Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (September 2021)
40 slides from Vulcan Energy Resources's investor presentation, Sep 3, 2021
Slide 1: Vulcan Energy - Zero Carbon Lithium
VULCAN ENERGY W ZERO CARBON LITHIUM™ ei) ZERO ZERO CARBON CARBON ENERGY LITHIUM
Slide 2: Disclaimer & Cautionary Statement
Disclaimer & Cautionary Statement For personal use only The information contained in this presentation has been prepared To achieve the outcomes of Vulcan’s Pre-Feasibility Study, initial by Vulcan Energy Resources Ltd (VUL, Vulcan or the Company). funding in the order of €700m (including contingenc
Slide 3: How to support 30 million EVs by 2030 in the EU?
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 2030 Lithium Market In The World Of Lithium Hydroxide 0.8 0.7 EU: 0.6 0% MILLIONS LCE 0.5 0.4 0.3 0.2 0.1 0.0 CHINA: 80% 2019 2020 2021 2022 2023 2024
Slide 4: Auto and battery-makers committing to carbon neutrality
Auto and battery-makers committing to carbon neutrality For personal use only Lithium production emits more CO2 per tonne than Nickel and Cobalt: ‘Reducing carbon footprint is not just reducing vehicle emissions while they are being operated, but also […] Carbon Water from the company's resource ext
Slide 5: The EU stepping in to support and regulate the industry
The EU stepping in to support and regulate the industry For personal use only Green Supply Chain Local Supply Chain Carbon Border European Battery New EU Battery Critical Raw Adjustment Regulation Alliance Materials List Mechanism Battery EIB new energy European Raw ISO/TC 333 Lithium Passport lendi
Slide 6: Vulcan: a Zero Carbon Lithium & Renewable Energy Development Company
Vulcan: a Zero Carbon Lithium™ & Renewable Energy Development Company For personal use only In the heart of the World-first Zero fastest growing lithium Strong cash Carbon Lithium™ market in the world position Company ENERGY BUSINESS 74MW Renewable Electricity Largest JORC Team of world Geothermal &
Slide 7: We scoured the globe to find the right conditions
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 to In brine (mg/L Lithium) know that a Zero Carbon Lithium™ Project was possible using modern extraction methods, 181 pro
Slide 8: We've defined the largest lithium resource in Europe
We’ve defined the largest lithium resource in Europe For personal use only Germany France • Very large license package • Largest lithium resource in Europe by far: 15.85Mt LCE • Significant ability to scale up production as market grows: advantage over mined sources “ Large enough to supply millions
Slide 9: Vulcan's renewable energy & lithium chemicals project
Vulcan’s renewable energy & 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 electricity Lithium chloride sold to the grid transported to the 2 5 central lithium plant Direc
Slide 10: Commercially available technologies combined & adapted to be fossil-free
Commercially available technologies combined & adapted to be fossil-free For personal use only Our process incorporates technologies with commercial analogues across the world. What is unique about us is the combination of these different steps, and our strict exclusion of fossil fuels to power our
Slide 11: Dual purpose renewable energy and battery chemicals project
Dual purpose renewable energy and battery chemicals project For personal use only Target metrics from Pre-Feasibility Study: PHASE 1 - €0.7Bn PHASE 2 - €1.1Bn CAPEX Energy Business, Zero Carbon Lithium™ Business: ENERGY BUSINESS 8MW 14MW 17MW 17MW 17MW 1. Binary Cycle Geothermal Plant Geothermal Pla
Slide 12: Dual revenues: energy and lithium
Dual revenues: energy and lithium For personal use only ENERGY BUSINESS $/t LITHIUM BUSINESS Decarbonizing Lithium Hydroxide Prices the grid Renewable Electricity: Geothermal energy in the form of electricity is sold to the grid 22,000 20,000 July 2021: $17,600/t Feed-in Tariff Guaranteed 18,000 €25
Slide 13: Potential for very low OPEX operation
Potential For personal use only for Very Low OPEX Operation Potential for very low OPEX operation 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
Slide 14: Robust project financials
Robust project financials For personal use only 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 LITHIUM BUSINESS 16% IRR Pre-tax 13% IRR Post-tax 31% IRR Pre-tax 26% IRR Post-tax €226M CAPEX Phase I €0.066/KWh O
Slide 15: Peerless environmental credentials
Peerless 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 wo
Slide 16: Lithium Chemicals: improving the global battery chemicals supply chain
Lithium Chemicals Materially improving the global battery chemicals supply chain Spodumene For personal use only ENVIRONMENT Process development and R&D Strict Zero development of world-first lithium Carbon focus and renewable energy co-production process in Pre- Feasibility Study: Zero Carbon Lithi
Slide 17: Securing long term lithium supply contracts
Securing long term lithium supply contracts For personal use only LG ENERGY SOLUTION 19TH JULY 2021 ▪ Binding lithium hydroxide offtake term sheet signed with LG Energy Solution ▪ Initial 5-year term which can be extended by further 5 years ▪ Start of commercial delivery set for 2025 ▪ LGES to purch
Slide 18: Lithium Market Dynamics
