Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (September 2022)
56 slides from Vulcan Energy Resources's investor presentation, Sep 28, 2022
Slide 1: Vulcan Energy Resources September - October 2022
For personal use only Vulcan Energy Resources September - October 2022 1
Slide 2: Disclaimer
DISCLAIMER No investment or financial product advice or results, or otherwise. Neither Vulcan nor any of its directors, officers, agents, employees or advisors give any This Presentation, and the information provided in it, does not constitute, and is not intended to constitute, financial representa
Slide 3: Our Target: 1 Million
OUR TARGET: 1 MILLION We are aiming to become the world’s first integrated lithium chemicals and renewable energy producer with net zero For personal use only greenhouse gas emissions. Vulcan’s unique Zero Carbon Lithium™ Project aims to produce both renewable geothermal energy, and lithium hydroxid
Slide 4: Right Time
For personal use only RIGHT TIME Rapidly advancing the Zero Carbon Lithium™ Project to ensure timely market entry 4
Slide 5: Million EVs by 2030 in Europe needs unprecedented Li supply
30 MILLION EVS BY 2030 IN EUROPE NEEDS UNPRECEDENTED LI SUPPLY For personal use only 1,300GWh lithium-ion battery EU: fastest growing Zero local supply of lithium capacity by 20301 lithium market in the world2 hydroxide 1.3M MILLION TONNES LCE REQUIRED CHINA: 0.6M 80-90% 0.04M 2021 2025 2030 Source:
Slide 6: Auto battery and cathode-makers need carbon neutral battery metals
AUTO BATTERY AND CATHODE-MAKERS NEED CARBON NEUTRAL BATTERY METALS For personal use only However, current lithium ‘Reducing carbon footprint is not just reducing vehicle emissions while they production has a significant are being operated, but also … from the company's resource extraction and enviro
Slide 7: Germany needs renewable energy on an extraordinary scale
GERMANY NEEDS RENEWABLE ENERGY ON AN EXTRAORDINARY SCALE Fraunhofer geothermal For personal use only German Coalition Agreement includes order to secure the goal of climate neutrality roadmap7 • Generate almost all the country’s electricity from renewable sources by 2035 § Installation of 70GWh of c
Slide 8: European macro policy tailwinds in Vulcan's favour
EUROPEAN MACRO POLICY TAILWINDS IN VULCAN’S FAVOUR European Commission President, Ursula von der Leyen For personal use only Lithium production for EVs “Lithium and rare earths will soon be more important than oil and gas. Our demand for rare earths alone will increase fivefold by 2030. … We must av
Slide 9: Right Place
For personal use only RIGHT PLACE Strategically placed in the heart of the European EV market to decarbonise the supply chain 9
Slide 10: We scoured the globe to find the right conditions for our Zero Carbon Lithium development
WE SCOURED THE GLOBE TO FIND THE RIGHT CONDITIONS FOR OUR ZERO CARBON LITHIUMTM DEVELOPMENT For personal use only Lithium concentration In brine (mg/L Lithium) 181 We had the lithium and geothermal expertise to 181 know that our Zero Carbon Lithium™ strategy was possible using modern extraction meth
Slide 11: Largest lithium resource at the centre of the fastest growing market
LARGEST LITHIUM RESOURCE AT THE CENTRE OF THE FASTEST GROWING MARKET IN THE WORLD, IN A MATURE GEOTHERMAL BRINE FIELD Planned European battery manufacturing projects in GWh For personal use only Largest lithium resource in Europe: 15.85Mt LCE1 capacity – 11/2021 77 Note 1: Appendix 2: Largest JORC l
Slide 12: The Process
For personal use only THE PROCESS Delivering a fully integrated renewable energy and sustainable lithium chemicals business in Europe 12
