Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (October 2021)
41 slides from Vulcan Energy Resources's investor presentation, October 2021
Slide 1: Vulcan Energy - Zero Carbon Lithium
VULCAN ENERGY W ZERO CARBON LITHIUM™ ei) ZERO ZERO CARBON CARBON ENERGY LITHIUM
Slide 2: Disclaimer & Cautionary Statement
Disclaimer & Cautionary Statement The information contained in this presentation has been prepared To achieve the outcomes of Vulcan’s Pre-Feasibility Study, initial by Vulcan Energy Resources Ltd (VUL, Vulcan or the Company). funding in the order of €700m (including contingency) will be This presen
Slide 3: How to support 30 million EVs by 2030 in the EU?
How to support 30 million EVs by 2030 in the EU? 1,000GWh Lithium-ion EU: Fastest Growing Zero Local Supply Battery Capacity By 2030 Lithium Market In The World Of Lithium Hydroxide 0.8 0.7 EU: 0.6 90% MILLIONS LCE 0.5 0.4 0.3 0.2 0.1 0.0 CHINA: 80% 2030 2019 2021 2020 2027 2022 2023 2024 2025 2026
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 large quantities of lithium. 1 Billion Tonnes CO2 That’s equivalent to the annual emissions Approximate potential
Slide 5: Auto and battery-makers committing to carbon neutrality
Auto and battery-makers committing to carbon neutrality Lithium production emits more CO2 per tonne than Nickel and Cobalt: ‘Reducing carbon footprint is not just reducing vehicle emissions while they are being operated, Carbon Water but also […] from the company's resource Intensity Depletion extra
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 Carbon Border European Battery Critical Raw New EU Battery Adjustment Regulation Alliance Materials List Mechanism Battery EIB new energy European Raw ISO/TC 333 Lithium Passport lending policy Materials Al
Slide 7: Vulcan: a Zero Carbon Lithium & Renewable Energy Development Company
Vulcan: a Zero Carbon Lithium™ & Renewable Energy Development Company In the heart of the World-first Zero fastest growing lithium Strong cash ENERGY BUSINESS Carbon Lithium™ market in the world position Company 74MW Renewable Electricity Largest Team of world Geothermal & JORC lithium leading exper
Slide 8: We scoured the globe to find the right conditions for our Zero Carbon Lithium
We scoured the globe to find the right conditions for our Zero Carbon Lithium™ development Lithium concentration We had the lithium and geothermal expertise In brine (mg/L Lithium) to know that a Zero Carbon Lithium™ Project was possible using modern extraction 181 methods, provided a geothermal bri
Slide 9: We've defined the largest lithium resource in Europe
We’ve defined the largest lithium resource in Europe Germany France • Very large license package “ • Largest lithium resource in Europe by far: 15.85Mt LCE • Significant ability to scale up production as market grows: advantage over mined sources Large enough to supply millions of EVs as the market
Slide 10: Vulcan's renewable energy & lithium chemicals project
Vulcan’s renewable energy & lithium chemicals project Central Lithium Plant OUR PROJECT Electric Mobility Lithium hydroxide distributed to the EU market 6 LITHIUM BUSINESS Renewable Lithium chloride electricity sold to transported to the the grid 2 5 central lithium plant Direct Lithium Extraction E
Slide 11: Commercially available technologies combined & adapted to be fossil-free
Commercially available technologies combined & adapted to be fossil-free Our process incorporates technologies with commercial analogues across the world. What is unique about us is the combination of these different steps, and our strict exclusion of fossil fuels to power our process. 1. Binary Cyc
Slide 12: Dual purpose renewable energy and battery chemicals project
Dual purpose renewable energy and battery chemicals project Target metrics from Pre-Feasibility Study: PHASE 1 - €0.7Bn PHASE 2 - €1.1Bn CAPEX ENERGY BUSINESS Energy Business, Zero Carbon Lithium™ Business: 8MW 14MW 17MW 17MW 17MW 1. Binary Cycle Geothermal Plant Geothermal Geothermal Geothermal Geo
Slide 13: Dual revenues: energy and lithium
