Great feedback from your attendance, thanks. I think we investors keep thinking in terms of the share price and how it stacks up against other personal investments here from week to week. But potential JV partners in Europe are instead looking at the longer term need for the projects themselves, the energy & EV sector outlook, and the related continent-wide policy objectives that may ease the path to swifter production for an agile mover. They will be weighing up Vulcan’s likelihood of success compared to other projects based there at delivering, most comprehensively and in the shortest possible timeframes, (a) geothermal energy generation & supply for distribution, and (b) lithium for EU based battery & auto makers.
In other words, assessing who is the best bet to solve the problem and deliver efficient, longterm, multi-billion € revenue streams rather than a focus on the short term excitement of a few hundred million AUD added to market cap of Vulcan itself. I think there is a great deal of political momentum and singleminded financial might behind the transition away from carbon in Europe (and worldwide) that cannot be underestimated, whether you’re in full agreement with this shift or not.
If Vulcan pulls off a couple of JVs to meet the capital contribution requirements needed for multiple geothermal well drills that will quickly deliver cheap heating to German, French & Italian homes & businesses, funding the rest of it with debt at preferential borrowing rates, imo the lithium supply side of the business will almost get a free ride from the tapping of the brines as they pass by. The sudden announcement of a JV or two will imo completely upend the scarebears and shorters of this stock.
VUL Price at posting:
$3.72 Sentiment: Hold Disclosure: Held
(20min delay)