Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Technical Presentation (January 2021)
30 slides from Vulcan Energy Resources's technical presentation, Jan 15, 2021
Slide 1: Zero Carbon Lithium Pre-Feasibility Study
For personal use only Zero Carbon Lithium ® PRE-FEASIBILITY STUDY
Slide 2: Disclaimer & Cautionary Statement
Disclaimer & Cautionary Statement The information contained in this presentation has been prepared by Vulcan Energy Resources Ltd. 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. This
Slide 3: Table Of Contents
Table Of Contents For personal use only 1. Introduction 2. Project Resources 3. Production Process 4. Project Structure 5. Project Economics 6. Project Timeline 7. Study Team 3 3D visualisation of one of Vulcan’s Geothermal and DLE
Slide 4: Introduction: Lithium Industry Overview
1. Introduction: Lithium Industry Overview EU: FASTEST GROWING LITHIUM SUPPLY CHAIN RISKS LEAD HIGH CARBON FOOTPRINT OF For personal use only MARKET IN THE WORLD TO REGIONALISATION EXISTING SUPPLY CHAIN Industry: Industry: Industry: • More investment into EVs in the EU than China • Investment to dev
Slide 5: Vulcan – Zero Carbon Lithium
1. Introduction: Vulcan – Zero Carbon Lithium® LITHIUM BUSINESS €2.8Bn NPV¹ Pre-tax 31% IRR¹ Pre-tax For personal use only 40Ktpy LiOH¹ In the heart of the €474M starting CAPEX² World-first Zero Carbon Agreement with German Lithium® Project fastest growing lithium geothermal operators €2,640/t LiOH
Slide 6: Vulcan's Renewable Energy & Lithium Project Initiatives
Regulations & 1. Introduction: Vulcan’s Renewable Energy & Lithium Project 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 B
Slide 7: Project Resource
2. Project Resource 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 0.83 Taro Inferred Resource 1.44 Total 2.27 France Pr
Slide 8: Project Resource
2.Project Resource For personal use only Snapshot of 3D geological model from Snapshot 3D geological model from 2D 3D seismic data in the Taro license seismic data in the Ortenau license Geothermal and DLE plants B1 & B2 Geothermal and DLE plants C1, C2 & C3 2.27Mt LCE Resource 12.86Mt LCE Resource
Slide 9: Production Process: Full Flowsheet
3. Production Process: Full Flowsheet Vulcan has IP protection around flowsheet 1 • Hot brine extracted from the For personal use only ground and generates steam 1 that powers turbines and produces renewable Make-up water electricity • Standard geothermal Brine feed Direct Geothermal production well
Slide 10: Production Process: Geothermal and DLE Connection
3.Production Process: : Geothermal and DLE Connection Connections in between a geothermal, DLE plant, and the grid For personal use only GRID ELECTRICITY ELECTRICITY ELECTRICITY SELL BUY BUY @25.2c/KWh @18c/KWh @15c/KWh Feed-in tariff Green certificate Green certificate STEAM Geothermal Plant Direct
Slide 11: Production Process: Process Flowsheet
3.Production Process: Process Flowsheet For personal use only Drill site Filter house 21 Binary Cycle Geothermal Plant Pump house Operational building 11 Air-cooled condenser ORC power plant 11
Slide 12: Production Process: Process Flowsheet
3.Production Process: Process Flowsheet For personal use only DLEFilter house 22 Direct Lithium Extraction Plant Pump house Operational building Eluate concentration Pre-treatment Post-treatment 12
Slide 13: Production Process: Process Flowsheet
3.Production Process: Process Flowsheet For personal use only Filter LiOH house production 23 Central Lithium Plant Pump house Operational building Electrolysis Impurity removal HCl synthetis 13
Slide 14: Project Structure: Dual Purpose Renewable Project
4. Project Structure: Dual Purpose Renewable Project Energy Business: Electricity & Heat, Lithium Business: Zero Carbon Lithium® For personal use only 8MW 14MW 17MW 17MW 17MW ENERGY BUSINESS 1 Binary Cycle Geothermal Plant Geothermal Plant B1 Geothermal Plant B2 Geothermal Plant C1 Geothermal Plant
Slide 15: Project Structure: Dual Purpose Renewable Project
4.Project Structure: Dual Purpose Renewable Project For personal use only ENERGY BUSINESS LITHIUM BUSINESS STEAM 1 entity Energy & Lithium LiCl Geothermal Plant DLE CLP businesses BRINE INTEGRATED STEAM 2 entities Energy & Lithium LiCl Geothermal Plant DLE CLP businesses BRINE SEPARATED ROYALTIES 15
Slide 16: Project Economics: CAPEX
5.Project Economics: CAPEX ENERGY BUSINESS LITHIUM BUSINESS For personal use only Geothermal Plant¹ DLE Plant¹ Central Lithium Plant² Full Project Power Plant Direct Lithium Electrolysis Geothermal Extraction Drilling Costs Brine Crude LHM DLE Contingency Purification Crystallization Contingency Con
Slide 17: Project Economics: CAPEX
5.Project Economics: CAPEX ENERGY BUSINESS LITHIUM BUSINESS For personal use only 1 2 3 FULL PROJECT Geothermal Plant DLE Plant 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:
Slide 18: Project Economics: OPEX - Integrated Business
5.Project Economics: OPEX - Integrated Business ENERGY BUSINESS LITHIUM BUSINESS For personal use only Geothermal Plant DLE Plant Central Lithium Plant Full Stage 1 Steam and Lithium brine from the chloride geothermal plant received at no received at no cost cost Others Others Power 18% 21% CLP Cons
Slide 19: Project Economics: OPEX Comparison
5. Project Economics: OPEX Comparison 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 20: Project Economics: Lithium Revenues
5. Project Economics: Lithium Revenues Much more stability in global contract prices than in the spot market specific to china For personal use only Spot Prices LiOH Prices – Historical and Forecast 22,000 Today 20,000 18,000 Projected Contract Prices 16,000 14,000 12,000 10,000 8,000 6,000 Import/C
Slide 21: Project Economics: Upcoming Lithium Deficit
5.Project Economics: Upcoming Lithium Deficit Long term market fundamentals remains strong for the lithium Lead by changes in cathode technologies, lithium market. Demand will be driven by electric mobility with growth hydroxide is forecast to take over lithium carbonate For personal use only rates
Slide 22: Project Economics: Energy Revenues
5. Project Economics: Energy Revenues Vulcan’s Project is expected to generate dual revenue, from lithium sales geothermal renewable energy For personal use only Bans for Coal phase-out fossil heating Energy Business Revenues in Germany systems Zero Carbon Heat: Energy in the form of heat can be sol
Slide 23: Project Economics: Possible Structures
5.Project Economics: Possible Structures A. Integrated Businesses For personal use only Full project developed at the same time Phase 1 developed first and is an Phase 2 developed second and is an and integrated under one business. integrated business integrated business FULL PROJECT PHASE 1 PHASE 2
Slide 24: Project Economics: Possible Structures
5. Project Economics: Possible Structures B. Separate Businesses Full project developed at the same time but Phase 1 developed first, separated in two different Phase 2 developed second, separated in two For personal use only separated in two different businesses: Energy and businesses: Energy and L
Slide 25: Project Economics: Sensitivities Analysis
5. Project Economics: Sensitivities Analysis Project Economics are exceptionally 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 I
Slide 26: Project Timeline
6. Project Timeline 2021 2022 2023 2024 2025 For personal use only Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Development PFS Piloting Test Work DFS Financing Phase 1 Geo & DLE Permitting (Pre & Final) Drilling Construction Production Phase 2 Geo & DLE 3D Seismic & Analysis Permitti
Slide 27: Study Team
7. Study Team Geology & hydrogeology, Mineral resources Production studies and Engineering studies for Laboratory test works & Process plant design and geothermal sub-surface modelling & estimation reserves Review geothermal plant chemical engineering cost estimates For personal use only Gec-Co Glob
Slide 28: Conclusion
Conclusion For personal use only WORLD’S 1ST & STRONG & SUPPORTED BY EUROPE’S LOCATION CENTRE LOCAL THE RIGHT RAPIDLY ONLY ZERO- RESILIENT PFS EU FUNDING, LARGEST LITHIUM OF FASTEST PARTNERS & TEAM FOR ADVANCING CARBON LITHIUM® ECOMOMICS REGULATION & RESOURCE GROWING MARKET WORLD LEADING THE JOB LIT
Slide 29: Appendix 1: Information for slide
Appendix 1: Information for slide 7 For personal use only 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 O
Slide 30: Thank You
@VulcanEnergyRes v-er.com info@v-er.eu For personal use only ASX:VUL FRA:6KO Thank You
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