Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (April 2024)
63 slides from Vulcan Energy Resources's investor presentation, Apr 17, 2024
Slide 1: Delivering Europe's Green Energy and Mobility Transition
Delivering For personal use only Europe’s Green Energy and Mobility Transition Corporate Presentation April 2024
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: Purpose and One Vulcan values
3 PURPOSE ONEVULCAN VALUES For personal use only WE WILL EMPOWER A CARBON CLIMATE CHAMPION NEUTRAL FUTURE DETERMINED INSPIRING
Slide 4: An integrated renewable energy and zero carbon lithium project
AN INTEGRATED For personal use only RENEWABLE ENERGY AND ZERO CARBON LITHIUM PROJECT 4
Slide 5: Who we are
WHO WE ARE Key figures based on the Bridging Engineering Study (Nov 2023) 1 Vulcan’s unique Zero Carbon Lithium Project aims to produce both For personal use only renewable geothermal energy, and lithium hydroxide for electric vehicle (EV) batteries, from the same deep brine source in the Upper Rhin
Slide 6: Key investment highlights
KEY INVESTMENT HIGHLIGHTS Unique offer in the EV value chain: carbon neutral lithium with the co-production of renewable energy. For personal use only Largest lithium resource in Europe and construction-ready. Low cost of production and long-term customer relationships. Favourable long term market d
Slide 7: Corporate snapshot
CORPORATE SNAPSHOT Total Shareholder Composition ASX/FSE (Prime Standard) VUL Shares on issue ~172m For personal use only Cash at 31 December 2023 €78.6m Market Cap ca. €320m (A$530m) Top shareholders1 Dr Francis Wedin ~10% Stellantis ~7% HPPL ~5% Gavin Rezos ~5% Total Shares by Geography Daniel Tyd
Slide 8: Board of directors and leadership
BOARD OF DIRECTORS AND LEADERSHIP Dr Francis Wedin Gavin Rezos Josephine Bush Executive Chair, Founder Deputy Chair Non-Executive Director For personal use only Dr Wedin is the founder of Vulcan's ZERO CARBON Mr Rezos holds executive Chair/CEO positions of three companies that Ms Bush is a qualified
Slide 9: Our achievements to date
OUR ACHIEVEMENTS TO DATE Stellantis becomes first automaker to invest Commissio For personal use only Lithium equity in a lithium ning and extraction test company: $76m opening of Became a investment into Vulcan work LEOP after commercial Vulcan Energy commences three years renewable energy Resource
Slide 10: Status update
STATUS UPDATE Subsurface & drilling Land & Permits Contracting & Procurement For personal use only ✓ Streamlined Field Development Plan ✓ Access acquired to 5 well sites so far (out of 7) ✓ Bridging Engineering Study published on ✓ Insheim geothermal plant operating ✓ Remaining sites to be secured b
Slide 11: Zero Carbon Lithium Project Phase One
ZERO CARBON LITHIUM PROJECT For personal use only PHASE ONE
Slide 12: Why do we need lithium in Europe?
WHY DO WE NEED LITHIUM IN EUROPE? The market • EU targets new cars to be 100% electric by 20351 Vulcan has offtake • 1,400GWh li-ion battery manufacturing estimated capacity by 20302 agreements with For personal use only for EV transition. some of the largest • Predictions indicate Europe will see a
Slide 13: Why do we need geothermal renewable energy in Europe?
