AlsterResearch AG: Update Vulcan Energy - Annual data reported

Vulcan Energy Resources (FY results)   Basic Materials, German Lithium MCap AUD 1.6bn BUY PT AUD 19.50 (EUR 12.15, +36% potential)   FY 2021 results held few surprises. Vulcan is on track to become a major player in lithium extraction. Take the opportunity to get updated on this exciting story and register for our Roundtable.     Read

 

What’s it all about?

Vulcan has published its FY 2021 results. For the assessment of the equity story, its relevance is limited. On the whole, there hasn’t been any surprise. Vulcan’s pilot plant has been operating since spring 2021, using live geothermal brine from existing wells for Direct Lithium Extraction and brine chemistry test work. At this juncture, Vulcan is executing its Definitive Feasibility Study (DFS). From the current financial year on, all financial information of the company will be presented in EUR instead of AUD. Vulcan Energy provides a rare opportunity to benefit from the strongly growing lithium growth trajectory and, by the same token, to participate in a project directly located in Germany, a heartland of automotive industry. We affirm our PT of AUD 19.50, equivalent to EUR 12.15, and reiterate our BUY recommendation. Upside 36%. For more insights into the exciting equity story, register for our Roundtable with Vulcan’s VP Business Development on Oct. 6.