Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (February 2021)
43 slides from Vulcan Energy Resources's investor presentation, Feb 2, 2021
Slide 1: Equity Raising Presentation
For personal use only Zero Carbon Lithium ® EQUITY RAISING PRESENTATION 2 February 2021 Not for release to US wire services or distribution in the United States
Slide 2: Important Notices and Disclaimers
Important Notices and Disclaimers The information contained in this presentation has been prepared by Vulcan Energy Resources Ltd (“VUL”, “Vulcan” or the “Company”). This presentation is not an offer, invitation, COMPETENT PERSON STATEMENT solicitation or other recommendation with respect to the sub
Slide 3: Important Notices and Disclaimers
Important Notices and Disclaimers As stated in Vulcan’s ASX announcement released on 15 January 2021 in relation to the outcomes of the PFS the text of this announcement, in deep geothermal brine projects, the first COMPETENT PERSON STATEMENT well drilled is also the first production well, so it fol
Slide 4: Investment Highlights
Investment Highlights World-first Zero Carbon Lithium® • Co-generation of geothermal energy from planned production wells to power lithium extraction to enable project to be uniquely For personal use only Project zero carbon. • Potential for 40ktpy lithium hydroxide business with the lowest operatin
Slide 5: 1. Equity Raising Summary
For personal use only 1. Equity Raising Summary
Slide 6: Placement Summary
Placement Summary Offer Size and Structure • Vulcan Energy Resources Limited (“Vulcan” or the “Company”) is seeking to raise approximately A$100 million via the placement of For personal use only approximately 15.4 million new fully paid ordinary shares (“New Shares”) to sophisticated and profession
Slide 7: Use of Placement Proceeds
Use of Placement Proceeds Placement proceeds will be used by Vulcan to accelerate development of its Zero Carbon Lithium® Project For personal use only The Placement provides funding to Vulcan to support it through to final investment Sources of Funds (A$M) decision at its Zero Carbon Lithium® Proje
Slide 8: Placement Timetable
Placement Timetable Event Time (AEDT) / Date For personal use only Trading halt Tuesday, 2 February 2021 Launch of Placement and Investor Presentation Tuesday, 2 February 2021 Announce completion of the Placement bookbuild and trading halt lifted 10:00am on Thursday, 4 February 2021 Settlement of th
Slide 9: 2. The Vulcan Story
For personal use only 2. The Vulcan Story
Slide 10: Vulcan – Zero Carbon Lithium
Vulcan – Zero Carbon Lithium® LITHIUM BUSINESS €2.8Bn NPV¹ Pre-tax For personal use only 31% IRR¹ Pre-tax 40Ktpy LiOH¹ In the heart of the fastest €474M starting CAPEX² World-first Zero Carbon Agreement with German Lithium® Project growing lithium market in geothermal operators €2,640/t LiOH OPEX³ t
Slide 11: Opportunity Identified: Low Carbon Lithium in Europe
Opportunity Identified: Low Carbon Lithium in Europe EU: FASTEST GROWING LITHIUM SUPPLY CHAIN RISKS LEAD HIGH CARBON FOOTPRINT OF For personal use only MARKET IN THE WORLD TO REGIONALISATION EXISTING SUPPLY CHAIN Industry: Industry: Industry: • More investment into electric vehicles (“EVs”) in • Inv
Slide 12: We Scoured the Globe to Find the Right Project
We Scoured the Globe to Find the Right Project For personal use only We had the lithium expertise to know LITHIUM CONCENTRATION IN BRINE (MG/L LITHIUM) that Zero Carbon Lithium® production was possible using modern extraction 181 methods, provided a deep geothermal 181 brine reservoir could be found
Slide 13: Vulcan's Renewable Energy & Lithium Project Initiatives
Regulations & Vulcan’s Renewable Energy & Lithium Project Initiatives Germany European Union For personal use only Bans for fossil Sector backed by ESG and EU funds looking Coal phase-out in EU New Battery regulation heating to finance the green transition Germany systems European Battery Alliance N
Slide 14: Largest Lithium Resource in Europe
Largest Lithium Resource in Europe SUFFICIENT TO SUPPLY For personal use only >400 MILLION ELECTRIC VEHICLES Germany Probable Reserve 0.7 Ortenau License Indicated Resource 2.06 Inferred Resource 10.8 Total 12.86 Probable Reserve 0.42 License Taro Indicated Resource 0.83 Inferred Resource 1.44 Total
