ZERO CARBON LITHIUM - Rich through lithium - without environmental damage!

[tenayshus]

Hello,

I want to make it clear from the start that I am not a professional financial advisor. Everything I am about to write has come from my own research. You should cross check everything and make your own decision on what you will do with this information.

DISCLAIMER: This is not going to be a PUMP & DUMP. I don't want to achieve that either. I report here because I am convinced of the idea and the company!

EDIT:

Guys! I did try my best to reply to your comments. Here is a Video showing how the process works. Of course this is very simplified:

I hope this helps you better understand what it's all about. Please inform yourself well before you invest. I do not recommend investing to anyone who does not believe in the idea. This company can also fail, you are warned. I welcome all others who are sure that this project will conquer the market.

What is it about?

I've been watching an interesting company since December 2020 that advertises with the following slogan: "We exist to decarbonize the currently high carbon production footprint of lithiumion batteries used in electric vehicles." The company is called Vulcan Energy Resources[1].

ISIN: AU0000066086

WKN: A2PV3A

How did you find the company?

I became aware of the company because I see that there is a trend towards sustainable investing[2]. So I started looking for a company that appealed to me. At some point I came across an article that a project was underway to extract lithium without damaging the environment[3]. Gripped by the topic, I spent several days trying to find out what was going on and what it was all about.

What about sustainability?

ZERO CARBON LITHIUM: The project is called Zero Carbon Lithium[4] and is being driven by Vulcan Energy Resources as mentioned above. The current main way to extract and refine lithium, from hard rock mines, will emit about 1.05 billion tons of CO2 to produce the amount of lithium needed to electrify all the world's passenger cars. Unlike current lithium extraction methods, Zero Carbon Lithium will have virtually no impact on the public or the environment. That means no large open pit mines, no large, unsightly, water-guzzling evaporation ponds, or process plants that run on fossil fuels.

After reading that, I was hooked for now. But not yet ready to invest. Moreover, the share was still a penny stock at the time. That was too risky for me. So I looked weekly to see if something is about to happen.

The Decision:

Investing based on an idea is never a good idea, so I took a close look at the company and the idea:

1. Since I already had a bad experience once, with such a young idea, I first looked how often and how well information is published[5]. Surprisingly, it is published diligently and everything fits so far. ✔
2. Publishing is one thing, the other is whether there is something behind it. Since listed companies have a disclosure obligation, it is easy to see whether the figures from the Investor Centre correspond to those on the stock exchange[6]. ✔
3. Financially, you can't do an analysis á la Warren Buffet here. The company is still young, and has a lot to invest. Nevertheless, I took a look at what is going on. Quick Analysis: More assets than liabilities ✔. Equity consistently increased ✔. Cash flow and net income: naturally in the red due to the investments ✖. More does not make sense here, as said value investing does not work here.
4. Vulcan operates a lot of geothermal plants and is familiar with the matter. So there is internal and independent expertise in geothermal and lithium on site for project execution[7]. ✔
5. Location - the right market, compelling supply-demand dynamics: being at the center of the European lithium ion battery industry is a major advantage for a semi-bulk product. Europe will be the world's fastest-growing lithium ion battery production center in the 2020s, with no local supply of lithium hydroxide.[7] ✔
6. Positive framework study: world-leading industry experts in lithium extraction and geothermal energy are behind the first study of its kind, which provides a solid foundation for the start of feasibility studies planned soon.[7] ✔
7. I understood how the process works and read the feasibility study.Not only lithium is extracted but also other rare metals[9]. ✔

If you go through my sources with interest, you will see that there is a very solid basis behind the project. But what was the deciding point for me to invest was the fact that Vulcan intentionally requested a trading halt while they were conducting the study to prevent wild speculation. This happened once in January2021[9] and once now around February 2021[10]. I got in in January because that was a sign to me that Vulcan was serious.

In addition, Vulcan gave a presentation to the EU Commission, with positive feedback. Vulcan has signed a binding agreement with the EU-funded EIT InnoEnergy as part of the Business Investment Platform (BIP) of the European Battery Alliance (EBA) initiative of the European Commission. This agreement is expected to significantly accelerate the momentum of Vulcan's Zero Carbon Lithium project. The project is located in Germany, at the center of the fastest growing lithium market in the world: the European battery industry for electric vehicles [11].

