Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (August 2023)
47 slides from Vulcan Energy Resources's investor presentation, Aug 10, 2023
Slide 1: Corporate Presentation Third Quarter 2023
Ministers' For personal use only Corporate Presentation Third Quarter, 2023 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: Introduction
For personal use only INTRODUCTION 33
Slide 4: Purpose and Mission
For personal use only Purpose Mission We will empower a Becoming Europe`s leading Zero zero-carbon future Carbon Lithium™ business & enabling energy security through geothermal energy 4
Slide 5: Our Targets
OUR TARGETS Vulcan’s unique Zero Carbon Lithium™ Project We are aiming to become the world’s first dual aims to produce both renewable geothermal For personal use only lithium chemicals and renewable energy producer energy, and lithium hydroxide for Electric Vehicle with net zero greenhouse gas emis
Slide 6: What Are We Building?
WHAT ARE WE BUILDING? Phase 300GWh power LiCl concentrate for 24,000tpa one 250GWh heat 24,000tpa LHM equivalent LHM For personal use only 3. 4. 2. 5. Geothermal Lithium Extraction Well Central Lithium Plant Plant (LEP) sites Plant (CLP) Renewable heat and brine transferred to Lithium chloride Lithi
Slide 7: Our Achievements to Date
OUR ACHIEVEMENTS TO DATE Stellantis becomes first Became a automaker to invest For personal use only commercial equity in a lithium renewable energy company: $76m producer investment into Vulcan Successful in-house development of Vulcan Energy Resources Ltd. Lithium VULSORB® Founded privately as Zer
Slide 8: Why Do We Need Lithium in Europe?
WHY DO WE NEED LITHIUM IN EUROPE? The market Vulcan has offtake • EU targets new cars to be 100% electric by 20351 agreements with • 1,400GWh li-ion battery manufacturing estimated capacity by 20302 For personal use only some of the largest for EV transition battery, cathode and • Predictions indica
Slide 9: Why Do We Need Geothermal Renewable Energy in Europe?
WHY DO WE NEED GEOTHERMAL RENEWABLE ENERGY IN EUROPE? The market For personal use only • EU to be climate neutral by 2050. Germany to be fully renewable by 20351 • EU wants to develop local sources of energy2 The crisis • Dual crises: Ukraine war and climate crisis • EU is now sourcing gas from Norw
Slide 10: Policy Tailwinds in Vulcan's Favour
POLICY TAILWINDS IN VULCAN’S FAVOUR The recently released Critical Raw Materials1 and Net Zero Industry Acts2 present a strong focus on fast-tracking the permitting processCritical Raw Materials and funding Act for technologies of relevance to the strategic autonomy of the EU economy For personal us
Slide 11: Zero Carbon Lithium Project
Ministers' For personal use only ZERO CARBON LITHIUM™ PROJECT 11
Slide 12: Phase One Upstream-Downstream Production Structure
Downstream CLP Frankfurt PHASE ONE UPSTREAM-DOWNSTREAM 24Ktpa LHM PRODUCTION STRUCTURE Phase One: For personal use only expanding upstream capacity, Upstream GEO plant and building downstream LEP, wells, resource. LiCl and energy production Increasing the number of production/re-injection well sites
Slide 13: Phase One Area
PHASE ONE AREA Höchst Chemical Park: Central Lithium Plant planned location Frankfurt Legend Production license Access to the license through a brine offtake Phase One For personal use only Downstream Lithium and CLP geothermal license ✓ Phased growth approach, starting from core of field where Vulc
Slide 14: The Upstream Resource: Future Pipeline
THE UPSTREAM RESOURCE: Höchst Chemical Park: Central Lithium Plant planned location Frankfurt Legend FUTURE PIPELINE Production license Stellantis Rüsselsheim Plant Access to the license through ✓ Vulcan’s Upper Rhine Valley Brine Field (URVBF), a brine offtake For personal use only consisting of 15
Slide 15: Increasing Upstream Brine Production
INCREASING UPSTREAM BRINE PRODUCTION Well-known area • >1,000 oil & gas and 24 deep geothermal wells already completed in the URVBF. • In our Phase One project area, 4 deep geothermal wells have been in operation for more For personal use only than 10 years. In-house expertise, team and assets Vulca
Slide 16: Long Life, Sustainable Upstream Production
LONG LIFE, SUSTAINABLE UPSTREAM PRODUCTION State-of-the art reservoir management principles from O&G industry For personal use only • Lithium dilution at the well sites modelled over 30 years and remains above cut-off, with only ~1.6% annual grade decrease. • Production levels could be increased by
Slide 17: Increasing Renewable Energy Production
