ALSTERRESEARCH
29 July 2022
Increasing positive momentum at local level, drilling to start soon
“Vulcan Energy Resources is experiencing an increasing positive momentum of the political backing, as Germany’s high dependence on Russian gas produces a more favorable climate towards geothermal energy.
This week, Vulcan Energy Resources has received approval for its 3D seismic program from eight local councils within its license area in Rhineland-Palatine. Also, the company is making progress on developing the Taro license, while adding additional exploration licenses to its portfolio. The favorable political environment should continue to provide tailwinds.”
AlsterResearch
24 June 2022
Stellantis takes share in Vulcan, growing political backing – BUY
“Stellantis is taking an 8% share in Vulcan by an equity investment of AUD 76m (EUR 50m) for new shares. The carmaker already signed an offtake agreement with Vulcan last November. In our view, the Stellantis investment marks a major accolade and important signal that strongly supports the business case. In fact, there aren’t many disclosed investments by carmakers into lithium projects, apart from General Motors in CTR’s Hell’s Kitchen project in the US. The political backing, as just concluded in Landau was already overdue in the context of national decarbonization plans and the current energy crisis related to imports from Russia. We confirm our PT with AUD 20.00, equivalent to EUR 13.11 and reiterate to BUY.”
AlsterResearch
10 March 2022
Energy Crisis Underpins Vulcan’s Business Model – BUY
“With the Russian war against Ukraine and the associated sanctions, some of the economic consequences of this war are immediate, as certain metals like aluminum, nickel and palladium, but also crude oil and natural gas have seen steep price increases since the start of the war. Much likely, the push into renewable energies is about to accelerate as energy policy is reevaluated. Going in the same direction, the Fraunhofer Institute sees geothermal energy as a viable substitute for fossil energy sources and recommends action by policymakers and industry for an accelerated penetration. Overall, we expect the conditions for Vulcan to receive a further impetus not only due to the conflict, but also due to the fulfillment of climate targets. We confirm our PT with AUD 20.00, equivalent to EUR 13.22. We reiterate to BUY”
AlsterResearch
15 February 2022
Dual Listing On FSE, Trading Commenced – BUY
“Vulcan received approval from the Ba Fin, the German Federal Financial Supervisory Authority to dual list on the Prime Standard of the Frankfurt Stock Exchange (FSE). Trading commenced today on 15 February 2022. By committing to higher transparency standards, Vulcan is gearing up for larger investors with stricter guidelines, which we view as a positive signal to the market and the equity story as a whole.”
AlsterResearch
2 February 2022
Finalized Agreement With LG Energy, Dual Listing Ahead – BUY
“Vulcan has finalized its agreement with LG Energy Solutions (LGES), the world’s second-largest batteyr maker after China’s CATL. According to the definitive offtake agreement, LGES will purchase between 41,000 to 50,000t of battery grade lithium chemicals over initially 5 years, with a start of commercial delivery set for 2025.”
AlsterResearch
14 January 2022
Adding More Quality To The Project, BUY Confirmed
“Vulcan continues to deliver positive news flow, thus showing promising progress of its Zero Carbon Lithium project. Vulcan is partnering with Nobian, a leading European chlor-alkali producer. In a multi-phased agreement, both companies will assess the development and the subsequent joint operation of the CLP (Central Lithium Plant). In our view, Nobian’s experience and expertise will deliver a positive contribution to Vulcan’s ambitions for a commercial lithium production and thereby further lower the risk profile.”
AlsterResearch
10 December 2021
Once An Exploration Company, Now An Incumbent Operator; PT Raised, Remains BUY
“1 January 2022 marks a fundamental transition of Vulcan. The company will take over the operational geothermal plant in Insheim, Germany. Vulcan will be an incumbent operator, producing renewable power for approximately 8,000 households. Moreover, from now on, there is virutally no risk anymore that Vulcan could be circumvented by potential competitors when it comes to lithium production in the Upper Rhine Valley, as Vulcan has underpinned its indispensable role on the path to commercial lithium extraction.”
AlsterResearch
29 October 2021
Concerns in Short-Seller Report seem Unfounded; PT Confirmed, BUY
“We see nothing new in the accusations and confirm our view: Vulcan Energy provides a rare opportunity to benefit from the strongly growing lithium growth trajectory and, by the same token, to participate in a porject directly located in Germany, a heartland of automotive industry. We confirm our PT of AUD22.00, equivalent to EUR14.21, and reiterate our BUY recommendation. Upside 76%.”
AlsterResearch
15 September 2021
AUD 220m Fresh Cash to Expedite Transformation; PT up, BUY Reiterated
“Due to the placement, Vulcan will have the scope to execute a targeted acqusition of exisitng brownfield energy and brine infrastructure. The addition capital also widens the leeway to act opportunistically, and thus to accelerate the process of ramping up production further. .. We raise our PT to AUD 22.00 (old PT:AUD 19.50), equivalent to EUR 13.65, and reiterate our BUY recommendation. Upside 38%.”
AlsterResearch
15 September 2021
AUD 220m Fresh Cash to Expedite Transformation; PT up, BUY Reiterated
“Due to the placement, Vulcan will have the scope to execute a targeted acqusition of exisitng brownfield energy and brine infrastructure. The addition capital also widens the leeway to act opportunistically, and thus to accelerate the process of ramping up production further. .. We raise our PT to AUD 22.00 (old PT:AUD 19.50), equivalent to EUR 13.65, and reiterate our BUY recommendation. Upside 38%.”