Slide 13: Vulcan's renewable energy and lithium chemicals project
VULCAN’S RENEWABLE ENERGY AND LITHIUM CHEMICALS PROJECT Central Lithium Plant OUR PROJECT For personal use only Electric mobility Lithium hydroxide distributed to the EU market 6 LITHIUM BUSINESS Renewable Lithium chloride electricity and/or transported to the heat sold to the grid 2 5 central lithi
Slide 14: Commercially available technologies combined and adapted to be fossil-free
COMMERCIALLY AVAILABLE TECHNOLOGIES COMBINED AND ADAPTED TO BE FOSSIL-FREE For personal use only Our process incorporates technologies with commercial analogues across the world. What is unique about us is the proposed combination of these different steps, and our strict exclusion of fossil fuels to
Slide 15: Our proposed expansion plan across the Upper Rhine Valley brine field
OUR PROPOSED EXPANSION PLAN ACROSS THE UPPER RHINE VALLEY BRINE FIELD PHASE 1 PHASE 2 For personal use only ADDITIONAL LICENCES To be included in the Target metrics from PFS, subject Target metrics from PFS, subject DFS to modifications in the DFS to modifications in the DFS Available to add capacit
Slide 16: Taking advantage of and expanding from existing infrastructure in the field
TAKING ADVANTAGE OF AND EXPANDING FROM EXISTING INFRASTRUCTURE IN THE FIELDTo be included in the DFS For personal use only PHASE 1 - €XBn CAPEX 5km Currently assessing the feasibility of integrating lithium extraction Brine Brine offtake Geothermal Plant Natürlich Insheim (A1) Geothermal Plant - Lan
Slide 17: Geothermal division update
GEOTHERMAL DIVISION UPDATE For personal use only Sub-surface development Drilling preparation Drilling equipment Geothermal plant design Renewable energy operations § Vulcan Energy Sub-Surface § First positive community § Vulcan acquired two § Pre-design of DLE and § Vulcan acquired the (VESS) team
Slide 18: Vulcan to supply German energy company with renewable, zero carbon heat from 2025
VULCAN TO SUPPLY GERMAN ENERGY COMPANY WITH RENEWABLE, LITHIUM BUSINESS ZERO CARBON HEAT FROM 2025 For personal use only The first of a number of planned district heating arrangements from geothermal energy to help combat Germany’s energy crisis. • Vulcan and MVV Energie AG (MVV) have executed a bin
Slide 19: Lithium division update
LITHIUM DIVISION UPDATE For personal use only Laboratory work Pilot plant Sorption-Demo plant CLP-Demo plant § Lab and pilot studies active § Pilot Plant 1, located at an § Demo Plant fully integrated § Experts from Nobian, Vulcan since April 2021, generating operational geothermal plant, with all p
Slide 20: Sorption-type DLE: a commercial technology adapted to our local resource
SORPTION-TYPE DLE: A COMMERCIAL DLE offers “significant promise of TECHNOLOGY ADAPTED TO OUR increasing supply, reducing the For personal use only LOCAL RESOURCE industry’s environmental, social, and governance (ESG) footprint, • Direct lithium extraction (DLE) using Sorption-type DLE includes sever
Slide 21: Long term lithium supply contracts secured
LONG TERM LITHIUM SUPPLY CONTRACTS SECURED For personal use only Cathodes • Binding lithium hydroxide offtake agreement • Initial 5-year term, starting in 2025, which can be extended by further 5 years • Minimum of 28,000t and a maximum of 42,000t of battery grade lithium hydroxide Lithium-ion batte
Slide 22: Strategic partnership with Stellantis
STRATEGIC PARTNERSHIP WITH STELLANTIS For personal use only This represents the world’s first upstream investment in a listed lithium company by a top tier automaker. • A$76M (€50M) equity investment from Stellantis • Proceeds will go towards Vulcan’s planned production expansion drilling • Binding
