Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (September 2021)
56 slides from Vulcan Energy Resources's investor presentation, Sep 14, 2021
Slide 1: For personal use only
For personal use only Not for release to US wire services or distribution in the United States 1
Slide 2: Disclaimer
Not for release to US wire services or distribution in the United States Disclaimer IMPORTANT: You must read the following before continuing The information contained in this presentation ("Presentation") has been prepared by Vulcan Energy Resources Ltd ("Vulcan" or the "Company"). Pursuant to ASX L
Slide 3: Disclaimer
Not for release to US wire services or distribution in the United States Disclaimer Industry data Certain market and industry data used in connection with or referenced in this Presentation may have been obtained from public filings, research, surveys or studies made or conducted by third parties, i
Slide 4: Disclaimer
Not for release to US wire services or distribution in the United States Disclaimer These factors may include, but are not limited to, changes in commodity and renewable energy prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, th
Slide 5: Disclaimer
Not for release to US wire services or distribution in the United States Disclaimer None of the joint lead managers to the Placement (“Joint Lead Managers”), their respective related bodies corporate, shareholders or affiliates, or their respective officers, directors, employees, agents or advisers
Slide 6: Investment highlights
Not for release to US wire services or distribution in the United States Investment highlights Goal to become world’s • Planned co-generation of geothermal energy to power lithium extraction, without the use of fossil fuels, mining or evaporation ponds, to For personal use only first Zero Carbon cre
Slide 7: Equity Raising
Not for release to US wire services or distribution in the United States For personal use only Equity Raising 7
Slide 8: Equity raising overview
Not for release to US wire services or distribution in the United States Equity raising overview Vulcan is conducting an underwritten institutional placement to raise A$200 million and a non-underwritten share purchase plan to raise up to A$20 million (collectively “the Offer”) For personal use only
Slide 9: Sources and uses of funds
Not for release to US wire services or distribution in the United States Sources and uses of funds Proceeds from the Offer, together with existing cash, will be used to accelerate exploration For personal use only Sources of funds4 A$m €m3 initiatives and expand Vulcan’s dual renewable energy and li
Slide 10: Offer timetable
Not for release to US wire services or distribution in the United States Offer timetable For personal use only Event Time (AEST) / Date¹ Placement Trading halt Tuesday, 14 September 2021 1. Binary Cycle Launch ofGeothermal PlacementPlant 2. 3. Central Lithium PlantTuesday, 14 September 2021 Trading
Slide 11: Zero Carbon Lithium Project
Not for release to US wire services or distribution in the United States For personal use only Zero Carbon Lithium™ Project 11
Slide 12: Goal to become world's first Zero Carbon Lithium company
Not for release to US wire services or distribution in the United States Vulcan: Goal to become world’s first Zero Carbon Lithium™ & renewable energy development company1 For personal use only In the heart of the Goal to become fastest growing lithium Strong cash world’s first Zero battery market in
Slide 13: We've defined the largest lithium resource in Europe
Not for release to US wire services or distribution in the United States We’ve defined the largest lithium resource in Europe For personal use only Germany France • Large license package • Largest lithium resource in Europe: 15.85Mt LCE • Significant potential to scale up production as market grows:
Slide 14: Vulcan's renewable energy & lithium chemicals project
Not for release to US wire services or distribution in the United States Vulcan’s renewable energy & lithium chemicals project1 Central Lithium Plant OUR PROJECT For personal use only Electric Mobility Lithium hydroxide distributed to the EU market 6 LITHIUM BUSINESS Renewable Lithium chloride elect
Slide 15: Commercially available technologies combined & adapted to be fossil-free
Not for release to US wire services or distribution in the United States Commercially available technologies combined & adapted to be fossil-free For personal use only Our process incorporates technologies with commercial analogues across the world. What is unique about us is the proposed combinatio
Slide 16: Proposed dual purpose renewable energy and battery chemicals project
Not for release to US wire services or distribution in the United States Proposed dual purpose renewable energy and battery chemicals project For personal use only Target metrics from Pre-Feasibility Study: PHASE 1 - €0.7Bn PHASE 2 - €1.1Bn CAPEX ENERGY BUSINESS Energy Business, Zero Carbon Lithium™
Slide 17: Proposed dual revenues: energy and lithium
Not for release to US wire services or distribution in the United States Proposed dual revenues: energy and lithium For personal use only ENERGY BUSINESS $/t LITHIUM BUSINESS Lithium Hydroxide Prices Decarbonizing the grid Renewable Electricity: Geothermal energy 22,000 in the form of electricity is
Slide 18: Potential for very low OPEX operation
Not for release to US wire services or distribution in the United States Potential forfor Potential Very veryLow OPEX low OPEX Operation operation Select South American brine and Australian/Chinese mineral conversion vs Vulcan’s process For personal use only LiOH VIA HARD-ROCK PROCESSING US$11,702/t
Slide 19: Robust target project financials and production metrics from PFS
Not for release to US wire services or distribution in the United States Robust target project financials and production metrics from PFS For personal use only ENERGY BUSINESS LITHIUM BUSINESS 74MW Power 40,000tpa LiOH €0.7Bn NPV Pre-tax €0.5Bn NPV Post-tax €2.8Bn NPVLITHIUM €1.9Bn NPV Post-tax Pre-
Slide 20: Leading environmental credentials
Not for release to US wire services or distribution in the United States Leading environmental credentials For personal use only 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
Slide 21: Lithium Chemicals
Not for release to US wire services or distribution in the United States Lithium Chemicals Materially improving the global battery chemicals supply chain Spodumene For personal use only ENVIRONMENT Process development and R&D Strict Zero development of world’s first lithium Carbon focus and renewabl
Slide 22: Securing long term lithium supply contracts
Not for release to US wire services or distribution in the United States Securing long term lithium supply contracts LG ENERGY SOLUTION 19th JULY 2021 For personal use only ▪ Binding lithium hydroxide offtake term sheet signed with LG Energy Solution ▪ Initial 5-year term which can be extended by fu
Slide 23: Lithium market dynamics
Not for release to US wire services or distribution in the United States Lithium market dynamics For personal use only Technology & Costs Sustainability Market Balance Prices “We expect DLE technology to dominate the future “Geothermal lithium extraction has a much lower “Incorporating the stronger
Slide 24: How to support million EVs by 2030 in the EU?