What's in store for the future?

I can't see into the future, of course, but I am sure that with this project electric vehicles will gain significant momentum. Also, the EU would be more independent and I personally like that a lot. In addition, there is no need to dry salt lakes or make bad environmental cuts like in other countries. I also see it critically that we consume here, and in mines at the other end of the world people have to work life-threatening for our luxury.

Is $VUL the next $GME?

Please, this is not a comparison. This is about the environment and the future of next generations. I am against PUMP&DUMP! If you are convinced of a company you invest and don't gamble!

Is now the right time?

I do not know. You have to decide that for yourself. I am invested myself in the meantime, because I am convinced of the idea therefore I will hold the share also with fluctuations. I got in at ~4.00 - 5.00€.

Sources:

[1] Vulcan Energy Resources: https://v-er.com/

[2] Sustainable Investing Trend: https://www.morganstanley.com/ideas/sustainability-investing-institutional-asset-owners

[3] Lithium Geothermal energy: https://www.electrive.net/2020/06/15/lithium-gewinnung-aus-geothermie-anlagen-in-deutschland/

[4] Zero Carbon Lithium: https://v-er.com/zero-carbon-lithium/

[5] Vulcan Investor Centre: https://v-er.com/investor-centre/

[6] Yahoo Finance VUL: https://de.finance.yahoo.com/quote/6KO.F/financials?p=6KO.F

[7] Vulcan Facts: https://www.geothermie.de/bibliothek/lexikon-der-geothermie/v/vulkan-energy-firma.html

[8] Vulcan Positive Pre Feasibility Study: https://vul.live.irmau.com/site/PDF/6a9c79d2-5c99-40d7-ba32-72cd6ea3a6f6/PositivePreFeasibilityStudy

[9] Trading Halt January2021: https://vul.live.irmau.com/site/PDF/e5371199-d0f8-4d91-82b1-f7e1ed7ebae6/TradingHalt

[10] Trading Halt February 2021: https://vul.live.irmau.com/site/PDF/492bcfbd-6157-4aec-8542-f6641341578f/TradingHalt

[11] Vulcan signs with EU: https://finfeed.com/small-caps/juni...drive-the-vulcan-zero-carbon-lithium-project/

 

[hiskidd]

@tenayshus No offense, but I just see a lot of catch phrases. How exactly will this zero emissions mining work?

 

[tenayshus]

@hiskidd Don't worry, criticism enlivens the discussion. $VUL will not engage in mining per se. Vulcan operates geothermal plants in Europe. But they have published a feasibility study in which the water from the geothermal plant can be filtered to extract lithium and other rare metals. The conversion is not costly, and can be easily implemented.

In summary: Draws on naturally occurring, renewable geothermal energy to power the lithium extraction process and create a renewable energy by-product. This uses no fossil fuels, requires very little water and has a tiny land footprint. Because the geothermal plants are already in place. The water is recirculated and is not contaminated by chemicals.

You can read about that here: https://v-er.com/zero-carbon-lithium/and here: https://vul.live.irmau.com/site/PDF/6a9c79d2-5c99-40d7-ba32-72cd6ea3a6f6/PositivePreFeasibilityStudy

Consider reading through my sources, I've provided in my original post. The investment centre of Vulcan is a good starting point as well.

 

[gerryspeck]

@tenayshus Do you have any peer reviewed studies? This sounds like a physics problem. Not easily solved or even possible.

 

[tenayshus]

@gerryspeck I have something better for you, a starting point of a wonderful jorney to understand what is happening there: https://en.wikipedia.org/wiki/Ion_exchange

Here is a german article, you can try to translate it: https://www.geothermie.de/bibliothek/lexikon-der-geothermie/l/lithium.html

 

[namith]

@tenayshus Really interesting process.. will bookmark for later to read.

 

[hiskidd]

@tenayshus I dunno man...
I work in oilfield. It's never easy or cheap to extract elements from water.
It would be very cool if they pull it off. I hope it runs for you guys.

Just uneducated oilfield trash here, don't let me dissuade anyone ✌

 

[bm84]

@hiskidd Your exactly the kind of person I want to hear from. I'm a MechE with some mining experience. It seems like their idea is to use water injected into deep wells (likely borrowed from the O&G field) so that the returning water is both hot for geothermal and "contaminated" with lithium salts.

