Our Initial Entry
5 Day VWAP
Our Current Returns
Feb 21 2020
Our Current Returns
Vulcan Energy Resources (FWB:6KO, ASX:VUL) has developed the world’s first and only Zero Carbon LithiumTM Project and plans to produce battery-grade lithium hydroxide from geothermal brines pumped from wells with a renewable geothermal energy by-product.
VUL 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.
Vulcan Energy Resources Company Milestones
These lists show past milestones achieved by the company, and Next Investors opinion on possible future milestones that we think would add value
✅ Acquisition of disruptive EU focussed Zero Carbon Lithium Project
✅ Commencement of Scoping Study at Vulcan Lithium Project: Next Investors Commentary
✅ Reports Lithium Grades above expectation: Next Investors Commentary
✅ Maiden Indicated Resource Reported: Next Investors Commentary
✅ Positive Scoping Study: Next Investors Commentary
✅ Next Investors Portfolio Initiation & Small Cap Pick of the Year: Next Investors Commentary
✅ Capital Raise $4.8M @40c: Next Investors Commentary
✅ EU Backed Investment (EIT InnoEnergy): Next Investors Commentary
✅ Test Work Shows Excellent Lithium Recoveries: Next Investors Commentary
🌎 Tesla Battery Day: Next Investors Commentary
🌎 EU Regulations: Sustainability in the Supply Chain for EVs: Next Investors Commentary
✅ Key Board Appointment (Vincent Ledoux-Pedailles)
✅ Key Board Appointment (Former Tesla Director Jochen Rudat)
✅ Taro Licence Granted
✅ Positive Pre-Feasibility Study: Next Investors Commentary (1), Next Investors Commentary (2)
✅ Capital Raise $120M @$6.5: Next Investors Commentary
✅ Collaboration with DuPont: Next Investors Commentary
🌎 Volkswagen's Power Day: Next Investors Commentary
✅ CO2 Traceability Agreement: Next Investors Commentary
✅ Key Board Appointment (Annie Liu): Next Investors Commentary
🌎 EU Carbon Tariffs: Next Investors Commentary
🔲 Unexpected Positive Announcement 1
🔲 Unexpected Positive Announcement 2
🔲 Unexpected Positive Announcement 3
🔲 Ramp up of DLE pilot plant
🔲 Offtake agreement 1
🔲 Offtake agreement 2
🔲 Offtake agreement 3
🔲 Definitive Feasibility Study
🔲 New Milestones determined during production phase post DFS
Next Investors Investment Milestones
✅ Initial Investment: @20c
✅ Increase Investment: @40c
✅ Increase Investment: @$6.50
✅ Price increases 500% from initial entry
✅ Price increases 1000% from initial entry
✅ Price increases 2000% from initial entry
✅ 12 Month Capital Gain Discount
✅ Free Carry
✅ Take Profit
🔲 Hold remaining Position for next 2+ years
”Expected Company Milestones” are based on the company's publicly available execution plan and some assumptions made by our team on potential announcements that should de-risk the investment. “Our investment milestones” show our current long-term investment plan. Early stage investments are risky and there is no guarantee that the expected events will occur. The lists are not in sequential order.
Company Milestones and Investment Milestones are new features we are testing. Please provide feedback or suggestions by filling in the survey on the bottom right hand corner of this page.
🔲 Expected Milestone
✅ Achieved Milestone
🟥 Negative Result
🌎 Macro Event
Highlights of the PFS:
- 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...
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.
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.
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.
Our Past Commentary on Vulcan Energy Resources
Vulcan Energy Resources Report
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