vul.jpg
Vulcan Energy Resources
(FWB:6KO, ASX:VUL)


 

  Our Initial Entry
Price

Portfolio Initiation

5 Day VWAP
After Initiation

Current Price

Our Current Returns

ASX:VUL
$0.200
$0.245
Feb 21 2020
$0.295
$6.580
    3190%
ASX:VUL
Our Current Returns
3190%
View Details


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...

  • 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.

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 Past Commentary on Vulcan Energy Resources


Type Date Share Price $ Title
Email 27-Apr-2021 $ 7.900 Our Portfolio Performance from January 1st to March 31st 2020
Email 15-Apr-2021 $ 7.020 New $15 Analyst Price Target Gives VUL a Nudge
Email 09-Apr-2021 $ 6.450 And our Next Investment is… Going to be Announced in the Coming Weeks
Email 23-Mar-2021 $ 6.480 TRIPLE DOWN ALERT - Plus 6 Hot Stocks
Email 16-Mar-2021 $ 6.710 Power Day Launches Volkswagen’s EU Electric Vehicle Future
Email 25-Feb-2021 $ 6.450 This ASX Stock is Now Cheaper than Where We Last Invested
Email 18-Feb-2021 $ 7.240 We Just Invested More in this Stock ... ... plus what's happening with VUL and EXR?
Email 12-Feb-2021 $ 7.500 What are the best returns in our portfolio?
Email 04-Feb-2021 $ 8.500 VUL Bags $120M Bucks from Big Name Backers and Banking Behemoth
Email 25-Jan-2021 $ 8.100 VUL has Evolved into a Tesla Like Share Price Story
Article 16-Jan-2021 $ 6.980 VUL Reveal A$3.5BN Net Present Value on Zero Carbon Lithium Project
Email 15-Jan-2021 $ 6.980 Our Key Takeaways from VUL’s PFS - What will the VUL share price do next?
Email 12-Jan-2021 $ 6.980 What we are Watching Over the Next 48 Hours
Article 07-Jan-2021 $ 3.550 Our Stock Picks for 2021
Email 11-Dec-2020 $ 2.460 EU Climate Policy - Battery Materials Supply Regulations Leaked?
Email 09-Dec-2020 $ 2.290 Why are We Staying Up to 3am Tonight?
Email 12-Nov-2020 $ 1.445 VUL Boosts Confidence in Lithium Resource Ahead of PFS
Email 06-Nov-2020 $ 1.050 Is VUL Presenting a Buying Opportunity?
Article 24-Sep-2020 $ 0.880 Tesla Unveils Strategic Battery Plans: What This Means for Our Pick of the Year
Article 03-Aug-2020 $ 0.455 VUL Hits Milestone: Reports 90%+ Lithium Recoveries from Geothermal Brines
Article 11-Jul-2020 $ 0.540 Our Top Pick Up 100% Since Our May Update – Now with Institutional Backers
Article 29-May-2020 $ 0.285 Momentum Building in VUL - Our Top Pick of 2020
Article 16-Mar-2020 $ 0.200 Vulcan “Our First Ten-Bagger” say German Research House
Article 21-Feb-2020 $ 0.245 REVEALED: Our Top Stock Pick for 2020
Article 20-Jan-2020 $ 0.175 Vulcan Increases Europe’s Largest Lithium Resource
Article 05-Dec-2019 $ 0.185 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

Our Portfolio Performance from January 1st to March 31st 2020

Our Portfolio Performance from January 1st to March 31st 2020

Next Investors have put together a "report card" on how our portfolio companies performed in the last calendar quarter

Related Articles

New $15 Analyst Price Target Gives VUL a Nudge

New $15 Analyst Price Target Gives VUL a Nudge

And our Next Investment is… Going to be Announced in the Coming Weeks

And our Next Investment is… Going to be Announced in the Coming Weeks

TRIPLE DOWN ALERT - Plus 6 Hot Stocks

TRIPLE DOWN ALERT - Plus 6 Hot Stocks

Power Day Launches Volkswagen’s EU Electric Vehicle Future

Power Day Launches Volkswagen’s EU Electric Vehicle Future

This ASX Stock is Now Cheaper than Where We Last Invested

This ASX Stock is Now Cheaper than Where We Last Invested

We Just Invested More in this Stock ... ... plus what's happening with VUL and EXR?

We Just Invested More in this Stock ... ... plus what's happening with VUL and EXR?

What are the best returns in our portfolio?

What are the best returns in our portfolio?

VUL Bags $120M Bucks from Big Name Backers and Banking Behemoth

VUL Bags $120M Bucks from Big Name Backers and Banking Behemoth

VUL has Evolved into a Tesla Like Share Price Story

VUL has Evolved into a Tesla Like Share Price Story

VUL Reveal A$3.5BN Net Present Value on Zero Carbon Lithium Project

VUL Reveal A$3.5BN Net Present Value on Zero Carbon Lithium Project

Our Key Takeaways from VUL’s PFS - What will the VUL share price do next?

Our Key Takeaways from VUL’s PFS - What will the VUL share price do next?

What we are Watching Over the Next 48 Hours

What we are Watching Over the Next 48 Hours

Our Stock Picks for 2021

Our Stock Picks for 2021

EU Climate Policy - Battery Materials Supply Regulations Leaked?

EU Climate Policy - Battery Materials Supply Regulations Leaked?

Why are We Staying Up to 3am Tonight?

Why are We Staying Up to 3am Tonight?

VUL Boosts Confidence in Lithium Resource Ahead of PFS

VUL Boosts Confidence in Lithium Resource Ahead of PFS

Is VUL Presenting a Buying Opportunity?

Is VUL Presenting a Buying Opportunity?

Tesla Unveils Strategic Battery Plans: What This Means for Our Pick of the Year

Tesla Unveils Strategic Battery Plans: What This Means for Our Pick of the Year

VUL Hits Milestone: Reports 90%+ Lithium Recoveries from Geothermal Brines

VUL Hits Milestone: Reports 90%+ Lithium Recoveries from Geothermal Brines

Our Top Pick Up 100% Since Our May Update – Now with Institutional Backers

Our Top Pick Up 100% Since Our May Update – Now with Institutional Backers

Momentum Building in VUL - Our Top Pick of 2020

Momentum Building in VUL - Our Top Pick of 2020

Vulcan “Our First Ten-Bagger” say German Research House

Vulcan “Our First Ten-Bagger” say German Research House

REVEALED: Our Top Stock Pick for 2020

REVEALED: Our Top Stock Pick for 2020

Vulcan Increases Europe’s Largest Lithium Resource

Vulcan Increases Europe’s Largest Lithium Resource

A New Number One – VUL Now Hold the Largest Lithium Resource in Europe

A New Number One – VUL Now Hold the Largest Lithium Resource in Europe

Can Vulcan’s Zero Carbon Lithium™ Deliver Emission-Free Cars?

Can Vulcan’s Zero Carbon Lithium™ Deliver Emission-Free Cars?

ASX Stock Delivering the World’s First “Zero Carbon” Lithium Project

ASX Stock Delivering the World’s First “Zero Carbon” Lithium Project

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