1- Finding this exact combination of geothermal hot spot with lithium deposits seems rares

2 - The throughput of lithium production seems waaay too low to be significant

3 - The Lithium salt extraction from the hot water seems difficult without settling ponds or filters or distillation towers

4 - Lithium salts seems like it would damage any pumps and drills ( but I'm not sure, you should have more experience with that)

 

[gifty]

@bm84 Also MechE here; you got the process wrong: the hot brine in the reservoir is already rich in lithium and present in some regions around Europe they have identified. Vulcan wants to piggyback on existing geothermal power plants and extract the lithium salt on top of that. Check slides 11 and 15 of their investor’s presentation

 

[bm84]

@gifty Thanks for the correction, that seems more promising then.

 

[godmysavior26]

@bm84 "1- Finding this exact combination of a geothermal hot spot with lithium deposits seems rares."

Well, let me give you an idea. There is such a place on this earth having proven reserves of Li, something like 9% of all world's reserves. Plus they have a geothermal hot spot there.

This place is called Loznica ( Serbia ). The only problem is, on how to kick RioTinto out there, who did the exploration?

 

[sailing_soul]

@hiskidd

Just uneducated oilfield trash here, don't let me dissuade anyone

I think you might be expressing the thoughts of quite a lot of people. This feels like one of those companies that you hope succeeds because it sounds promising, but not with your money.

Not a financial adviser/not financial advice

 

[tenayshus]

@hiskidd I agree, it was never easy to extract elements from water. We will see what $VUL will bring us in the future. Maybe it will change from now on.

Just one thing, I do not think of you as uneducated trash.

 

[lernestof]

@tenayshus What is the ticker? Vulnf

 

[tenayshus]

@lernestof Here: https://de.finance.yahoo.com/quote/6KO.F?p=6KO.F&.tsrc=fin-srch

It is varies from Stock Exchanges. Just search at Yahoo Finance.

$VUL at Twitter.

 

[butterflies2007]

@tenayshus Its $VULNF ON TDAM. I think its worth keeping an eye on. Theres such a strong push to ev's now there will inevitably be a stronger push to cleaner processes in their production.

 

[kdhw1470]

@tenayshus I did a quick read of one of this PPT: https://v-er.com/wp-content/uploads/2021/01/Corporate-Presentation-Vulcan-Energy.pdf

I understand the long-term requirement to build the necessary infrastructure, but am I reading this properly that "profit" will start in 2024? To buy right now is to buy a vision.

 

[tenayshus]

@kdhw1470 Yes, it is a vision. For me everything looks good to believe. If you are unsure, you should not buy it.

 

[shiffley]

@tenayshus VUL is very interesting. Nice DD. Very excited to look more into them.

A little homework on the tech.

“The challenge is not simply lithium extraction. It’s a complex tangle of chemical, engineering, economics, and supply chain issues,” said Peter Fiske, director of Berkeley Lab’s Water-Energy Resilience Research Institute.

It's worth looking into the Salton Sea. Just google "Lithium Valley." The hopeful future of the area is geothermal and lithium. Berkshire Hathaway Energy teamed up with Lilac Solutions and Controlled Thermal Resources to help develop the tech. Berkshire already runs about 10 geothermal fields in the area. This technology will make those more profitable. The Rhine valley and Salton Sea are the geologically significant areas identified so far. So VUL seems to be working on the EU version.

The tech in California

https://newscenter.lbl.gov/2020/08/05/geothermal-brines-could-propel-californias-green-economy/

Lithium Valley

https://www.greenbiz.com/article/plan-lithium-valley-begins-take-shape

Berkshire Hathaway and Lithium

https://mazorsedge.com/special-repo...ay-be-sitting-on-the-saudi-arabia-of-lithium/

Other players

https://www.cthermal.com/investors

https://investingnews.com/company-p...ermal-resources-lithium-and-renewable-energy/

"17,350 tonnes of lithium carbonate equivalent (LCE) by 2023." This isn't far away.

All very interesting developements.

 

[tenayshus]

@shiffley Props to you. I've learned yet another thing!