Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (January 2022)
58 slides from Vulcan Energy Resources's investor presentation, Jan 12, 2022
Slide 1: Vulcan Energy Resources 2022 Corporate presentation
Vulcan Energy For personal use only Resources 2022 Corporate presentation Q1 2022 Dr. Francis Wedin
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The information contained in this presentation ("Presentation") has been prepared by Vulcan Energy Resources Ltd ("Vulcan" or the "Company") and is subject to the disclosures contained in the "Important Information" section of this
Slide 3: Disclaimer
Disclaimer No investment or financial product advice This Presentation, and the information provided in it, does not constitute, and is not intended to constitute, financial product or investment advice, or a recommendation to acquire Vulcan Shares, nor does it constitute, and is not intended to con
Slide 4: Goal to become world's first Zero Carbon Lithium and renewable energy company
Vulcan: goal to become world’s first Zero Carbon Lithium™ & renewable energy company For personal use only Goal to become world’s first In the heart of the Strong cash integrated Zero Carbon fastest growing lithium position Lithium™ and renewable battery market in the energy company ENERGY BUSINESS
Slide 5: Bringing the Zero Carbon Lithium Project to fruition; 2021 milestones
Bringing the Zero Carbon Lithium™ Project to fruition; 2021 milestones For personal use only Pre-Feasibility Study $320m capital raised Team growth Additional permits & 3D Frankfurt Exchange Post-tax NPV €2.1b Goldman Sachs and Incl. acquisition of seismic data Appointed Berenberg to (full project;
Slide 6: Circular economy: Vulcan's assets and technologies work in harmony with the environment
Circular economy: Vulcan’s assets and technologies work in harmony with the environment by harnessing its natural energy to create lithium with a zero-carbon footprint Lithium For personal use only Battery Offtakers manufacturing Grid storage Rewilding Electric vehicle transition initiatives Renewab
Slide 7: Right place, right time
For personal use only Right place, right time for fully integrated renewable energy and sustainable lithium chemicals business in Europe 7
Slide 8: How to support million EVs by 2030 in the EU?
Refer How to support 30 million EVs by 2030 in the EU? For personal use only 1,000GWh Lithium-ion EU: fastest growing Zero local supply Battery capacity by 20301 Lithium market in the world2 of lithium hydroxide 0.8 0.7 0.6 EU: 0% MILLIONS LCE 0.5 0.4 0.3 0.2 0.1 0.0 2020 2030 CHINA: 80 - 90% Source
Slide 9: Auto battery and cathode-makers committing to carbon neutrality
Auto battery and cathode-makers committing to carbon neutrality ‘Reducing carbon footprint is not just reducing vehicle emissions For personal use only while they are being operated, but also […] from the company's resource extraction and production processes through to the end of the vehicle's life
Slide 10: International and European agreement and regulation supporting renewables and electrification
International and European agreement and regulation supporting renewables and electrification of transport For personal use only Glasgow Climate Pact German Federal coalition Green supply chain Local supply chain Calls upon Parties to accelerate Coalition agreement2 • New EU Battery Regulation • Eur
Slide 11: Delivering the Zero Carbon Lithium Project
For personal use only Delivering the Zero Carbon Lithium™ Project
Slide 12: We scoured the globe to find the right conditions for our development
We scoured the globe to find the right conditions for our Zero Carbon Lithium™ development For personal use only Lithium concentration We had the lithium and geothermal expertise In brine (mg/L Lithium) to know that a Zero Carbon Lithium™ Project was possible using modern extraction 181 methods, pro
Slide 13: 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 Largest lithium resource in Europe: 15.85Mt LCE European battery manufacturing projects in GWh capacity – November 2021 For personal use only Höchst Chemical Park: Central Lithium Plant Frankfurt planned location 66 Pr
Slide 14: 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 15: Commercially available technologies combined and adapted to be fossil-free
Commercially available technologies combined and adapted to be fossil-free Our process incorporates technologies with commercial analogues across the world. For personal use only What is unique about us is the proposed combination of these different steps, and our strict exclusion of fossil fuels to
Slide 16: Global DLE assets and projects
Global DLE assets and projects Energy Lake Lanke Zangge Jintai Eramet/ Standard Vulcan Berkshire Compass Company Livent Rio Tinto CTR Source Resources/ E3 Metals Lithium Lithium Lithium Tsingshan Lithium Energy Hathaway Minerals For personal use only Minerals Lilac Hombre Centenario- Zero Carbon Hel
Slide 17: Lithium division update
Lithium division update For personal use only Laboratory work Pilot plant operations Demonstration (Demo) plant Images of lithium hydroxide monohydrate from Zero Carbon Lithium™ project Rendering of Vulcan’s Demo Plant, major skids ordered and currently under construction. • Demo Plant fully integra