Lithium Market Dynamics 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 combined “Lithium prices are likely to be impacted by gree
Slide 19: Vulcan Zero Carbon Lithium Board
Vulcan – Zero Carbon Lithium™ Board For personal use only Dr. Francis Wedin Gavin Rezos Josephine Bush Dr. Heidi Grön Managing Director & Chair Non-Executive Director Non-Executive Director Founder-CEO Founder of Vulcan Zero Carbon Lithium™ Executive Chair/CEO positions of two Dr. Grön is a chemical
Slide 20: Team - Australia and International
Vulcan – Zero Carbon Lithium™ Team – Australia and International For personal use only Vincent Ledoux-Pedailles Rob Ierace Vice President Chief Financial Officer - – Business Development Australia Robert is a Chartered Accountant and Chartered Secretary with Vincent was previously Executive Director
Slide 21: Team - Germany
Vulcan – Zero Carbon Lithium™ Team - Germany Thorsten Weimann Markus Ritzauer Dr Stephen Harrison Chief Financial Officer - For personal use only Chief Operating Officer Chief Technical Officer Germany 70+ People Expert in geothermal and drilling technology, with more than 25 years Markus has over 2
Slide 22: The story so far: progress to date
The story so far: progress to date For personal use only 2019 2020 2021 Full Year Full Year Q1 Q2 Q3 Q4 Acquisition of EU focused Positive Scoping Study Positive Pre-Feasibility EU sustainable battery & CO2 policy New exploration license granted Vulcan Lithium Project published Study published exper
Slide 23: Target project timeline
Target project timeline 2021 2022 2023 2024 2025 + For personal use only Project Development Financing Project Financing Drilling 2 Geo Plants Exploration Further Exploration 2 DLE Plants Data Construction 1 CLP Energy 22MW PFS Phase 1 Definitive/Bankable Feasibility Study Lithium 15Kt/y Phase 1 Pro
Slide 24: Share price and capital structure
Share price and capital structure ASX : VUL For personal use only Shares on Issue 108,791,364 Performance Milestone Shares* 4,491,174 Performance Rights* 11,238,688 Market Capitalization at $13.43 (undiluted) ~$1.46B Enterprise Value at $13.43 (undiluted) ~$1.35M Cash Position ~$111M Top 20 Sharehol
Slide 25: Conclusion
Conclusion For personal use only World’s 1st & only Zero Europe’s largest lithium Location centre Supported By EU Carbon Lithium™ Resource of fastest growing funding, regulation Company market & initiatives Low cost & resilient Strong cash position The right team Rapidly advancing financials for the
Slide 26: Appendices
For personal use only Appendices 26
Slide 27: Appendix 1: Vulcan's Renewable Project Description
Regulations & Appendix 1: Vulcan’s Renewable Project Description 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 All
Slide 28: 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 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 eng
Slide 29: Appendix 3: EU lithium-ion battery capacity
Appendix 3: EU lithium-ion battery capacity Brandenburg, 2021 Brandenburg, 2021 RAMP UP TO 8-12 GWh >1,000GWh LITHIUM-ION For personal use only At least 20GWh Salzgitter, 2025 Bitterfeld, 2022 BATTERY CAPACITY 40GWh 16 GWh PLANNED BY 2030 Spain, Eastern Europe, etc. Wroclaw, 2018 4x40GWh 6 GWh, LATE
Slide 30: Appendix 4: The New EU Battery Regulation
Appendix 4: 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 31: Appendix 5: Vulcan supported by EU-backed group
Appendix 5: 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, and
Slide 32: Appendix 6: Vulcan & Circulor lithium traceability
Appendix 6: 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 sourci
Slide 33: Appendix 7: Largest Lithium Resource in Europe
Appendix 7: Largest Lithium Resource in Europe For personal use only 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 France Probable Reserve 1.12 Vulca
Slide 34: Appendix 8: Brine Composition Comparison
Appendix 8: 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 sampling”. Compari
Slide 35: Appendix 9: Project Economics - CAPEX
Appendix 9: 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
Slide 36: Appendix 10: Project Economics - Possible Structures
Appendix 10: Project Economics - Possible Structures For personal use only Full project developed at the same time but separated in Phase 1 developed first, separated in two different Phase 2 developed second, separated in two different two different businesses: Energy and Lithium. businesses: Energ
Slide 37: Appendix 11: Project Economics - Possible Structures
Appendix 11: Project Economics - Possible Structures For personal use only 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 2
Slide 38: Appendix 12: Information for resource comparison slide
Appendix 12: information for slide 8 & 9 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 Relea
Slide 39: Appendix 13: Partnership with Nico Rosberg & Rosberg X Racing
Appendix 13: Partnership with Nico Rosberg & Rosberg X Racing Extreme-E Team For personal use only • Vulcan Energy Resources Ltd. and Mr. Nico Rosberg and the Rosberg X Racing (RXR) electric racing team in the Extreme-E competition have signed a partnership and sponsorship agreement • Mr. Rosberg, a
Slide 40: Thank You
@VulcanEnergyRes v-er.eu info@v-er.eu For personal use only ASX:VUL FRA:6KO Thank You P U B L I C R E L AT I O N S EU/Germany Australia 40
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