Vulcan Energy Resources stock analysis: Black Forest fairytale or lithium bonanza?

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Vulcan Energy Resources stock analysis: Black Forest fairytale or lithium bonanza?

Avatar of Matthias Krey
Matthias Krey

In the Upper Rhine Valley in the Black Forest area in Germany, there is a gigantic mineral reserve that could supply lithium, a white metal, for around 400 million electric cars. One company is looking to mine this treasure: Vulcan Energy Resources.

The special thing about the location of the venture project is that lithium and energy generation can be combined. Vulcan Energy Resources (Vulcan) intends to pump hot thermal water from the underground and then extract the lithium and use the heat to produce geothermal electricity. The company’s technology is currently being tested in a pilot plant and should be ready for production in three years. The large EU car manufacturers stand in line wanting to buy zero-carbon lithium for battery production.

Vulcan claims that it can achieve very low production costs because it can cross-subsidize the extraction of the lithium from the electricity generation business. The company is projecting very attractive profit margins. 

But as in any venture, there are also risks. Too often, such early-phase projects fail due to too optimistic assumptions on technical and economic feasibility and too ambitious timelines. A short seller recently published a report accusing Vulcan of misleading investors about the real economics of the project.

So there are plenty of reasons to take a closer look Vulcan to see if it’s a good investment right now or one that could pay off in the future. 

 You’ll learn what the venture project’s business model is about, what projections for revenue and profit look like and what the involved risks are, and, finally, whether the stock is currently valued attractively.  

Table of Contents

Table of Contents

Business Overview

Let’s first get an overview of the company and understand why Vulcan is a Pure Climate Stock.

Basics of Vulcan Energy Resources stock analysis

The company was initially founded in 2018 in Australia as Koppar Resources with the aim to develop mining projects for battery metals in Europe.

In July 2019, the company acquired Vulcan Energy Resources and changed its name. Since then, Vulcan has spun off its copper, nickel, and cobalt mining projects in Norway under the name Kuniko and holds 25% of Kuniko shares. Vulcan is now focused on the Vulcan Zero-Carbon Lithium extraction project in the Upper Rhine Valley in the Black Forest in Germany. Francis Wedin and Horst Kreuter co-founded the project, now CEO and board advisor, respectively. Although Vulcan has its primary listing at the Australian Securities Exchange (ASX), the Vulcan team operates from Karlsruhe, Germany. The company has a dual listing at the Frankfurt Stock Exchange in Germany.

Business model

Vulcan aims to produce a battery-grade lithium hydroxide chemical product with a net-zero carbon footprint from its combined geothermal and lithium resource in the Upper Rhine Valley of Germany. Several European electric vehicle (EV) manufacturers have signed agreements with Vulcan to buy lithium hydroxide for EV battery manufacturing.

Vulcan is a venture firm as the extraction project is currently in the pre-feasibility stage, and a demonstration plant is operating. The company will need to generate significant additional capital before the commercial production of lithium hydroxide can start in 2024.

Size and valuation

Vulcan is a small-cap with a market capitalization of 850 million EUR.

Why is Vulcan a Pure Climate Stock?

Lithium hydroxide (LHM) is one of the essential components in EV battery manufacturing. It can be made from different kinds of natural resources and in different ways. As the production of battery-grade LHM is a very energy-intensive process, it causes significant amounts of climate-damaging CO2 emissions unless the source of energy used in the process is renewable.

EV battery suitable LHM produced today has a carbon intensity of 8-15 tons CO2 per ton of LHM produced.

vulcan

Source: https://www.jadecove.com/research/liohco2impact

In comparison, industry-leading Life Cycle Assessment (LCA) results demonstrate that Vulcan’s Zero Carbon Lithium™ Project achieves negative emissions. The energy used in the LHM production process is from a geothermal source, and the amount of this renewable energy is larger than what is needed for the product. Vulcan has the lowest carbon footprint globally compared to any LCA results previously published in the lithium industry. And that is why Vulcan Energy Resources is a Pure Climate Stock.

Factsheet

Share price development

Vulcan went public toward the end of 2019. Vulcan’s share price has developed impressively. Today, its share price is 311% higher than what it was one year ago. Shares in the company started to rally very early in 2021 around the release of the positive results in the pre-feasibility study. The all-time-high was at 9.70 EUR in September this year, but it has come down by a third since then. 

