Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Technical Presentation (February 2023)
92 slides from Vulcan Energy Resources's technical presentation, Feb 13, 2023
Slide 1: Phase One DFS Presentation 2023
Phase One DFS Presentation 2023 1
Slide 2: 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 3: Disclaimer: Ore Reserves and Mineral Resources Reporting
DISCLAIMER Ore Reserves and Mineral Resources Reporting It is a requirement of the ASX Listing Rules that the reporting of ore reserves and mineral resources in Australia comply with the Joint Ore Reserves Committee's Australasian Code for Reporting of Mineral Resources and Ore Reserves ("JORC Code"
Slide 4: Disclaimer: Financial data
DISCLAIMER Financial data All monetary values expressed as "$" or "A$" 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 "US$" in this Present
Slide 5: Competent Person Statement
COMPETENT PERSON STATEMENT The information in this presentation that relates to estimates of Mineral Resources and Ore Reserves is extracted from the following ASX announcement: "Vulcan Zero Carbon Lithium™ Project Phase One DFS results and Resources-Reserves Update", released on 13 February 2023.
Slide 6: Highlights
The first integrated HIGHLIGHTS renewable energy, lithium extraction and ZERO CARBONZERO LITHIUM™ PROJECT CARBON – Integrated LITHIUM™ PROJECT Phase – One DFS1 lithium hydroxide Integrated Phase One DFS Targets1 refining project development, to supply 24Ktpa Lithium Hydroxide Monohydrate (LHM) p.a.
Slide 7: Executive Summary 1
Compelling, improved EXECUTIVE SUMMARY1 economics: it doesn’t need to cost more to be “green”2. 1. COMPELLING ECONOMICS2 >250% increase for Phase 1 NPV8: €3.9Bn NPV8 pre-tax, €2.6Bn NPV8 post-tax. >40% increase in rate of return: 34% IRR pre-tax, 26% IRR post-tax. >200% revenue increase for Ph
Slide 8: Executive Summary
Decarbonisation and EXECUTIVE SUMMARY environmentalism at our core: world-leading metrics led by in-house 3. TARGET OF WORLD-LEADING ENVIRONMENTAL METRICS engineering excellence Forecast net zero project Scope 1, 2 and 3 Greenhouse Gas Emissions per tonne LHM carbon footprint. A world-first in lit
Slide 9: Executive Summary
A clear path forward: EXECUTIVE SUMMARY transformation under way into execution and 5. CLEAR PROJECT EXECUTION PLAN operations mode. Projects delivered under single integrated projects group, strong governance model. Financing workstreams initiated. Phase One contract strategy and delivery model
Slide 10: Executive Summary: Two revenue streams, one common goal
Two revenue streams, EXECUTIVE SUMMARY1 one common goal: decarbonisation Optional: Two distinct but inter-related business units RENEWABLE ENERGY LITHIUM HYDROXIDE Decarbonise energy supply in EU Decarbonise the auto industry >300GWh/a Power, >250GWh/a Heat 24Ktpa LHM2 NPV8: €0.7Bn Pre-tax, €0.4Bn P
Slide 11: Contents
CONTENTS Right time, right place 1. Project overview for fully integrated 2. Resources renewable energy and 3. Well planning, production study and Reserves sustainable lithium 4. Site infrastructure chemicals business in Europe 5. Geothermal energy plants 6. Lithium Extraction Plants (LEPs) 7. Centr
Slide 12: 1. Project Overview
<j N m FE] ° ° > z o ° z = =| = = = 2 z ° G m ° = 1. PROJECT OVERVIEW
Slide 13: Our Target: One Million
OUR TARGET: ONE MILLION Vulcan’s unique Zero Carbon Lithium™ Project We are aiming to become the world’s first aims to produce both renewable geothermal integrated lithium chemicals and renewable energy energy, and lithium hydroxide for Electric Vehicle producer with net zero greenhouse gas emission
Slide 14: Key Achievements H2 2021-Now
KEY ACHIEVEMENTS H2 2021-NOW High grade, Lowest impurity LHM produced ACQUISITION OF INSHEIM Research Permit in GEOTHERMAL Italy granted POWER PLANT DEVELOPMENT OF "Cesano” Sustainability VULSORB™ BNP Paribas and ESG appointed as FRANKFURT Framework STOCK 5 new launched ONSITE CONSTRUCTION OF financ
Slide 15: What is Phase One?