Slide 23: Dual revenues: energy and lithium
DUAL REVENUES: ENERGY AND LITHIUM LITHIUM BUSINESS ENERGY BUSINESS LITHIUM BUSINESS For personal use only Decarbonising Coal phase-out Bans for fossil Lithium hydroxide prices the grid in Germany heating systems $/t August 2022 Fastmarkets Contract price Grid Industries Cities 90,000 $78,000 80,000
Slide 24: Potential for very low opex operation
POTENTIAL FOR VERY LOW OPEX OPERATION Select South American brine and Australian/Chinese mineral conversion vs Vulcan’s process For personal use only LiOH VIA HARD-ROCK PROCESSING US$51,212/t LiOH Feedstock US$48,750¹ US$2,462² €50,700/t LiOH Vulcan’s “feedstock” is expected to be low cost and Miner
Slide 25: Robust target project financials and production metrics from PFS
ROBUST TARGET PROJECT FINANCIALS AND PRODUCTION METRICS FROM PFS For personal use only ENERGY BUSINESS LITHIUM BUSINESS 74MW Power* 40,000tpy LiOH * Renewable heat sales to also be examined in DFS €0.7Bn NPV Pre-tax €0.5Bn NPV Post-tax €2.8Bn NPV Pre-tax €1.9Bn NPV Post-tax LITHIUM BUSINESS 16% IRR
Slide 26: Working hard to de-risk the project further and address all identified risks
WORKING HARD TO DE-RISK THE PROJECT FURTHER AND ADDRESS ALL IDENTIFIED RISKS For personal use only Risk Mitigation Availability Drill rigs that can reach the deep geothermal reservoirs are Vulcan has agreed to acquire two electric drill rigs, re-purposed from the oil and gas industry, which can reac
Slide 27: Sustainability
For personal use only SUSTAINABILITY 27
Slide 28: Our approach to sustainability
OUR APPROACH TO SUSTAINABILITY For personal use only 28
Slide 29: Sustainability highlights
SUSTAINABILITY HIGHLIGHTS For personal use only 29
Slide 30: Leading environmental credentials
LEADING ENVIRONMENTAL CREDENTIALS For personal use only Per tonne of lithium hydroxide produced CARBON EMISSIONS WATER CONSUMPTION LAND USE REAGENTS CONSUMPTION WASTE GENERATION (Scope 1,2,3) Tonnes CO2 m3 m2 Tonnes Tonnes Hard rock mining Evaporation ponds 60% of world lithium production 40% of wor
Slide 31: Strong financial position
For personal use only STRONG FINANCIAL POSITION 31
Slide 32: FY22 financial highlights
FY22 FINANCIAL HIGHLIGHTS For personal use only A$200 million capital raise A$76 million equity investment 8% shareholding Acquisition of 2 electric drill rigs Acquisition of Insheim geothermal power plant Completed acquisition of GeoT and Gec-co businesses Deconsolidation of Norway assets through s
Slide 33: FY22 financial results (€'000's)
FY22 FINANCIAL RESULTS (€'000'S) For personal use only SPEND/DEVELOPMENT € 4,344 € 247,323 The cash outflows are consistent GROUP REVENUE NET ASSETS ~203% increaseYoY with Vulcan’s strategy to advance Approx. +1000% Includes revenue from continuing the Zero Carbon Lithium™ Project at operations, gov
Slide 34: Key financial highlights (€'000's)
KEY FINANCIAL HIGHLIGHTS(€'000'S) BALANCE SHEET AND CASH FLOW For personal use only HIGHLIGHTS CASH € 175,416 ↑ 142% on FY21 • Strengthen Balance Sheet through WORKING CAPITAL € 169,930 ↑ 137% on FY21 $200m capital raise and strategic investment from Stellantis OPERATING CASH OUTFLOW € 11,347 ↑ 538%
Slide 35: The right team for the job
For personal use only THE RIGHT TEAM FOR THE JOB 35
Slide 36: Board of Directors
BOARD OF DIRECTORS Dr. Francis Wedin For personal use only Managing Director & CEO Gavin Rezos Ranya Alkadamani Chair Non-Executive Director Founder of Vulcan Zero Carbon Lithium™ Project. Lithium Executive Chair/CEO positions of three companies that grew from Founder of Impact Group International.
