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Vulcan Energy Resources
(FWB:6KO, ASX:VUL)


Battery Metals - Lithium

Our Entry Price $ Current Price $ Current Return Highest Price $ Highest Return
$ 0.180 $ 7.450 4039% $ 14.200 7789%


Overview

Vulcan Energy Resources (FWB:6KO, ASX:VUL) was our top pick of the year for 2020.

Vulcan has developed the world’s first and only zero-carbon lithium process and plans to produce battery-grade lithium hydroxide from geothermal brines pumped from wells with a renewable geothermal energy by-product.

VUL also has Europe’s largest lithium JORC Resource (13.95Mt contained LCT) at its Zero Carbon LithiumTM Project in Germany — the world’s fastest growing lithium market.

The large resource size is significant and provides Vulcan with the opportunity to become a major supplier of lithium chemicals into European Union markets.

Vulcan aims to use its project to produce the lowest CO2-eq. footprint lithium hydroxide for electric vehicles in the world.

Recent Activities by the Company

  • Raised $120M led by Goldman Sachs. Australia’s richest person and famous mining magnate Gina Rinehart has corner stoned VUL’s capital raise investing almost $50M. VUL is now fully funded for the medium term.
  • Appointment of former Tesla director Jochen Rudat to Business Development team.
  • Taro license grant and increased global Mineral Resource Estimate.
  • Appointment of lithium industry expert Vincent Pedailles to Business Development team.
  • Appointment of lithium chemistry expert Dr. Katharina Gerber to the Executive team.
  • Excellent recoveries of over 90% from lithium extraction test work on Upper Rhine Valley brine.
  • Securing EU backing support package, and EU-backed investment agreement into the Vulcan Zero Carbon Lithium® project.
  • $4.8m institutional and ESG investor equity placement.
  • Agreement to acquire 3D seismic package to accelerate project development.
  • Commencement of lithium test work for Pre-Feasibility Study.
  • Completion of positive Scoping Study.
  • Released updated Indicated and Inferred lithium-brine (Li-brine) Resource Estimations for its Taro License in the Vulcan Zero Carbon LithiumTM Project.
  • The Taro resource has grown by 60% since VUL released its maiden resource in August.
  • This higher confidence resource area is now being integrated into VUL's PFS.
  • Release of PFS which details its potential for highly profitable and environmentally friendly Zero Carbon Lithium® production, plus the co-production of revenue-generating renewable geothermal energy.

Highlights of the PFS include:

  • Project value of €2.25 billion (post-tax, NPV), which equates to A$3.54 billion.
  • Lowest operating expenses (OPEX) of any lithium hydroxide (LHM) project globally at €2,640/t LHM.
  • Combined renewable energy-lithium project pre-tax IRR of 26% and post-tax IRR of 21%. (Lithium as a separate entity from energy shows pre-tax IRR of 31% and post-tax IRR of 26%.)
  • Dual operation producing: 74 MW of renewable energy generation and approximately 40ktpa LHM production.
  • Starting capital cost of €226m for geothermal wells and plant, and €474m for Direct Lithium Extraction (DLE) plants and Central Lithium Plant (CLP).

The company has also confirmed a Maiden Probable Ore Reserve of 1.12 Mt Lithium Carbonate Equiv. (LCE) at 181 mg/l lithium.

Why we have invested...

  • Europe’s largest JORC lithium resource
    • JORC Mineral Resources contain a total combined Indicated & Inferred estimate of 13.95Mt LCE (13.2Mt LCE Inferred at Ortenau license) – large enough to be Europe’s primary source of battery-quality lithium hydroxide.
  • Strategically beneficial location
    • Location in the heart of Europe’s auto & EV battery industry in Germany – the fastest growing lithium market in the world and has the EU’s backing.
  • Diversified revenue streams
    • Dual lithium hydroxide & renewables project. Primary revenue from selling battery-quality LiOH-H2O chemicals into the European market. Secondary revenue derived from renewable geothermal power generation.
  • Uniquely lithium-rich
    • DLE test work confirms excellent lithium recoveries. One of only a handful of high-grade lithium-rich geothermal brines worldwide. Can operate profitably at a lower grades than lithium salar brines.
  • World’s most rapidly advancing lithium project
    • Co-generation of geothermal energy from dual-property wells will power lithium extraction & fully offset processing energy requirements. Excess power generated after lithium extraction will be fed back into the power grid.
  • Strong team & board
    • Expert multi-disciplinary team local to project area in Germany. Decades of experience in developing & permitting geothermal brine projects. International project finance, lithium market & DLE processing expertise.