Vulcan Energy Resources stock analysis

Source: Bloomberg (2021);

Key figures

Key data:

  • Country: Germany
  • Industry: Mineral resources extraction
  • Market Cap: 832 million EUR/ 931 million USD

Projections

As Vulcan is an extraction project start-up, revenue and profits will only materialize in the coming years. Two out of three analysts assume that Vulcan will not make revenues until the first half of 2024. Alster Research and Berenberg expect Vulcan to sell lithium hydroxide and energy and deliver a positive EBITDA in 2025.

Given the large uncertainty involved, using typical key indicators such as PE ratio or similar is meaningless.

Summary

Vulcan Energy Resources is a venture firm aiming to extract lithium hydroxide in Germany for supply to EV manufacturers in Europe and to sell geothermal power. As Vulcan is currently a project in the pre-feasibility phase, it is a high-risk investment. If everything goes as planned by Vulcan, the company will generate its first revenue in 2024.

5 Facts about Vulcan

    1. Vulcan is a venture investment in zero carbon lithium from Germany
    2. Pre-feasibility successful and demonstration plant is operating
    3. Australia’s richest person, iron ore magnate Gina Rinehart, among its backers
    4. First revenue planned for 2024 and positive EBITDA for 2025
    5. Vulcan’s share is trading 311% higher than one year ago

Business breakdown: business model & strategy analyzed

As promising as I find Vulcan’s prospects, it is naturally several years away from generating revenue. This makes an investment in Vulcan particularly risky compared to stocks of companies that have a stable profit (or at least revenue) track record. The price of stocks like Vulcan, therefore, fluctuates more significantly when good or bad news happens. An excellent example of such an incident occurred recently when a short seller accused Vulcan Energy Resources to mislead investors.

Where the Vulcan smokes there is fire?

In October this year, US-based short-seller* J Capital Research alleged that Vulcan Energy Resources provided misleading information in the companies’ pre-feasibility report. In its report titled “Vulcan: God of Empty Promises,” J Capital Research claimed that Vulcan misled investors and the project would be doomed to fail commercially. The reasons provided by the short seller, in a nutshell, were that the estimated costs given in the pre-feasibility study are too low, the quality of the source is lower than reported, and that the assumed lithium recovery of 90% is way too high compared to results from other projects. Vulcan rejected the challenges. Analyst Alster Research countered the criticism by saying that it had posed the same questions to Vulcan pre-IPO and concluded that the short seller’s accusations “seem poorly drawn” because it built on analogies and comparisons with an older and different type of projects in the region, denying any learning curve effect. As a response to the allegations, trading of the stock was halted on 28th October but is now active again. The stock price fell around 25% from 9.79 EUR on 26th October to 7.09 EUR on 2nd November.

          * A short seller is an entity that earns large profits from stock price slumps. It lends stocks from others, sells them and hopes to buy back the shares at a reduced price (for example after an own report stated that the stock price is inflated).

With that in mind, we will closely look at its current standing and its plans to advance toward profitability.

What is Vulcan’s business model and strategy?

Where will the revenue come from?

Vulcan’s two primary lines of business are renewable energy and lithium.

Its energy line of business is devoted to exploiting known geothermal reserves and complements Vulcan’s lithium business. As part of its efforts to extract lithium from geothermal brines, the company plans to build five geothermal energy plants. These plants will extract hot geothermal brine from reservoirs beneath the Upper Rhine Valley and use their heat energy to generate renewable electricity. The power will be sold at established, guaranteed feed-in tariff rates to the broader grid. This project is scheduled for completion in two phases.

Vulcan’s lithium business accompanies its geothermal projects. Each geothermal plant will be twinned to a lithium-extraction plant using direct lithium extraction, or DLE. This process follows the power-generation phase and uses DLE methods to capture lithium ions from geothermal brine after it has passed through the adjoining power-generation plant. These ions appear as a concentrated lithium chloride solution that will be sent to the central lithium plant, after which the depleted brines are reintroduced to their reservoir of origin.

The concentrated lithium chloride solution will be used as feedstock supporting the production of battery-quality lithium hydroxide. High-grade lithium hydroxide is used by EU manufacturers of batteries—specifically their cathodes—and is a crucial manufacturing component of lithium-ion batteries for EVs.

vulcan lithium business

Source: Vulcan Energy Resources (2021)

The project is planned in two consecutive phases, as shown in the figure below. When both phases are completed, Vulcan will produce power from 83 MW of geothermal power plant capacity and 40,000 t of lithium hydroxide per year.

vulcan business

Source: Vulcan Energy Resources (2021)

The table below shows the revenue and EBITDA estimates from three analysts that cover Vulcan.

