Slide 1: Equity Raising Presentation
Equity Raising Presentation DETERMINED FOR A ASX/FSE: VUL BETTER TOMORROW Not for release to US wire services or distribution in the United States
Slide 2: Disclaimer
DISCLAIMER IMPORTANT: You must read the following before continuing Not for release to US wire services or distribution in the United States, save as set out below. The information contained in this presentation ("Presentation") has been prepared by Vulcan Energy Resources Ltd ("Vulcan" or the "Comp
Slide 3: Disclaimer: Investment Risks
DISCLAIMER Investment Risks As noted above, an investment in Vulcan (including New Shares) is subject to both known and unknown risks, some of which are beyond the control of Vulcan. Vulcan does not guarantee any particular rate of return or its performance, nor does it guarantee any particular tax
Slide 4: Disclaimer: Financial data
DISCLAIMER Financial data All monetary values expressed as "quot; or "Aquot; in this Presentation are in Australian dollars, unless stated otherwise. All monetary values expressed as EUR or € in this Presentation are in Euros, unless stated otherwise. All monetary values expressed as "USquot; in this Present
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS • Tier-one, renewably heated lithium brine asset: 30-year Phase One project life and Reserves, largest resource in EU2, which is scalable and globally significant • Fully integrated, including renewable heat: Integrated production of renewable heat and lithium reduces waste and
Slide 6: Integrated Renewable Energy & Lithium
INTEGRATED RENEWABLE ENERGY & LITHIUM1 Phase One: Lionheart Integrated renewable energy, lithium salts and lithium hydroxide production from sub- surface brines in the Rhine Valley. Targeting 24,000 tonnes p.a2. LHM production: enough for 500,000 electric vehicles every year Targeting 560 GWh renewa
Slide 7: Project Economics Robust Under Variable Market Conditions
PROJECT ECONOMICS ROBUST UNDER VARIABLE MARKET CONDITIONS1,2 BES #1 BES #2 BES #3 EOV Inflation adjusted BES End of validation with with updated LHM price updated LHM price Original, unadjusted BES Inflation adjusted BES forecast average applied forecast average applied to offtakes to offtakes Avera
Slide 8: Envisaged Financing Arrangements
ENVISAGED FINANCING ARRANGEMENTS1 Total Phase One Funding Phase One Funding Requirement (€m) • In addition to the €1,831m total funding requirement for Phase One, as Phase One Capital Expenditure 1,431 outlined in the Bridging Engineering Study (“BES”), an additional €153m in Other Funding Requireme
Slide 9: Vulcan values: Empowering a carbon neutral future
EMPOWERING A CARBON NEUTRAL FUTURE High quality strategic shareholders ASX/FSE Prime Standard / VUL Vulcan values Shares on issue / ~188m CLIMATE CHAMPION Market Capitalisation 1 / ca. €762m (A$1.25bn)2 DETERMINED Cash3 / €20m (~A$33m) INSPIRING High quality strategic shareholders ~9% Dr Francis Wed
Slide 10: Equity Raising
Equity Raising
Slide 11: Equity Raising Overview
EQUITY RAISING OVERVIEW Placement to raise €100m (A$164m) 1 and €12m (A$20m) Share Purchase Plan • Fully underwritten institutional placement and concurrent strategic placement to raise up to €100m (A$164m)2 (“Placement”). • The Placement comprises a fully underwritten institutional placement to rai
Slide 12: Sources and Uses of Funds
SOURCES AND USES OF FUNDS Placement proceeds, together with existing cash, will be used to commence execution of critical path scope for Phase One of the Lionheart Project: Sources of funds A$m1 €m Phase One Capital Expenditure (“CAPEX”) Existing cash and cash equivalents (30-Nov-24) 33 20 1. Commen
Slide 13: Indicative Equity Raising Timetable
INDICATIVE EQUITY RAISING TIMETABLE Event Time (AEDT)/Date1 Record Date for eligibility to participate in the SPP 7:00pm, Tuesday, 10 December 2024 Launch of Placement Bookbuild for Northern Hemisphere 3:30am, Wednesday, 11 December 2024 Trading halt commences on ASX 9:00am, Wednesday, 11 December 2
Slide 14: Vulcan's integrated lithium and energy business
Vulcan’s integrated lithium and energy business
Slide 15: New Wave of Lithium Is Building
NEW WAVE OF LITHIUM IS BUILDING Defined by low cost, sustainable production from brines using A-DLE As the lithium market matures into its next phase of growth, major global companies like Rio Tinto and ExxonMobil are entering the lithium brine space1 Global lithium market forecast to grow at a Comp
Slide 16: What Makes a Successful Lithium Business?