Not for release to US wire services or distribution in the United States How to support 30 million EVs by 2030 in the EU? For personal use only 1,000GWh Lithium-ion EU: Fastest Growing Zero Local Supply Battery Capacity By 20301 Lithium Market In The World2 Of Lithium Hydroxide 0.8 0.7 0.6 EU: 0% MI
Slide 25: Auto and battery-makers committing to carbon neutrality
Not for release to US wire services or distribution in the United States Auto and battery-makers committing to carbon neutrality For personal use only Lithium production has a significant environmental footprint: ‘Reducing carbon footprint is not just reducing vehicle emissions while they are being
Slide 26: The EU stepping in to support and regulate the industry
Not for release to US wire services or distribution in the United States The EU stepping in to support and regulate the industry For personal use only Green Supply Chain Local Supply Chain Carbon Border European Battery Critical Raw New EU Battery Adjustment Regulation Alliance Materials List Mechan
Slide 27: The story so far: progress to date
Not for release to US wire services or distribution in the United States The story so far: progress to date For personal use only 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 lice
Slide 28: Target project timeline
Not for release to US wire services or distribution in the United States Target project timeline 2021 2022 2023 2024 2025 + For personal use only Project Development Financing Project Financing Drilling 2 Geo Plants Exploration Further Exploration 2 DLE Plants Data Construction 1 CLP Energy 22MW PFS
Slide 29: Vulcan – Zero Carbon Lithium Board
Not for release to US wire services or distribution in the United States Vulcan – Zero Carbon Lithium™ Board For personal use only 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 Ca
Slide 30: Vulcan Team – Australia and International
Not for release to US wire services or distribution in the United States Vulcan – Zero Carbon Lithium™ Team – Australia and International For personal use only Vincent Ledoux-Pedailles Rob Ierace Vice President Chief Financial Officer – Business Development - Australia Robert is a Chartered Accounta
Slide 31: Vulcan Team - Germany
Not for release to US wire services or distribution in the United States Vulcan – Zero Carbon Lithium™ Team - Germany Thorsten Weimann Markus Ritzauer Dr Stephen Harrison Chief Operating Officer Chief Financial Officer - Chief Technical Officer For personal use only Germany 70+ People Expert in geot
Slide 32: Share price and capital structure
Not for release to US wire services or distribution in the United States Share price and capital structure1 ASX : VUL For personal use only Shares on Issue 108,791,364 Performance Milestone Shares 4,491,174 Performance Rights 11,238,688 Market Capitalisation at $15.90 (undiluted) ~$1.7B Enterprise V
Slide 33: Conclusion
Conclusion For personal use only Goal to become Europe’s largest Location centre Supported By EU world’s first Zero lithium Resource1 of fastest growing funding, regulation Carbon Lithium™ market2 & initiatives Company Low cost & resilient Strong cash position The right team Rapidly advancing financ
Slide 34: Appendices
Not for release to US wire services or distribution in the United States For personal use only Appendices 34
Slide 35: Appendix 1: Target project economics from PFS - CAPEX
Not for release to US wire services or distribution in the United States Appendix 1: Target project economics from PFS - 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 PHA
Slide 36: Appendix 2: Target project economics - possible structures
Not for release to US wire services or distribution in the United States Appendix 2: Target 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 separat
Slide 37: Appendix 3: Target project economics - possible structures
Not for release to US wire services or distribution in the United States Appendix 3: Target 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. in
Slide 38: Appendix 4: Reference information for slide 13 and Appendix 5
Not for release to US wire services or distribution in the United States Appendix 4: Reference information for slide 13 and Appendix 5 For personal use only Company1 Code Project Stage Resource Category Resources M tonnes Resource Grade (Li2O) Contained Mt LCE Tonnes Information Source Corporate Pre
Slide 39: Appendix 5: Vulcan lithium Resource and Reserve in Europe
Not for release to US wire services or distribution in the United States Appendix 5: Vulcan lithium Resource and Reserve in Europe1 For personal use only Germany Probable Reserve 0.7 Ortenau License Indicated Resource 2.06 Inferred Resource 10.8 Total 12.86 Probable Reserve 0.42 License Indicated Re
Slide 40: Appendix 6: EU lithium-ion planned battery capacity
Not for release to US wire services or distribution in the United States Appendix 6: EU lithium-ion planned battery capacity Brandenburg, 2021 Brandenburg, 2021 At least 20GWh RAMP UP TO 8-12 GWh >1,000GWh LITHIUM-ION For personal use only Salzgitter, 2025 Bitterfeld, 2022 16 GWh BATTERY CAPACITY 40