WHAT IS PHASE ONE? Production goals: Target of 24,000tpa of Lithium Hydroxide Monohydrate (LHM) production 1. Target of >300GWh of renewable power and >250GWh of renewable heat produced each year. Why? Vital project for Germany, the EU, the auto industry and the EU energy transition. Where?
Slide 16: Vulcan's Renewable Energy and Lithium Chemicals Project
VULCAN’S RENEWABLE ENERGY AND LITHIUM CHEMICALS PROJECT Reliable, OUR PROJECT Lithium hydroxide distributed ONE CLP in to the EU customers Frankfurt high quality converting end product Central Electric 6 Lithium LiCl to LHM Mobility Plant Renewable electricity Lithium chloride and/or heat sold to tr
Slide 17: Lionheart Sector
Intermediate Lithium End- Well Sites Heat Piping System Geothermal Operations Lithium Extraction Transport Conversion market Exchanger Hot water 0.5MW Heat Hot Brine ORC 4.2MW & Heating 0.5MW customers Cold water Heat Li (+) Cold Brine Li (+) Insheim Sold: +30MW 4.2MW Bought: 0MW Cold Brine Li (-) N
Slide 18: Flexible Business Structure
FLEXIBLE BUSINESS STRUCTURE Vulcan has the flexibility to adopt alternative business structures as part of project financing, instead of being fully integrated. Alternative Alternative Option one: Option two: 18
Slide 19: 2. Resources
N m FE] ° ° > z o ° z = =| = = = 2 z ° G m ° = 2. RESOURCES
Slide 20: Project Location
PROJECT LOCATION Large, 300km-long graben system containing consistent sedimentary-hosted geothermal- lithium reservoir. Vulcan’s Upper Rhine Valley Brine Field (URVBF) within its Zero Carbon Lithium™ Project, consisting of 15 licenses for a total area of 1,583 km2, represents Europe’s largest l
Slide 21: Upper Rhine Valley Brine Field: Mineral Resource Update
UPPER RHINE VALLEY BRINE FIELD: MINERAL RESOURCE UPDATE Note 1: Mineral Resources are not Licence Reservoir Classification GRV km3 Avg. NTG Avg. Avg. Li Elemental Li LCE3 Ore Reserves and do not have demonstrated economic viability. % Phie mg/L t kt Note 2: The weights are reported in metric tonnes
Slide 22: 3. Well Planning, Production Study and Reserves
3. WELL PLANNING, PRODUCTION STUDY AND RESERVES 22
Slide 23: Lionheart Reservoir Framework and Planned Well Placement
LIONHEART RESERVOIR FRAMEWORK AND PLANNED WELL PLACEMENT Use existing production wells and add new wells to aim to achieve production/reinjection capacity of 600l/s1 – approx. 16,000tpa LHM equivalent at SOP. DFS focus of field development planning has been on sustainability of lithium production ov
Slide 24: Taro Reservoir Framework and Planned Well Placement
TARO RESERVOIR FRAMEWORK AND PLANNED WELL PLACEMENT Add new wells to aim to achieve production/reinjection capacity of 300l/s1 – approx. 8,000tpa LHM equivalent at SOP. DFS focus of field development planning has been on sustainability of lithium production over time: flow rate assumptions for new w
Slide 25: Development Drilling Plan
DEVELOPMENT DRILLING PLAN Vulcan has established its own in-house geothermal drilling company, Vercana, due to a high demand for geothermal drilling for renewable energy projects and tightness of rig supply. In this regard, Vulcan has also acquired two electric drill rigs, and a drilling labour cont
Slide 26: Phase One Production Study and Reserves
