Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (May 2021)
48 slides from Vulcan Energy Resources's investor presentation, May 4, 2021
Slide 1: Zero Carbon Energy + Zero Carbon Lithium
For personal use only Zero Zero Carbon + Carbon Energy Lithium™
Slide 2: Disclaimer & Cautionary Statement
Disclaimer & Cautionary Statement The information contained in this presentation has been prepared by Vulcan Energy Resources Ltd (VUL). 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
Slide 3: How to Support 30 Million EVs by 2030 in the EU?
How to Support 30 Million EVs by 2030 in the EU? For personal use only 800GWH LITHIUM-ION BATTERY EU: FASTEST GROWING LITHIUM ZERO LOCAL SUPPLY OF CAPACITY BY 2030 MARKET IN THE WORLD LITHIUM HYDROXIDE Millions LCE 0.8 0.7 0.6 EU 0.5 0% 0.4 0.3 0.2 0.1 CHINA 0.0 80% Source: Benchmark Minerals Source
Slide 4: High Environmental Footprint of Existing Supply Chain
High Environmental Footprint of Existing Supply Chain Lithium is a critical resource for batteries and electric vehicles. To fully electrify our cars with lithium-ion batteries, we need lithium. For personal use only CO2 That’s equivalent to the = 1 Billion annual emissions Tonnes of the UK, Lithium
Slide 5: High Environmental Footprint of Existing Supply Chain
High Environmental Footprint of Existing Supply Chain For personal use only LITHIUM PRODUCTION EMITS MORE AUTOMAKERS COMMITTING TO CO2 THAN NICKEL AND COBALT CARBON NEURALITY Carbon Water Intensity Depletion Volkswagen promises: m³ water/t LiOH (tCO2/t LiOH) 15 TONS 470M³ “CO2-neutral production inc
Slide 6: The EU Stepping in to Support and Regulate the Industry
The EU Stepping in to Support and Regulate the Industry GREEN SUPPLY CHAIN LOCAL SUPPLY CHAIN For personal use only New EU Battery Carbon Border European Critical Raw Regulation Adjustment Mechanism Battery Alliance Materials List Battery passport ISO/TC 333 EIB new energy European Raw Lithium lendi
Slide 7: Vulcan – Zero Carbon Lithium™
Vulcan – Zero Carbon Lithium™ For personal use only World-first Zero Carbon In the heart of the Strong cash position, Lithium Project fastest growing lithium fully funded to FID ENERGY BUSINESS market in the world 74MW Renewable Electricity LITHIUM BUSINESS Geothermal & DLE Largest JORC lithium Team
Slide 8: 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 was possible using modern extraction methods, provided 181 a deep geothermal brine reservoir could 181 be found that had th
Slide 9: Largest Lithium Resource in Europe
Largest Lithium Resource in Europe For personal use only Germany License Taro France • Very large license package >1,000km² • 3 exploration permits granted and several applications • Largest lithium resource in Europe: 15.85Mt LCE SUFFICIENT TO SUPPLY >400 MILLION ELECTRIC VEHICLES 9 Details on the
Slide 10: Vulcan's Renewable Energy & Lithium Chemicals Project
Vulcan’s Renewable Energy & Lithium Chemicals Project Central Lithium Plant OUR PROJECT For personal use only Lithium hydroxide Electric Mobility distributed to the EU market 6 LITHIUM BUSINESS Renewable Lithium chloride electricity sold to transported to the the grid 2 5 central lithium plant Direc
Slide 11: 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. Binary Cycle Direct Lithium Central Lithium 1 Geothermal Plant 2 Extraction Plan
Slide 12: Dual Purpose Renewable Project
Dual Purpose Renewable Project Energy Business, Lithium Business: Zero Carbon Lithium™ For personal use only PHASE 1 - €0.7Bn PHASE 2 - €1.1Bn CAPEX 8MW 14MW 17MW 17MW 17MW ENERGY BUSINESS 1 Binary Cycle Geothermal Plant Geothermal Geothermal Geothermal Geothermal Geothermal 2 Plant B1 Plant B2 Plan
Slide 13: Potential for Very Low OPEX Operation
Potential for Very Low OPEX Operation 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 14: Peerless Environmental Credentials
Peerless Environmental Credentials 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 d
Slide 15: Cost Impact of Regulation on Lithium import prices