Dual revenues: energy and lithium ENERGY BUSINESS $/t LITHIUM BUSINESS Lithium Hydroxide Prices Decarbonizing the grid Renewable Electricity: Geothermal energy 22,000 in the form of electricity is sold to the grid 20,000 August 2021: 18,000 $18,500/t Feed-in Tariff Guaranteed €25.2c /KWh for 20 year
Slide 14: Potential for Very Low OPEX Operation
Potential forfor Potential Very veryLow OPEX low OPEX Operation operation South American brine and Australian/Chinese mineral conversion vs Vulcan’s process LiOH VIA HARD-ROCK PROCESSING $12,605/t LiOH $9,250¹ $3,355² Feedstock €10,663/t LiOH Mineral Cost Conversion Cost Vulcan’s “feedstock” is low
Slide 15: Robust project financials
Robust project financials ENERGY BUSINESS LITHIUM BUSINESS 74MW Power 40,000tpy LiOH €0.7Bn NPV Pre-tax €0.5Bn NPV Post-tax €2.8Bn NPVLITHIUM €1.9Bn NPV Post-tax Pre-tax BUSINESS 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 16: Peerless environmental credentials
Peerless environmental credentials Per tonne of lithium hydroxide produced CARBON EMISSIONS WATER CONSUMPTION LAND USE REAGENTS CONSUMPTION WASTE GENERATION (Scope 1,2,3) Tonnes CO2 m3 m2 Tonnes Tonnes Hard rock mining Evaporation ponds “ 60% of world lithium production 40% of world lithium producti
Slide 17: Materially improving the global battery chemicals supply chain
Lithium Chemicals Materially improving the global battery chemicals supply chain Spodumene ENVIRONMENT Process development and R&D Strict Zero development of world-first lithium Carbon focus and renewable energy co- production process in Pre- Feasibility Study: Zero Carbon Transport Distances for Di
Slide 18: Securing long term lithium supply contracts
Securing long term lithium supply contracts LG ENERGY SOLUTION 19TH JULY 2021 ▪ Binding lithium hydroxide offtake term sheet signed with LG Energy Solution ▪ Initial 5-year term which can be extended by further 5 years ▪ Start of commercial delivery set for 2025 ▪ LGES to purchase up to 10,000tpy of
Slide 19: Lithium Market Dynamics
Lithium Market Dynamics Technology & Costs Sustainability Market Balance Prices ‘We expect DLE technology to dominate the future “Geothermal lithium extraction has a much lower “Incorporating the stronger demand outlook “Lithium prices are likely to be impacted by green lithium mining sector. Fitch
Slide 20: Vulcan – Zero Carbon Lithium Board
Vulcan – Zero Carbon Lithium™ Board Dr. Francis Wedin Gavin Rezos Dr. Heidi Grön Josephine Bush Managing Director & Chair Non-Executive Director Non-Executive Director Founder-CEO Founder of Vulcan Zero Carbon Lithium™ Executive Chair/CEO positions of two Dr. Grön is a chemical engineer by Member of
Slide 21: Vulcan – Zero Carbon Lithium Team – Australia and International
Vulcan – Zero Carbon Lithium™ Team – Australia and International Vincent Ledoux-Pedailles Rob Ierace Vice President Chief Financial – Business Development Officer - Australia Robert is a Chartered Accountant and Chartered Secretary Vincent was previously Executive Director – Corporate with over 20 y
Slide 22: Vulcan – Zero Carbon Lithium Team - Germany
Vulcan – Zero Carbon Lithium™ Team - Germany Thorsten Weimann Markus Ritzauer Dr Stephen Harrison Chief Operating Officer Chief Financial Officer - Chief Technical Officer Germany 70+ People Expert in geothermal and drilling technology, with more than 25 Markus has over 20 years' experience in finan
Slide 23: The story so far: progress to date
The story so far: progress to date 2019 2020 2021 Full Year Full Year Q1 Q2 Q3 Q4 Acquisition of EU focused Positive Scoping Study Positive Pre-Feasibility EU sustainable battery & CO2 New exploration license granted Vulcan Lithium Project published Study published policy expert, Former Tesla Head o
Slide 24: Target project timeline
Target project timeline 2021 2022 2023 2024 2025 + Project Development Financing Project Financing Drilling 2 Geo Plants Exploration Further Exploration 2 DLE Plants Data Construction 1 CLP Energy 22MW PFS Phase 1 Definitive/Bankable Feasibility Study Lithium 15Kt/y Phase 1 Production Data A$120M Te
Slide 25: Share price and capital structure
Share price and capital structure ASX : VUL Shares on Issue 108,791,364 Performance Milestone Shares* 4,491,174 Performance Rights* 11,238,688 Market Capitalization at $13.43 (undiluted) ~$1.46B Enterprise Value at $13.43 (undiluted) ~$1.35M Cash Position ~$111M Top 20 Shareholders ~52% Management (
