Vulcan Energy Resources (VUL) H1 2024 earnings summary

Executive summary

• Vulcan Energy is advancing the world's first carbon-neutral lithium business, co-producing renewable geothermal energy and lithium for the European EV market, with a focus on sustainability and decarbonisation.

• The company achieved key milestones in H1 2024, including €40m in strategic investments, first domestic lithium chemical production in Europe, and progress on project-level financing.

• Phase One of the ZERO CARBON LITHIUM™ Project advanced, with strong support from local authorities and the European Investment Bank (EIB) moving financing to the "Under Appraisal" stage.

• Vulcan expanded its licence area to 2,234km², including new French licences, and continued to develop its project pipeline for future phases.

Financial highlights

• Net loss after tax was €19.3m for H1 2024, compared to €15.6m in H1 2023, reflecting increased operating and project development costs.

• Revenue rose to €3.8m (H1 2023: €3.1m), mainly from electricity sales at the Insheim geothermal plant and drilling services.

• Cash balance at 30 June 2024 was €60.6m, down from €78.7m at year-end 2023, due to capital expenditure and operating costs, partially offset by a €40m capital raise.

• Net assets increased to €288.3m (31 Dec 2023: €268.3m), driven by equity raising and ongoing investment in plant and equipment.

Outlook and guidance

• The company is progressing the final stage of project-level financing, with strong interest from strategic and financial investors, commercial banks, and export credit agencies.

• EIB financing of up to €500m is under appraisal, and Vulcan is pursuing additional public funding and grant schemes.

• Expansion into France with new licences is expected to support future growth and strategic partnerships.