WHY DO WE NEED GEOTHERMAL RENEWABLE ENERGY IN EUROPE? The market • EU to be climate neutral by 2050. Germany to be fully renewable by 2035.1 • EU wants to develop local sources of energy.2 For personal use only • The German Government has set out a vision to boost the country’s geothermal potential
Slide 14: The first integrated project delivering renewable energy and lithium
The first integrated project delivering: For personal use only Renewable heat and power Providing affordable, baseload renewable Lithium hydroxide energy, and THOUSANDS employment, for local of communities: indirect jobs estimated to be created, linked to Meeting the EU’s electric vehicle battery th
Slide 15: Building renewable energy and lithium chemicals production
BUILDING RENEWABLE ENERGY AND LITHIUM CHEMICALS PRODUCTION Lithium hydroxide 275 GWh power p.a. LiCl concentrate for 24,000tpa Phase One (LHM) distributed Up to 560 GWh heat p.a. 24,000tpa LHM equivalent LHM (capacity) to the EU market Well Sites Geothermal Plant Lithium Extraction Plant (LEP) Centr
Slide 16: Zero Carbon Lithium Project
ZERO CARBON LITHIUM PROJECT Low risk | Optimised FDP | Largest resource For personal use only Improved Field Development Plan (FDP) down to one core production area that is already commercially producing brine. Proved and Probable Reserves increase to 0.57 Mt Lithium Carbonate Equivalent (LCE) @ 181
Slide 17: Phase One area
Höchst Chemical Park Central Lithium Plant planned location Frankfurt PHASE ONE AREA 20km ✓ Phased growth approach, Phase One starting from core of field where Vulcan already owns For personal use only production/re-injection wells in operation. GERMANY ✓ Phase One focuses on Proved Reserves of Land
Slide 18: Phase One upstream-downstream: production structure
PHASE ONE UPSTREAM-DOWNSTREAM: PRODUCTION STRUCTURE CLP UPSTREAM For personal use only 5 new well sites, 2 existing. Höchst One existing geothermal plant. New, larger geothermal plant near existing one. New Lithium Extraction Plant. DOWNSTREAM New Central Lithium Plant. 18 18 18
Slide 19: Delivering the Wärmewende (heat transition)
Delivering the Wärmewende (heat transition) Highly experienced and integrated well construction and For personal use only • operations team from oil and gas and geothermal industry. • Full scale well delivery process capability: fully aligned towards Vulcan’s field development plan. • Experience in
Slide 20: Geothermal and Lithium Extraction Plant: G-LEP
GEOTHERMAL AND LITHIUM EXTRACTION For personal use only PLANT: G-LEP
Slide 21: Geothermal energy plants
GEOTHERMAL ENERGY PLANTS Phase One: one existing geothermal plant and one new site Insheim (operating) Lionheart (development) Total For personal use only Power production (MW) 4.2 27.5 32 Heat production (MW) 0.5 79.5 80 Power production (GWh p.a) 37 238 275 Heat production (GWh p.a) 3.5 556 560 Vu
Slide 22: Lithium Extraction Optimisation Plant (LEOP) in Landau
LITHIUM EXTRACTION OPTIMISATION PLANT (LEOP) IN LANDAU Creating operational readiness For personal use only • Production of LiCl started April 2024, the first fully domestically produced lithium chemicals in Europe. • Early results with consistently over 90% (up to 95%) lithium extraction efficiency
Slide 23: Lithium Extraction Optimisation Plant LEOP
For personal use only 6 23 23 LITHIUM EXTRACTION OPTIMISATION PLANT LEOP 23
Slide 24: Commercial Lithium Extraction Plant (LEP) in Landau