PHASE ONE PRODUCTION STUDY AND RESERVES Detailed reservoir engineering and production simulation study conducted to achieve maximum “sweep” of lithium across the field. Planned well placement and brine flow rates optimised for sustainable lithium production over a long project life. Production
Slide 27: 4. Site Infrastructure
4. SITE INFRASTRUCTURE 27
Slide 28: Site Infrastructure: Industry Water Cycle and Piping
SITE INFRASTRUCTURE: INDUSTRY WATER CYCLE AND PIPING Vulcan intends to use an intermediate heat exchanger at the nine Phase One well sites to capture the heat from the geothermal brine into a closed loop industrial water cycle which will pipe hot water to the Organic Ranking Cycle plants (ORCs). Onc
Slide 29: Proposed Pipeline System
PROPOSED PIPELINE SYSTEM Lionheart – 16km total of pipelines Interconnecting Power and Piping network Connecting multiple wells1 with ORCs, LEPs and Well sites with: Existing ORC ORC, LEP & Well site Hot/Cold water Li-rich/Depleted Li brine Power Taro – 5km pipelines ORC, LEP & Well site 5km W
Slide 30: 5. Geothermal Energy Plants
5. GEOTHERMAL ENERGY PLANTS 30
Slide 31: Geothermal Energy Plants
GEOTHERMAL ENERGY PLANTS Phase One: one existing geothermal plant and two new sites Insheim Lionheart Taro Total1 ORC (Existing) ORC1 ORC1 Power Production (MW p/a) 4.2 24.5 8.4 37.1 Heat Production (MW p/a) 0.5 29.9 0.0 30.4 Power Production (MWh p/a) 34,856 203,326 69,712 307,893 Heat Production (
Slide 32: Renewable Energy Production Target and Tariff
RENEWABLE ENERGY PRODUCTION TARGET AND TARIFF Power price forecast - (€/MWh, Germany) Energy production (MWh/a) * 300 500,000 252 450,000 250 400,000 350,000 200 300,000 150 250,000 200,000 100 150,000 50 100,000 50,000 0 0 Source: Aurora Energy Research Germany Wholesale Baseload Power Price Foreca
Slide 33: Energy Balance: Net Positive Producer of Renewable Energy
ENERGY BALANCE: NET POSITIVE PRODUCER OF RENEWABLE ENERGY¹ Geothermal Lithium Geothermal LEP CLP Phase One MW 40 30 20 10 - Taro ORC Lionheart ORC* Taro ORC Lionheart Pumps & Piping SPV1 Power Heat production SPV1 SPV2 Power Taro Pumps & Piping Lionheart LEP Taro LEP Lionheart ORC* Phase 1 Power Tot
Slide 34: 6. Lithium Extraction Plants (LEP)
6. LITHIUM EXTRACTION PLANTS (LEP) 34
Slide 35: Vulcan In-House Piloting and Testwork
VULCAN IN-HOUSE PILOTING AND TESTWORK In-house designed and operated lithium extraction pilot plant operational since April 2021 (PP1 – low pressure). >13,000 of hours of continuous pilot plant test data from PP1, and latterly >1,000 hours of operation from high pressure P1A, to inform DFS. VU
Slide 36: Improved In-House Lithium Extraction Flow Sheet
IMPROVED IN-HOUSE LITHIUM EXTRACTION FLOW SHEET Upgrading to a High Pressure system with VULSORB™ Improvement #1: VULSORB™ Vertically integrated production Make-up water 10% less OPEX1 €24M less CAPEX1 Brine Direct feed Pre-treatment Lithium Post-treatment Improvement #2: VULSORB™ Sorption Bri
Slide 37: Lithium Extraction Plants (LEPs)
LEP – Taro 300l/s LIHTIUMEXTRACTION PLANTS (LEPs ) 8kt LiCl Phase One Two sorption-type LEPs: LEP Taro: “standard” modular sized of 8,000tpa LHM equivalent fed by 300l/s Li-rich brine. Asset to be built next to Taro’s ORC plant. LEP Lionheart: “Double-size” 16,000tpa LHM equivalent fed by 600l/s
Slide 38: Modern Li-Brine Projects Choosing Direct Lithium Sorption (DLS)