Slide 15: At the Center of Fastest Growing Lithium Market
At the Center of Fastest Growing Lithium Market¹ LITHIUM-ION BATTERY CAPACITY PLANNED BY 2030¹ For personal use only Brandenburg, 2021 At least 20GWh Brandenburg, 2021 RAMP UP TO 8-12 GWh 500GWH LITHIUM-ION BATTERY CAPACITY Salzgitter, 2024 Bitterfeld, 2022 16 GWh, LATER 24 GWh 16 GWh PLANNED BY 203
Slide 16: Europe: Fastest Growing Lithium Market
Europe: Fastest Growing Lithium Market Europe: For personal use only • More investment into EVs than in China 400 EU LI-ION BATTERY PRODUCTION & LiOH Thousand Tonnes • Fastest growing lithium-ion battery production center LiOH DEMAND in the world 350 Equivalent to world’s • Fastest growing market fo
Slide 17: European Union: Providing Financial Support for Vulcan
European Union: Providing Financial Support for Vulcan For personal use only EIT InnoEnergy is expected to marshal its ecosystem and significant EU-wide resources to launch the Zero Carbon Lithium® Project forward: • Securing project funding, including the use of applicable EU, national or regional
Slide 18: Environmental, Social and Governance Alignment
Environmental, Social and Governance Alignment For personal use only Environment Social Governance First & only Zero Carbon Supporting local and European economy Listing, location & implementation Lithium project in the world: with sustainable employment: of strong measures: • Producing lithium & re
Slide 19: Our Zero Carbon Lithium Process
Our Zero Carbon Lithium® Process Environmental footprint of lithium production routes For personal use only PER TON OF LITHIUM HYDROXIDE Hard rock mining 60% of world lithium production Evaporation ponds 40% of world lithium production 469M³ 3,124M² Zero Carbon Lithium® water land 15t CO₂ Vulcan dra
Slide 20: Our Zero Carbon Lithium Process
Our Zero Carbon Lithium® Process Vulcan has IP protection around flowsheet For personal use only 1 • Hot brine extracted from the ground and generates steam 1 that powers turbines and produces renewable electricity Make-up water • Standard geothermal production wells successfully Brine feed Geotherm
Slide 21: Commercially Mature Technologies Combined
Commercially Mature Technologies Combined Our process replicates existing operations taking place commercially across the world. For personal use only What is unique about us is the combination of those different steps. Binary Cycle Direct Lithium Central Lithium 1 Geothermal Plant 2 Extraction Plan
Slide 22: Vulcan can offset CO2 penalties for automakers
Vulcan can offset CO₂ penalties for automakers For personal use only CO₂ emissions linked to lithium production Penalties currently only target Hard Rock Mining VW’s target: 28M EVs by 2028 vehicles’ emissions but not their supply chain. This is likely to change shortly with new EU legislation and l
Slide 23: The New EU Battery Regulation
The New EU Battery Regulation Other EU measures and initiatives supporting lithium: For personal use only New measures announced in December 2020 including: 1. Responsible sourcing : New mandatory procedures to ensure sustainable and ethical sourcing of raw materials such as lithium. EU list of Crit
Slide 24: Board of Directors
Board of Directors Lithium, renewable energy & project finance experience For personal use only Dr. Francis Wedin Dr. Horst Kreuter Gavin Rezos Ranya Alkadamani Rob Ierace MANAGING DIRECTOR CO-FOUNDER & CHAIR – INVESTMENT BANKING NON-EXECUTIVE DIRECTOR – CFO / COMPANY & FOUNDER-CEO EXECUTIVE DIRECTO
Slide 25: Management, Technical Team & Consultants
Management, Technical Team & Consultants World-renowned geological, chemical & engineering expertise For personal use only Thorsten Weimann Dr Katharina Gerber Dr. Thomas Aicher Vincent Ledoux Pedailles Jochen Rudat Alex Grant CHIEF OPERATING LITHIUM PROJECT LITHIUM CHEMICAL VICE PRESIDENT – ELECTRO
Slide 26: Conclusion
Conclusion For personal use only WORLD’S 1ST & STRONG & SUPPORTED BY EU EUROPE’S LARGEST LOCATION CENTRE LOCAL THE RIGHT RAPIDLY ONLY ZERO- RESILIENT PFS FUNDING, LITHIUM OF FASTEST PARTNERS & TEAM FOR ADVANCING CARBON LITHIUM® ECOMOMICS REGULATION & RESOURCE GROWING MARKET WORLD LEADING THE JOB LIT
Slide 27: 3. Our Zero Carbon Lithium Project
For personal use only 3. Our Zero Carbon Lithium® Project
Slide 28: Project Structure: Dual Purpose Renewable Project
