Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (January 2021)
34 slides from Vulcan Energy Resources's investor presentation, Jan 15, 2021
Slide 1: Zero Carbon Lithium
For personal use only Zero Carbon Lithium ®
Slide 2: Disclaimer & Cautionary Statement
Disclaimer & Cautionary Statement The information contained in this presentation has been prepared by Vulcan Energy Resources Ltd. 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. This
Slide 3: Lithium Industry Overview
Lithium Industry Overview EU: FASTEST GROWING LITHIUM SUPPLY CHAIN RISKS LEAD HIGH CARBON FOOTPRINT OF For personal use only MARKET IN THE WORLD TO REGIONALISATION EXISTING SUPPLY CHAIN Industry: Industry: Industry: • More investment into EVs in the EU than China • Investment to develop a fully inte
Slide 4: Vulcan – Zero Carbon Lithium
Vulcan – Zero Carbon Lithium® LITHIUM BUSINESS €2.8Bn NPV¹ Pre-tax 31% IRR¹ Pre-tax For personal use only 40Ktpy LiOH¹ In the heart of the €474M starting CAPEX² World-first Zero Carbon Agreement with German Lithium® Project fastest growing lithium geothermal operators €2,640/t LiOH OPEX³ market in t
Slide 5: Vulcan's Renewable Energy & Lithium Project Initiatives
Regulations & Vulcan’s Renewable Energy & Lithium Project 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 Germany systems European Battery Alliance N
Slide 6: Environmental, Social and Governance Alignment
Environmental, Social and Governance Alignment Environment Social Governance For personal use only First & only Zero Carbon Supporting local and European economy Listing, location & implementation Lithium project in the world: with sustainable employment: of strong measures: • Producing lithium & re
Slide 7: Europe: Fastest Growing Lithium Market
Europe: Fastest Growing Lithium Market Europe: For personal use only • More investment into EVs than in China 400 EU LI-ION BATTERY PRODUCTION LiOH Thousand Tonnes • Fastest growing lithium-ion battery production & LiOH DEMAND center in the world 350 Equivalent to world’s • Fastest growing market fo
Slide 8: The New EU Battery Regulation
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 list of Crit
Slide 9: Our Zero Carbon Lithium Project
For personal use only Our Zero Carbon Lithium® Project 9
Slide 10: We Scoured the Globe to Find the Right Project
We Scoured the Globe to Find the Right Project For personal use only We had the lithium expertise to know LITHIUM CONCENTRATION IN BRINE (MG/L LITHIUM) that Zero Carbon Lithium® production was possible using modern extraction 181 methods, provided a deep geothermal 181 brine reservoir could be found
Slide 11: Largest Lithium Resource in Europe
Largest Lithium Resource in Europe SUFFICIENT TO SUPPLY >400 MILLION ELECTRIC For personal use only VEHICLES Germany Probable Reserve 0.7 Ortenau License Indicated Resource 2.06 Inferred Resource 10.8 Total 12.86 Probable Reserve 0.42 License Indicated Resource 0.83 Taro Inferred Resource 1.44 Total
Slide 12: Project Resource
Project Resource For personal use only Snapshot of 3D geological model from Snapshot 3D geological model from 2D 3D seismic data in the Taro license seismic data in the Ortenau license Geothermal and DLE plants B1 & B2 Geothermal and DLE plants C1, C2 & C3 2.27Mt LCE Resource 12.86Mt LCE Resource 12
Slide 13: At the Center of Fastest Growing Lithium Market
At the Center of Fastest Growing Lithium Market 500GWH LITHIUM-ION For personal use only Brandenburg, 2021 Brandenburg, 2021 At least 20GWh RAMP UP TO 8-12 GWh Salzgitter, 2024 Bitterfeld, 2022 BATTERY CAPACITY 16 GWh, LATER 24 GWh 16 GWh PLANNED BY 2030 Erfurt, 2022 Wroclaw, 2018 x50 14 GWh LATER 1
Slide 14: Commercially Mature Technologies Combined
Commercially Mature Technologies Combined Our process replicates existing operations taking place commercially across the world. For personal use only What is unique about us is the combination of those different steps. 1 2 3 Binary Cycle Direct Lithium Central Lithium Geothermal Plant Extraction Pl
Slide 15: Our Zero Carbon Lithium Process
Our Zero Carbon Lithium® Process Vulcan has IP protection around flowsheet 1 • Hot brine extracted from the For personal use only ground and generates steam 1 that powers turbines and produces renewable Make-up water electricity • Standard geothermal Brine feed Direct Geothermal production wells suc
Slide 16: Our Zero Carbon Lithium Process: Environmental footprint
Our Zero Carbon Lithium® Process Environmental footprint of lithium production routes For personal use only 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 dra
Slide 17: Project Structure: Dual Purpose Renewable Project
