Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Shareholder Meeting (November 2021)
53 slides from Vulcan Energy Resources's shareholder meeting presentation, Nov 29, 2021
Slide 1: 2021 Annual General Meeting – Managing Director's Address
Vulcan Energy For personal use only Resources 2021 Annual General Meeting Managing Director’s Address Monday, 29 November 2021 Dr Francis Wedin, Managing Director and Founder-CEO
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The information contained in this presentation ("Presentation") has been prepared by Vulcan Energy Resources Ltd ("Vulcan" or the "Company") and is subject to the disclosures contained in the "Important Information" section of this
Slide 3: 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 4: Goal to become world's first Zero Carbon Lithium and renewable energy company
Vulcan: Goal to become world’s first Zero Carbon Lithium™ & renewable energy company For personal use only Goal to become world’s first In the heart of the Strong cash integrated Zero Carbon fastest growing lithium position Lithium™ and renewable battery market in the energy company world1 ENERGY BU
Slide 5: Bringing the Zero Carbon Lithium Project to fruition; 2021 milestones
Bringing the Zero Carbon Lithium™ Project to fruition; 2021 milestones For personal use only Pre-Feasibility Study $320m capital raised Team growth Additional permits Frankfurt Exchange Post-tax NPV €2.1b Goldman Sachs and Incl. acquisition of Growth of largest Appointed Berenberg to (full project;
Slide 6: Right place, right time
For personal use only Right place, right time for fully integrated renewable energy and sustainable lithium chemicals business in Europe
Slide 7: How to support 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 20301 Lithium Market In The World2 Of Lithium Hydroxide 0.8 0.7 0.6 EU: 0% MILLIONS LCE 0.5 0.4 0.3 0.2 0.1 0.0 2020 2030 CHINA: 80 - 90% Source: Publ
Slide 8: Auto battery and cathode-makers committing to carbon neutrality
Auto battery and cathode-makers committing to carbon neutrality For personal use only ‘Reducing carbon footprint is not just reducing vehicle emissions while they are being operated, Current lithium production has a significant but also […] from the company's resource environmental footprint: extrac
Slide 9: International and European agreement and regulation supporting renewables and electrification
International and European agreement and regulation supporting renewables and electrification of transport For personal use only Glasgow Climate Pact German Federal coalition Green supply chain Local supply chain Calls upon Parties to accelerate Coalition agreement2 • New EU Battery Regulation • Eur
Slide 10: Delivering the Zero Carbon Lithium Project
For personal use only Delivering the Zero Carbon Lithium™ Project
Slide 11: 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 In brine (mg/L Lithium) to know that a Zero Carbon Lithium™ Project was possible using modern extraction 181 methods, pro
Slide 12: We've defined the largest JORC lithium resource in Europe
We’ve defined the largest JORC lithium resource in Europe For personal use only Germany Valley hine Upper R France • Large license package “ • Largest lithium resource in Europe: 15.85Mt LCE • Significant potential to scale up production as market grows: advantage over mined sources Large enough to
Slide 13: Vulcan's renewable energy and lithium chemicals project
Vulcan’s renewable energy and 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 Lithium chloride electricity and/or transported to the heat sold to the grid 2 5 central lithi
Slide 14: Commercially available technologies combined and adapted to be fossil-free
Commercially available technologies combined and 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 proposed combination of these different steps, and our strict exclusion of fossil fuels to
Slide 15: Lithium division update
Lithium division update For personal use only Laboratory work • Lab and pilot studies for DFS active since April 2021, generating data for DFS • Expanded laboratory to be opened in early 2022 Pilot plant operations • Pilot plant 1, located at an operational geothermal plant, focused on: • Brine pre-
Slide 16: Proposed dual purpose renewable energy and battery chemicals project
Proposed dual purpose renewable energy and battery chemicals project Energy Business, Zero Carbon Lithium™ Business: Target metrics from Pre-Feasibility Study: For personal use only Binary Cycle Geothermal Plant PHASE 1 - €0.7Bn PHASE 2 - €1.1Bn CAPEX ENERGY BUSINESS 8MW 14MW 17MW 17MW 17MW Geotherm
Slide 17: Dual revenues: energy and lithium
