Vulcan Energy Resources (VUL) Q2 2025 TU earnings summary

Executive summary

• Commenced drilling of the fifth well at Schleidberg, marking the start of Phase One Lionheart Project execution in Germany.

• Signed a 35-year heat offtake agreement with EnergieSüdwest AG to supply renewable geothermal heat to Landau districts.

• Received building permits for a 30MW geothermal plant and substation to supply baseload renewable power for grid sales and operations.

• Completed acquisition of geox GmbH, consolidating geothermal wells and licences in Landau.

• Awarded €104m in German government grants to support domestic lithium production and processing.

Financial highlights

• Successfully raised €30m via a strategic placement, with BNP Paribas Clean Energy Solutions Fund subscribing €15m.

• Generated €0.85m gross revenue from 3,280MWh of renewable power at the Insheim plant, with an average price of €0.260/kWh.

• Development expenditure for the quarter was €8.1m, mainly for wellsite preparation, drilling, and plant construction.

• Payments to related parties totaled €303,000 for director and executive remuneration.

Outlook and guidance

• Targeting completion of Phase One project financing in H2 2025, including potential €150m equity from the German Raw Materials Fund.

• Finalising a binding lithium hydroxide offtake agreement with a premium German automaker, following termination of the Renault Group agreement.

• Scoping Study underway for Mannheim licence to expand lithium and geothermal production.