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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 $ 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...

Vulcan Energy Resources - 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"

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

Our Latest Articles on Vulcan Energy Resources


Type Date Share Price $ Title
Email 25-Feb-2021 $ 6.080 This ASX Stock is Now Cheaper than Where We Last Invested
Email 18-Feb-2021 $ 0.115 We Just Invested More in this Stock ... ... plus what's happening with VUL and EXR?
Email 12-Feb-2021 $ What are the best returns in our portfolio?
Email 04-Feb-2021 $ 9.000 VUL Bags $120M Bucks from Big Name Backers and Banking Behemoth
Email 25-Jan-2021 $ 7.280 VUL has Evolved into a Tesla Like Share Price Story
Article 16-Jan-2021 $ 6.440 VUL Reveal A$3.5BN Net Present Value on Zero Carbon Lithium Project
Email 15-Jan-2021 $ 6.440 Our Key Takeaways from VUL’s PFS - What will the VUL share price do next?
Email 12-Jan-2021 $ 6.440 What we are Watching Over the Next 48 Hours
Article 07-Jan-2021 $ Our Stock Picks for 2021
Email 11-Dec-2020 $ EU Climate Policy - Battery Materials Supply Regulations Leaked?
Email 09-Dec-2020 $ 2.190 Why are We Staying Up to 3am Tonight?
Email 12-Nov-2020 $ 1.655 VUL Boosts Confidence in Lithium Resource Ahead of PFS
Email 06-Nov-2020 $ 1.100 Is VUL Presenting a Buying Opportunity?
Article 24-Sep-2020 $ 1.040 Tesla Unveils Strategic Battery Plans: What This Means for Our Pick of the Year
Article 03-Aug-2020 $ 0.510 VUL Hits Milestone: Reports 90%+ Lithium Recoveries from Geothermal Brines
Article 11-Jul-2020 $ 0.530 Our Top Pick Up 100% Since Our May Update – Now with Institutional Backers
Article 29-May-2020 $ 0.360 Momentum Building in VUL - Our Top Pick of 2020
Article 16-Mar-2020 $ 0.190 Vulcan “Our First Ten-Bagger” say German Research House
Article 21-Feb-2020 $ 0.355 REVEALED: Our Top Stock Pick for 2020
Article 20-Jan-2020 $ 0.185 Vulcan Increases Europe’s Largest Lithium Resource
Article 05-Dec-2019 $ 0.155 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


Latest Article

This ASX Stock is Now Cheaper than Where We Last Invested

This ASX Stock is Now Cheaper than Where We Last Invested

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.

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