MODERN Li-BRINE PROJECTS CHOOSING DIRECT LITHIUM SORPTION (DLS) Lanke Zangge Eramet/ Vulcan Compass Berkshire Energy Standard Lake Company1 Livent Jintai Lithium Rio Tinto Source CTR Resources/ E3 LIthium Lithium Lithium Tsingshan Energy Minerals Hathaway Minerals Lithium Lilac Hombre Centenario- Ze
Slide 39: 7. Central Lithium Plant (CLP)
7. CENTRAL LITHIUM PLANT (CLP) 39
Slide 40: Lithium Chloride Conversion to LHM: CLP
LITHIUM CHLORIDE CONVERSION TO LHM: CLP Phase One Conversion of lithium chloride to battery grade LHM using electrolysis. Process uses similar technology as used in the chlor-alkali industry, which has been used for over a century. Significant in-house expertise at Vulcan. CLP planned to be lo
Slide 41: Target Lithium Output Phase One – LHM Equivalent
TARGET LITHIUM OUTPUT PHASE ONE – LHM EQUIVALENT Lithium dilution at the well sites modelled over 30 years and remains above cut-off, with only ~1.6% annual grade decrease. Production levels could be increased by adding new wells in the future, not modelled here1. Li dilution (Li ppm) LHM production
Slide 42: 8. CAPEX and OPEX
<j N m FE] ° ° > z o ° z = =| = = = 2 z ° G m ° = 8. CAPEX AND OPEX
Slide 43: CAPEX Estimated Breakdown
CAPEX ESTIMATED BREAKDOWN1 Geothermal Lithium Geothermal LEP CLP €M SPV Geothermal: €657M1 SPV2 Lithium CAPEX: €839M1 500 440 €657M Phase One CAPEX: 450 25 €1,496M 400 - €322M 350 88 293 €517M 300 38 103 217 35 223 250 8 200 27 61 55 150 23 256 28 233 100 178 151 50 97 0 - - - Lionheart Geothermal T
Slide 44: OPEX Estimated Breakdown – 20Y Average
OPEX ESTIMATED BREAKDOWN – 20Y AVERAGE Lithium Geothermal LEP CLP Phase One 112 55 35 €/y 22 Geo Opex LEP Opex CLP Opex Total Opex Phase 1 Energy Labour Maintenance Supplies Operating Supplies Reagents Water Steam Nitrogen Trucking Services & Others 44
Slide 45: Global Cost Curve LHM – Projected 2025
GLOBAL COST CURVE LHM – PROJECTED 2025 Vulcan’s Zero Carbon Lithium™ Project has the potential to be one of the lowest cost integrated LHM projects in the world. Lithium hydroxide delivered costs - 2025 ($/tonne, ddp Rotterdam) Vulcan Energy $4,5771 €4,359 1Projected cost curve provided by Fastmarke
Slide 46: 9. Market Dynamics
<j N m FE] ° ° > z o ° z = =| = = = 2 z ° G m ° = 9. MARKET DYNAMICS
Slide 47: Energy in Europe: Helping to Avert a Crisis for All
ENERGY IN EUROPE: HELPING TO AVERT A CRISIS FOR ALL Fraunhofer Institute: EU to be climate neutral by Geothermal renewable energy 2050. Germany to be fully can meet a quarter of Germany’s renewable renewablebyby2035. 2035 heating needs German government to provide support for renewable heating proje
Slide 48: Lithium in Europe: Helping to Avert a Crisis for the Auto Industry
LITHIUM IN EUROPE: HELPING TO AVERT A CRISIS FOR THE AUTO INDUSTRY Vulcan has offtake EU new cars 100% agreements with some of electric by 2035 the largest battery, cathode and EV producers in Europe 1,500GWh li-ion battery manufacturing capacity by Vulcan is developing the only 20301 for EV transit
Slide 49: Forecast Market Fundamentals
FORECAST MARKET FUNDAMENTALS Fastmarkets outlook: Supply is forecast to struggle to keep up with demand Demand is forecast to reach 2.65Mt LCE by 2030, others are already at 3.2Mt Plenty of projects – but they need TIME to come online – this is one of the There are at least one-to-two decade
Slide 50: Strategic Support with Long Term Lithium Supply Contracts
