Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (July 2024)
23 slides from Vulcan Energy Resources's investor presentation, Jul 30, 2024
Slide 1: Delivering Integrated Zero Carbon Lithium & Renewable Energy
For personal use only DELIVERING INTEGRATED ZERO CARBON LITHIUM & RENEWABLE ENERGY Q3 2024 ASX/FSE: VUL 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 For personal use only Shares on issue / ~188 million Market Capitalisation 1 / ca. €483m (A$800m) Cash2 / €60.6m High quality strategic shareholders ~9% Dr Francis Wedin ~7.5% H
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Integrated ZERO CARBON LITHIUM & renewable energy Pricing stability: Offtake secured with Tier One automotive and battery customers For personal use only First quartile lithium production costs1: Integrated heat and power, compact supply chain, drive low Li production costs Opt
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-focussed offtake partners For personal use only Long term relationships: All offtake agreements binding, take-or-pay, with agreed pricing mechanisms, 5-10 y
Slide 6: Market Advantage: Europe Global Supply / Demand Balance
MARKET ADVANTAGE: EUROPE Global Supply / Demand Balance Lithium supply in a structurally short market For personal use only Global supply for LHM looks challenged from 2025 onwards Supply/demand balance even more acute in Europe, which finds itself structurally undersupplied LHM product qualificatio
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 For personal use only 4 1 7 1 Vulcan’s 100% owned Insheim Geothermal Power Plant (operating) 2 LEOP 3 G-LEP – location secured, awaiting constru
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 For personal use only €3.9B (A$5.6 billion) pre-tax NPV8 / €2.6B (A$4.2B) post-tax NPV8 geothermal energy and lithium Targe
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 For personal use only Simplified two-stage process from lithium-rich brine to battery-ready product Commercially leading adsorption-type lithi
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 For personal use only 130km covers Vulcan’s entire process, from wellsite to battery-ready 20km product, making it one of the most compac
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 For personal use only Non-integrated Mica Integrated Mica Integrated Spodumene - RoW Brine Non-integrated S
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 For personal use only Early results up to 95% lithium extraction efficiency Operational readiness: LEOP is currently training staf
Slide 13: Optimisation and Qualification: Downstream
OPTIMISATION AND QUALIFICATION: DOWNSTREAM Operations team training and fast-tracking product qualification For personal use only Located in Industrie-Park Höchst, Vulcan’s downstream optimisation pant CLEOP will focus on training and optimisation during the construction of the commercial-sized lith
Slide 14: Commercially-leading technology, optimised
Commercially-leading technology, optimised For personal use only 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 su
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 For personal use only within the worlds largest engineering, chemical and oil and gas firms In-house technical excellence, with th
Slide 16: Sustainability Leader by Design
SUSTAINABILITY LEADER BY DESIGN Ca. 14 tonnes CO2 avoided for every tonne of lithium produced1 For personal use only Certified Carbon Alignment with TCFD UNGC Member, TNFD Forum Neutral International & UN Sustainable Member and VCMI Organisation from 2021 Development Goals Stakeholder Forum Member E
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 For personal use only significant indicative support from Tier-1 financing partners and export credit agencies (“ECAs
Slide 18: Growth Pipeline to Increase Production
Höchst Chemical Park Central Lithium Plant GROWTH PIPELINE planned location Frankfurt TO INCREASE PRODUCTION THROUGH 20km EU’S LARGEST LITHIUM RESOURCE1 For personal use only Vulcan’s URVBF consists of a consistent sedimentary GERMANY Mannheim geothermal lithium reservoir across 16 licences covering
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 For personal use only Launch final phase of Project funding CLEOP “Mechanical Completion” and first LiCl into plant First downstream LHM production from CLEOP De
Slide 20: Highly Experienced Leadership
HIGHLY EXPERIENCED LEADERSHIP Outstanding major project, technical and finance experience at the Executive and Board level Vulcan Executive Management For personal use only Dr Francis Wedin Cris Moreno Felicity Gooding Executive Chair, Founder Managing Director & CEO Group Chief Financial Officer De
Slide 21: Thank you / Danke Schön
For personal use only Thank you / Danke Schön Investor Relations (Global) Kurt Walker @VulcanEnergyRes Head of Investor Relations kwalker@v-er.eu 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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