Slide 18: Our combined greenfield and brownfield projects to add more capacity
Our combined greenfield and brownfield projects to add more capacity GREENFIELD PROJECT DEVELOPMENT BROWNFIELD PROJECT DEVELOPMENT ADDITIONAL LICENCES For personal use only Target metrics from Pre-Feasibility Study, subject to modifications in the DFS: Target metrics to be informed in the DFS Availa
Slide 19: Proposed dual purpose renewable energy and battery chemicals project
Proposed dual purpose renewable energy and battery chemicals project BROWNFIELD PROJECT DEVELOPMENT For personal use only Target metrics to be informed in the DFS PHASE B1 - €XBn 5km Currently assessing the feasibility of integrating lithium extraction Brine Brine offtake Geothermal Plant Insheim (A
Slide 20: Dual revenues: energy and lithium
Dual revenues: energy and lithium For personal use only ENERGY BUSINESS $/t LITHIUM BUSINESS Decarbonising Coal phase-out Bans for fossil Lithium hydroxide prices the grid in Germany heating systems $ 34,000 Industries Jan 2022: $33,000/t Grid Cities 32,000 30,000 28,000 26,000 Renewable Electricity
Slide 21: Securing long term lithium supply contracts
Cathodes Securing long term lithium supply contracts For personal use only § 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 batt
Slide 22: Vulcan will supply leading actors across the lithium-ion battery supply chain
Vulcan will supply leading actors across the lithium-ion battery supply chain Battery metals Cathodes Lithium-ion batteries Electric vehicles For personal use only
Slide 23: Potential for very low OPEX operation
Potential forfor Potential Very veryLow OPEX low OPEX Operation operation Select South American brine and Australian/Chinese mineral conversion vs Vulcan’s process For personal use only LiOH VIA HARD-ROCK PROCESSING US$11,702/t LiOH US$9,240¹ US$2,462² Feedstock €9,830/t LiOH Mineral Cost Conversion
Slide 24: 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 NPVLITHIUM €1.9Bn NPV Post-tax Pre-tax BUSINESS 16% IRR P
Slide 25: Working hard to de-risk the project further
Working hard to de-risk the project further and address all identified risks Risk Mitigation For personal use only 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, Availability of key in shor
Slide 26: Community engagement: building trust and understanding
For personal use only Community engagement: building trust and understanding
Slide 27: Lithium Chemicals: ESG
Lithium Chem icals Materially improving the global battery chemicals supply chain Spodumene For personal use only ENVIRONMENT Process development and R&D Strict Zero development of world’s first lithium Carbon focus and renewable energy co- production process in Pre- Feasibility Study: Zero Carbon T
Slide 28: 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 w
Slide 29: Four pillars of community engagement
Four pillars of community engagement For personal use only Public affairs Media engagement Community outreach Partnerships/ cooperation • Discuss and exchange • Raise awareness • Community roadshows, • Conduct research ideas regularly with through in-depth school presentations, projects with politic
Slide 30: Government support for geothermal technology and the expansion of renewable energy projects
Government support for geothermal technology and the expansion of renewable energy projects For personal use only Germany’s new Federal Coalition targets1 State government of Baden-Württemberg Engaging with government • Launched a task force aimed at halving the planning and approval timeline for th
Slide 31: The right team for the job
For personal use only The right team for the job
Slide 32: Vulcan – Zero Carbon Lithium Team
Vulcan – Zero Carbon Lithium™ Team Vincent Ledoux-Pedailles Dr Stephen For personal use only Thorsten Markus Ritzauer Beate Holzwarth Vice President Weimann Chief Financial Harrison – Business Development Chief Communication Chief Operating Officer - Germany Chief Technical Officer Officer Officer V
Slide 33: Vulcan – Zero Carbon Lithium Board
Vulcan – Zero Carbon Lithium™ Board For personal use only Dr. Francis Wedin Gavin Rezos Dr. Heidi Grön Josephine Bush Managing Director & Chair Non-Executive Director Non-Executive Director Founder-CEO Founder of Vulcan Zero Carbon Lithium™ Executive Chair/CEO positions of three Dr. Grön is a chemic
Slide 34: Delivering the Zero Carbon Lithium Project
For personal use only Delivering the Zero Carbon Lithium™ Project
Slide 35: 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 Vulcan’s expertise and assets For personal use only Gec-co Above-surface geothermal engineering Fully equipped Carbon neutrality in-house lab with team Strong cash posit
Slide 36: Target project timeline
Target project timeline 2022 2023 2024 2025 + For personal use only Further exploration, 3D seismic surveys & acquisition, geological analysis Drilling and construction Phase 1 Phase 1 Phase 2 Phase 2 Phase + Phase+ Pre-Feasibility and Definitive Feasibility Studies (PFS & DFS) Production Phase 1 DF
Slide 37: Share price and capital structure
Share price and capital structure ASX : VUL For personal use only Shares on Issue 131,607,598 Performance Shares* 91,174 Performance Rights 8,656,324 Market Capitalisation at $10.030 (undiluted) ~$1.32B Cash Position (as of 30 September 2021) ~$290M Top 20 Shareholders ~53% Management (undiluted) ~1