INCREASING RENEWABLE ENERGY PRODUCTION Long established industry with strong growth potential • Geothermal energy: 16GW of power & 107GW of heat capacity deployed For personal use only worldwide¹ • There are currently 36 geothermal plants operating in Germany, 42 active projects (c. 84 wells), and t
Slide 18: New Lithium Extraction Plant (LEP)
NEW LITHIUM EXTRACTION PLANT (LEP) • In-house designed Lithium Extraction Optimisation Plant (LEOP) near completion, planned to start operation second For personal use only half of 2023 to train staff in pre-commercial environment prior to start of commercial production for targeted operational read
Slide 19: Advantages of Adsorption-Type Direct Lithium Extraction
ADVANTAGES OF ADSORPTION-TYPE DIRECT LITHIUM EXTRACTION (A-DLE) Track record For personal use only ✓ Global, multi-decade commercial precedent in the lithium industry Low operating cost ✓ Water is used to recover the lithium from the sorbent – no acid requirement means lower operating cost and less
Slide 20: Commercial Growth of Adsorption-Type DLE
COMMERCIAL GROWTH OF ADSORPTION-TYPE DLE1 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 Zero Carbon Lithium™ Project New DLE entrants from O&G and mining industries Multiple new commercial projects built in late 2010
Slide 21: Decarbonising DLE: Comparison with Current DLE Production
DECARBONISING DLE: COMPARISON WITH CURRENT DLE PRODUCTION Brine and Fresh water for renewable stripping, recycled • Adsorption-type DLE needs heated heat For personal use only Lithium hydroxide brine to work. to customers • Current DLE producers use gas to heat the brine. Vulcan uses geothermal Depl
Slide 22: Summary of Activities to De-risk A-DLE
SUMMARY OF VULCAN’S ACTIVITIES TO DE-RISK A-DLE ON UPPER RHINE VALLEY BRINE FIELD (URVBF) BRINE Standard approach for applying known metals extraction process to a ✓ Technology selected in scoping work 2018-2020 For personal use only mineral resource ✓ 3 years of in-house laboratory testwork success
Slide 23: In-house A-DLE Intellectual Property
For personal use only In-house A-DLE intellectual property ✓ Vulcan has developed its own proprietary sorbent, VULSORB®, which it has been manufacturing in Germany and France. ✓ VULSORB®, belongs to the lithium extraction adsorbent family which has been developed and used by different companies in m
Slide 24: Lithium Processing: Proven, Sustainable Methods, Strong Partners
LITHIUM PROCESSING: PROVEN, SUSTAINABLE METHODS, STRONG PARTNERS Proven chlor-alkali type process, sustainable inputs, no fossil fuels • Vulcan to use the electrolysis process to convert lithium chloride into lithium hydroxide. Electrolysis produces very For personal use only pure lithium hydroxide
Slide 25: New Central Lithium Plant (CLP)
NEW CENTRAL LITHIUM PLANT (CLP) Commercial CLP • CLP planned to be located in Frankfurt (Höchst Industrial Park). Close to 100,000sqm secured. For personal use only • Targeted 24,000tpa LHM capacity with space for further modular expansion. • Conversion of LiCl to battery grade LHM using electrolysi
Slide 26: Experienced Team Ready to Deliver
EXPERIENCED TEAM READY TO DELIVER Executive Chair Managing Director & CEO Dr. Francis Wedin Cris Moreno Founder of Zero Carbon Lithium™ Project. 20+ years’ major energy and chemicals project Extensive lithium and climate tech industry executive experience execution experience For personal use only C
Slide 27: Environment, Social, Governance
Ministers' For personal use only ENVIRONMENT, SOCIAL, GOVERNANCE 29
Slide 28: Aiming for Lowest CO2 Footprint in the Lithium Industry
AIMING FOR LOWEST CO2 FOOTPRINT IN THE LITHIUM INDUSTRY • Vulcan is developing the first and only carbon neutral lithium project in the world1 • Globally significant decarbonisation opportunity through Vulcan’s Zero Carbon Lithium™ Project For personal use only Zero Carbon Lithium™ Emissions from GL
Slide 29: Aiming for Lowest Water and Land Footprint
AIMING FOR LOWEST WATER AND LAND FOOTPRINT IN LITHIUM INDUSTRY Engineered to have industry-leading environmental performance: our core mission For personal use only ca. 15t 3,124m 2 15t CO2 450t land water Co2 Vulcan draws on naturally occurring, renewable geothermal energy to power the lithium extr
Slide 30: Other Leading ESG Credentials
OTHER LEADING ESG CREDENTIALS For personal use only Low ESG Risk Rating from 9,5kT CO2 avoided from ESG linked KPIs including Sustainalytics (01/2023) renewable energy generated individual and shared targets First amongst peers and in at NatürLich Insheim in 2022. the 2nd quartile Chemicals Industry