COMMERCIAL LITHIUM EXTRACTION PLANT (LEP) IN LANDAU • Construction rights and subsequent acquisition(1) of For personal use only “D-12” land granted by the city of Landau in December 2024. This follows Vulcan’s building permit submission in November 2023 (in line with Vulcan’s timeline) • Will be co
Slide 25: Ensuring commercial operational readiness for the LEP
ENSURING COMMERCIAL OPERATIONAL READINESS FOR THE LEP LAB PILOT PLANT PP1 PILOT PLANT P1A LEOP COMMERCIAL LEP For personal use only SOP 2020 SOP 2021 SOP 2022 SOP April 2024 Grams of product Kilos of product 100s of kilos of product Hundred tonne capacity Kilotonnes capacity 24kt plant, divided in 1
Slide 26: Central Lithium Plant (CLP)
CENTRAL LITHIUM PLANT (CLP) For personal use only
Slide 27: Enabling operational readiness with CLEOP
ENABLING OPERATIONAL READINESS WITH CENTRAL LITHIUM ELECTROLYSIS OPTIMISATION PLANT (CLEOP) early results with consistently over 90% (up to • Both optimisation and commercial plants will be located at the Höchst 95%) lithium extraction efficiency Industrial Park. For personal use only • CLEOP is pla
Slide 28: Electrolysis – great benefits, low risk
ELECTROLYSIS – GREAT BENEFITS, LOW RISK Anticipated key benefits in final step in our production steps (lithium chloride converted to battery-grade LHM Low risk base technology Additional de-risking activities For personal use only via electrolysis) Using sustainable energy, electrolysis offers a Li
Slide 29: Central Lithium Electrolysis Optimisation Plant
For personal use only 8 29 29 CENTRAL LITHIUM ELECTROLYSIS OPTIMISATION PLANT 29
Slide 30: Built for growth: base infrastructure for up to three phases
BUILT FOR GROWTH: BASE INFRASTRUCTURE PROVIDED FOR UP TO THREE PHASES Location in the Höchst Industrial Park • CLP planned to be located in Frankfurt (Höchst Frankfurt For personal use only Industrial Park). Close to 100,000sqm secured. • Targeted 24,000tpa LHM capacity with space CLEOP SITE for fur
Slide 31: Numbering up, not scaling up electrolysis cells
NUMBERING UP, NOT SCALING UP ELECTROLYSIS CELLS PILOT PLANT (EXT.) DEMO PLANT (EXT.) CLEOP COMMERCIAL CLP For personal use only SOP 2021 SOP 2022 SOP mid 2024 Kilos of product Hundreds of kg Tonnes capacity Kilotonnes capacity Feed flow 40% LiCl 12l Confidential 700m3/y 48,000m3/y LHM capacity Kgs p
Slide 32: Phase One economics and financing update
PHASE ONE ECONOMICS AND FINANCING For personal use only UPDATE
Slide 33: Lithium price volatility mitigated by strategic supply partner contracts
LITHIUM PRICE VOLATILITY MITIGATED BY STRATEGIC SUPPLY PARTNER CONTRACTS • High quality European-focused offtake partners. For personal use only • All offtakes are binding, take-or-pay, with agreed pricing mechanisms. • Pricing mechanisms are a basket of fixed, floor-ceiling and fully floating price
Slide 34: Phase One project forecast capex
PHASE ONE PROJECT FORECAST CAPEX1 €102M €111M €360M €358M For personal use only Well Geothermal Lithium Extraction Plant Central Lithium Plant sites Plant (LEP) (CLP) ICPP ICPP CAPEX Breakdown €201M €1,399M €M 100% 400 26% 26% 350 300 19% DRILLING 250 14% 200 8% 360 358 150 7% €267M 100 267 201 50 1
Slide 35: Low cost, stable pricing, robust financials, strong financing plan
LOW COST | STABLE PRICING | ROBUST Robust financials: FINANCIALS | STRONG FINANCING PLAN €3.9 billion (A$5.6 billion) €2.6 billion (A$4.2 billion) pre-tax NPV8 post-tax. Binding lithium hydroxide Low OPEX of Reduction in For personal use only offtake agreements with €4,022/t lithium CAPEX of ca. 27.
