Vulcan Energy Resources (VUL) Q2 2024 TU earnings summary

Executive summary

• Achieved first lithium chloride production from the LEOP, marking the start of production and a milestone for European battery supply chain security.

• Secured €40 million in strategic investments from CIMIC, HPPL, and Victor Smorgon Group to advance Phase One.

• Granted first lithium and geothermal energy licences in Alsace, France, expanding the project footprint.

• No recordable Lost Time Injuries for the quarter, maintaining a 12-month safety record.

Financial highlights

• Generated €0.84 million gross revenue from geothermal power production (3,300 MWh at €0.255/kWh).

• Exploration and evaluation expenditure was €2.8 million; development expenditure was €19.6 million, mainly for plant construction and rig refurbishment.

• Payments to related parties totaled €262,000 for the quarter.

Outlook and guidance

• Final stage of Phase One project financing launched, with strong interest from strategic and financial investors, tier one banks, EIB, and export credit agencies.

• Project well positioned to benefit from new EU and German policy tailwinds, including the Critical Raw Materials Act and draft Geothermal Acceleration Law.

• CLEOP construction progressing, with battery-grade LHM to be tested by offtake partners.