- Vulcan Energy (VUL) highlights a “transformational” March quarter as it works to become an integrated project development, execution, and operations company
- VUL completed a definitive feasibility study (DFS) for phase one of its German Zero Carbon Lithium project in February following two years of onsite piloting
- At the end of the quarter, the company had roughly €112 million (A$186.2 million) in funding to continue operations
- The DFS flags an estimated €700 million (A$1.16 billion) in annual revenue from the first phase of the project, with production slated to begin towards the end of 2025
- VUL shares are up 4.18 per cent and trading at $5.98 at 1:51 pm AEST
Vulcan Energy (VUL) has highlighted a “transformational” March quarter as it works to move from a development company to an integrated project development, execution, and operations company
Vulcan completed a definitive feasibility study (DFS) for phase one of its German Zero Carbon Lithium project in February following two years of onsite piloting, with the study highlighting an estimated €700 million (A$1.16 billion) in annual revenue from the project with a payback period of 3.5 years.
First production is slated for the end of 2025.
Over the March quarter, VUL posted net cash outflows of around €10.7 million (A$17.7 million), leaving the company with €112 million (A$186.2 million) in funding to continue operations.
Further, the company bolstered the Upper Rhine Valley Brine Field (URVBF) lithium resource to 26.6 million tonnes of lithium carbonate equivalent (LCE).
“We kicked off a transformational year for Vulcan with a transformational quarter,” VUL CEO and Managing Director Francis Wedin and Deputy CEO Cris Moreno said.
“The DFS for phase one of our commercial project, for the construction and operation of our integrated renewable energy and Zero Carbon Lithium project, produced highly encouraging results.”
Vulcan has now commenced the financing process of its phase one Zero Carbon Lithium
project, with BNP Paribas appointed as its financial advisor.
It follows “good progress” on the construction of Vulcan’s lithium extraction optimisation plant (LEOP) and central lithium electrolysis optimisation plant (CLEOP).
“Both plants will serve as a training ground for our operators in advance of the phase one commercial LEP and CLP start-up,” Dr Wedin and Mr Moreno said.
“With the bridging engineering phase underway, we are sensibly deploying our cash position towards certain initial phase one CAPEX items, such as land acquisition and site preparation for production/reinjection well sites, so that we retain momentum during our full financing process.”
VUL is aiming to use its integrated and renewable heat and power lithium
extraction and lithium hydroxide refining project to supply the battery electric vehicle industry from Europe, for Europe.
Final onsite construction has progressed throughout April.
VUL shares were up 4.18 per cent and trading at $5.98 at 1:51 pm AEST.