- Vulcan Energy (VUL) remains in a trading halt as it deals with accusations from short-seller J Capital Research that it misled investors
- The report accuses the lithium company’s flagship Zero Carbon Lithium Project in Germany of being a non-starter with high costs and poor output
- VUL denies the claims and argues author Tim Murray isn’t qualified to comment on the project and is attempting to profit off shorting the stock
- Shares in Vulcan Energy last traded at $14.99 before they were suspended on Wednesday
Vulcan Energy (VUL) remains in a trading halt as it deals with accusations from short-seller J Capital Research that it misled investors.
The lithium business placed its securities in a halt on Wednesday after the short-seller published a report labelling its Zero Carbon Lithium Project a non-starter.
Author Tim Murray argues the Germany-based project may never get under way as the costs are too high, the output is lower than has been disclosed, and the lithium resource is low.
Additionally, the professional shorter said the environmental impact of the green lithium project were “brutal enough that public outcry will block permits.”
Vulcan Energy denies all of the claims and argues the author isn’t qualified to comment on the project.
The business added the entire report was an attempt short VUL from profit.
“The report is authored by a Mr Tim Murray, co-founder of J-Capital, who according to his own bio has lived in China for 19 years and has a degree in ‘Chinese Political Economy’,” the company said.
“Based on his online profile, it is not apparent that Mr Murray has any technical qualifications in geothermal energy or lithium extraction.
“Given the warning on J Capital’s website, it is clear the report is merely an attempt to profit from “shorting” Vulcan.”
Vulcan Energy has told The Market Herald it will be issuing a further response to the report in the coming days.
Shares in Vulcan Energy last traded at $14.99 before they were suspended on Wednesday. It’s shares are likely to remain locked up until Friday, October 29.