Project Structure: Dual Purpose Renewable Project Energy Business: Electricity & Heat, Lithium Business: Zero Carbon Lithium® For personal use only 8MW 14MW 17MW 17MW 17MW ENERGY BUSINESS Binary Cycle 1 Geothermal Plant Geothermal Plant B1 Geothermal Plant B2 Geothermal Plant C1 Geothermal Plant C2
Slide 29: Project Economics: OPEX Comparison
Project Economics: OPEX Comparison Low-cost South American brine and Australian/Chinese mineral conversion vs Vulcan’s process For personal use only LiOH via hard-rock processing $6,855/t LiOH $3,500¹ $3,355² Feedstock €5,760/t LiOH Mineral Cost Conversion Cost Vulcan’s “feedstock” is low cost and h
Slide 30: Project Economics: Upcoming Lithium Deficit
Project Economics: Upcoming Lithium Deficit Long term market fundamentals remain strong for the lithium market. Lead by changes in cathode technologies, lithium hydroxide is Demand is expected to be driven by electric mobility with growth forecast to take over lithium carbonate before the mid For pe
Slide 31: Project Economics: Lithium Prices – Recovery Mode
Project Economics: Lithium Prices – Recovery Mode Much more stability in global contract prices than in the spot market specific to China For personal use only Spot Prices LiOH Prices – Historical and Forecast 22,000 Today 20,000 18,000 Projected Contract Prices 16,000 14,000 12,000 10,000 8,000 6,0
Slide 32: Project Economics: Energy Revenues
Project Economics: Energy Revenues Vulcan’s Project is expected to generate dual revenue, from lithium sales geothermal renewable energy For personal use only Bans for fossil Coal phase-out heating Energy Business Revenues in Germany systems Zero Carbon Heat: Energy in the form of heat can be sold t
Slide 33: Project Economics: CAPEX
Project Economics: CAPEX ENERGY BUSINESS LITHIUM BUSINESS For personal use only FULL PROJECT 1 Geothermal Plant 2 DLE Plant 3 CLP 2 geothermal plants: 2 DLE plants: 1 Central Lithium Plant €473M PHASE 1 • GB1 – 8MW • DB1 – 8kt LiOH • CLP1 - 15kt LiOH 2024 Start • GB2 – 14MW • DB2 – 7kt LiOH Capex: €
Slide 34: Project Economics: Possible Structures
Project Economics: Possible Structures For personal use only Full project developed at the same time but separated Phase 1 developed first, separated in two different Phase 2 developed second, separated in two different in two different businesses: Energy and Lithium. businesses: Energy and Lithium.
Slide 35: Project Economics: Sensitivities Analysis
Project Economics: Sensitivities Analysis Management believes that project economics are resilient to extreme case scenarios For personal use only Full 40kt/y lithium business (DLE&CLP) developed at the same time with no phasing. Not including geothermal. LITHIUM BUSINESS Post Tax NPV Sensitivity Po
Slide 36: Project Timeline
Project Timeline 2021 2022 2023 2024 2025 For personal use only Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Development PFS Piloting Test Work DFS Financing Phase 1 Geo & DLE Permitting (Pre & Final) Drilling Construction Production Phase 2 Geo & DLE 3D Seismic & Analysis Permitting
Slide 37: Appendix
For personal use only Appendix
Slide 38: Appendix 1: Information for slides
Appendix 1: Information for slides 12 & 14 Company Code Project Stage Resource Resources M Resource Contained LCE Information Source For personal use only Category tonnes Grade (Li2O) Tonnes European Indicated & Corporate Presentation ASX: EMH Cinovec PFS Complete 695.9 0.42 7.22 Metals Inferred Rel
Slide 39: Risk Factors
Risk Factors Note: Please refer to Vulcan’s Positive Pre-Feasibility Study announcement released on ASX on 15 January 2021 for further details on the risks that may affect the outcomes for Vulcan’s Zero Carbon Lithium® Project Company Specific Risks For personal use only Coronavirus (COVID-19): The
Slide 40: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austral
Slide 41: International Offer Restrictions
International Offer Restrictions Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures For personal use only C
Slide 42: International Offer Restrictions
International Offer Restrictions Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing For personal
Slide 43: Thank You
@VulcanEnergyRes v-er.com info@v-er.eu For personal use only ASX:VUL FRA:6KO Thank You
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