Slide 41: Appendix 7: Risk factors
Not for release to US wire services or distribution in the United States Appendix 7: Risk factors There are various risks associated with an investment in New Shares or Vulcan generally, as with any securities market investment. This section summarises the following key risks. For personal use only
Slide 42: Appendix 7: Risk factors
Not for release to US wire services or distribution in the United States Appendix 7: Risk factors 2. Lithium demand risk For personal use only Following commencement of commercial production, Vulcan intends to generate a substantial majority of its future revenues from the extraction and sale of lit
Slide 43: Appendix 7: Risk factors
Not for release to US wire services or distribution in the United States Appendix 7: Risk factors In addition, current and potential competitors may have larger financial resources or governmental support and, accordingly, may be able to launch new or expand existing lithium hydroxide production ope
Slide 44: Appendix 7: Risk factors
Not for release to US wire services or distribution in the United States Appendix 7: Risk factors 2. Mineral resource and ore reserve estimates; accuracy of feasibility studies For personal use only Feasibility studies are used to determine the economic viability of a mineral deposit. Many factors a
Slide 45: Appendix 7: Risk factors
Not for release to US wire services or distribution in the United States Appendix 7: Risk factors 4. Permits and licences For personal use only Vulcan currently holds all exploration licences required to undertake its exploration programs. However, many of the mineral rights and interests held by Vu
Slide 46: Appendix 7: Risk factors
Not for release to US wire services or distribution in the United States Appendix 7: Risk factors The Company may also in the future analyse and ultimately execute potential opportunities regarding acquisitions of existing companies, businesses, assets or technologies. However, there can be no assur
Slide 47: Appendix 7: Risk factors
Not for release to US wire services or distribution in the United States Appendix 7: Risk factors 12. Additional financing For personal use only Historically, Vulcan's finance costs have been minimal. However, significant future funding will be required by Vulcan to support the further implementatio
Slide 48: Appendix 7: Risk factors
Not for release to US wire services or distribution in the United States Appendix 7: Risk factors 14. Foreign currency exchange risk For personal use only The majority of Vulcan's expenses are currently paid in Euros (excluding certain corporate costs paid in Australian dollars). Because Vulcan curr
Slide 49: Appendix 7: Risk factors
Not for release to US wire services or distribution in the United States Appendix 7: Risk factors 17. Intellectual property risk For personal use only Vulcan believes that its know-how and proprietary technology is critical to its success. Vulcan has sought protection of its proprietary technology t
Slide 50: Appendix 7: Risk factors
Not for release to US wire services or distribution in the United States Appendix 7: Risk factors 2. Dilution risk For personal use only Existing shareholders who do not participate in the Placement (which will include all retail shareholders and those institutional shareholders who do not participa
Slide 51: Appendix 8: International offer restrictions
Not for release to US wire services or distribution in the United States Appendix 8: International offer restrictions This document does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the
Slide 52: Appendix 8: International offer restrictions
Not for release to US wire services or distribution in the United States Appendix 8: International offer restrictions Hong Kong For personal use only WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinan
Slide 53: Appendix 8: International offer restrictions
Not for release to US wire services or distribution in the United States Appendix 8: International offer restrictions Switzerland For personal use only The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulat
Slide 54: Appendix 9: Summary of Placement Agreement
Not for release to US wire services or distribution in the United States Appendix 9: Summary of Placement Agreement Vulcan has entered into a Placement Agreement with the Joint Lead Managers, under which the Joint Lead Managers have agreed to act as joint lead managers, bookrunners and underwriters
Slide 55: Appendix 9: Summary of Placement Agreement
Not for release to US wire services or distribution in the United States Appendix 9: Summary of Placement Agreement • there is a material adverse change, or in the Joint Lead Managers’ reasonable opinion, a development involving a potential material adverse change, in the condition, assets, liabilit
Slide 56: Thank You
@VulcanEnergyRes v-er.eu info@v-er.eu ASX:VUL For personal use only FRA:6KO Thank You PUBLIC RELATIONS EU/Germany Australia Not for release to US wire services or distribution in the United States 56
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