Capital injection to bridge gap until financing is in place

Vulcan Energy Resources announced that Hancock Prospecting Pty Ltd (HPPL) and CIMIC Group (CIMIC) will make strategic investments of a total of EUR 40m. While HPPL has already been a Top 5-shareholder, CIMIC Group, member of the German HOCHTIEF Group, becomes a substantial shareholder of Vulcan. The funds will be used for key EPCM validation works, as well as the completion of timely early works, while Vulcan is in the middle of the finalisation of the formal funding package. While we have anticipated a fundraising in 2024, our estimates were based on a lower share price. We now expect a slightly lower dilution, which has a positive effect on our target price. We confirm our BUY recommendation with a revised PT of EUR 10.50 (old: EUR 9.90)