VUL - Vulcan Energy Resources

[brerwallabi]

Oh my so glad it’s not some palatial palace.

 

[Dona Ferentes]

Oh my so glad it’s not some palatial palace.

is it the official office?

 

[Miner]

@Dark1975 You seem to know what you're doing, carry on trading.

IMO, VUL is a highly speculative investment at these levels. Be careful.

I've written a number of posts "death riding" VUL but each time I've decided to not post them. Who gains by my posts? No one. I'll never invest in VUL and I'm not going to short it even though I think it's a great short at these levels.

VUL has presented the greatest corporate narrative I've ever seen. It's clearly the best fairy tale in the ASX. It ticks all the current ESG aspects. Management have have outlined plans, signed agreements and assembled teams, but they've yet to drill a hole in the ground.

Today they reported on the chemical composition of the brine on "their" geothermal well. It's in the notes that I read,

View attachment 121129 They haven't even drilled a hole in their ground yet!

They assembled one of the top geothermal teams in the world. How about a hole in the ground?

VUL has to build a geothermal power company, a direct lithium extraction plant, a central lithium concentration plant. They've got to assume that the brine reservoir will have the required pressure, the lithium conc doesn't vary, the chemical contaminants don't vary as they collect the brine. Then, after they've taken out the lithium they're going to pump the brine waste back into the reservoir and hope that nothing changes.

This going to take decades.

Reposting the lovely note from our own @peter2

 

[Miner]

is it the official office?

Yes as per their details on asx

 

[Miner]

Just need to make a quick point about the dangers of buy recommendations/posting price targets:



Closing price on the day this was posted: $8
Price now: $5.49
Loss: -31.37%



Price when posted: $7.80
Price now: $5.49
Loss: -29.62%

This is why I don't like price targets or buy recommendations posted, especially when there is no accompanying analysis. It's fine to be bullish, if that's your take on a stock and you can explain why. An explanation or some form of analysis at least provides some context for that position.

But nobody knows what the future holds and that's why posts like these, in isolation, can be dangerous. That's also why ASIC are concerned about stock market internet discussion sites.

To All: Please take everything you read on a stock market forum with a very large grain of salt, because many people are posting purely out of self interest, and not in your interests. Be very cautious, do your own research, and if in doubt, consult a licensed financial adviser.

Thanks Joe for bringing examples from a particular poster on the context.
Is there a between the line message ?

 

[peter2]

Thanks @frugal.rock I learned something new.

 

[peter2]

IMO VUL is the greatest story (fairy tale) on the ASX. However that doesn't mean we can't trade it for a quick buck. As long as there are enough punters buying into the story we can earn a profit. I'm unlikely to trade this on a weekly chart but the dailies are fair game.

There will a time when VUL suffers a huge disappointment and the holders are going to be hurt by the subsequent price drop.

 

[Joe Blow]

Thanks Joe for bringing examples from a particular poster on the context.
Is there a between the line message ?

Only a reminder to all not to recommend any stock as a "buy" or "sell" because you never know what the future holds and for that reason nobody should be advising others to buy or sell anything. Best to leave that sort of thing to the licensed financial advisers.

 

[brerwallabi]

is it the official office?

Yes. They have two offices one as already been notated here by Miner, the other office is located in Karlsruhe, Germany.

 

[brerwallabi]

Since the March low in VUL, my eye is seeing a nice pattern developing.
Not predicting anything or offering any target, let the so called experts do that.
However I think it’s got a long way to go if you apply some Elliot wave to it.
The last few days has seen 10% gains and losses hopefully the speculators/traders will leave it alone to carry on its upward path.

 

[brerwallabi]

Another trading halt in VUL, wonder what this time, the reaction from buyers suggests its something quite positive.
I was hoping it would find support and consolidate at $9.00, for the past two weeks it’s been around that mark and when falling under never by nothing more than a few cents.
If there is another offtake agreement to be announced and the price jumps 20% my finger may well be on the sell button as I think it’s getting ahead of itself.
Last price $9.94.
Profits are good

 

[Dona Ferentes]

Another trading halt in VUL, wonder what this time..

J Capital have come out with a report slamming VUL, and questioning the project.