IMG 20211129 WA0021

Source: Author based on Alster Research, Berenberg and Canaccord Genuity

The analysts expect the revenue to grow strongly once the project is operational. Berenberg expects the annual revenue to increase by a factor of 3.5 from 2025 to 2026.

Where will the project take place?

The project is scheduled for implementation in two phases, representing two locations. Phase One will be completed under Vulcan’s Taro license and Phase Two under the Ortenau license.

vulcan project location

Source: GeoDrilling International (2021)

The feedstock produced by the project’s lithium-extraction stage will be shipped for further processing to a manufacturing facility near Frankfurt, which Vulcan has already secured.

In addition to these locations, Vulcan holds the exploration rights to other areas in the Upper Rhine Valley and the state of Hesse. It also has pending bids for exploration rights to other sites. However, it does not have active development plans for sites other than the two we discussed.

The Upper Rhine Valley is blessed with more than the geological factors necessary to fulfill Vulcan’s plans. It is easily accessible, and its dense population is accompanied by commensurately well-developed infrastructure. It is notably close to the center of European automobile manufacturing.

How does the technology work?

Vulcan has chosen to employ a sorption-based DLE technology in its lithium-extraction operations. It chose this approach because sorption-based extraction is proven to be optimally effective for producing lithium compounds from hot brines and because it is an established approach used by commercial operations worldwide.

DLE itself is especially adept at isolating lithium from brines that contain relatively small amounts of the element. The reservoirs underlying the Upper Rhine Valley have vast reserves of lithium but in low-to-average concentrations. DLE is, therefore, an investment in efficiency and a gesture of Vulcan’s intentions to remain a significant player in the region.

Vulcan intends to use an electrolysis process to produce lithium hydroxide. This process is well established within the chloralkali industry but has not been employed commercially in lithium. However, Vulcan has produced its first lithium hydroxide in its pilot plant using this process and exceeded traditional battery-grade hydroxide lithium purities.

The brines to which Vulcan has extraction rights average roughly 181 mg of lithium per liter. This gives lithium a far lesser presence in Vulcan’s brines than in those of Chile’s Atacama Desert or in Argentina’s richest brines, which average 1,400 and 600 mg of lithium per liter, respectively. DLE’s superior lithium recovery rates help address this discrepancy, and in certain cases, can be even more efficient than older technologies. If, for instance, a lithium-rich brine also includes high levels of impurities, the steps needed to clarify the brine before lithium extraction can proceed may be costlier than the far greater volume required to process lithium-low brines using DLE.

Livent uses DLE to process some South American brines, but external heating is required because those brines are not naturally heated to the temperatures needed to support the absorption process under DLE. We understand that this added heat is sourced from fossil fuels. Vulcan’s approach takes advantage of the Upper Rhine Valley’s natural heat, which is sufficient to drive the DLE process.

How large is the lithium resource?

There may be millions of tons of lithium in the territory Vulcan intends to explore, measured in lithium carbonate equivalent. These reserves, however, are stored in underground reservoirs of brine located tens of thousands of feet below the surface.

vulcan stats

Source: Vulcan Energy Resources (2021)

However, at this stage, Vulcan only knows that with a probability of higher than 50%, there will be 1.12 million tons of lithium to be exploited. Through increased seismic surveys and drilling data, the company will, over time, gain a clearer understanding of the volume of resources available for commercial exploitation.

How will the venture be financed?

Vulcan aims to finance and execute a series of investment projects amounting to €1.8 billion, or roughly $2 billion USD. Let’s take a look at what Vulcan has achieved so far and what the project’s development timeline looks like. Equally important is the question of how Vulcan will finance future investments.

Key achievements to date:

Throughout 2021, Vulcan has moved forward with the project by achieving a series of significant milestones. Here is a list of the achievements that have particularly strengthened the project’s viability.

