German impacts, page-161

Calculations Nr. 2

Itis very reasonable to calculate the potential lithium productionvolumes once. This is the only way to realistically assess the marketvaluation or the share price of Vulcan.

However, thecalculations should also be correct! Assuming unrealistically highfigures here is not helpful.

For Insheim, a flow rate of 70l/s is given. Since the plant can only be operated at a reduced ratein summer due to a lack of cooling, an annual average of 50-60 l/scan be assumed. In Landau, a flow rate of 70l/s is given, but due tothe many incidents, this will certainly be significantly lower in theannual average.

An average flow rate of 50l/s can probably beachieved relatively safely per plant.

Also, a geothermal plantonly runs for about 330 days a year due to malfunctions andoverhauls.

This results in only 1,425,600,000 l/year perplant.

The extraction rate of 90% may work in laboratoryoperation, but under real conditions the 70% estimated by EnBW ismore likely to be correct.

This results in:

50 l/s =1,425,600,000 l/year × 0.0002 LI = 285.12 t × 0.7 DLE efficiency =199.584 t/year per plant.

Vulcan has taken off-take contractsfor about 40000t/year of lithium hydroxide, so 40000t/year of lithiumhydroxide × 0.165 conversion factor = 6600 t of lithium /year.

Vulcan would therefore need 6600t/year : 200t/year = 33plants like Insheim or Landau to extract this amount of lithium.

33plants!

Measured against the 2 plants that Vulcan currentlyhas, Vulcan would be overvalued by a factor of 16.5. Now everyone canthink about whether Vulcan can build 31 more plants to justify itscurrent market capitalisation.