Battery Metals - Lithium
|Our Entry Price $||Current Price $||Current Return||Highest Price $||Highest Return|
|$ 0.180||$ 6.440||3478%||$ 14.200||7789%|
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...
Our Latest Articles on Vulcan Energy Resources
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.
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