Dual revenues: energy and lithium For personal use only ENERGY BUSINESS $/t LITHIUM BUSINESS Decarbonising Lithium hydroxide prices the grid Renewable Electricity: Geothermal energy in the form of electricity is sold to the grid $ 30,000 Offtake for all of Vulcan’s Nov 2021: $29,000/t Feed-in Tariff
Slide 18: Securing long term lithium supply contracts
Securing long term lithium supply contracts For personal use only § Binding lithium hydroxide offtake § Binding lithium hydroxide offtake § Binding lithium hydroxide § Binding lithium hydroxide offtake agreement agreement offtake term sheet agreement § Initial 6-year term , starting in § Initial 5-y
Slide 19: Potential for very low OPEX operation
Potential for for Potential Very Low very OPEX low OPEX Operation operation Select South American brine and Australian/Chinese mineral conversion vs Vulcan’s process For personal use only LiOH VIA HARD-ROCK PROCESSING US$11,702/t LiOH US$9,240¹ US$2,462² Feedstock €9,830/t LiOH Mineral Cost Conversi
Slide 20: Robust target project financials and production metrics from PFS
Robust target project financials and production metrics from PFS For personal use only ENERGY BUSINESS LITHIUM BUSINESS 74MW Power* 40,000tpy LiOH * Renewable heat sales to also be examined in DFS €0.7Bn NPV Pre-tax €0.5Bn NPV Post-tax €2.8Bn NPVLITHIUM €1.9Bn NPV Post-tax Pre-tax BUSINESS 16% IRR P
Slide 21: Working hard to de-risk the project further
Working hard to de-risk the project further and address all identified risks Risk Mitigation For personal use only Drill rigs that can reach the deep geothermal reservoirs are Vulcan has agreed to acquire two electric drill rigs, re-purposed from the oil and gas industry, Availability of key in shor
Slide 22: Community engagement: building trust and understanding
For personal use only Community engagement: building trust and understanding
Slide 23: Lithium Chemicals: improving the global battery chemicals supply chain
Lithium Chem icals Materially improving the global battery chemicals supply chain Spodumene For personal use only ENVIRONMENT Process development and R&D Strict Zero development of world’s first lithium Carbon focus and renewable energy co- production process in Pre- Feasibility Study: Zero Carbon T
Slide 24: Leading environmental credentials
Leading 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 w
Slide 25: Four pillars of community engagement
Four pillars of community engagement For personal use only Public affairs Media engagement Community outreach Partnerships/ cooperation • Discuss and exchange • Raise awareness • Community roadshows, • Conduct research ideas regularly with through in-depth school presentations, projects with politic
Slide 26: Government support for geothermal technology and renewable energy projects
Government support for geothermal technology and the expansion of renewable energy projects For personal use only Germany’s new Federal Coalition targets1 State government of Baden-Württemberg Engaging with government • Launched a task force aimed at halving the planning and approval timeline for th
Slide 27: The right team for the job
For personal use only The right team for the job
Slide 28: Vulcan – Zero Carbon Lithium Team
Vulcan – Zero Carbon Lithium™ Team Vincent Ledoux-Pedailles Dr Stephen For personal use only Thorsten Markus Ritzauer Beate Holzwarth Vice President Weimann Chief Financial Harrison – Business Development Chief Communication Officer Chief Operating Officer - Germany Chief Technical Officer Officer V
Slide 29: Vulcan – Zero Carbon Lithium Board
Vulcan – Zero Carbon Lithium™ Board For personal use only Dr. Francis Wedin Gavin Rezos Dr. Heidi Grön Josephine Bush Managing Director & Chair Non-Executive Director Non-Executive Director Founder-CEO Founder of Vulcan Zero Carbon Lithium™ Executive Chair/CEO positions of three Dr. Grön is a chemic
Slide 30: Delivering the Zero Carbon Lithium Project
For personal use only Delivering the Zero Carbon Lithium™ Project
Slide 31: Enabling renewable energy and decarbonisation through the Zero Carbon Lithium Project
Enabling renewable energy and decarbonisation through the Zero Carbon Lithium™ Project Vulcan Group: integrated, in-house capability to execute on our strategy For personal use only Renewable energy Lithium Sustainability Finance Customers Vulcan’s expertise and assets Gec-co Above-surface Carbon ne
Slide 32: Target project timeline
Target project timeline 2020 2021 2022 2023 2024 2025 + For personal use only Institutional Institutional Financing Financing Financing A$200M A$120M Drilling Project Equity Equity 2 Geo Plants 2 Sorption Plants Exploration Further exploration, 3D seismic surveys & acquisition, geological analysis C
Slide 33: Share price and capital structure