Slide 37: Leadership team
LEADERSHIP TEAM Cris Moreno For personal use only Deputy Chief Thorsten Weimann Executive Officer (from 1 November) Chief Operating Officer Renewable Energy Business Lithium Chemicals Business Vincent Ledoux- Tobias Hochschild Dr Thomas Pedailles Dr Stephen Harrison CEO Aicher Chief Commercial Chief
Slide 38: Target project timeline
TARGET PROJECT TIMELINE For personal use only PHASE I 2022 2023 2024 2025 2026 + DFS Pilot Plant Sorption Operational. Started in 2021 Demonstration Plant Sorption Construction Com. Operating Demonstration Plant Li Electrolysis Construction Com. Operating Financing Permitting Started in 2021 Drillin
Slide 39: Share price and capital structure
SHARE PRICE AND CAPITAL STRUCTURE ASX : VUL For personal use only Shares on Issue 143,335,301 Performance Shares* 91,174 Performance Rights 8,627,427 Market Capitalisation at $7.50 (undiluted) ~$1.075B Cash Position (as at 30 June 2022) €175M Top 20 Stakeholders ~59.10% Management (undiluted) ~17% F
Slide 40: Appendices
For personal use only APPENDICES 40
Slide 41: Appendix 1: Vulcan's integrated renewable energy and lithium project description
Regulations & APPENDIX 1: VULCAN’S INTEGRATED RENEWABLE ENERGY Initiatives AND LITHIUM PROJECT DESCRIPTION Germany European Union For personal use only Bans for Sector backed by ESG and EU funds Coal phase-out EU New Battery regulation fossil heating looking to finance the green transition in German
Slide 42: Appendix 2: Largest JORC lithium resource in Europe
APPENDIX 2: LARGEST JORC LITHIUM RESOURCE IN EUROPE For personal use only Germany Probable Reserve 0.7 Ortenau License Indicated Resource 2.06 Inferred Resource 10.8 Valley Total 12.86 hine Probable Reserve 0.42 License Indicated Resource Taro 0.83 Upper R Inferred Resource 1.44 Total 2.27 France Pr
Slide 43: Appendix 3: Europe-focused and DLE lithium projects peer comparison references
APPENDIX 3: EUROPE-FOCUSED AND DLE LITHIUM PROJECTS PEER COMPARISON REFERENCES For personal use only COMPANY1 CODE PROJECT STAGE RESOURCE CATEGORY RESOURCES M RESOURCE GRADE CONTAINED MT INFORMATION SOURCE TONNES (LI2O) LCE TONNES Corporate Presentation July European Metals ASX: EMH Cinovec PFS Comp
Slide 44: Appendix 4: Vulcan will supply leading actors across the lithium-ion battery supply chain
APPENDIX 4: VULCAN WILL SUPPLY LEADING ACTORS ACROSS THE LITHIUM-ION BATTERY SUPPLY CHAIN For personal use only Battery metals Cathodes Lithium-ion batteries Electric vehicles 44
Slide 45: Appendix 5: EU lithium-ion battery capacity
APPENDIX 5: EU LITHIUM-ION BATTERY CAPACITY For personal use only >1,300GWh LITHIUM-ION BATTERY CAPACITY PLANNED BY 2030 Source: CIC energiGune 06/2022 45
Slide 46: Appendix 6: Global DLE assets and projects
APPENDIX 6: GLOBAL DLE ASSETS AND PROJECTS Energy Lake Company Livent Lanke Zangge Jintai Eramet/ Standard Vulcan Rio Tinto CTR Source Berkshire Resources/ Compass E3 Metals Lithium Lithium Lithium Tsingshan Lithium Energy Hathaway Minerals Minerals Lilac For personal use only Hombre Centenario- Zer
Slide 47: Appendix 7: DLE projects and assets - references
APPENDIX 7: DLE PROJECTS AND ASSETS - REFERENCES For personal use only Livent https://s22.q4cdn.com/453302215/files/doc_presentations/2021/11/Livent-Investor-Presentation_for-website.pdf https://www.linkedin.com/pulse/from-catamarca-qinghai-commercial-scale-direct-lithium-alex-grant/ Lanke Lithium h
