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- Vulcan Energy Resources (VUL) is making significant strides in its transition to becoming a project execution company, with strong progress in Q4 FY23
- The mechanical completion of the LEOP is on track for August
- During Q4, Vulcan entered a collaboration with Stellantis, a leading global automotive manufacturer
- The estimated cash available for future operating activities is A$242 million
- VUL last traded at $4.34
Vulcan Energy Resources (VUL) is making significant strides in its transition to becoming a project execution company, with a strong focus on delivering phase one of its Zero Carbon Lithium project in Germany.
The company’s latest achievements mark progress towards sustainable lithium production, with the mechanical completion of the Lithium Extraction and Processing Plant (LEOP) on track for August.
During the past quarter, Vulcan completed the installation of major structures, such as the crystalliser and multidisciplinary equipment, along with interconnecting pipework. The remaining mechanical works and electrical fit-out are nearing completion, bringing the project closer to its final stages.
Vulcan’s also entered a collaboration with Stellantis, a leading global automotive manufacturer. The two entities have signed a fourth agreement to work on a joint project, aiming to develop a renewable energy supply for the Mulhouse automotive plant in France.
To support its phase one project execution, the company completed a A$109 million institutional placement.
Furthermore, Vulcan has acquired land for the construction of its integrated geothermal renewable energy and lithium extraction plant (G-LEP).
Vulcan has received in-principal support from government-backed Export Credit Agencies (ECAs) in France, Italy, and Canada.
Looking ahead, Vulcan is actively working on the bridging phase engineering for phase one, with the goal of securing an engineering, procurement, and construction management (EPCM) contractor.
This move will provide an updated execution schedule, as well as CAPEX and OPEX estimates, which are expected to be completed by the year’s end.
The company has estimated cash available for future operating activities at more than A$242 million, placing the company in a strong position for growth.
VUL last traded at $4.14.