WHAT MAKES A SUCCESSFUL LITHIUM BUSINESS? Vulcan sets the standard: Key factors for the next wave in lithium 1. Strong tier-one customers: reduces pricing and market risk 2. Lithium resource scale: ability to build large, low cost, scalable production 3. Low impurities in the brine. Ability to have
Slide 17: Vulcan's Phase One Project: Lionheart
VULCAN'S PHASE ONE PROJECT: LIONHEART Low cost, sustainable integrated lithium and energy production from Europe, for Europe 2 3 4 1 17 1 Vulcan’s 100% owned Insheim Geothermal Power Plant and wells 2 Operating well site and Lithium 3 G-LEP – Option agreement signed to secure site 4 Schleidberg – Vu
Slide 18: Uniquely Positioned
UNIQUELY POSITIONED Vulcan poised to capture the next phase of growth1 ✓ Strong customer relationships: Vulcan has offtake agreements with tier-one European counterparties covering majority of first 10 years of production2 ✓ Tier-one asset: 30-year project life, large, scalable lithium resource, lar
Slide 19: European Market Structurally Short of Lithium
EUROPEAN MARKET STRUCTURALLY SHORT OF LITHIUM Lithium supply in a structurally short market Global Supply / Demand Balance Global supply for LHM looks challenged relative to growth rates in lithium battery production Supply/demand balance even more acute in Europe, which finds itself structurally un
Slide 20: Offtake Advantage: Tier-One Customers
OFFTAKE ADVANTAGE: TIER-ONE CUSTOMERS Fully contracted lithium production drives pricing stability1 Low counterparty risk: high quality European-focused offtake partners Long term relationships: all offtake agreements binding, take-or-pay, with agreed pricing mechanisms, 5-10 years in duration Prici
Slide 21: World-Class Lithium District: Lionheart
Industrie-Park Höchst Downstream LHM production Ability to expand to 3 phases WORLD-CLASS LITHIUM DISTRICT: LIONHEART Frankfurt Ability to expand with low cost, sustainable production Global tier-one lithium resource, and largest in Europe1: 27.7 Mt LCE estimated in 10 of Vulcan’s 17 GERMANY licence
Slide 22: Competitive Advantage: Integrated Business
COMPETITIVE ADVANTAGE: INTEGRATED BUSINESS Main inputs are heat and power Fully integrated renewable energy generation and lithium production Simplified two-stage process from lithium-rich brine to battery-ready product Commercially leading adsorption-type lithium production driven by renewable heat
Slide 23: Targeting the Lowest Quartile of the Lithium Cost Curve
VULCAN WILL BE TARGETING THE LOWEST QUARTILE OF THE LITHIUM COST CURVE Powered by low cost, highly efficient A-DLE production that leverages renewable heat Global projected lithium hydroxide C1 cost curve Brine Integrated Spodumene - RoW Integrated Mica Integrated Spodumene - Africa Non-integrated M
Slide 24: Optimisation and Qualification: Upstream
OPTIMISATION AND QUALIFICATION: UPSTREAM Europe’s first fully-domestic production of lithium chemicals1 Production of LiCl began in April 2024, using Adsorption-Type DLE Up to 95% lithium extraction efficiency, already producing to specification using Vulcan’s proprietary adsorbent Operational readi
Slide 25: Optimised Commercially-Leading Technology
Optimised commercially-leading technology Adsorption is increasingly being adopted as the preferred form of lithium production, due to cost and product quality advantages, currently accounting for 10% global market share and growing VULSORB® is an optimised, high-performance adsorbent, highlighting
Slide 26: Optimisation and Qualification: Downstream
OPTIMISATION AND QUALIFICATION: DOWNSTREAM Operations team training and fast-tracking product qualification Located in Industrie-Park Höchst, Vulcan’s downstream optimisation plant CLEOP will focus on training and optimisation during the construction of the commercial-sized lithium plant, in the sam
Slide 27: EPCM Partner Validation Exercise Completed
EPCM PARTNER VALIDATION EXERCISE COMPLETED Much improved scope definition leading to reduced uncertainty and risk during execution, all with no material change to CAPEX EPCM/ integrator: review of scope, cost and schedule, validating the BES, with no material increase in capital requirement allowing