Slide 36: Global cost curve LHM – projected
GLOBAL COST CURVE LHM – PROJECTED Vulcan’s ZERO CARBON LITHIUM Project has the potential to be one of the lowest cost integrated LHM projects in the world. For personal use only Lithium hydroxide delivered costs - 2025 ($/tonne, ddp Rotterdam) Vulcan’s process: Vulcan Energy • No feedstock cost $4,2
Slide 37: Financing highlights and considerations
FINANCING HIGHLIGHTS AND CONSIDERATIONS For personal use only Debt Vulcan has raised a total of 320m EUR in • Substantial indicative support from commercial and development equity for project and technology banks during market sounding process. • EOIs received from Export Credit Agencies in France,
Slide 38: Industry-leading lithium production technology
INDUSTRY-LEADING LITHIUM For personal use only PRODUCTION TECHNOLOGY
Slide 39: VULSORB lithium production technology
• VULSORB® is a specially tailored lithium production technology for lithium-ion adsorption. For personal use only • Highest performance lithium production technology on the market, as tested by Vulcan on lithium-bearing brines. • High capacity: 3 g/l Li/l of technology, due to porous structure of
Slide 40: Low cost, sustainable lithium production technology
LOW COST, SUSTAINABLE LITHIUM PRODUCTION TECHNOLOGY For personal use only Track record • Global, multi-decade commercial precedent of aluminate-based A- DLE in the lithium industry. Low operating cost • Water is used to recover the lithium from the adsorbent – no acid requirement means lower operati
Slide 41: Proven technology, continuous optimisation and improvements
PROVEN TECHNOLOGY, CONTINUOUS OPTIMISATION AND IMPROVEMENTS For personal use only • VULSORB® belongs to a lithium extraction adsorbent family that has been used by different companies in multiple commercial production assets over the past 25 years. • VULSORB® has been optimised and improved over thr
Slide 42: Adsorption-type direct lithium extraction industry overview
ADSORPTION-TYPE DIRECT LITHIUM EXTRACTION For personal use only INDUSTRY OVERVIEW
Slide 43: Global lithium supply today
GLOBAL LITHIUM SUPPLY TODAY Hard rock mining 60% For personal use only global lithium Sourcing lithium hydroxide from hard rock mines for lithium production currently has a high CO2 footprint. Once you mine it, the rock must be roasted with fossil fuels before using large volume of sulphuric acid to
Slide 44: Examples of commercial A-DLE plants
EXAMPLES OF COMMERCIAL A-DLE PLANTS For personal use only ARGENTINA – LIVENT HOMBRE MUERTO DLE PLANT -30,000 TPA LCE CHINA - EVEBATTERY 10,000 TPA LCE COMMERCIAL PLANT BUILT WITH SUNRESIN 44 44 ARGENTINA – ERAMET CENTENARIO-RATONES DLE PLANT -24,000 TPA LCE (2024) CHINA - ZANGGE MINERAL 10,000 TPA L
Slide 45: Commercial lithium production from A-DLE growing exponentially
COMMERCIAL LITHIUM PRODUCTION FROM A-DLE GROWING EXPONENTIALLY LCE t/p.a. A WAVE OF SUSTAINABLE LITHIUM SUPPLY IS BUILDING Vulcan (EU) targeting phased ramp up of For personal use only 500,000 A-DLE accounts for 10% Zero Carbon Lithium Project of global lithium New DLE production today1 entrants fro
Slide 46: DLE forecast to grow quicker than other lithium supply
DLE FORECAST TO GROW QUICKER THAN OTHER LITHIUM SUPPLY Tonnes LCE Lithium supply growth 564,930 For personal use only 4,000,000 20% Source: Fastmarkets DLE Other 18% 3,500,000 supply +465% +256% 16% Fastmarkets is one of 3,000,000 in 10y in 10y the most trusted cross- 15% 14% commodity price reporti
Slide 47: Global opportunity for VULSORB
GLOBAL OPPORTUNITY FOR VULSORB® For personal use only • Strong growth in A-DLE forecast, ca. 19% CAGR globally. • Wide geographic spread of lithium in brines, usually associated with large-scale energy infrastructure. • Increased focus on scale, cost of production, sustainability and supply chain se
Slide 48: Environment, Social, Governance
ENVIRONMENT, SOCIAL, GOVERNANCE For personal use only
Slide 49: Empowering a sustainable tomorrow