STRATEGIC SUPPORT WITH LONG TERM LITHIUM SUPPLY CONTRACTS Five key offtake agreements secured, binding, take-or-pay, with mixture of pricing mechanisms to provide stability but keep some exposure to upside in pricing Binding lithium hydroxide offtake agreement, 10-year term. A$76M (€50M) equity inve
Slide 51: LHM Price Forecast
LHM PRICE FORECAST LHM prices as of Feb. 2023 are reported at $79,000/t (Fastmarkets) Lithium hydroxide price forecasts1 - €/t 40,000 Forecast average price realised combining Fastmarkets price forecast and Vulcan offtake agreements 35,000 pricing mechanisms (€/t) Average 30,283 30,000 2026 37,524 3
Slide 52: 10. Economic Analysis
<j N m FE] ° ° > z o ° z = =| = = = 2 z ° G m ° = 10. ECONOMIC ANALYSIS
Slide 53: Target Revenues – 20Y Average
TARGET REVENUES – 20Y AVERAGE Geothermal Lithium Geothermal LEP CLP Phase 1 HCl HCl 2% 1% NaOCl NaOCl Heat 0% 0% 10% Heat 3% Power Li Brine 10% 49% LHM Power 86% 41% LHM 98% €174M/a €616M/a €704M/a* Annual Revenue €M/y, 20y average (excluding 2026 ramp-up) SPV Geothermal SPV Lithium Total Phase 1 He
Slide 54: Target Revenues per Production Step
TARGET REVENUES PER PRODUCTION STEP Geothermal Lithium Geothermal LEP CLP Phase 1 1,000 Millions 900 800 700 600 500 400 300 200 100 0 LHM NaOCl HCl Li to CLP Li to LEP Power Heat €174M/a €406M/a €616M/a €704M/a1 1LiCl is excluded as it is an internal sale if SPV LEP and SPV CLP are within the same
Slide 55: Target Revenues Phase One
TARGET REVENUES PHASE ONE Phase One annual revenues €M/y 2026-20551 €/t 1,000 45,000 € Millions 900 40,000 800 35,000 700 30,000 600 25,000 500 20,000 400 15,000 300 10,000 200 100 5,000 - - LHM HCl NaOCl Power Heat LHM prices 1Key underlying assumptions in Appendix 14, LHM price forecast used in sl
Slide 56: Target Operating Margins – SPV Geothermal & SPV Lithium
TARGET OPERATING MARGINS – SPV GEOTHERMAL & SPV LITHIUM1 CAPEX 900 €839M €Millions 800 CAPEX €657M 700 600 500 400 72% 300 200 100 85% - SPV Geo Costs SPV Geo Revenues SPV Lithium Costs SPV Lithium Revenues Geo GeoOpex OPEX LEP Opex LEP OPEX CLP Opex CLP OPEX LiCl feedstock cost Heat Power LiCl NaOC
Slide 57: Target Project Economics Summary
TARGET PROJECT ECONOMICS SUMMARY1 SPV Geo Geothermal SPV Lithium Lithium PhasePhase 1 1 Integrated Revenues €M/a1 174 616 704 Net Op. Cash Flow €M/a* 111 328 437 NPV pre-tax m€ 724 3,192 3,917 NPV post-tax m€ 435 2,149 2,584 IRR before Tax 11.4% 45.9% 34.4% IRR after Tax 7.3% 34.0% 26.1% Payback in
Slide 58: Project Economics Phase One PFS vs DFS
PROJECT ECONOMICS PHASE ONE PFS VS DFS Comparison on a per tonne of LHM basis or €/MWh Further project economics improvement compared to the PFS Phase One cases PFS DFS PFS vs DFS (%)3 SPV Integrated SPV Integrated SPV Integrated SPV Lithium SPV Lithium SPV Lithium Impact Geothermal Phase 1 Geotherm
Slide 59: Target Phase One DFS Financials – 20Y Average
TARGET PHASE ONE DFS FINANCIALS – 20Y AVERAGE¹ 800 €Millions TOTAL REVENUE 700 EBITDA 600 EBIT 500 400 EBITDA Net Income (EAT) MARGIN 84% 300 200 100 - (100) Depreciation & Amortisation OPEX Income Taxes (200) ¹Financials above exclude interest. See Key Assumptions Appendix 14 for more information 5
Slide 60: Phase One NPV Sensitivities