  • January 2021: Completed a pre-feasibility study that confirmed the project’s scope and prospects.
  • April 2021: Launched the project’s pilot, which remains in continuous, successful operation.
  • September 2021: Produced the project’s first battery-quality lithium hydroxide monohydrate.
  • October 2021: Raised $200 million through an underwritten share placement and announced a share-purchase plan designed to raise an additional $20 million. This capital will be used to accelerate the project’s development, refurbish equipment used for exploration, and upgrade the project’s current infrastructure.
  • Throughout 2021, Vulcan has secured licenses needed to explore extraction sites and has signed hydroxide offtake agreements with Renault-Nissan, LGES, and Umicore.

vulcan diversified

Source: Vulcan Energy Resources (2021)

Further funding rounds required

The figure below describes the project’s remaining milestones and the capital required to achieve each.

By mid-2022, a definitive feasibility study will complement the pre-feasibility study’s results. Vulcan expects the vast majority of the pre-feasibility study’s findings to be validated at this stage.

By the end of 2022, Vulcan will be ready to solicit financing for Phase 1 at €0.7 billion or $0.8 billion USD, and Phase 2 at €1.1 or $1.24 billion USD.

Construction is slated to begin in 2023, with Phase 1 production commencing in 2024 and Phase 2 production in 2025.

vulcan requires funding

As Vulcan needs another 1.8 billion EUR of project financing in total, it will need to successfully issue more shares to raise the required equity capital to raise debt financing.

Summary

The probability of Vulcan achieving financial closure for the envisaged two project phases critically depends on the full feasibility study results. If the findings from the pre-feasibility are confirmed, Vulcan will have passed an important milestone for successful project development. If the results cast doubt on the company’s profitability, raising the required capital could prove difficult, and the project could fail in the worst-case scenario.

Market analysis

Market size and competitors

As the production of lithium-ion batteries increases, so does global demand for lithium, cobalt, and nickel. Industry analysts predict that by 2028, global battery production will require more than 1.5 million tons of lithium. Sites worldwide have yielded lithium, but 70% of known global deposits are located in Bolivia, Chile, and Argentina.

Lithium is found as veins in rocks or suspended within brines. In Chile’s Atacama Desert, three salt lakes combine to form a vast reservoir of suspended lithium, traditionally accessed through an evaporation process similar to that which produces salt. Harvesting lithium from these waters requires multiple evaporation stages before lithium is accessible in concentrations necessary to support battery manufacturers.

Open-pit lithium mining is more labor-intensive, but several Australian mining companies produce lithium this way. Australia is the world’s largest producer of lithium, yielding roughly 40,000 tons of lithium each year. From a business perspective, the profitability of any lithium-production operation depends on the amount of lithium available to be extracted and the technologies and methods required to do so.

vulcan competitor

Source: Volkswagen (2021)

Fueled by the demand for EV battery production, the price of lithium has reached an all-time high towards the end of this year, climbing to beyond $25,000 USD per tonne of lithium. Analysts expect prices to come down over the following years but remain on a high level.

vulcan fitch solutions

Germany has not been a significant producer of lithium to date, lacking both the salty deep waters and the naturally occurring deposits traditionally associated with lithium extraction. The potential of lithium brines, in which Germany is particularly rich, has not been thoroughly explored. The UnLimited research project seeks to address this shortcoming by achieving a more detailed understanding of Germany’s lithium-rich deep-reservoir waters.

Since 2010, EnBW has operated a geothermal power plant in Bruchsal. The company has tested lithium extraction as a value-added process and plans to develop a lithium extraction plant as a proof of concept.

Drivers and outlook for the lithium market

Medium- to long-term fundamentals support continued optimism over the future of electric vehicles in particular and energy-storage technology in general. These fields are expected to grow an average of 25% per year over the next decade, while currently projected supply will fail to meet demand by 2024. New developments in cathode technology suggest that lithium hydroxide may overtake lithium carbonate as the most frequently used battery material by the mid-2020s.

Analysts predict that Europe will become the second-largest producer of lithium-ion batteries in the near future. Its production capacity is projected to grow by a factor of 50 from current levels, achieving 500 GWh by 2030. By 2024, demand within the EU alone for lithium hydroxide will surpass 2020’s total global consumption.

vulcan li ion production

Source: wise-owl.com (2021)

New EU legislation supports these trends and seeks to guide them sustainably. All materials used in the production of batteries, including lithium, must now be sourced ethically and sustainably. Starting in 2026, all lithium-ion batteries used in the EU must bear a label stating their carbon intensity performance class. By July 2027, all such batteries must meet maximum carbon-footprint thresholds. Batteries that do not meet these standards will be banned from use within the EU, and battery manufacturers will be compelled to demonstrate positively that the materials they use have been sourced in accordance with all EU regulations. Each battery will carry a digital passport, supported by blockchain technology that tracks its components to its source.