Slide 38: Conclusion
Conclusion For personal use only Goal to become world’s Europe’s largest Location centre Supported By EU first integrated Zero lithium Resource1 of fastest growing funding, regulation Carbon Lithium™ and market2 & initiatives renewable energy company Low cost & resilient Strong cash The right team R
Slide 39: Appendices
For personal use only Appendices
Slide 40: Appendix 1: Vulcan's integrated renewable energy and lithium project description
Regulations & Appendix 1: Vulcan’s integrated renewable energy and lithium project description Initiatives 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 41: 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 42: 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 tonnes Resource Grade (Li2O) Contained Mt LCE Information Source Tonnes Corporate Presentation July 2021 - Company European Metals ASX: EMH C
Slide 43: Appendix 4: Vulcan supported by EU-backed group
Appendix 4: Vulcan supported by EU-backed group For personal use only EIT InnoEnergy will 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 grant schemes, an
Slide 44: Appendix 5: EU lithium-ion battery capacity
Appendix 5: EU lithium-ion battery capacity >1,000GWh LITHIUM-ION For personal use only BATTERY CAPACITY PLANNED BY 2030 Source: CIC energiGune 09/2021 44
Slide 45: Appendix 6: Lithium market dynamics favour sustainable lithium production
Appendix 6: Lithium market dynamics favour sustainable lithium production For personal use only Technology & Costs Sustainability Market Balance Prices ‘We expect DLE technology to dominate the future “Geothermal lithium extraction has a much lower “Incorporating the stronger demand outlook “Lithium
Slide 46: Appendix 7: The new EU Battery Regulation
Appendix 7: 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
Slide 47: 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 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 brine samplin
Slide 48: Appendix 9: Vulcan secured site for its planned commercial lithium hydroxide plant
Appendix 9: Vulcan secured site for its planned commercial lithium hydroxide plant • 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, For personal use only located just outside of Fra
Slide 49: Appendix 10: DLE Projects and Assets - References
Appendix 10: 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
Slide 50: Appendix 11: Target project economics from PFS - CAPEX
Appendix 11: Target project economics from PFS - CAPEX ENERGY BUSINESS LITHIUM BUSINESS For personal use only FULL PROJECT 1 Geothermal Plant 2 Sorption Plant 3 CLP 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 12: Target project economics - possible structures
Appendix 12: Target project economics - possible structures 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 separated in two different businesses: Energy and Lithium. businesses: Energy a
Slide 52: Appendix 13: Target project economics - possible structures
Appendix 13: Target project economics - possible structures Full project developed at the same time and Phase 1 developed first and is an Phase 2 developed second and is an For personal use only integrated under one business. integrated business integrated business FULL PROJECT PHASE 1 PHASE 2 NO PH
Slide 53: Appendix 14: The fossil-nuclear era in Europe is coming to an end
Appendix 14: The fossil-nuclear era in Europe is coming to an end For personal use only 2020 2030 2040 2050 Europe is aiming for carbon neutrality, but the EU’s energy transition is far from being complete: 30.7% RE in Power Renewable Energy (RE) 19.5% RE in Heat 7.6% RE in Transport • Combustion en
Slide 54: Appendix 15: Project development timeline: example for one project area
Appendix 15: Project development timeline: example for one project area ~4 years For personal use only Exploration Approvals Subsurface Development Construction Production Independent and transparent review, monitoring & reporting Project data generation 2D & 3D seismic Modelling drilling targets Lo
Slide 55: Appendix 16: Brine flow rates
Appendix 16: Brine flow rates 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, data and studies. For pe
Slide 56: Appendix 17: Vulcan & Circulor to establish world-first full lithium traceability
Appendix 17: Vulcan & Circulor to establish world-first full lithium traceability & transparency across the EU supply chain For personal use only Circulor offers a software solution that enables customers to track raw materials and CO2 emissions through supply chains to demonstrate responsible sourc
Slide 57: Appendix 18: R&D projects
Appendix 18: R&D projects For personal use only Effeo Increasing efficiency of geothermal CROWDTHERMAL power plants Empowering the European public to directly participate in the via Project Management Jülich development of geothermal projects with the help of alternative financing schemes (crowdfund
Slide 58: Thank you
Thank you For personal use only Media and Investor Relations Germany Beate Holzwarth Chief Communication Officer bholzwarth@v-er.eu Australia Jessica Bukowski PR & IR Manager jbukowski@v-er.eu @VulcanEnergyRes | www.v-er.eu | info@v-er.eu ASX:VUL FRA:6KO 58
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