VUL - Vulcan Energy Resources

[Dona Ferentes]

There's an interesting comment in that report (link above)
though I note this is nearly 3 months old.

German research house Alster Research set... a price target of $2.45 (€1.45) per share on VUL. Alster stated, this would be “the first time in our company history of 14 years we initiate coverage with a ten-bagger”.

Now $6.60 after coming out of TH and ....

Man, I hate finding stocks and not buying them

 

[basilio]

Certainly looks like a winner doesn't it ? And yet to put shovel into the soil.

I hope it works out well... but I have some (sad) memories of stocks like SYR, EDE, which looked like world beaters at similar stages of their growth and haven't made it.

Good luck to all stakeholders .

 

[brerwallabi]

Positive PFS & Maiden JORC Ore Reserve: Zero Carbon Lithium® Project
€ 2.25 B post-tax NPV1 (energy & lithium combined, Phase 1 & 2) 74 MW of renewable energy generation
Approx. 40ktpa LHM production
€ 2,640/t LHM OPEX – lower than any current operation globally Zero Carbon Lithium® Footprint – globally unique differentiator
Highlights:
• The Zero Carbon Lithium® Project’s1 first Pre-Feasibility Study (PFS) demonstrates strong potential to develop a cutting edge, combined renewable energy and lithium hydroxide project, in the centre of Europe, with net zero carbon footprint.
• Positive post-tax NPV2 of €2.25B (full project, no phasing); phased option shows €700m NPV in Phase 1 and €1.4B NPV in Phase 2.
• Combined renewable energy-lithium project (no phasing) pre-tax IRR of 26% and post-tax IRR of 21%. Lithium as separate entity from energy shows pre-tax IRR of 31% and post-tax IRR of 26%.
• Reasonable starting capital cost of €226m for geothermal wells and plant, and €474m for Direct Lithium Extraction (DLE) plants and Central Lithium Plant (CLP) (Phase 1, Taro). Phase 2 total CAPEX €1.14B, full project (no phasing) CAPEX €1.74B.
• Sensitivity analysis shows robust project economics. Geothermal energy part of project supported by favourable feed-in tariff and recent German parliament support for geothermal.
• Maiden Probable Ore Reserve of 1.12 Mt LCE at 181 mg/l Li across Ortenau and Taro licenses.
• Main focuses of 2021 to be Definitive Feasibility Study (DFS) work, permitting, lithium extraction test-work scale up and advancing current discussions with European lithium offtakers.

I don’t think they will be waiting long for offtakers seeing they are already in discussion.

 

[Dona Ferentes]

Certainly looks like a winner doesn't it ? And yet to put shovel into the soil.

you da expert

access a lithium-rich, producing geothermal brine operation .... lithium-rich brine is already pumped to the surface and renewable electricity produced.

 

[barney]

Its the kind of Chart we all dream of ... well done holders!

 

[basilio]

you da expert

I take it back... partially.
Yes they have produced results from their initial trials. It does work. The resources are there. They have used renewable energy.
My (sweeping) comment was more about going from these efforts to a full commercial operation running at a substantial profit.

I mentioned SYR and EDE because both of these companies which I believed on due research offered excellent, proven opportunities, have been very disappointing as they moved to commercialization.

LINC Energy was another company which came and went with great promise of fantastic new technologies which seemed to be "proven" to turn useless underground coal into syngas and diesel. That was another learning opportunity for me. There are others I could name but so what ?

So I'm not being mean, cynical or particularly thoughtless Dona. I'm just reflecting on the investing ventures that I, and no doubt many other ASF posters, have experienced.

 

[Dona Ferentes]

fair enough.

(they are either going to kill it, or the slips 'twixt cup and lip emerge)

 

[basilio]

fair enough.

(they are either going to kill it, or the slips 'twixt cup and lip emerge)

Could be a range of outcomes in between as well couldn't there ?

I thought I did good diligence on investing in opportunities that presented themselves in the stock market. Over time however I have become far less trusting of many "new beaut" projects.

I watched LINC energy which was a bit of a star from 2007 -2010 being exposed as basically a highly flawed technology which was understood to be dangerously wrong by it's management but still allowed to cause great damage to the environment and destroy all shareholder wealth.

Eden Energy came up with some great technologies for energy and carbon fibres. They have ended up trying to make big bucks from a carbon nanotube enriched concrete. Absolutely an excellent product but they have been incapable of getting anywhere near the sales projections they grandly forecast and I don't think they ever will. More significantly IMV I believe the management have looked after themselves exceptionally well at the expense of the rest of the shareholders and this has been a significant factor in the lack of commercial success.

SYR has , I believe, the worlds largest graphite reserves valued at many billions of dollars. As the exploration drills defined more and more high grade graphite the SP reached $6 plus in mid 2016 and it looked like the sky was the limit. There were plenty of stock advisors who gave it glowing reports.

In 2021 they are finally planning a integrated battery anode production plant and the fortune projected from the initial graphite sales have been quietly forgotten. The current SP is $1.16 with much stock dilution over time.

Overall my view is that the overwhelming profits from spec miners comes early and are associated with extensive promotion of new game changing projects, very ambitious projections and share brokers creating bubble markets.

On the positive side some companies ie Talga, seem to have excellent resources and a strong vision and capacity to create a vertically integrated mining/manufacture/development program that looks likely to be very profitable. It also seems that the management are more realistic about their worth while the company is becoming established.

 

[Dona Ferentes]

New Research Report Discovered - VUL - Price Target $9.50

are we there yet?

(hint; close)

Intraday; 3 min chart

 

[Black Eugene]

I am hanging around for $20 per share

 

[basilio]

Turbo charged !!!
Must be some very happy punters who jumped in even a few weeks ago. I wonder if anyone is going to take some money off the table while there are plenty of people demanding to be let in to share a brilliant project.

 

[basilio]

There would have to be a capital raising very soon on the back of these SP rises ?? This is clearly the time to cash up for development costs of their mine with all the bubbling excitement.

 

[basilio]

Lovely looking parabola here.

 

[Mickymouse]

Back down to 6.70 today WOW!

 

[Black Eugene]

buy buy buy....before they dilute to raise some capital for building the plant

 

[Mickymouse]

buy buy buy....before they dilute to raise some capital for building the plant

I dont think that will happen any time soon.

 

[Black Eugene]

let's see how long it takes

 

[Mickymouse]

Perhaps they raise capital and it leads to a sell off.

 

[brerwallabi]

Perhaps they raise capital and it leads to a sell off.

In the recent PFS the need for the real finance is second quarter 2022, it is likely I think that they will also receive funding from the EU.
Drilling will commence quarter three 2022 and plant construction is due first quarter 2023 and production the following year.
Some offtake agreements might realise some finance too.
Hopefully it will not get diluted, it’s wait and see.

 

[Joe Blow]

buy buy buy....before they dilute to raise some capital for building the plant

Please do not tell anyone to buy or sell any stock, as doing so is providing specific financial advice, which is not permitted.

You are welcome to make a case for the stock, and argue that it is undervalued or that the share price will continue to increase, if that is your view. But do not tell anyone else to "buy", as you are not a licensed financial advisor and are not legally allowed to advise others in such a way.

Thanks.