Slide 28: Phase One Financing
PHASE ONE FINANCING1 Structuring Banks Strong support from public and private sector Up to €500m lending envelope from EIB (including up to €250m direct lending) Vulcan has also applied for significant public grant funding and was awarded €100m (A$162m) from the Federal Ministry of Economics and Cli
Slide 29: A Clear Leader in Sustainability
A CLEAR LEADER IN SUSTAINABILITY Phase One targets: Produce enough lithium for ca. 500,000 electric vehicles p.a.2 Avoid 10Mt CO2 eq. through decarbonising the lithium supply chain3 Targeting renewable heat for ca. 90,000 Environmental and Social Impact Assessment (ESIA) people4 updated and publishe
Slide 30: Focus Areas for Value Creation
FOCUS AREAS FOR VALUE CREATION Phase One creates base for a leading lithium, renewable energy and technology company Division Li Li Lithium Ren Li Renewable energy Tech Li Technology 275GWh p.a. of renewable power and 560 Having shown industry-leading 24,000 tonnes p.a. of sustainable lithium perfor
Slide 31: A Premium Industry-Leading Lithium Product for Battery Electric Vehicles
A premium industry-leading lithium product for battery electric vehicles V is for Vulcan. We strive to be climate champions. Li is for high purity, sustainable* and versatile, battery- grade lithium products. O is for zero fossil fuels directly used in our onsite process to produce lithium and the c
Slide 32: Phase + Decarbonising the World's Largest Chemical Site
PHASE + DECARBONISING THE WORLD’S LARGEST CHEMICAL SITE1 A blueprint for Vulcan's future phase developments to support Europe's energy transition Phase One ++ downstream Central Lithium Plant planned location Frankfurt 20km • Owner of lithium production • Future heat offtakerCo-develops geothermal p
Slide 33: Key Upcoming Target Milestones
KEY UPCOMING TARGET MILESTONES Transformational period for Phase One Lionheart Project First upstream LiCl production from LEOP Launch final phase of Project funding CLEOP commissioning underway COMPLETE First downstream lithium hydroxide produced from CLEOP Vulcan awarded €100m (A$162m) from the Fe
Slide 34: Highly Experienced Leadership
HIGHLY EXPERIENCED LEADERSHIP Outstanding major project, technical and finance experience at the Executive and Board level Vulcan Executive Management Dr Francis Wedin Cris Moreno Felicity Gooding Executive Chair, Founder Managing Director & CEO Group Chief Financial Officer Development Execution Pr
Slide 35: Appendices
Appendices
Slide 36: Appendix 1: International Offer Restrictions
APPENDIX 1: 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 out
Slide 37: Appendix 1: International Offer Restrictions
APPENDIX 1: INTERNATIONAL OFFER RESTRICTIONS New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the “FMC Act”). The New Shares are not being offered or sold in New Zealand (or allotted with a
Slide 38: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS There are various risks associated with an investment in New Shares or Vulcan generally, as with any securities market investment. This section summarises those key risks. Potential investors should consider whether an investment in New Shares or Vulcan generally is a suitable
Slide 39: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS 1.3 Lithium prices are subject to unpredictable fluctuations, driven in part by changes in the balance of global supply and demand as well as international, economic and geopolitical trends and developments. Any material decrease or significant volatility in the price of or dem
Slide 40: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS 1.7 Any decrease in the price or demand for geothermal energy may have a detrimental effect on Vulcan Group's business. Vulcan Group's business model includes developing, owning and operating geothermal plants within its project areas. In December 2021, Vulcan Group acquired Pf
Slide 41: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS Vulcan Group has not yet carried out any definitive studies on its pipeline of future phases (beyond Phase One). Vulcan Group may therefore at this stage not have sufficient data to address and properly assess the risks frequently encountered by lithium and geothermal companies
