revenue over the years, indicating a lack of operational income. The company has high net losses, with the latest TTM net income at -$17.8 million, reflecting poor profitability. The absence of revenue growth and negative profit margins highlight significant financial challenges in generating earnings.

Balance Sheet

The company maintains a strong equity position, with stockholders' equity significantly outweighing total liabilities, resulting in a low debt-to-equity ratio of approximately 0.02 in the latest TTM period. However, total assets have decreased over time, and the company has a small amount of total debt, which suggests caution in financial leverage management.

Cash Flow

Rock Tech Lithium has faced negative free cash flow in recent periods, with significant cash outflows from operations. The TTM free cash flow was deeply negative, indicating challenges in generating cash from its core activities. The reliance on financing activities to support its cash position further underscores liquidity concerns.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-433.18K	-478.75K	-275.91K	-77.41K	-1.40K	-1.75K
	EBIT
-17.96M	-14.45M	-63.67M	-25.55M	-2.98M	-1.05M
	EBITDA
-17.39M	-28.23M	-61.46M	-21.65M	-3.04M	-1.02M
	Net Income Common Stockholders
-17.82M	-28.62M	-61.64M	-22.16M	-3.07M	-1.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.50M	14.71M	34.84M	55.76M	8.99M	1.65M
	Total Assets
42.75M	46.85M	64.97M	72.02M	13.43M	5.57M
	Total Debt
696.45K	749.91K	1.02M	263.12K	30.00K	0.00
	Net Debt
-9.80M	-13.96M	-33.82M	-55.50M	-8.96M	-1.65M
	Total Liabilities
3.96M	5.42M	8.65M	9.80M	781.10K	242.67K
	Stockholders Equity
38.79M	41.42M	56.31M	62.22M	12.65M	5.33M
Cash Flow		Free Cash Flow
-16.32M	-30.97M	-69.93M	-17.53M	-1.73M	-1.32M
	Operating Cash Flow
-13.70M	-25.91M	-57.72M	-14.57M	-1.32M	-1.04M
	Investing Cash Flow
-2.61M	-5.06M	-12.89M	-2.97M	-405.87K	-286.58K
	Financing Cash Flow
6.88M	10.93M	49.65M	64.27M	9.06M	1.75M

Rock Tech Lithium Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.13
• 50DMA: Negative
• 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 1.13 is above the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.14, and below the 200-day MA of 1.25, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 76.50 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 *	59 Neutral	$22.39B	11.53	-18.05%	2.31%	5.00%	-25.89%
CRE	54 Neutral	$128.53M	83.10	2.13%	―	―	―
SGML	50 Neutral	$1.75B	―	-38.77%	―	72.76%	38.06%
RCK	43 Neutral	C$117.63M	―	-48.94%	―	―	55.89%
LAC	42 Neutral	C$904.09M	―	-4.13%	―	―	―
PMET	41 Neutral	C$375.58M	5,680.00	-2.20%	―	―	-2226.67%
LTHM	27 Underperform	C$1.39M	―	-788.70%	―	―	14.62%

Rock Tech Lithium Corporate Events

Rock Tech Partners with Schwenk Zement to Transform Lithium By-products and Boost Profitability

Rock Tech Lithium has partnered with German cement manufacturer Schwenk Zement GmbH & Co. KG to convert lithium production by-products into cement additives, aligning with Germany’s National Circular Economy Strategy. This collaboration is expected to generate additional profits and save up to EUR 8 million annually in operational costs for Rock Tech. It also aims to reduce carbon emissions in cement production and enhance the project’s Net Present Value. Schwenk plans to process up to 200,000 tonnes of by-products annually by 2029, supporting Rock Tech’s zero-waste strategy. This partnership highlights both companies’ commitment to sustainability and positions Rock Tech to strengthen its market presence while contributing to the decarbonization of the cement industry.

Rock Tech Lithium Advances Guben Converter Project

Rock Tech Lithium has made significant progress at its Guben Converter site in Germany, with key achievements including the approval of a railway connection and completion of a gas pipeline relocation. These advancements are pivotal for the efficient transportation of raw materials, strengthening Rock Tech’s role in Europe’s lithium supply chain amidst the shift towards sustainable energy solutions.