Summary:

All these drivers play strongly in favor of Vulcan Energy Resources as Vulcan would be uniquely positioned to offer zero carbon sustainable sourced lithium hydroxide and benefit from the stable high price signal for lithium.

 

Asset 4

SWOT analysis: strengths, weaknesses, opportunities, and threats analyzed

Let’s explore the strengths, weaknesses, opportunities, and threats of Vulcan’s current business model. 

Strengths

  • Large lithium potential

Vulcan owns the largest lithium-brine reserves in Europe.

  • Diversified revenue streams

The geothermal energy-generating plants attached to Vulcan’s project deliver additional revenue streams whose zero-carbon heat and electricity products can quickly be sold using existing infrastructure while achieving sustainability measures that easily meet current and planned regulations.

  • Huge demand from European EV industry

The project delivers a critical resource whose demand is rapidly growing and is located amid the world’s fastest-growing market for that resource. The project’s location in the well-developed and densely populated Upper Rhine Valley significantly reduces some important forms of logistical overhead.

  • Great communication story

Vulcan is very actively marketing the unique features of the project: lithium production in Germany, sustainable sourcing, and zero-carbon material for the automobile industry. Almost every day, there is a new post on social media giving updates on the company’s development. With Nico Rosberg, former Formula 1 champion, and its electric racing team, the company has a credible and prominent official partner from the automotive sector.

Weaknesses

  • Uncertainty around real brine volumes

With few exceptions, the project depends on the lithium brine resources are inferred, not directly known. The region’s geological formations clearly indicate the presence of lithium brines well below the surface, and data from similar explorations in other parts of the world support Vulcan’s estimates of the volume of brine stored in the territory it controls. Still, we do not know with absolute certainty how much brine is available to this project.

  • First of its kind large-scale technology application

This will be Vulcan’s first attempt to tap and pump a geothermal source and its estimations of the resources involved—including the lithium concentration of the brine it plans to access and the exact porosity of the material through which it will drill, are incompletely known. Lithium hydroxide is not currently produced on a commercial scale using electrolysis. This weakness may be offset somewhat by vendors who have extensive knowledge of noncommercial methods resembling Vulcan’s.

  • Overly generous assumptions in business case?

Vulcan’s DLE and conversion-plant sites have not yet been established. The PFS is based on assumptions that may prove to be generous, including a flat greenfield site and an absence of factors requiring blasting or piling.

  • High upfront capital requirement

Financing remains a question as the project involves severe upfront costs. While the project’s operating expenses are relatively low, investment costs will exceed €700 million, or $790 million USD, for the project’s combined lithium and geothermal energy components in Phase 1. Successful raising of the capital relies on positive and solid feasibility study results.

Opportunities

  • High product purity

The production-ready grade of the lithium produced by Vulcan’s proposed method should facilitate capital funding.

  • Potential for high margins

The project claims to incur the lowest operating expenses of any lithium hydroxide project currently operating or planned, at €2,2640, or $2,552 USD, per ton. If the costs estimates are confirmed in the full feasibility study, the project would be highly profitable.

  • Public co-finance possibilities

Vulcan’s broader ambitions of efficient, sustainable lithium production and zero-carbon energy generation enjoy strong support from the EU and German officials. The potential for debt financing at very favorable terms at German KreditanstaltfürWiederaufbau (KfW) or the European Investment Bank (EIB) as well as to benefit from grants looks pretty high, given the “greenness” of the project, which fits perfectly into the framework of the European Green Deal.

  • ESG darling

It is establishing itself as the world’s first zero-carbon lithium producer would give Vulcan a unique ESG claim.

  • Large role out after proof of concept

The project may be seen as a successful proof of concept, supporting Vulcan’s application for additional exploration licenses.

  • The alternative production process as a fallback

Suppose the electrolysis-based approach for lithium hydroxide production should fail. In that case, Vulcan can change production methods through more established lithium carbonate/liming methods and maintain a high lithium production level.

Threats

  • Pre-feasibility study results not confirmed

The project’s investment case is somewhat vague. Real production costs are currently unclear and will only become better defined by mid-2022 when the full feasibility study findings are released. This is due largely to the lack of network conducted by Vulcan to date and the resulting over-reliance on benchmarks, simulations, published literature, and vendor experience for purposes of process definition and cost projections. This was the angle of attack for the short seller J Capital Research that criticized that the estimated costs are too low, the quality of the source is lower than reported and that the assumed lithium recovery of 90% is way too high. Although this has been countered by Vulcan and AlsterResearch, we just have to accept at this stage that only a very limited number of experts, if any, can tell what full feasibility study results might look like.

