Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Corporate Update (November 2024)
27 slides from Vulcan Energy Resources's corporate update, Nov 21, 2024
Slide 1: Q4 2024 Determined for a Better Tomorrow
For personal use only Q4 2024 DETERMINED FOR A ASX/FSE: VUL BETTER TOMORROW
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 ASX/FSE Prime Standard / VUL Vulcan values For personal use only Shares on issue / ~188 million CLIMATE CHAMPION Market Capitalisation 1 / ca. €698m (A$1.14bn) DETERMINED Cash2 / €36.5m INSPIRING High quality strategic shareholde
Slide 4: New Wave of Lithium Is Building
NEW WAVE OF LITHIUM IS BUILDING Defined by low cost, sustainable production from brines using A-DLE For personal use only As the lithium market matures into its next phase of growth, major global companies like Rio Tinto and ExxonMobil are entering the space Global lithium market forecast to grow at
Slide 5: What Makes a Successful Lithium Business?
WHAT MAKES A SUCCESSFUL LITHIUM BUSINESS? Vulcan sets the standard: Key factors for the next wave in lithium 1. Strong tier-one customers: reduces pricing and market risk For personal use only 2. Lithium resource scale: ability to build large, low cost, scalable production 3. Low impurities in the b
Slide 6: Vulcan's Phase One Project: Lionheart
VULCAN'S PHASE ONE PROJECT: LIONHEART Low cost, sustainable integrated lithium and energy production from Europe, for Europe 2 3 For personal use only 4 1 6 1 Vulcan’s 100% owned Insheim Geothermal Power Plant and wells 2 Operating well site and Lithium 3 G-LEP – location secured, awaiting construct
Slide 7: Uniquely Positioned
UNIQUELY POSITIONED Vulcan poised to capture the next phase of growth ✓ Strong customer relationships: Vulcan has offtake agreements with For personal use only tier-one European counterparties covering the first 10 years of production ✓ Tier-one asset: 30-year project life, large, scalable lithium r
Slide 8: European Market Structurally Short of Lithium
EUROPEAN MARKET STRUCTURALLY SHORT OF LITHIUM Lithium supply in a structurally short market Global Supply / Demand Balance For personal use only Global supply for LHM looks challenged relative to growth rates in lithium battery production Supply/demand balance even more acute in Europe, which finds
Slide 9: 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 For personal use only Long term relationships: all offtake agreements binding, take-or-pay, with agreed pricing mechanisms, 5-10 ye
Slide 10: World-Class Lithium District: Lionheart
Industrie-Park Höchst Downstream 24ktpa LHM Ability to expand to 3 phases WORLD-CLASS LITHIUM DISTRICT: LIONHEART Frankfurt Ability to expand with low cost, sustainable production Global tier-one lithium resource, and largest in For personal use only Europe1: 27.7 Mt LCE estimated in 10 of Vulcan’s
Slide 11: Competitive Advantage: Integrated Business
COMPETITIVE ADVANTAGE: INTEGRATED BUSINESS Main inputs are heat and power 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 lithium production dr
Slide 12: Vulcan Will Be in the Lowest Quartile of the Lithium Cost Curve
VULCAN WILL BE IN THE LOWEST QUARTILE OF THE LITHIUM COST CURVE Powered by low cost, highly efficient A-DLE production that leverages renewable heat Global projected 2035 lithium hydroxide C1 cost curve For personal use only Brine Integrated Spodumene - RoW Integrated Mica Integrated Spodumene - Afr
Slide 13: 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 Up to 95% lithium extraction efficiency, already producing to specification using Vulcan’s proprietary adsor
Slide 14: Optimised Commercially-Leading Technology
Optimised commercially-leading technology 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 sub
Slide 15: 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 16: EPCM Partner Validation Exercise Completed
EPCM PARTNER VALIDATION EXERCISE COMPLETED Much improved scope definition leading to reduced uncertainty and risk during execution, all with no material change to CAPEX For personal use only EPCM/ integrator: review of scope, cost and schedule, validating the BES, with no material increase in capita
Slide 17: Phase One: Lionheart
PHASE ONE: LIONHEART Low cost, sustainable integrated lithium and energy1 Integrated renewable energy, lithium salts and lithium hydroxide production from sub- surface brines in the Rhine Valley. 24,000 tonnes p.a. LHM production: enough for For personal use only 500,000 electric vehicles every year
Slide 18: Phase One Financing
PHASE ONE FINANCING Structuring Banks Strong support from public and private sector Potential for up to €500m of support indicated by the European Investment Bank For personal use only (EIB) Vulcan has also applied for significant public grant funding and was awarded €100m (A$162m) from the Federal
Slide 19: A Clear Leader in Sustainability
A CLEAR LEADER IN SUSTAINABILITY Phase One will: For personal use only Produce enough lithium for ca. 500,000 electric vehicles p.a.2 Avoid 10Mt CO2 eq. through decarbonising the lithium supply chain3 Produce renewable heat for ca. 90,000 people4 Environmental and Social Impact Assessment (ESIA) upd
Slide 20: Focus Areas for Value Creation
FOCUS AREAS FOR VALUE CREATION Phase One creates base for a leading lithium, renewable energy and technology company Lithium Renewable energy Technology For personal use only Division Li Li Ren Li Tech Li 275GWh p.a. of renewable power and 560 Having shown industry-leading 24,000 tonnes p.a. of sust
Slide 21: A Premium Industry-Leading Lithium Product
For personal use only A premium industry-leading lithium product for battery electric vehicles V is for Vulcan. We strive to be climate champions. Li is for high purity, most sustainable* and versatile, battery-grade lithium products. O is for zero fossil fuels directly used in our onsite process to
Slide 22: Phase +: Decarbonising the World's Largest Chemical Site
PHASE + DECARBONISING THE WORLD’S LARGEST CHEMICAL SITE A blueprint for Vulcan's future phase developments to support Europe's energy transition Phase One ++ downstream For personal use only Central Lithium Plant planned location Frankfurt 20km • Owner of lithium production • Future heat offtaker •
Slide 23: Key Upcoming Target Milestones
KEY UPCOMING TARGET MILESTONES Transformational period for Phase One Lionheart Project First upstream LiCl production from LEOP For personal use only Launch final phase of Project funding CLEOP commissioning underway COMPLETE First downstream lithium hydroxide produced from CLEOP Vulcan awarded €100
Slide 24: 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 25: Thank you
For personal use only Thank you @VulcanEnergyRes www.v-er.eu
Slide 26: 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 27: 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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