Ann: First new Phase One geothermal energy-lithium well commenced, page-3

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Tuesday, 27 May 2025

VUL - VULCAN ENERGY RESOURCES LIMITED

Bell Potter rates VUL as Initiation of coverage with Speculative Buy (1) - Bell Potter initiates coverage on Vulcan Energy Resources with a Speculative Buy rating and values the stock at $6.10 per share.

The company's Lionheart Project in Germany’s Upper Rhine Valley is the EU’s first integrated geothermal-lithium brine operation, highlights the broker.

Management is targeting 24ktpa of lithium hydroxide and 95MW of renewable energy production over 30 years, with ramp-up from 2027.

The project incorporates advanced technologies and has been de-risked through pilot and demonstration facilities, assesses the broker. Supply agreements have also been secured from major OEMs including Volkswagen, Renault, Stellantis, and Umicore.

The company is pursuing EUR2.2bn in total funding, with EUR1.4bn conditionally approved and plans to divest up to -49% of Lionheart to meet equity needs, explain the analysts, supporting a final investment decision from 2H 2025.

Target price is $6.10 Current Price is $4.09 Difference: $2.01 If VUL meets the Bell Potter target it will return approximately 49% (excluding dividends, fees and charges). The company's fiscal year ends in December.

Forecast for FY25:

Bell Potter forecasts a full year FY25 dividend of 0.00 cents and EPS of minus 45.62 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.97.

Forecast for FY26:

Bell Potter forecasts a full year FY26 dividend of 0.00 cents and EPS of minus 81.59 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.01.

Market Sentiment: 1.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources