Our Initial Entry
5 Day VWAP
Our Current Returns
Feb 21 2020
Our Current Returns
Vulcan Energy Resources (FWB:6KO, ASX:VUL) has developed the world’s first and only Zero Carbon LithiumTM Project and plans to produce battery-grade lithium hydroxide from geothermal brines pumped from wells with a renewable geothermal energy by-product.
VUL 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.
Vulcan Energy Resources Company Milestones
✅ Acquisition of disruptive EU focussed Zero Carbon Lithium Project
✅ Commencement of Scoping Study at Vulcan Lithium Project: Next Investors Commentary
✅ Reports Lithium Grades above expectation: Next Investors Commentary
✅ Maiden Indicated Resource Reported: Next Investors Commentary
✅ Positive Scoping Study: Next Investors Commentary
✅ Next Investors Portfolio Initiation & Small Cap Pick of the Year: Next Investors Commentary
✅ Capital Raise $4.8M @40c: Next Investors Commentary
✅ EU Backed Investment (EIT InnoEnergy): Next Investors Commentary
✅ Test Work Shows Excellent Lithium Recoveries: Next Investors Commentary
🌎 Tesla Battery Day: Next Investors Commentary
🌎 EU Regulations: Sustainability in the Supply Chain for EVs: Next Investors Commentary
✅ Key Board Appointment (Vincent Ledoux-Pedailles)
✅ Key Board Appointment (Former Tesla Director Jochen Rudat)
✅ Taro Licence Granted
✅ Positive Pre-Feasibility Study: Next Investors Commentary (1), Next Investors Commentary (2)
✅ Capital Raise $120M @$6.5: Next Investors Commentary
✅ Collaboration with DuPont: Next Investors Commentary
🌎 Volkswagen's Power Day: Next Investors Commentary
✅ CO2 Traceability Agreement: Next Investors Commentary
✅ Key Board Appointment (Annie Liu): Next Investors Commentary
🌎 EU Carbon Tariffs: Next Investors Commentary
⚔️ Controlled Thermal Resources Lithium Brine Offtake (US): Next Investors Commentary
🌎 Stellantis EV Day: Next Investors Commentary 1, Next Investors Commentary 2
🌎 Volkswagen's Strategy Day: Next Investors Commentary
🌎 EU Regulations: Reduce Carbon Emission 55% by 2030: Next Investors Commentary
🔲 Unexpected Positive Announcement 1
🔲 Unexpected Positive Announcement 2
🔲 Unexpected Positive Announcement 3
🔲 Ramp up of DLE pilot plant
✅ Offtake with world’s biggest EV battery Maker LG: Next Investors Commentary
🔲 Offtake agreement 2
🔲 Offtake agreement 3
🔲 Definitive Feasibility Study
🔲 [NEW] - More brine/land acquired #1
🔲 [NEW] - More brine/land acquired #2
🔲 [NEW] - more experts hired/acquired
🔲 [NEW] - acquisition of existing project
🔲 [NEW] - acquisition of existing project #2
Next Investors Investment Milestones
✅ Initial Investment: @20c
✅ Increase Investment: @40c
✅ Increase Investment: @$6.50
✅ Price increases 500% from initial entry
✅ Price increases 1000% from initial entry
✅ Price increases 2000% from initial entry
✅ 12 Month Capital Gain Discount
✅ Free Carry
✅ Take Profit
🔲 Hold remaining Position for next 2+ years
”Expected Company Milestones” are based on the company's publicly available execution plan and some assumptions made by our team on potential announcements that should de-risk the investment. “Our investment milestones” show our current long-term investment plan. Early stage investments are risky and there is no guarantee that the expected events will occur. The lists are not in sequential order.
🔲 Expected Milestone
✅ Achieved Milestone
🟩 Above Average Result
🟨 Average (Expected) Result
🟧 Below Average Result
🟥 Negative Result
🌎 Macro Event
⚔️ Results from Other Company / Project
[UPA] Unexpected Positive Announcement
[NEW] New Milestone Added
Highlights of the PFS:
- 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...
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.
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.
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
Vulcan Energy Resources ESG Report
What Happened This Week? July-24th-2021
Jul 24, 2021
Here’s what happened this week on Next Investors We recently increased our investment in Alexium International (ASX: AJX), Vulcan Energy Resources (ASX:VUL, FWB:6KO) released probably the most significant announcement in its history and more...
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