Cost Impact of Regulation on Lithium import prices The example of the proposed Carbon Border Adjustment Mechanism (CBAM) For personal use only SUPPLY OF LITHIUM CO2 EMISSIONS PER CBAM HYDROXIDE TON OF LITHIUM HYDROXIDE Assumptions for CBAM CBAM • EU Buyer imports 1 ton of lithium $1,500/t from China
Slide 16: Dual Revenues: Energy and Lithium
Dual Revenues: Energy and Lithium ENERGY BUSINESS LITHIUM BUSINESS For personal use only Zero Carbon Electricity: Geothermal Decarbonizing energy in the form of electricity is sold to $/t LiOH Prices – Historical and Forecast the grid the grid 22,000 Feed-in Tariff Guaranteed 20,000 Today €25.2c for
Slide 17: Project Financials
Project Financials ENERGY BUSINESS LITHIUM BUSINESS For personal use only 74MW Power 40,000tpy LiOH €0.7Bn NPV Pre-tax €0.5Bn NPV Post-tax €2.8Bn NPV Pre-tax €1.9Bn NPV Post-tax 16% IRR Pre-tax 13% IRR Post-tax 31% IRR Pre-tax 26% IRR Post-tax €226M CAPEX Phase I €0.066/KWh OPEX €2,640/t LiOH OPEX €
Slide 18: The Vulcan Zero Carbon Lithium™ Board
The Vulcan Zero Carbon Lithium™ Board VULCAN ENERGY RESOURCES LTD - BOARD For personal use only Executive Chair/CEO positions of two companies Senior executive with Evonik, one of the largest Gavin Rezos that grew from start-ups to the ASX 300. Dr Heidi Grön specialty chemicals companies in the worl
Slide 19: Experienced Development Team
Experienced Development Team ENERGY BUSINESS LITHIUM BUSINESS For personal use only Thorsten Weimann CHIEF OPERATING OFFICER +25 years’ experience in geothermal project development and operation in Germany. Consultancy company focused on deep geothermal projects at Project Development team based in
Slide 20: Project Timeline
Project Timeline 2021 2022 2022 2023 2024 2025 + For personal use only Project Development Financing Project Financing €0.7-1.7Bn Drilling 2 Geo Plants Exploration Further Exploration 2 DLE Plants Data Construction 1 CLP Energy 22MW PFS Bankable Feasibility Study Lithium 15Kt/y Phase 1 Production Da
Slide 21: Share Price & Capital Structure
Share Price & Capital Structure For personal use only ASX : VUL Shares on Issue 107,464,256 Performance Milestone Shares* 4,400,000 Performance Rights* 10,950,000 Market Capitalization at $7.80 (undiluted) ~$838.2M Enterprise Value at $7.80 (undiluted) ~$721.2M Key Shareholders Cash Position Dr. Fra
Slide 22: Conclusion
Conclusion For personal use only WORLD’S 1ST & ONLY EUROPE’S LARGEST LOCATION CENTRE OF SUPPORTED BY EU ZERO-CARBON LITHIUM RESOURCE FASTEST GROWING FUNDING, LITHIUM PROCESS MARKET REGULATION & INITIATIVES LOW COST & STRONG CASH THE RIGHT TEAM RAPIDLY ADVANCING RESILIENT POSITION, FULLY FOR THE JOB
Slide 23: Thank You
@VulcanEnergyRes v-er.com info@v-er.eu For personal use only ASX:VUL FRA:6KO Thank You PUBLIC RELATIONS EU Germany Australia
Slide 24: Appendices
For personal use only Appendices
Slide 25: Table of Appendices
Table of Appendices o Appendix 1: Vulcan’s Renewable Project Description For personal use only o Appendix 2: The fossil-nuclear era in Europe is coming to an end o Appendix 3: EU Map Lithium-ion Battery Capacity o Appendix 4: EU Regulatory Support o Appendix 5: The New EU Battery Regulation o Append
Slide 26: Appendix 1: Vulcan's Renewable Project Description
Regulations & Appendix 1: Vulcan’s Renewable 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 Germany systems European Battery All
Slide 27: 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 28: 3: EU Map Lithium-ion Battery Capacity
Appendix 3: EU Map Lithium-ion Battery Capacity Brandenburg, 2021 Brandenburg, 2021 At least 20GWh RAMP UP TO 8-12 GWh >800GWh LITHIUM-ION For personal use only BATTERY CAPACITY Salzgitter, 2025 Bitterfeld, 2022 40GWh 16 GWh Spain, Eastern Europe, etc. Wroclaw, 2018 PLANNED BY 2030 4x40GWh 6 GWh, LA
Slide 29: 4: EU Regulatory Support
Appendix 4: EU Regulatory Support GREEN SUPPLY CHAIN LOCAL SUPPLY CHAIN For personal use only New EU Battery Regulation including: European Battery Alliance: create a competitive and fully • Responsible sourcing of raw materials such as integrated battery manufacturing chain in Europe. lithium • CO2
Slide 30: 5: The New EU Battery Regulation
Appendix 5: 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 31: 6: Vulcan financially supported by the EU
