Battery Metals - Lithium
| Our Entry Price $ | Current Price $ | Current Return | Highest Price $ | Highest Return |
|---|---|---|---|---|
| $ 0.180 | $ 6.440 | 3478% | $ 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...
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"
Our Latest Articles on Vulcan Energy Resources
Market Data
Latest Article
This ASX Stock is Now Cheaper than Where We Last Invested
Feb 25, 2021
A few weeks ago we invested more in Vulcan Energy Resources (ASX: VUL) via the placement at $6.50 - as a long term hold. VUL’s share price has just come back to around the placement price, which often happens for a little while as the market digests the newly issued stock.