Vulcan Energy shares were locked in a trading halt on Wednesday after short-seller J Capital accused the $1.86 billion lithium explorer of misleading investors and labelled its flagship lithium extraction project in the Rhine Valley, Germany, a “non-starter”.

The report’s author, Tim Murray, also questioned claims the lithium market darling can develop and harness geothermal power in the Rhine Valley to produce lithium hydroxide.

“In effect, management is low-balling the costs and overstating the quality of its resource,” J Capital alleged. “They have pushed down discount rates to make the project look profitable. Vulcan has also declined to reveal key information about the direct lithium extraction technology critical to removing the lithium from the brine at reasonable cost.”

The short-seller said he had spoken to numerous experts on emerging lithium extraction technologies, as well as politicians and activists opposed to geothermal power plants on environmental grounds in the French and German region of the Upper Rhine.

“Our research shows that the project may never actually get under way,” J Capital said. “The costs are higher than the company claims, output will be lower, the environmental impact is brutal enough that public outcry will block permits, as has happened before in the area, and the quality of the lithium resource is low. Many experts agree with us that this project is a non-starter.”

 

[brerwallabi]

J Capital have come out with a report slamming VUL, and questioning the project.

Vulcan Energy shares were locked in a trading halt on Wednesday after short-seller J Capital accused the $1.86 billion lithium explorer of misleading investors and labelled its flagship lithium extraction project in the Rhine Valley, Germany, a “non-starter”.

The report’s author, Tim Murray, also questioned claims the lithium market darling can develop and harness geothermal power in the Rhine Valley to produce lithium hydroxide.

“In effect, management is low-balling the costs and overstating the quality of its resource,” J Capital alleged. “They have pushed down discount rates to make the project look profitable. Vulcan has also declined to reveal key information about the direct lithium extraction technology critical to removing the lithium from the brine at reasonable cost.”

The short-seller said he had spoken to numerous experts on emerging lithium extraction technologies, as well as politicians and activists opposed to geothermal power plants on environmental grounds in the French and German region of the Upper Rhine.

“Our research shows that the project may never actually get under way,” J Capital said. “The costs are higher than the company claims, output will be lower, the environmental impact is brutal enough that public outcry will block permits, as has happened before in the area, and the quality of the lithium resource is low. Many experts agree with us that this project is a non-starter.”

 

[brerwallabi]

The J Capital release has one objective and they announce they are short VUL.
The project VUL has has been exhaustingly researched and seems credible and viable.
I dont think Gina Rinehart would have bought in without researching the company throughly.
VUL also raised $200mil recently and is already making offtake agreements and JCap claim it won’t get off the ground.
Vulcan will be obviously responding to a report by an organisation that has no expertise in the extraction of lithium who only dispute the figures projected by VUL in an attempt to drive the share price down for their profit.

 

[peter2]

I've been and remain a disbeliever of VUL's grand plan. I've always thought that the mgt presentations should start with
"Once upon a time . . "

However such strong sentiment created by the corporate narrative (story) has created a strong tradable trend. The easy money has been made. The third leg (wave) looks to have started and this is the dangerous one.

 

[brerwallabi]

Vulcan’s response to J Cap’s report.

 

[waterbottle]

Looks like VUL's response lacks substance....

 

[galumay]

Yup, another shonky Aus resources speccy bites the dust. One of the reasons I dont invest in any hole exporters, there is more fraud in this sector on the ASX than just about anything on the planet.

 

[brerwallabi]

Fairytale or not, I will be up early which means 3.00am in my current time zone to protect my investment.
If it’s all over I have made heaps, if not there might be more to come.

 

[Miner]

Interesting start will be today following response from Vulcan.
Should not Vulcan or ASIC sue J Capital for breaching ASIC rules by not giving opportunity to Vulcan before making a public allegations?
In general market will be affected by commodity pricing so in another 1 hr or when trading halt is lifted, we will see how market treats the defence report.
Like @peter2 regardless of massive rise on its MP, I need to see more from this project of Helium . There is no gas filled balloon here but real wealth.
Just read Next Investors predicting the SP price will go massively up instead of down following lift of TH.

DNH.