Slide 31: Societal Acceptance
SOCIETAL ACCEPTANCE • Vulcan’s projects provide a unique, tangible benefit which literally “flows” into local communities: renewable heating for district heating networks. For personal use only • Vulcan’s affordable, renewable, zero carbon heat, contributes to decarbonisation of cities and towns, an
Slide 32: Economics and Financing
Ministers' For personal use only ECONOMICS AND FINANCING 34
Slide 33: Phase One Project Value Flows
PHASE ONE PROJECT VALUE FLOWS VUL Lithium hydroxide For personal use only 2. 3. 4. 5. Well Geothermal Plant Lithium Extraction Central Lithium sites Plant (LEP) Plant (CLP) Renewable heat and Hot Li-rich brine transferred to the brine sorption plant Lithium chloride Cold Li- poor brine 1. Resource R
Slide 34: Global Cost Curve LHM – Projected 2025
GLOBAL COST CURVE LHM – PROJECTED 20251 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 Energy $4,5771 €4,359 1Projected cost curv
Slide 35: Strategic Supply Partner Contracts
STRATEGIC SUPPLY PARTNER CONTRACTS • High quality of European-focused offtake partners. • Average EUR 30,283/t price used by Vulcan over 20-year period, Lithium hydroxide price forecasts1 - €/t For personal use only 40,000 from a basket of fixed, floor-ceiling and fully floating price mechanisms in
Slide 36: Target Project Economics
TARGET PROJECT ECONOMICS¹ For personal use only Geothermal LEP CLP Phase 1 Revenues €M/a 537 616 704 Net Op. Cash Flow €M/a 339 104 437 NPV pre-tax m€ 3,022 895 3,917 NPV post-tax m€ 1,998 572 2,584 IRR before Tax 34.1% 35.5% 34.4% IRR after Tax 26% 26.1% 26.1% Payback in years 3.5 3.3 3.3 Total Cap
Slide 37: Phase One Proposed Financing Strategy
PHASE ONE PROPOSED FINANCING STRATEGY • Debt market sounding exercise completed with positive feedback from banks and ECAs. For personal use only • Government backed ECAs from France, Italy and 2. 3. 4. 5. Canada have indicated Well Geothermal Plant Lithium Extraction Central Lithium strong support,
Slide 38: Why Vulcan?
WHY VULCAN? ✓ World-leading product and brand – carbon neutral, battery-grade lithium chemicals from Zero Carbon Lithium™ Project ✓ Right place – located within the EU, fastest growing lithium market in the world For personal use only ✓ Long-life, sustainable asset, large growth potential – largest
Slide 39: Looking Ahead: Upcoming Milestones
LOOKING AHEAD: UPCOMING MILESTONES • Mechanical completion, start-up and commissioning of LEOP and CLEOP: targeting the first ever tonnes of domestically For personal use only produced lithium chemicals in EU, a major landmark. • Acquisition of final critical land for Phase One execution (initial pa
Slide 40: Share Price and Capital Structure
SHARE PRICE AND CAPITAL STRUCTURE ASX : VUL Shares on Issue 167,335,301 Performance Shares 91,174 For personal use only Performance Rights 6,194,245 Market Capitalisation at $4.37 ~$731m (undiluted as at 24 July 2023 ) Cash Position (as at 30 June 2023) ~€148m (~$242m) Top 20 Shareholders ~64% Manag
Slide 41: Thank You, Questions?
Thank you For personal use only Questions? Questions? Contact our Contact ourmedia mediaand andinvestor investor relation steam relations team info@v-er.eu IR@v-er.eu @VulcanEnergyRes | www.v-er.eu | info@v-er.eu ASX:VUL FSE:VUL 43
Slide 42: Appendices
For personal use only APPENDICES 44
Slide 43: Appendix 1: Board of Directors
APPENDIX 1: BOARD OF DIRECTORS Cris Moreno Dr. Francis Wedin Gavin Rezos For personal use only Managing Director & CEO Executive Chair Deputy Chair Cris has over 20 years’ global experience in successfully delivering Founder of Vulcan's Zero Carbon Lithium™ and has extensive experience in Executive
Slide 44: 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: ▪ "Vulcan Zero Carbon Lithium™ Project Phase One DFS results and Resources-Reserves Update", released on 13 Fe
Slide 45: Appendix 3: Full Disclaimer
APPENDIX 3: FULL 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 n
Slide 46: Appendix 3: Full Disclaimer Cont.
APPENDIX 3: FULL 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 O
Slide 47: Appendix: DLE Capacity Sources
APPENDIX 4 Location Source Data kt of LCE/p.a. China https://www.seplite.com/company.html Lanke Lithium 20 kt/p.a. 2017 For personal use only https://www.seetao.com/details/159795.html Minmetals Slat 30 kt/p.a. 2022 https://www.seplite.com/sunresin-s-4000t-a-jintai-salt-lake-lithium-extraction-proje
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