Vulcan Energy Resources (VUL) Q2 2026 earnings summary

Executive summary

• Fully funded and under-construction Lionheart project targets integrated lithium chemicals and renewable energy production in central Europe, aiming for carbon-neutral operations and supply chain resilience for the European battery industry.

• Achieved financial close on €2.2bn Phase One Lionheart Project financing, enabling access to funds subject to drawdown conditions, marking a significant de-risking milestone.

• Construction milestones achieved, with civil works, drilling, and equipment deliveries underway for both lithium extraction and chemical plants.

• Major offtake and supply agreements secured with leading battery, automotive, and engineering companies, including Stellantis, LG Energy Solution, Umicore, Glencore, and Siemens.

• No lost time injuries recorded, reflecting strong health and safety performance.

Financial highlights

• Lionheart Phase One: €1,838m pre-tax NPV, €1,152m post-tax NPV, €1,476m CAPEX, 15.6% pre-tax IRR, 13.7% post-tax IRR.

• Average annual revenue projected at €566m, with a 75% EBITDA margin over a 30-year reserve life.

• C1 production cost estimated at €3,588/t LHM, placing the project in the lowest cost quartile globally.

• Market capitalisation at A$1,263m (€770m), with cash and deposits of €273.9m as of 30 June 2026.

• Development expenditure for the quarter was €92.0m, with year-to-date spend at €168.0m, primarily on Lionheart Project construction and procurement.

Outlook and guidance

• First production targeted for 2028, with ramp-up to 24ktpa lithium chemicals, 275GWh power, and 560GWh heat annually.

• Strong lithium demand outlook, with robust downside price protection via offtake agreements.

• Future phases planned to leverage existing infrastructure, targeting lower CAPEX/OPEX and expanded capacity across additional licenses, including a PFS for Ludwigshafen to be published in September 2026.