EMPOWERING A SUSTAINABLE TOMORROW Social • Strong local employment opportunities. • Renewable electricity & heating: potential to positively affect For personal use only ca. 90,000 people(1). • Carbon neutral heat contributing to Europe's energy security and urban decarbonisation targets. • Project
Slide 50: ESG highlights
ESG HIGHLIGHTS “Low Risk” ESG Rating, best in class Significant number of indirect among top industry players jobs estimated to be created, For personal use only Ranked #11 out of 578 Chemicals linked to the energy transition, industry peers(1) decarbonisation and electrification of transport Avoide
Slide 51: Phase One energy balance: net positive producer of renewable energy
PHASE ONE ENERGY BALANCE: NET POSITIVE PRODUCER OF RENEWABLE ENERGY¹ Heat Balance (MW) Net Energy Balance (MW) For personal use only 71 (9) 80 71 40 Heat HeatProduction Production Heat HeatOwn Own Consumption Consumption Heat HeatSupply Municipalities Supply to Municipalities Power Balance (MW)
Slide 52: Large decarbonisation potential vs lithium supply
LARGE DECARBONISATION • Vulcan is developing the first and only carbon neutral lithium project in the world.1 • Zero fossil fuels used directly in lithium production process. POTENTIAL • Globally significant decarbonisation opportunity through Vulcan’s ZERO CARBON LITHIUM Project. VS LITHIUM SUPPLY
Slide 53: Vulcan's Phase One 10-year target GHG avoidance profile
VULCAN’S PHASE ONE 10-YEAR TARGET GHG AVOIDANCE PROFILE GHG Avoided Emissions Cumulative Absolute Avoided GHG Emissions Over 10 Years For personal use only Absolute Avoided Emissions (10 years) Accumulated GHG = Reference - Project emission (tonnes emissions (tonnes emissions CO2 eq.) CO2 eq.) (tonn
Slide 54: Part of the local community
PART OF THE LOCAL COMMUNITY • Vulcan has a comprehensive Stakeholder Engagement Plan that adheres to international best practice to ensure communication is relevant, understandable and delivered effectively. For personal use only 3 • Some community engagement activities to date include: Info-Centre
Slide 55: Further phases pipeline
FURTHER PHASES PIPELINE For personal use only
Slide 56: The largest lithium resource in Europe in the Upper Rhine Valley
Höchst Chemical Park Central Lithium Plant planned location Frankfurt THE LARGEST LITHIUM RESOURCE 20km Stellantis IN EUROPE IN THE UPPER RHINE Rüsselsheim Plant VALLEY For personal use only GERMANY Vulcan’s URVBF consists of a consistent sedimentary Mannheim geothermal lithium reservoir across 16 l
Slide 57: Large portfolio across the URV – future phase developments
LARGE PORTFOLIO ACROSS THE URV – FUTURE PHASE DEVELOPMENTS • Vulcan is developing multiple development centres beyond Phase One, across the Upper Rhine Valley Brine Field (URVBF), which can grow in a For personal use only modular approach as the market grows. • Phased growth approach, starting from
Slide 58: Appendices
For personal use only APPENDICES
Slide 59: 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 60: 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
Slide 61: Appendix 2: Competent Person Statement
APPENDIX 2: COMPETENT PERSON STATEMENT The information in this presentation that relates to estimates of Mineral Resources and Ore Reserves is extracted from the following ASX announcement: "Zero Carbon LithiumTM Project Phase One Bridging Engineering Study", released on 16 November 2023. The above
Slide 62: Target project economics: Phase One Bridging Engineering Study
TARGET PROJECT ECONOMICS¹: PHASE 1 BRIDGING ENGINEERING STUDY Base Case Financials Bridging Engineering Study Power Revenues 7% Revenues €M/a 705 For personal use only EBITDA €M/a 521 Heat Revenues 4% EBITDA margin % 74% HCl Revenues NPV pre-tax €M 3,906 1% LHM Revenues NPV post-tax €M 2,566 88% IRR
Slide 63: Thank you, Questions?
Thank you For personal use only Questions? Contact our media and investor relations team info@v-er.eu @VulcanEnergyRes | www.v-er.eu | info@v-er.eu ASX:VUL FSE:VUL
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