Appendix 6: 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 32: 7: Vulcan & Circulor full lithium traceability
Appendix 7: 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 33: 8: Vulcan to offset CO2 penalties for automakers
Appendix 8: 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 34: 9: Vulcan Energy's Board
Appendix 9: Vulcan Energy’s Board VULCAN ENERGY RESOURCES LTD - BOARD For personal use only Gavin Rezos Dr. Francis Wedin Dr. Horst Kreuter Annie Liu Dr. Heidi Grön Josephine Bush Ranya Alkadamani Julia Poliscanova Rob Ierace CHAIR MANAGING DIRECTOR CO-FOUNDER & NON-EXEC NON-EXEC NON-EXEC NON-EXEC S
Slide 35: 10: Largest Lithium Resource in Europe
Appendix 10: 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 Taro 0.83 Inferred Resour
Slide 36: 11: Brine Composition Comparison
Appendix 11: Brine Composition Comparison 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”. Comparison of Vulc
Slide 37: 12: Process Flow Sheet
Appendix 12: Process Flow Sheet Vulcan has IP protection around flowsheet For personal use only 1 • Hot brine extracted from the ground and generates steam 1 that powers turbines and produces renewable Make-up water electricity • Standard geothermal Brine feed Direct Geothermal production wells succ
Slide 38: 13: Adsorption Process Step
Appendix 13: Adsorption Process Step 1 For personal use only Geothermal brine has a high salinity – it contains ions of various sizes and electric charges. Water molecules surrounding the ions make up a hydration shell. Small lithium ions require a double hydration shell to stabilize their electric
Slide 39: 14: Adsorption Process Step
Appendix 14: Adsorption Process Step 2 For personal use only When the loaded DLE material is washed with water, an excess of free water molecules becomes available to the lithium ions. Formation of a double hydration shell is an energetically favored process, which drives the desorption of the lithi
Slide 40: 15: Agreement To Acquire GeoThermal Engineering GmbH
Appendix 15: Agreement To Acquire GeoThermal Engineering GmbH For personal use only GeoT is a planning and consultancy company for deep geothermal energy projects, based in the Binary Cycle Upper Rhine Valley, Germany 1 Geothermal Plant • Highly credentialed scientific team with >100 years of combin
Slide 41: 16: Agreement To Acquire Gec-Co
Appendix 16: Agreement To Acquire Gec-Co For personal use only Gec-Co Global Engineering is a consultancy company focused on deep geothermal projects at surface: Binary Cycle power plant, heat stations, drill pads, and permitting. 1 Geothermal Plant • More than 20 years experience in geothermal. Agr
Slide 42: 17: Agreement With DuPont To De-Risk Direct Lithium Extraction
Appendix 17: Agreement With DuPont To De-Risk Direct Lithium Extraction Further For personal use only Direct Lithium Dupont, a Fortune 500 Top 50 company, is one of the world's largest producers 2 Extraction Plant of specialty chemicals Agreement is in line with Vulcan’s strategy: • Collaboration ag
Slide 43: 18: Project Economics - CAPEX
Appendix 18: Project Economics - CAPEX ENERGY BUSINESS LITHIUM BUSINESS For personal use only FULL PROJECT 1 Geothermal Plant 2 DLE Plant 3 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
Slide 44: 19: Project Economics - Possible Structures
Appendix 19: 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 and Lith
Slide 45: 19: Project Economics - Possible Structures
Appendix 19: 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 PHASING 2
Slide 46: 20: Project Economics - Sensitivities Analysis
Appendix 20: Project Economics - Sensitivities Analysis Project economics are 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 47: 21: Information for slide 10 resource comparison
Appendix 21: information for slide 8 & 9 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 Relea
Slide 48: Thank You
@VulcanEnergyRes v-er.com info@v-er.eu For personal use only ASX:VUL FRA:6KO Thank You PUBLIC RELATIONS EU Germany Australia
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