Vulcan Energy Resources (VUL) Q3 2024 earnings summary

Executive summary

• Significant progress on Phase One of the integrated renewable energy and ZERO CARBON LITHIUM™ Project, including start of commissioning at the Central Lithium Electrolysis Optimisation Plant (CLEOP) in Frankfurt.

• Agreement signed for 100% acquisition of geox GmbH, consolidating upstream lithium and renewable energy assets for more efficient Phase One operations.

• Appointment of Angus Barker as Non-Executive Director, with board changes to support transition to project execution phase.

• Updated Environmental and Social Impact Assessment (ESIA) published, confirming no significant negative impacts post-mitigation and supporting green financing efforts.

• First lithium and geothermal energy licences granted in Mulhouse, Alsace, France, expanding the company’s licence area and supporting European EV transition.

Financial highlights

• Renewable energy operations generated approximately 4,000MWh of gross baseload power at an average selling price of €0.252/kWh, resulting in €1 million gross revenue for the quarter.

• Exploration and evaluation expenditure was €3.4 million, focused on in-house sorbent development and project planning.

• Development expenditure totaled €10.0 million, mainly for Schleidberg wellsite preparation, drill rig refurbishment, CLEOP construction, and the EU-funded GEOSMART project.

• €10 million revolving credit facility signed with BNP Paribas to provide short-term flexibility ahead of Phase One equity and debt financing.

• Payments to related parties and associates during the quarter amounted to €238,000, with an additional €45,000 allocated for exploration activities.

Outlook and guidance

• Anticipation of a strong end to 2024 with pivotal commercial and operational developments, including Phase One financing.

• EPCm validation for Phase One execution readiness ongoing, with results expected in Q4 2024.

• Updated debt package issued to structuring group and wider lending pool, with green financing coordinated by Natixis CIB.