PHASE ONE NPV SENSITIVITIES Post Tax NPV Sensitivity Phase One 5,000 EUR/USD: all LHM offtakes are linked 4,500 to a Price Reporting Agency (PRA) with a USD index or a fixed price in 4,000 USD 3,500 Flow rate: fluctuation impacts both lithium extraction output and energy NPV (EUR millions) 3,000
Slide 61: 11. Permitting
ZERO CARBO HIUM™ PROJECT
Slide 62: Permitting Process – Current Update
PERMITTING PROCESS – CURRENT UPDATE1 Exploration license 1 Licenses Production license 2 Pre-EIA 3 Main operation plan (one well site, all wells) Mining authority Drilling Special operating plan: Well pad Special operating plan: Drilling Secure land Permitting progress Drilling start 1 Multiple expl
Slide 63: Permitting Process
PERMITTING PROCESS EXTERNAL ASSESSMENTS MAIN PERMITS specific species Ground survey BBergG (Federal Mining Act), BauGB (Building Act), GEG (Building Energy Act), BImSchG (Fed. Immission Ctrl. Act) protection assessment GEOTHERMAL ENERGY (saP) Exploration License (geothermal and lithium) (§ 7 Erlaubn
Slide 64: 12. Sustainability and Stakeholder Engagement
12. SUSTAINABILITY AND STAKEHOLDER ENGAGEMENT 64
Slide 65: Structure of Stakeholder Engagement Approach
STRUCTURE OF STAKEHOLDER ENGAGEMENT APPROACH EXPLORATION AND PLANT PREPARATION EVALUATION DRILLING CONSTRUCTION OPERATION STAKEHOLDERS STAKEHOLDER NEEDS STAKEHOLDER TOUCHPOINTS VULCAN RESPONSE VULCAN PROCESS LANDSCAPE Communication Technical Environmental Social Governance VULCAN PROCESS LANDSCAPE V
Slide 66: Our Unique Selling Point: Leading Environmental Credentials
OUR UNIQUE SELLING POINT: LEADING ENVIRONMENTAL CREDENTIALS Low ESG Risk Rating from 9,5kT CO2 avoided from ESG linked KPIs including Sustainalytics (01/2023) renewable energy generated individual and shared targets First amongst peers and in at NatürLich Insheim in 2022. the 2nd quartile Chemicals
Slide 67: Aiming for Lowest CO2 Footprint in the Lithium Industry
AIMING FOR LOWEST CO2 FOOTPRINT IN THE LITHIUM INDUSTRY Vulcan is developing the first and only net zero carbon, zero fossil fuels lithium project in the world1. Emissions from GLOBAL LHM operations Vulcan Energy -1.7kg CO2/t LHM 1Sources: Fastmarkets projection for industry. Vulcan CO value provide
Slide 68: Overall LEP and CLP Water Balance
OVERALL LEP AND CLP WATER BALANCE Vulcan’s Zero Carbon Lithium™ Project has been engineered to have an extremely small water footprint1 Location Tonnes Water/LHM Taro LEP Net freshwater input 0.58 Lionheart Net freshwater input 1.16 CLP Net freshwater input 0.08 Net High Purity water input 1.89 Tota
Slide 69: 13. Timeline and Execution Strategy
13. TIMELINE AND EXECUTION STRATEGY 69
Slide 70: 2023 – Our Short Term Objectives
2023 – OUR SHORT TERM OBJECTIVES DFS 1 Phase One DFS (complete) Demo Plants to commence operation and first LHM Demo production from demo Start drilling of new production/re-injection wells in Phase Drilling One area Grant of relevant permits in line with development timeline Permits for 2023 Secure
Slide 71: Target Project Timeline – Phase One
TARGET PROJECT TIMELINE – PHASE ONE 2023 2024 2025 2026 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DFS Publication Bridging Phase Start of procurement phase Detailed Engineering Start of EPC contract awards Equity funding process Debt funding process Ongoing piloting Ongoing LHM product testing
Slide 72: Matrix Organisation Geared for Execution and Delivery