Slide 48: Appendix 8: Geothermal brine composition comparison
APPENDIX 8: GEOTHERMAL BRINE COMPOSITION COMPARISON Mg/kg Mg/kg For personal use only The Salton Sea in California 1 2 The Upper Rhine Valley Brine Field in Germany Note: Refer to ASX announcement of 10 March 2021 “High grade lithium, low impurity results from Vulcan’s 2021 Upper Rhine Valley bulk b
Slide 49: Appendix 9: Vulcan secured site for its planned commercial lithium hydroxide plant
APPENDIX 9: VULCAN SECURED SITE FOR ITS PLANNED COMMERCIAL LITHIUM HYDROXIDE PLANT For personal use only • Vulcan signed an agreement with chemical park management company Infraserv, to secure a site for its planned Central Lithium Plant (CLP) at the Höchst Chemical Park, located just outside of Fra
Slide 50: Appendix 10: Target project economics from PFS - capex
APPENDIX 10: TARGET PROJECT ECONOMICS FROM PFS - CAPEX ENERGY BUSINESS LITHIUM BUSINESS For personal use only 1 Geothermal Plant 2 Sorption Plant 3 CLP FULL PROJECT 2 geothermal plants: 2 Sorption plants: 1 Central Lithium Plant €473M PHASE 1 • GB1 – 8MW • SB1 – 8kt LiOH • CLP1 - 15kt LiOH 2024 Star
Slide 51: Appendix 11: Target project economics - possible structures
APPENDIX 11: TARGET PROJECT ECONOMICS - POSSIBLE STRUCTURES Numbers are based on the PFS published in 2021 and are subject to change Phase 1 developed first, separated in two different Phase 2 developed second, separated in two For personal use only Full project developed at the same time but separa
Slide 52: Appendix 12: Project development timeline: example for one project area
APPENDIX 12: PROJECT DEVELOPMENT TIMELINE: EXAMPLE FOR ONE PROJECT AREA For personal use only Environmental Impact Assessment Main Permits Exploration licenses (geothermal energy Extraction licenses (geot. energy prod. Federal Immission Control Geothermal energy production and lithium extraction) an
Slide 53: Appendix 13: Brine flow rates
APPENDIX 13: BRINE FLOW RATES For personal use only Until we drill our first wells, risks around flow rate will remain. However, Vulcan believes it has an appropriate level of confidence around its flow rates assumptions, based on the experience of its team, and state-of-the-art scientific tools, da
Slide 54: Appendix 14: Potential European expansion in Italy
APPENDIX 14: POTENTIAL EUROPEAN EXPANSION IN ITALY Vulcan and Enel Green Power have signed a For personal use only binding collaboration agreement • Vulcan and Enel Green Power have signed a binding collaboration agreement to explore and develop its Cesano license in Italy on a 50:50 basis • The Par
Slide 55: Vulcan Group: integrated, in-house capability to execute on our strategy
VULCAN GROUP: INTEGRATED, IN-HOUSE CAPABILITY TO EXECUTE ON OUR STRATEGY Renewable energy Lithium Sustainability Finance Customers For personal use only VEE Above-surface Vulcan’s expertise and assets geothermal engineering Fully equipped Carbon neutrality in-house lab with team Strong cash position
Slide 56: Thank you
Thank you For personal use only Media and Investor Relations Jessica Bukowski jbukowski@v-er.eu @VulcanEnergyRes | www.v-er.eu | info@v-er.eu ASX:VUL FSE:VUL 56
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