Slide 26: Conclusion
Conclusion World’s 1st & only Zero Europe’s largest Location centre Supported By EU Carbon Lithium™ lithium Resource of fastest growing funding, regulation Company market & initiatives Low cost & resilient Strong cash position The right team Rapidly advancing financials for the job lithium project 2
Slide 27: Appendices
VULCAN ENERGY W ZERO CARBON LITHIUM™ Y Appendices
Slide 28: Appendix 1: Vulcan's Renewable Project Description
Regulations & Appendix 1: Vulcan’s Renewable Project Description Initiatives Germany European Union 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 Alliance New industry for
Slide 29: Appendix 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 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 engine bans in France, Be
Slide 30: Appendix 3: EU lithium-ion battery capacity
Appendix 3: EU lithium-ion battery capacity Brandenburg, 2021 Brandenburg, 2021 At least 20GWh RAMP UP TO 8-12 GWh >1,000GWh LITHIUM-ION Salzgitter, 2025 Bitterfeld, 2022 16 GWh BATTERY CAPACITY 40GWh PLANNED BY 2030 Spain, Eastern Europe, etc. Wroclaw, 2018 4x40GWh 6 GWh, LATER 70 GWh Erfurt, 2022
Slide 31: Appendix 4: The New EU Battery Regulation
Appendix 4: The New EU Battery Regulation Other EU measures and initiatives supporting lithium: 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 list of Critical 2. CO
Slide 32: Appendix 5: Vulcan supported by EU-backed group
Appendix 5: Vulcan supported by EU-backed group 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, and liaising with EU pro
Slide 33: Appendix 6: Vulcan & Circulor lithium traceability
Appendix 6: Vulcan & Circulor to establish world-first full lithium traceability & transparency across the EU supply chain Circulor offers a software solution that enables customers to track raw materials and CO2 emissions through supply chains to demonstrate responsible sourcing and sustainability.
Slide 34: Appendix 7: Largest Lithium Resource in Europe
Appendix 7: Largest Lithium Resource in Europe 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 Resource 1.44 Total 2.27 France Probable Reserve 1.12 Vulcan Total Indicated Reso
Slide 35: Appendix 8: Brine Composition Comparison
Appendix 8: Brine Composition Comparison Mg/kg Mg/kg 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 Vulcan’s Januar
Slide 36: Appendix 9: Project Economics - CAPEX
Appendix 9: Project Economics - CAPEX ENERGY BUSINESS LITHIUM BUSINESS 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 LiOH Capex: €226M Cape
Slide 37: Appendix 10: Project Economics - Possible Structures
Appendix 10: Project Economics - Possible Structures Full project developed at the same time but separated Phase 1 developed first, separated in two different Phase 2 developed second, separated in two in two different businesses: Energy and Lithium. businesses: Energy and Lithium. different busines
Slide 38: Appendix 11: Project Economics - Possible Structures
Appendix 11: 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 integrated under one business. integrated business integrated business FULL PROJECT PHASE 1 PHASE 2 NO PHASING 2024 Start 2025 Start 2
Slide 39: Appendix 12: information for slide 8 & 9
Appendix 12: information for slide 8 & 9 Company Code Project Stage Resource Resources M Resource Contained LCE Information Source Category tonnes Grade (Li2O) Tonnes European Indicated & Corporate Presentation ASX: EMH Cinovec PFS Complete 695.9 0.42 7.22 Metals Inferred Released October 2020 ASX A
Slide 40: Appendix 13: Partnership with Nico Rosberg & Rosberg X Racing
Appendix 13: Partnership with Nico Rosberg & Rosberg X Racing Extreme-E Team • Vulcan Energy Resources Ltd. and Mr. Nico Rosberg and the Rosberg X Racing (RXR) electric racing team in the Extreme-E competition have signed a partnership and sponsorship agreement • Mr. Rosberg, a German national who w
Slide 41: Thank You
@VulcanEnergyRes v-er.eu info@v-er.eu ASX:VUL FRA:6KO Thank You PUBLIC RELATIONS EU/Germany Australia 41
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