MATRIX ORGANISATION GEARED FOR EXECUTION AND DELIVERY CEO Level 0 Dr. Francis Wedin Deputy CEO Cris Moreno CORE FUNCTIONS SUPPORT FUNCTIONS CFO VP CCoO CoSec/ In- COO CTO De puty CEO CEO - GER ESG LEAD GM IR CFO Production Vincent House Legal Thorsten Dr. Stephen Cris Dr. Horst Storm Annabel Rob Ier
Slide 73: Integrated Project Delivery Model
INTEGRATED PROJECT DELIVERY MODEL Strategy moving towards project execution and delivery model Phase One Phase One Phase One Organisation & Governance Delivery Wells Model ICPP ORC LEP CLP Site GLEP Executive Project SteerCo Integrated Owner Vulcan Schedule EPCM Contractor EPC Contractor EPC Contrac
Slide 74: Robust Target Project Financials and Strategic Project Funding
ROBUST TARGET PROJECT FINANCIALS AND STRATEGIC PROJECT* FUNDING TARGETED FROM A MIX OF EQUITY, DEBT AND GRANTS MULTIPLE TARGET OPTIONS FOR VULCAN Equity at project level – Phase 1 Equity at project level – SPV Geo Equity at project level – SPV Li Equity at parent level Debt funding public institutio
Slide 75: 14. Conclusions
ZERO CARBO HIUM™ PROJECT
Slide 76: Conclusions
CONCLUSIONS The first integrated renewable energy, lithium extraction and lithium hydroxide refining project development, seeking to supply the battery electric vehicle industry from Europe, for Europe. World-leading sustainability credentials: engineered specifically to be world-first zero Scop
Slide 77: 15. Appendices
N m FE] ° ° > z o ° z = =| = = = 2 z ° G m ° = 15. APPENDICES
Slide 78: Appendix 1: Board of Directors
APPENDIX 1: BOARD OF DIRECTORS Dr. Francis Wedin 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. A communic
Slide 79: Appendix 2: Share Price and Capital Structure
APPENDIX 2: SHARE PRICE AND CAPITAL STRUCTURE ASX : VUL Shares on Issue 143,435,301 Performance Shares 91,174 Performance Rights 8,742,801 Market Capitalisation at $7.16 ~$1.03B (undiluted as at 10 February 2023 ) Cash Position (as at 31 Dec 2022) €134M Top 20 Shareholders ~61% Management (undiluted
Slide 80: Appendix 3: DLE/DLS Projects and Assets - References
APPENDIX 3: DLE/DLS PROJECTS AND ASSETS - REFERENCES Livent https://s22.q4cdn.com/453302215/files/doc_presentations/2022/2022.11-Livent-Investor-Presentation.pdf https://www.linkedin.com/pulse/from-catamarca-qinghai-commercial-scale-direct-lithium-alex-grant/ Lanke Lithium http://www.asianmetal.com/
Slide 81: Appendix 4: European Lithium Projects Peer Comparison References
APPENDIX 4: EUROPEAN LITHIUM PROJECTS PEER COMPARISON REFERENCES COMPANY1 CODE PROJECT STAGE RESOURCE CATEGORY RESOURCES M RESOURCE GRADE CONTAINED MT LCE INFORMATION SOURCE ONNES (LI2O) TONNES European Metals ASX: EMH Cinovec PFS Complete Indicated & Inferred 708.2 0.43 7.39 Annual Report June 22 R
Slide 82: Appendix 5: WACC Rate: Peer Comparison
APPENDIX 5: WACC RATE: PEER COMPARISON Project Date Discount rate Deposit type Country Source Cypress 2020 8% clay USA https://cypressdevelopmentcorp.com/projects/nevada/clayton-valley-lithium-project-nevada/ Rock Tech 2022 8% conversion Germany https://www.prnewswire.com/news-releases/rock-tech-lit
Slide 83: Appendix 6: Vulcan Stakeholder Management
APPENDIX 6: VULCAN STAKEHOLDER MANAGEMENT NEEDS RESPOND PROCESS RESOURCE Stakeholder needs Vulcan responding Vulcan actions Vulcan delivering Comprehensive engagement Investor Relations and Subject matter experts: Identification of Stakeholders and their plan developed communications team Pr