Project Structure: Dual Purpose Renewable Project Energy Business: Electricity & Heat, Lithium Business: Zero Carbon Lithium® For personal use only 8MW 14MW 17MW 17MW 17MW ENERGY BUSINESS 1 Binary Cycle Geothermal Plant Geothermal Plant B1 Geothermal Plant B2 Geothermal Plant C1 Geothermal Plant C2
Slide 18: Project Economics: CAPEX
Project Economics: CAPEX ENERGY BUSINESS LITHIUM BUSINESS For personal use only 1 2 3 FULL PROJECT Geothermal Plant DLE Plant 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: €
Slide 19: Project Economics: OPEX Comparison
5. Project Economics: OPEX Comparison Low-cost South American brine and Australian/Chinese mineral conversion vs Vulcan’s process For personal use only LiOH via hard-rock processing $6,855/t LiOH $3,500¹ $3,355² €5,760/t LiOH Feedstock Mineral Cost Conversion Cost Vulcan’s “feedstock” is low cost an
Slide 20: Project Economics: Lithium Prices – Recovery Mode
Project Economics: Lithium Prices – Recovery Mode Much more stability in global contract prices than in the spot market specific to china For personal use only Spot Prices LiOH Prices – Historical and Forecast 22,000 Today 20,000 18,000 Projected Contract Prices 16,000 14,000 12,000 10,000 8,000 6,0
Slide 21: Project Economics: Energy Revenues
Project Economics: Energy Revenues Vulcan’s Project is expected to generate dual revenue, from lithium sales geothermal renewable energy For personal use only Bans for Coal phase-out fossil heating Energy Business Revenues in Germany systems Zero Carbon Heat: Energy in the form of heat can be sold t
Slide 22: Project Economics: Possible Structures
Project Economics: Possible Structures Full project developed at the same time but Phase 1 developed first, separated in two different Phase 2 developed second, separated in two For personal use only separated in two different businesses: Energy and businesses: Energy and Lithium. different business
Slide 23: Project Economics: Sensitivities Analysis
Project Economics: Sensitivities Analysis Project economics are exceptionally resilient to extreme case scenarios For personal use only 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
Slide 24: The Vulcan Zero Carbon Lithium Team: Board
The Vulcan Zero Carbon Lithium® Team: Board Lithium, renewable energy & project finance experience For personal use only Dr. Francis Wedin Dr. Horst Kreuter Gavin Rezos Ranya Alkadamani Rob Ierace MANAGING DIRECTOR CO-FOUNDER & CHAIR – INVESTMENT NON-EXECUTIVE DIRECTOR – CFO / COMPANY & FOUNDER-CEO
Slide 25: Management, Technical Team & Consultants
Management, Technical Team & Consultants World-renowned geological, chemical & engineering expertise For personal use only Dr Katharina Gerber Dr. Thomas Aicher Vincent Ledoux Pedailles Jochen Rudat Alex Grant Thorsten Weimann LITHIUM PROJECT LITHIUM CHEMICAL VICE PRESIDENT – ELECTROMOBILITY DLE TEC
Slide 26: Project Timeline
Project Timeline 2021 2022 2023 2024 2025 For personal use only Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Development PFS Piloting Test Work DFS Financing Phase 1 Geo & DLE Permitting (Pre & Final) Drilling Construction Production Phase 2 Geo & DLE 3D Seismic & Analysis Permitting
Slide 27: Share Price & Capital Structure
Share Price & Capital Structure For personal use only ASX : VUL Shares on Issue 79,880,997 64% Options (28.5c expiring in January 2021) 2,541,767 RETAIL Performance Milestone Shares* 8,800,000 Performance Rights* 12,500,000 Market Capitalization at $4.99 (undiluted) ~$399M Enterprise Value at $4.99
Slide 28: Conclusion
Conclusion For personal use only WORLD’S 1ST & STRONG & SUPPORTED BY EUROPE’S LOCATION CENTRE LOCAL THE RIGHT RAPIDLY ONLY ZERO- RESILIENT PFS EU FUNDING, LARGEST LITHIUM OF FASTEST PARTNERS & TEAM FOR ADVANCING CARBON LITHIUM® ECOMOMICS REGULATION & RESOURCE GROWING MARKET WORLD LEADING THE JOB LIT
Slide 29: Appendix
For personal use only Appendix
Slide 30: Appendix 1: Vulcan financially supported by the EU
Appendix 1: Vulcan financially supported by the EU 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
Slide 31: Appendix 2: Vulcan to offset CO2 penalties for automakers
Appendix 2: Vulcan to offset CO2 penalties for automakers For personal use only 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 legisl
Slide 32: Appendix 3: The fossil-nuclear era in Europe is coming to an end
Appendix 3: 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 33: Appendix 4: Information for slide
Appendix 4: Information for slide 10 & 11 Company Code Project Stage Resource Resources M Resource Contained LCE Information Source Category tonnes Grade (Li2O) Tonnes For personal use only European Indicated & Corporate Presentation ASX: EMH Cinovec PFS Complete 695.9 0.42 7.22 Metals Inferred Rele
Slide 34: Thank You
@VulcanEnergyRes v-er.com info@v-er.eu For personal use only ASX:VUL FRA:6KO Thank You
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