Research Reports

September 29th 2020 -Alster Research: "Path to lithium plant further broadened and bolstered"

June 1st 2020 - WiseOwl Research: "World's First Zero Carbon Lithium Project"

March 4th 2020 - Alster Research: "Initiation of Coverage"



Our Latest Articles on Vulcan Energy Resources


Type Date Share Price $ Title
Email 15-Apr-2021 $ 7.020 New $15 Analyst Price Target Gives VUL a Nudge
Email 09-Apr-2021 $ 6.450 And our Next Investment is… Going to be Announced in the Coming Weeks
Email 23-Mar-2021 $ 6.480 TRIPLE DOWN ALERT - Plus 6 Hot Stocks
Email 16-Mar-2021 $ 6.710 Power Day Launches Volkswagen’s EU Electric Vehicle Future
Email 25-Feb-2021 $ 6.450 This ASX Stock is Now Cheaper than Where We Last Invested
Email 18-Feb-2021 $ 7.240 We Just Invested More in this Stock ... ... plus what's happening with VUL and EXR?
Email 12-Feb-2021 $ 7.500 What are the best returns in our portfolio?
Email 04-Feb-2021 $ 8.500 VUL Bags $120M Bucks from Big Name Backers and Banking Behemoth
Email 25-Jan-2021 $ 8.100 VUL has Evolved into a Tesla Like Share Price Story
Article 16-Jan-2021 $ 6.980 VUL Reveal A$3.5BN Net Present Value on Zero Carbon Lithium Project
Email 15-Jan-2021 $ 6.980 Our Key Takeaways from VUL’s PFS - What will the VUL share price do next?
Email 12-Jan-2021 $ 6.980 What we are Watching Over the Next 48 Hours
Article 07-Jan-2021 $ 3.550 Our Stock Picks for 2021
Email 11-Dec-2020 $ 2.460 EU Climate Policy - Battery Materials Supply Regulations Leaked?
Email 09-Dec-2020 $ 2.290 Why are We Staying Up to 3am Tonight?
Email 12-Nov-2020 $ 1.445 VUL Boosts Confidence in Lithium Resource Ahead of PFS
Email 06-Nov-2020 $ 1.050 Is VUL Presenting a Buying Opportunity?
Article 24-Sep-2020 $ 0.880 Tesla Unveils Strategic Battery Plans: What This Means for Our Pick of the Year
Article 03-Aug-2020 $ 0.455 VUL Hits Milestone: Reports 90%+ Lithium Recoveries from Geothermal Brines
Article 11-Jul-2020 $ 0.540 Our Top Pick Up 100% Since Our May Update – Now with Institutional Backers
Article 29-May-2020 $ 0.285 Momentum Building in VUL - Our Top Pick of 2020
Article 16-Mar-2020 $ 0.200 Vulcan “Our First Ten-Bagger” say German Research House
Article 21-Feb-2020 $ 0.245 REVEALED: Our Top Stock Pick for 2020
Article 20-Jan-2020 $ 0.175 Vulcan Increases Europe’s Largest Lithium Resource
Article 05-Dec-2019 $ 0.185 A New Number One – VUL Now Hold the Largest Lithium Resource in Europe
Article 22-Nov-2019 $ 0.120 Can Vulcan’s Zero Carbon Lithium™ Deliver Emission-Free Cars?
Article 20-Aug-2019 $ 0.185 ASX Stock Delivering the World’s First “Zero Carbon” Lithium Project

Market Data


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