Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (July 2021)
48 slides from Vulcan Energy Resources's investor presentation, July 2021
Slide 1: Zero Carbon Energy + Zero Carbon Lithium
Zero Zero Carbon + Carbon Energy Lithium™
Slide 2: Disclaimer & Cautionary Statement
Disclaimer & Cautionary Statement The information contained in this presentation has been prepared by Vulcan Energy Resources Ltd (VUL). This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any securities in VUL
Slide 3: How to Support 30 Million EVs by 2030 in the EU?
How to Support 30 Million EVs by 2030 in the EU? 800GWH LITHIUM-ION BATTERY EU: FASTEST GROWING LITHIUM ZERO LOCAL SUPPLY OF CAPACITY BY 2030 MARKET IN THE WORLD LITHIUM HYDROXIDE Millions LCE 0.8 0.7 0.6 EU 0.5 0% 0.4 0.3 0.2 0.1 CHINA 0.0 80% Source: Benchmark Minerals Source: Benchmark Minerals 3
Slide 4: High Environmental Footprint of Existing Supply Chain
High Environmental Footprint of Existing Supply Chain Lithium is a critical resource for batteries and electric vehicles. To fully electrify our cars with lithium-ion batteries, we need lithium. CO2 That’s equivalent to the 1 Billion Lithium mining Tonnes Approximate potential emissions = annual emi
Slide 5: High Environmental Footprint of Existing Supply Chain
High Environmental Footprint of Existing Supply Chain LITHIUM PRODUCTION EMITS MORE AUTOMAKERS COMMITTING TO CO2 THAN NICKEL AND COBALT CARBON NEURALITY Carbon Water Intensity Depletion Volkswagen promises: m³ water/t LiOH (tCO2/t LiOH) 15 TONS 470M³ “CO2-neutral production including supply chain” C
Slide 6: The EU Stepping in to Support and Regulate the Industry
The EU Stepping in to Support and Regulate the Industry GREEN SUPPLY CHAIN LOCAL SUPPLY CHAIN New EU Battery Carbon Border European Critical Raw Regulation Adjustment Mechanism Battery Alliance Materials List Battery passport ISO/TC 333 EIB new energy European Raw Lithium lending policy Materials Al
Slide 7: Vulcan – Zero Carbon Lithium™
Vulcan – Zero Carbon Lithium™ World-first Zero Carbon In the heart of the Strong cash position, Lithium Project fastest growing lithium fully funded to FID ENERGY BUSINESS market in the world 74MW Renewable Electricity LITHIUM BUSINESS Geothermal & DLE Largest JORC lithium Team of world leading 40,0
Slide 8: We Scoured the Globe to Find the Right Project
We Scoured the Globe to Find the Right Project We had the lithium expertise to know LITHIUM CONCENTRATION IN BRINE (MG/L LITHIUM) that Zero Carbon Lithium was possible using modern extraction methods, provided 181 a deep geothermal brine reservoir could 181 be found that had the following geological
Slide 9: Largest Lithium Resource in Europe
Largest Lithium Resource in Europe Germany License Taro France • Very large license package >1,000km² • 3 exploration permits granted and several applications • Largest lithium resource in Europe: 15.85Mt LCE SUFFICIENT TO SUPPLY >400 MILLION ELECTRIC VEHICLES 9 Details on the lithium resources in A
Slide 10: Vulcan's Renewable Energy & Lithium Chemicals Project
Vulcan’s Renewable Energy & Lithium Chemicals Project Central Lithium Plant OUR PROJECT Electric Mobility Lithium hydroxide distributed to the EU market 6 LITHIUM BUSINESS Renewable Lithium chloride electricity sold to transported to the the grid 2 5 central lithium plant Direct Lithium Extraction E
