Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (October 2024)
23 slides from Vulcan Energy Resources's investor presentation, Oct 8, 2024
Slide 1: Delivering Integrated Zero Carbon Lithium & Renewable Energy
DELIVERING INTEGRATED ZERO CARBON LITHIUM & RENEWABLE ENERGY ASX/FSE: VUL October 2024 1
Slide 2: Disclaimer
DISCLAIMER1 Disclaimer, Acknowledgement and Agreement. Vulcan, to the maximum extent permitted by law, expressly excludes and disclaims all liability (including, without limitation, any liability arising out of fault or negligence on the part of any person) for any direct, indirect, consequential or
Slide 3: Empowering a Carbon Neutral Future
EMPOWERING A CARBON NEUTRAL FUTURE High quality strategic shareholders, dual listed structure ASX/FSE Prime Standard / VUL Vulcan Values Shares on issue / ~188 million CLIMATE CHAMPION Market Capitalisation 1 / ca. €530m (A$866m) DETERMINED Cash2 / €60.6m INSPIRING High quality strategic shareholder
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Integrated ZERO CARBON LITHIUM & renewable energy Pricing stability: Offtake secured with Tier One automotive and battery customers First quartile target lithium production costs1: Integrated heat and power, compact supply chain, drive low Li production costs Optimisation and p
Slide 5: Offtake Advantage: Tier One Customers
OFFTAKE ADVANTAGE: TIER ONE CUSTOMERS Fully contracted lithium production drives pricing stability Low counterparty risk: High quality European-focused offtake partners Long term relationships: All offtake agreements binding, take-or-pay, with agreed pricing mechanisms, 5-10 years in duration Pricin
Slide 6: Market Advantage: Europe
MARKET ADVANTAGE: EUROPE Global Supply / Demand Balance Lithium supply in a structurally short market Global supply for LHM looks challenged from 2025 onwards Supply/demand balance even more acute in Europe, which finds itself structurally undersupplied LHM product qualification process has the pote
Slide 7: Low Cost, Low Impact Upstream Lithium & Energy Production
LOW COST, LOW IMPACT UPSTREAM LITHIUM & ENERGY PRODUCTION Phase One Lionheart - fully integrated lithium and renewable power. From Europe, for Europe 2 3 4 1 7 1 Vulcan’s 100% owned Insheim Geothermal Power Plant (operating) 2 Lithium Extraction 3 G-LEP – location secured, awaiting construction 4 Sc
Slide 8: Phase One: Lionheart
PHASE ONE: LIONHEART Phase One of Vulcan’s Zero Vulcan’s 24kt pa LHM Phase 1 Project in numbers1 Carbon Lithium 3 Project, designated Lionheart, will produce both renewable €3.9B (A$5.6 billion) pre-tax NPV8 / €2.6B (A$4.2B) post-tax NPV8 geothermal energy and lithium Target revenues of €705m per an
Slide 9: Integrated Business: Competitive Advantage
INTEGRATED BUSINESS: COMPETITIVE ADVANTAGE Use of renewable heat enables low cost and CO2 Fully integrated renewable energy generation and lithium production Simplified two-stage process from lithium-rich brine to battery-ready product Commercially leading adsorption-type lithium production driven b
Slide 10: Phase One Advantage: Supply Chain Efficiency
Höchst Chemical Park PHASE ONE ADVANTAGE: SUPPLY CHAIN EFFICIENCY Central Lithium Plant planned location Outstanding location, from resource to customer Frankfurt 130km covers Vulcan’s entire value chain, from wellsite to battery-ready 20km product, making it one of the most compact lithium-EV suppl
Slide 11: Efficient Production = 1st Quartile Cost Curve Position
EFFICIENT PRODUCTION = 1ST QUARTILE COST CURVE POSITION Leveraging waste renewable heat creates lowest quartile cost of lithium production Global projected 2035 lithium hydroxide C1 cost curve Non-integrated Mica Integrated Mica Integrated Spodumene - RoW Brine Non-integrated Spodumene Integrated Sp
Slide 12: Optimisation and Qualification: Upstream
OPTIMISATION AND QUALIFICATION: UPSTREAM Europe’s first fully-domestic production of lithium chemicals1 Production of LiCl began in April 2024, using Adsorption-Type DLE Early results up to 95% lithium extraction efficiency Operational readiness: LEOP is currently training staff and optimising produ
Slide 13: Optimisation and Qualification: Downstream
OPTIMISATION AND QUALIFICATION: DOWNSTREAM Operations team training and fast-tracking product qualification Located in Industrie-Park Höchst, Vulcan’s downstream optimisation pant CLEOP will focus on training and optimisation during the construction of the commercial-sized lithium plant, in the same
Slide 14: Commercially-leading technology, optimised
Commercially-leading technology, optimised Adsorption is the fastest growing form of lithium production, due to cost and product quality advantages, currently with 10% global market share and growing VULSORB® is an optimised, high-performance adsorbent, highlighting Vulcan’s substantial in-house tec
Slide 15: Outstanding In-House Execution Capability
OUTSTANDING IN-HOUSE EXECUTION CAPABILITY The very best in technical capability and partnerships Vulcan’s in-house execution team draws upon decades of experience gained within the worlds largest engineering, chemical and oil and gas firms In-house technical excellence, with the development of the n
Slide 16: Sustainability Leader by Design
SUSTAINABILITY LEADER BY DESIGN Ca. 14 tonnes CO2 avoided for every tonne of lithium produced1 Certified Carbon Alignment with TCFD UNGC Member, TNFD Forum Neutral International & UN Sustainable Member and VCMI Organisation from 2021 Development Goals Stakeholder Forum Member Enough lithium Renewabl
Slide 17: Launch of Final Stage Financing Process
LAUNCH OF FINAL STAGE FINANCING1 PROCESS Structuring Banks Strong support from public and private sector Launch of the final phase project level debt and equity funding process, with significant indicative support from Tier-1 financing partners and export credit agencies (ECAs) Potential for up to €
Slide 18: Growth Pipeline
GROWTH PIPELINE TO INCREASE PRODUCTION THROUGH EU’S LARGEST LITHIUM RESOURCE1 Vulcan’s URVBF consists of a consistent sedimentary geothermal lithium reservoir across 17 licences2 covering a total area of 2,234 km2. There are currently 36 geothermal plants operating in Germany and 42 active projects.
Slide 19: Key Upcoming Target Milestones
KEY UPCOMING TARGET MILESTONES Transformational period for our Phase 1 Lionheart Project First Upstream LiCl production from LEOP COMPLETE Launch final phase of Project funding CLEOP commissioning underway First downstream LHM production from CLEOP Decision(s) on public funding (grant) approval proc
Slide 20: Highly Experienced Leadership
HIGHLY EXPERIENCED LEADERSHIP Outstanding major project, technical and finance experience at the Executive and Board level Vulcan Executive Management Dr Francis Wedin Cris Moreno Felicity Gooding Executive Chair, Founder Managing Director & CEO Group Chief Financial Officer Development Execution Pr
Slide 21: Thank you / Danke Schön
Thank you / Danke Schön @VulcanEnergyRes www.v-er.eu
Slide 22: Appendix 1: Disclaimer
APPENDIX 1: 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 in
Slide 23: Appendix 1: Disclaimer Cont.
APPENDIX 1: DISCLAIMER CONT. 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 Re
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