  • Risk of set backs and delays

Any project of this scope is subject to regulatory risks at several key points. Like its case for profitability, the project’s schedule relies on a certain degree of educated guesswork. It may be significantly affected by additional testwork, unforeseen difficulties in accessing the brine that is central to the project, negotiations with property owners and technology providers, and permit acquisition.

  • No future profit without more successful financing rounds

As it stands, the project is entirely dependent on Vulcan’s ability to procure financing on manageably favorable terms. If sufficient funding cannot be raised on terms that allow Vulcan to continue developing the Upper Rhine Valley site, the project may not come to fruition.

Stock valuation: The fair value of the stock

We have now obtained a comprehensive picture of the company. Finally, let’s take a look at the share, bring quality and valuation together and draw a conclusion.

The fair value of the share

To determine the fair value, I made the following assumptions over a time horizon of 10 years:

  1. Sales growth

    Vulcan is not generating significant revenue as of now. The most detailed stock analysis for Vulcan undertaken by Berenberg Bank projects the following revenue:

    • For 2026: 302 million EUR ($334 million USD)
    • For 2030 591 million EUR ($673 million USD)
  2. Net margin

    Berenberg Bank assumes a very sizeable net profit margin for Vulcan, ranging from 50%-64%. I considered 50% for my expected case.

  3. Valuation level

    Companies with a high net margin achieve exceptionally high valuations in the market. This is evidenced by software companies that have net profit margins > 20%, and the whole industry has an average PE ratio of just below 50. Given the very high expectation on Vulcan’s net margin, I used a PE ratio of 45 for my expected case.

     Is Vulcan fairly valued?

    With these assumptions, I expect in the base case an annual return of 8% over the 10-year period. This means that some underperformance compared to the base case assumptions could bring the investment in Vulcan into the red.

    In the most optimistic scenario, the annual return is +282% and in the most pessimistic case is -81%.

    The yields are calculated at an assumed discount rate of 30%, which would be way too high for companies generating stable revenues. The rate seems justified for a venture investment like Vulcan with the existing risks of project failure. Also, Berenberg calculates with a 30% discount for Vulcan.

IMG 20211125 WA0058

IMG 20211127 WA0022

Interestingly, my base case valuation is fairly close to how the market sees Vulcan. There is a strong upside and downside potential depending on how the company develops.

Conclusion: Buy Vulcan Shares? Pro Contra

Pro

  • Largest lithium brine reserve in Europe
  • Vulcan is working on two megatrends: carbon-neutral supply chains and electric mobility.
  • High margins expected
  • It seems fairly valued with strong upside potential if pre-feasibility study results can be validated.

 

Contra

  • Large uncertainty in revenue streams and profits until the first commercial plant is online.
  • A worse than expected full feasibility study can endanger future financing
  • Unknown real volume of brine available to Vulcan

 

My opinion

The biggest opportunity for Vulcan is at its doorstep: the large EU automakers that need zero carbon and sustainably sourced lithium for their electric vehicle production. But, while Vulcan is aiming to supply to a huge market and has had some notable successes during its development, the early status of the project means some inherent risks that are typical for venture investment of this kind. Vulcan is still selling a vision. There is no significant revenue earned – and this will be the case for several years to come. This is why Vulcan, in my personal rating, only achieved a score of 31 out of 100 points. If things do not go as anticipated by Vulcan, the company could have problems in financing the next development stage. In the worst case, the investment could be a total loss. A lot will depend on the results of the full feasibility study planned for mid-2022. If one assumes positive findings confirming the low production costs for battery-grade lithium, the stock, in my personal opinion, seems an attractive investment. But if the pre-feasibility results cannot be confirmed, the company seems, for my taste, valued too high at the moment. For my part, I can be very relaxed about Vulcan. A couple of weeks ago, I sold half of my position with a 100% gain. This means I will comfortably hold on to the rest of the shares and see what the next year will bring for Vulcan.

IMG 20211127 WA0025

In this content I am presenting my personal opinion as an active private investor. This content is not intended to provide investment, financial, accounting, legal, tax or other professional advice and should not be relied upon or regarded as a substitute for such advice.