Slide 84: Appendix 7: European Macro Policy Tailwinds in Vulcan's Favour
APPENDIX 7: EUROPEAN MACRO POLICY TAILWINDS IN VULCAN’S FAVOUR European Commission President, Ursula von der Leyen Lithium production for EVs Ursula von der Leyen, President of the European Commission, said: “We have a once in a generation opportunity to show the way with speed, ambition and a sense
Slide 85: Appendix 8: Q&A
APPENDIX 8: Q&A Average well flow rates at 69 l/s are lower than in the PFS (>100 l/s). Why is this? Our PFS was conducted using a class hydro-geothermal production model, where higher flow rates were desirable. In the DFS, we undertook detailed reservoir simulation modelling, optimised for lithium
Slide 86: Appendix 9: Q&A
APPENDIX 9: Q&A 2 How are you ensuring your project is net zero? We plan to use use zero fossil fuels to power our lithium extraction process, and renewable energy and heat we generate will aim to help decarbonise the German grid. We aim to produce more energy than we consume, giving our planned ope
Slide 87: Appendix 10: Key Risks Technology / Execution / Resource
APPENDIX 10: KEY RISKS TECHNOLOGY / EXECUTION / RESOURCE Risk Description Mitigation Currently in discussions with a local toll manufacturer to manufacture VULSORB™, who is already supplying Vulcan for its Demo Technology: VULSORB™ industrial manufacturing capability still to be demonstrated. Plant.
Slide 88: Appendix 11: Key Risks General
APPENDIX 11: KEY RISKS GENERAL Risk Description Mitigation Vulcan closely monitors developments in the battery industry, and preferred battery chemistries. Vulcan notes that, whilst EU Markets: General demand for lithium hydroxide may decrease as a result of new market or technological customers are
Slide 89: Appendix 11: Key Risks General Cont.
APPENDIX 11: KEY RISKS GENERAL CONT. Risk Description Mitigation Technical: Battery raw materials and geothermal energy exploration and development are high-risk Vulcan uses modern geothermal industry best practice by incorporating 3D seismic data and analysis and has a world undertakings and there
Slide 90: Appendix 12: Phase One DFS Expert Third Party Consultants
APPENDIX 12: PHASE ONE DFS EXPERT THIRD PARTY CONSULTANTS JORC Resources review, audit and sign-off: GLJ Ltd. and Groundwater Insight; reservoir engineering and deep lithium brine expertise. JORC Reserves review, audit and sign-off: GLJ Ltd., reservoir engineering, well planning, field developme
Slide 91: Appendix 13: Financial Definitions
APPENDIX 13: FINANCIAL DEFINITIONS • CAPEX = Capital Expenditure in tangible and intangible assets • EBIT = Earnings before interest and taxes • EBITDA = Earnings before interest, taxes, depreciation and amortisation • IRR = Internal Rate of Return • Net Income (EAT) = Earnings after tax • NPV = Net
Slide 92: Appendix 14: DFS Model Assumptions and Parameters
APPENDIX 14: DFS MODEL Input Lionheart Taro ASSUMPTIONS AND PARAMETERS Number of production wells per area 8 5 Key inputs and outputs of model Average Flow rate (l/s) 69 per well General Average Flow rate (l/s) 600 300 General and economics FX EUR/USD 1.05 Li grade (mg/l) at SOP 181 181 NPV discount
Vulcan Energy Resources — Technical Presentation (February 2023) on 6ix