Share price and capital structure ASX : VUL For personal use only Shares on Issue 123,834,613 Performance Milestone Shares* 4,491,174 Performance Rights* 11,238,688 Market Capitalisation at $10.25 (undiluted) ~$1.27B Enterprise Value at $10.25 (undiluted) ~$0.98B Cash Position ~$290M Top 20 Sharehol
Slide 34: Conclusion
Conclusion For personal use only Goal to become world’s first Europe’s largest Location centre Supported By EU integrated Zero Carbon lithium Resource1 of fastest growing funding, regulation Lithium™ and renewable market2 & initiatives energy company Low cost & resilient Strong cash The right team R
Slide 35: Appendices
For personal use only Appendices
Slide 36: Lithium market dynamics favour sustainable lithium production
Lithium market dynamics favour sustainable lithium production 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 “Lithium prices are
Slide 37: Appendix 1: Integrated renewable energy and lithium project description
Regulations & Appendix 1: Vulcan’s integrated renewable energy and lithium project description 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 German
Slide 38: 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 39: Appendix 3: EU lithium-ion battery capacity
Appendix 3: EU lithium-ion battery capacity >1,000GWh LITHIUM-ION For personal use only BATTERY CAPACITY PLANNED BY 2030 Source: CIC energiGune 09/2021 39
Slide 40: 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 41: 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, an
Slide 42: 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 43: Appendix 7: largest JORC lithium resource in Europe
Appendix 7: largest JORC lithium resource in Europe For personal use only Germany Probable Reserve 0.7 Ortenau License Indicated Resource 2.06 Inferred Resource 10.8 Valley Total 12.86 hine Probable Reserve 0.42 License Indicated Resource Taro 0.83 Upper R Inferred Resource 1.44 Total 2.27 France Pr
Slide 44: 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 45: Appendix 9: target project economics from PFS - CAPEX
Appendix 9: target project economics from PFS - CAPEX ENERGY BUSINESS LITHIUM BUSINESS For personal use only FULL PROJECT 1 Geothermal Plant 2 Sorption Plant 3 CLP 2 geothermal plants: 2 Sorption plants: 1 Central Lithium Plant €473M PHASE 1 • GB1 – 8MW • SB1 – 8kt LiOH • CLP1 - 15kt LiOH 2024 Start
Slide 46: Appendix 10: Target project economics - possible structures
Appendix 10: Target project economics - possible structures Phase 1 developed first, separated in two different Phase 2 developed second, separated in two For personal use only Full project developed at the same time but separated in two different businesses: Energy and Lithium. businesses: Energy a
Slide 47: Appendix 11: Target project economics - possible structures
Appendix 11: Target 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 For personal use only integrated under one business. integrated business integrated business FULL PROJECT PHASE 1 PHASE 2 NO PH
Slide 48: Appendix 12: secured site for planned commercial lithium hydroxide plant
Appendix 12: Vulcan secured site for its planned commercial lithium hydroxide plant • Vulcan signed an agreement with chemical park management company Infraserv, to secure a site for its planned Central Lithium Plant (CLP) at the Höchst Chemical Park, For personal use only located just outside of Fr
Slide 49: Appendix 13: information for resource comparison
Appendix 13: information for slide 11 & 12 For personal use only Company1 Code Project Stage Resource Category Resources M tonnes Resource Grade (Li2O) Contained Mt LCE Information Source Tonnes Corporate Presentation July 2021 - Company European Metals ASX: EMH Cinovec PFS Complete Indicated & Infe
Slide 50: Appendix 14: partnership with Nico Rosberg & Extreme-E
Appendix 14: 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 51: Appendix 15: brine flow rates
Appendix 15: brine flow rates Until we drill our first wells, risks around flow rate will remain. However, Vulcan believes it has an appropriate level of confidence around its flow rates assumptions, based on the experience of its team, and state-of-the-art scientific tools, data and studies. For pe
Slide 52: Appendix 16: R&D projects
Appendix 16: R&D projects For personal use only Effeo Increasing efficiency of geothermal CROWDTHERMAL power plants Empowering the European public to directly participate in the via Project Management Jülich development of geothermal projects with the help of alternative financing schemes (crowdfund
Slide 53: Thank You
@VulcanEnergyRes v-er.eu info@v-er.eu ASX:VUL For personal use only FRA:6KO Thank You PUBLIC RELATIONS EU/Germany Media & Investor Relations Australia Beate Holzwarth Jessica Bukowski Chief Communication Officer PR & IR Manager bholzwarth@v-er.eu jbukowski@v-er.eu 53
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