Vulcan Energy Resources (VUL) H2 2023 earnings summary

Executive summary

• Advanced Phase One to execution-ready status after a Bridging Engineering Study reduced estimated CAPEX and OPEX and simplified the project; construction and execution remain dependent on financing and permits.

• Phase One targets 24,000 tonnes per year of lithium hydroxide monohydrate (LHM), alongside geothermal power and heat production from the same brine resource.

• The operating geothermal plant generated 16,279 MWh of electricity in 2023, while commercial-scale lithium production remained under development.

Financial highlights

• FY2023 revenue from continuing operations was €6.783m versus €3.622m in the six months ended 31 December 2022; the periods are not directly comparable.

• Net loss after tax was €26.963m versus €13.450m for the six-month 2022 comparative; basic and diluted loss per share were €0.17 versus €0.09.

• Cash and cash equivalents were €78.728m at year-end, down from €134.107m; net assets increased to €268.281m from €233.161m.

• Operating and investing cash outflows were €24.331m and €92.460m, respectively; share issuance raised €67.350m gross during the year.

• Revenue included €4.036m from electricity sales and €2.613m from drilling personnel outsourcing; outsourcing followed the acquisition of Comeback effective 1 February 2023.

Outlook and guidance

• Phase One financing was targeted for completion in Q3 2024; the financing close is intended to trigger EPC and EPCM contract awards.

• Construction of the integrated geothermal and lithium extraction plant was targeted to commence in H2 2024, subject to financing, permits and contract awards.

• CLEOP commissioning and first LHM production were targeted for H2 2024; commercial production readiness is targeted for H2 2026.

• The EIB advanced the project to “Under Appraisal” for proposed financing of up to €500m, subject to due diligence, credit approval, legal agreement and governing-body approval.

• 2024 priorities include first LHM to specification at CLEOP, Phase One financing, G-LEP construction and drilling at initial well sites.