Slide 11: Commercially Mature Technologies Combined
Commercially Mature Technologies Combined Our process replicates existing operations taking place commercially across the world. What is unique about us is the combination of those different steps. Binary Cycle Direct Lithium Central Lithium 1 Geothermal Plant 2 Extraction Plant 3 Plant • Hundreds o
Slide 12: Dual Purpose Renewable Project
Dual Purpose Renewable Project Energy Business, Lithium Business: Zero Carbon Lithium™ PHASE 1 - €0.7Bn PHASE 2 - €1.1Bn CAPEX 8MW 14MW 17MW 17MW 17MW ENERGY BUSINESS Binary Cycle 1 Geothermal Plant Geothermal Geothermal Geothermal Geothermal Geothermal Plant B1 Plant B2 Plant C1 Plant C2 Plant C3 D
Slide 13: Potential for Very Low OPEX Operation
Potential for Very Low OPEX Operation Low-cost South American brine and Australian/Chinese mineral conversion vs Vulcan’s process 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 has dual purpose: li
Slide 14: Peerless Environmental Credentials
Peerless Environmental Credentials Environmental footprint of lithium production routes PER TON OF LITHIUM HYDROXIDE Hard rock mining 60% of world lithium production Evaporation ponds 40% of world lithium production 15t 469M³ 3,124M² Zero Carbon Lithium™ CO2 water land Vulcan draws on naturally occu
Slide 15: Cost Impact of Regulation on Lithium import prices
Cost Impact of Regulation on Lithium import prices The example of the proposed Carbon Border Adjustment Mechanism (CBAM) SUPPLY OF LITHIUM CO2 EMISSIONS PER CBAM HYDROXIDE TON OF LITHIUM HYDROXIDE Assumptions for CBAM CBAM • EU Buyer imports 1 ton of lithium $1,500/t from China in 2025 • Chinese pro
Slide 16: Dual Revenues: Energy and Lithium
Dual Revenues: Energy and Lithium ENERGY BUSINESS LITHIUM BUSINESS Zero Carbon Electricity: Geothermal Decarbonizing energy in the form of electricity is sold to $/t LiOH Prices – Historical and Forecast the grid the grid 22,000 Feed-in Tariff Guaranteed 20,000 €25.2c for 18,000 Today Grid /KWh 20 y
Slide 17: Project Financials
Project Financials ENERGY BUSINESS LITHIUM BUSINESS 74MW Power 40,000tpy LiOH €0.7Bn NPV Pre-tax €0.5Bn NPV Post-tax €2.8Bn NPV Pre-tax €1.9Bn NPV Post-tax 16% IRR Pre-tax 13% IRR Post-tax 31% IRR Pre-tax 26% IRR Post-tax €226M CAPEX Phase I €0.066/KWh OPEX €2,640/t LiOH OPEX €474M CAPEX Phase I Pay
Slide 18: The Vulcan Zero Carbon Lithium™ Board
The Vulcan Zero Carbon Lithium™ Board VULCAN ENERGY RESOURCES LTD - BOARD Executive Chair/CEO positions of two companies Senior executive with Evonik, one of the largest Gavin Rezos that grew from start-ups to the ASX 300. Dr Heidi Grön specialty chemicals companies in the world, with a CHAIR INDEPE
Slide 19: Experienced Development Team
Experienced Development Team ENERGY BUSINESS LITHIUM BUSINESS Thorsten Weimann CHIEF OPERATING OFFICER +25 years’ experience in geothermal project development and operation in Germany. Consultancy company focused on deep geothermal projects at Project Development team based in Germany. World-leading
Slide 20: Project Timeline
Project Timeline 2021 2022 2022 2023 2024 2025 + Project Development Financing Project Financing €0.7-1.7Bn Drilling 2 Geo Plants Exploration Further Exploration 2 DLE Plants Data Construction 1 CLP Energy 22MW PFS Bankable Feasibility Study Lithium 15Kt/y Phase 1 Production Data Test work Piloting
