Our Initial Entry
5 Day VWAP
Our Current Returns
Feb 21 2020
Our Current Returns
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.
Our Past Commentary on Vulcan Energy Resources
Our Portfolio Performance from January 1st to March 31st 2020
Apr 27, 2021
Next Investors have put together a "report card" on how our portfolio companies performed in the last calendar quarter
New $15 Analyst Price Target Gives VUL a Nudge
Apr 15, 2021
TRIPLE DOWN ALERT - Plus 6 Hot Stocks
Mar 23, 2021
What are the best returns in our portfolio?
Feb 12, 2021
VUL has Evolved into a Tesla Like Share Price Story
Jan 25, 2021
What we are Watching Over the Next 48 Hours
Jan 12, 2021
Our Stock Picks for 2021
Jan 7, 2021
Why are We Staying Up to 3am Tonight?
Dec 9, 2020
Is VUL Presenting a Buying Opportunity?
Nov 6, 2020
Momentum Building in VUL - Our Top Pick of 2020
May 29, 2020
REVEALED: Our Top Stock Pick for 2020
Feb 21, 2020
Vulcan Increases Europe’s Largest Lithium Resource
Jan 20, 2020