Slide 42: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS By their very nature, estimates of Vulcan Group's lithium resources and ore reserves are associated with a degree of uncertainty which may be imprecise and depend to some extent on assumptions and interpretations, which may prove to be inaccurate. In addition, such estimates ar
Slide 43: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS 2.6 Vulcan Group may be unable to achieve the expected benefits from past acquisitions, partnerships and joint-ventures or successfully execute future acquisitions, partnerships and joint-ventures that it may pursue to execute its strategy and development plans. Since its incor
Slide 44: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS 2.10 Vulcan Group may lose its directors or other key personnel or may be unable to recruit or retain qualified personnel for key positions. Without such directors or key personnel Vulcan Group may not be able to successfully manage, develop and operate its business. Vulcan Gro
Slide 45: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS Moreover, Vulcan Group has received certain ratings and certifications in the area of ESG and sustainability more generally from third parties in the past, and Vulcan Group may obtain further ESG ratings and sustainability-related certifications from third parties in the future
Slide 46: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS 3.2 Vulcan Group has entered into a credit facility and plans to enter into significant debt financing arrangements in the short-term pursuant to which it will have to bear significant debt financing costs which may further increase in case of an increase in the interest rates.
Slide 47: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS 4. REGULATORY RISKS 4.1 Vulcan Group's risk management or compliance systems may not have been, or may not be, sufficient to adequately prevent or detect legal, tax and operational risks. Vulcan Group's business is subject to various laws and regulations relating to, among othe
Slide 48: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS Also, extractive businesses, such as the business carried out by Vulcan Group, often face concerns or opposition from relevant stakeholders regarding actual or potential breaches of conditions, risks to human health or the environment or other issues which are voiced in public
Slide 49: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS 5.3 Vulcan Group is currently subject to the tax laws and regulations of Australia and Germany. Its tax burden may increase as a consequence of current or future tax assessments or court proceedings in connection with changes in domestic or foreign tax laws and double taxation
Slide 50: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS Many of these factors are outside of the Company's control. Additionally, general fluctuations in share prices, particularly prices of shares of companies in the lithium and renewable energy sector, could affect the price of the Company's shares, even where there may not necess
Slide 51: Appendix 2: Key Risks
APPENDIX 2: KEY RISKS 6.8 Future sales by shareholders of the Company, in particular large shareholders, could depress the price of the Shares. As of the date of this Presentation, the largest five shareholders of the Company hold more than 30% of its share capital. There are no lock-up agreements t
Slide 52: Appendix 3: Summary of Placement Agreement
APPENDIX 3: SUMMARY OF PLACEMENT AGREEMENT Vulcan has entered into a placement agreement with the Joint Lead Managers, under which the Joint Lead Managers have agreed to act as joint lead managers, bookrunners and underwriters in connection with the Placement ("Placement Agreement"), subject to the
Slide 53: Appendix 4: European Lithium Projects Peer Comparison References
APPENDIX 4: EUROPEAN LITHIUM PROJECTS PEER COMPARISON REFERENCES Company Code Project Stage Resource Category Resources Resource Contained LCE Information Source (mt) Grade (Li2O) (mt) European Metals ASX: Cinovec Lithium DFS underway Measured, indicated 708.2 Mt 0.43% Li2O 7.39 Mt LCE Cinovec Lithi