Slide 21: Share Price & Capital Structure
Share Price & Capital Structure ASX : VUL Shares on Issue 107,464,256 Performance Milestone Shares* 4,400,000 Performance Rights* 10,950,000 Market Capitalization at $7.80 (undiluted) ~$838.2M Enterprise Value at $7.80 (undiluted) ~$721.2M Key Shareholders Cash Position Dr. Francis Wedin 12.10% ~$11
Slide 22: Conclusion
Conclusion WORLD’S 1ST & ONLY EUROPE’S LARGEST LOCATION CENTRE OF SUPPORTED BY EU ZERO-CARBON LITHIUM RESOURCE FASTEST GROWING FUNDING, LITHIUM PROCESS MARKET REGULATION & INITIATIVES LOW COST & STRONG CASH THE RIGHT TEAM RAPIDLY ADVANCING RESILIENT POSITION, FULLY FOR THE JOB LITHIUM PROJECT ECOMOM
Slide 23: Thank You
@VulcanEnergyRes v-er.com info@v-er.eu ASX:VUL FRA:6KO Thank You PUBLIC RELATIONS EU Germany Australia
Slide 24: Appendices
VULCAN ENERGY W ZERO CARBON LITHIUM™ Y Appendices
Slide 25: Table of Appendices
Table of Appendices o Appendix 1: Vulcan’s Renewable Project Description o Appendix 2: The fossil-nuclear era in Europe is coming to an end o Appendix 3: EU Map Lithium-ion Battery Capacity o Appendix 4: EU Regulatory Support o Appendix 5: The New EU Battery Regulation o Appendix 6: Vulcan financial
Slide 26: Appendix 1: Vulcan's Renewable Project Description
Regulations & Appendix 1: Vulcan’s Renewable Project Description Initiatives Germany European Union 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 Germany systems European Battery Alliance New industry for
Slide 27: Appendix 2: The fossil-nuclear era in Europe is coming to an end
Appendix 2: The fossil-nuclear era in Europe is coming to an end 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 engine bans in France, Be
Slide 28: Appendix 3: EU Map Lithium-ion Battery Capacity
Appendix 3: EU Map Lithium-ion Battery Capacity Brandenburg, 2021 Brandenburg, 2021 At least 20GWh RAMP UP TO 8-12 GWh Bitterfeld, 2022 >800GWh LITHIUM-ION Salzgitter, 2025 40GWh 16 GWh BATTERY CAPACITY Spain, Eastern Europe, etc. Wroclaw, 2018 PLANNED BY 2030 4x40GWh 6 GWh, LATER 70 GWh Erfurt, 202
Slide 29: Appendix 4: EU Regulatory Support
Appendix 4: EU Regulatory Support GREEN SUPPLY CHAIN LOCAL SUPPLY CHAIN New EU Battery Regulation including: European Battery Alliance: create a competitive and fully • Responsible sourcing of raw materials such as integrated battery manufacturing chain in Europe. lithium • CO2 footprint threshold f
Slide 30: Appendix 5: The New EU Battery Regulation
Appendix 5: The New EU Battery Regulation Other EU measures and initiatives supporting lithium: 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 Critical 2. CO
Slide 31: Appendix 6: Vulcan financially supported by the EU
Appendix 6: Vulcan financially supported by the EU 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, and liaising with EU
Slide 32: Appendix 7: Vulcan & Circulor lithium traceability
Appendix 7: Vulcan & Circulor to establish world-first full lithium traceability & transparency across the EU supply chain Circulor offers a software solution that enables customers to track raw materials and CO2 emissions through supply chains to demonstrate responsible sourcing and sustainability.
Slide 33: Appendix 8: Vulcan to offset CO2 penalties for automakers
Appendix 8: Vulcan to offset CO2 penalties for automakers 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 lead to heav
Slide 34: Appendix 9: Vulcan Energy's Board
Appendix 9: Vulcan Energy’s Board VULCAN ENERGY RESOURCES LTD - BOARD Gavin Rezos Dr. Francis Wedin Dr. Horst Kreuter Annie Liu Dr. Heidi Grön Josephine Bush Ranya Alkadamani Julia Poliscanova Rob Ierace CHAIR MANAGING DIRECTOR CO-FOUNDER & NON-EXEC NON-EXEC NON-EXEC NON-EXEC SPECIAL CFO / COMPANY &
Slide 35: Appendix 10: Largest Lithium Resource in Europe
Appendix 10: Largest Lithium Resource in Europe SUFFICIENT TO SUPPLY >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 2.27 Fra
Slide 36: Appendix 11: Brine Composition Comparison
Appendix 11: Brine Composition Comparison 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 sampling”. Comparison of Vulcan’s January 2021 Uppe
Slide 37: Appendix 12: Process Flow Sheet
Appendix 12: Process Flow Sheet Vulcan has IP protection around flowsheet 1 • Hot brine extracted from the ground and generates steam 1 that powers turbines and produces renewable Make-up water electricity • Standard geothermal Brine feed Direct Geothermal production wells successfully Plant Lithium
Slide 38: Appendix 13: Adsorption Process Step 1
Appendix 13: Adsorption Process Step 1 Geothermal brine has a high salinity – it contains ions of various sizes and electric charges. Water molecules surrounding the ions make up a hydration shell. Small lithium ions require a double hydration shell to stabilize their electric charge in the solution
Slide 39: Appendix 14: Adsorption Process Step 2
Appendix 14: Adsorption Process Step 2 When the loaded DLE material is washed with water, an excess of free water molecules becomes available to the lithium ions. Formation of a double hydration shell is an energetically favored process, which drives the desorption of the lithium ions from the surfa
Slide 40: Appendix 15: Agreement To Acquire GeoThermal Engineering GmbH
Appendix 15: Agreement To Acquire GeoThermal Engineering GmbH GeoT is a planning and consultancy company for deep geothermal energy projects, based in the Binary Cycle Upper Rhine Valley, Germany 1 Geothermal Plant • Highly credentialed scientific team with >100 years of combined world-leading exper
Slide 41: Appendix 16: Agreement To Acquire Gec-Co
Appendix 16: Agreement To Acquire Gec-Co Gec-Co Global Engineering is a consultancy company focused on deep geothermal projects at surface: Binary Cycle power plant, heat stations, drill pads, and permitting. 1 Geothermal Plant • More than 20 years experience in geothermal. Agreement is in line with
Slide 42: Appendix 17: Agreement With DuPont To De-Risk DLE
Appendix 17: Agreement With DuPont To De-Risk Direct Lithium Extraction Further Direct Lithium Dupont, a Fortune 500 Top 50 company, is one of the world's largest producers 2 Extraction Plant of specialty chemicals Agreement is in line with Vulcan’s strategy: • Collaboration agreement signed with Du
Slide 43: Appendix 18: Project Economics - CAPEX
Appendix 18: Project Economics - CAPEX ENERGY BUSINESS LITHIUM BUSINESS 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: €226M Cap
Slide 44: Appendix 19: Project Economics - Possible Structures
Appendix 19: Project Economics - Possible Structures Full project developed at the same time but separated Phase 1 developed first, separated in two different Phase 2 developed second, separated in two in two different businesses: Energy and Lithium. businesses: Energy and Lithium. different busines
Slide 45: Appendix 19: Project Economics - Possible Structures
Appendix 19: 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 integrated under one business. integrated business integrated business FULL PROJECT PHASE 1 PHASE 2 NO PHASING 2024 Start 2025 Start 2
Slide 46: Appendix 20: Project Economics - Sensitivities Analysis
Appendix 20: Project Economics - Sensitivities Analysis Project economics are resilient to extreme case scenarios Full 40kt/y lithium business (DLE&CLP) developed at the same time with no phasing. Not including geothermal. LITHIUM BUSINESS Post Tax NPV Sensitivity Post Tax IRR Sensitivity Full Proje
Slide 47: Appendix 21: information for slide 8 & 9
Appendix 21: information for slide 8 & 9 Company Code Project Stage Resource Resources M Resource Contained LCE Information Source Category tonnes Grade (Li2O) Tonnes European Indicated & Corporate Presentation ASX: EMH Cinovec PFS Complete 695.9 0.42 7.22 Metals Inferred Released October 2020 ASX A
Slide 48: Thank You
@VulcanEnergyRes v-er.com info@v-er.eu ASX:VUL FRA:6KO Thank You PUBLIC RELATIONS EU Germany Australia
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