2021 ANNUAL REPORTYear Ended 30 June 2021ABN 38 624 223 132 | WWW.V-ER.EU Table of
Contents
Company / Year at a glance
CEO's Message
Meet the team
Sustainability Report
Review of Operations
Corporate Directory
Directors' Report
Auditor’s Independence Declaration
Consolidated Statement of Profit
or Loss and Other Comprehensive Income
Consolidated Statement
of Financial Position
Consolidated Statement
of Changes in Equity
Consolidated Statement
of Cash Flows
Notes to the Consolidated
Financial Statements
Directors' Declaration
Independent Auditor’s Report
ASX Additional Information
Corporate Governance Statement
01
03
11
17
51
63
67
XX
89
90
91
92
93
125
126
127
133
Table of
Contents
Company / Year at a glance
CEO's Message
Meet the Team
Sustainability Report
Review of Operations
Corporate Directory
Directors' Report
Auditor’s Independence Declaration
Consolidated Statement of Profit
or Loss and Other Comprehensive Income
Consolidated Statement
of Financial Position
Consolidated Statement
of Changes in Equity
Consolidated Statement
of Cash Flows
Notes to the Consolidated
Financial Statements
Directors' Declaration
Independent Auditor’s Report
ASX Additional Information
Corporate Governance Statement
01
03
11
17
51
63
67
89
90
91
92
93
94
126
127
131
137
2021 Year
at a glance
Zero carbon process
development focus
During the year, the rapidly growing Vulcan team was focused on the process development of our Zero Carbon
Lithium™ Project with a strict exclusion of fossil fuels to power the process, whilst demonstrating best-in class
environmental credentials through independent study and verification.
Project Execution
POSITIVE
PRE-FEASIBILITY
STUDY
STRENGTHENED
CASH POSITION
$120m raised from ESG investors to accelerate
Zero Carbon Lithium™ Project development.
Positive Pre-Feasibility Study
showed post-tax NPV of €2.256B
(full project, no phasing)
Lithium extraction pilot plant
commissioned & successfully operating
with first results announced in May that
target specification for Direct Lithium
Extraction (DLE) were achieved.
GROWTH OF BEST
IN CLASS TEAM
Best-in-class team now over 75 personnel,
with the acquisition of expert geothermal
engineering companies and expansion of
chemicals team.
1 \ Vulcan Energy Resources Limited
2021 Annual Report / 2
2021 Year
at a glance
Zero carbon process
development focus
During the year, the rapidly growing Vulcan team was focused on the process development of our Zero Carbon
Lithium™ Project with a strict exclusion of fossil fuels to power the process, whilst demonstrating best-in class
environmental credentials through independent study and verification.
Project Execution
POSITIVE
PRE-FEASIBILITY
STUDY
STRENGTHENED
CASH POSITION
$120m raised from ESG investors to accelerate
Zero Carbon Lithium™ Project development.
Positive Pre-Feasibility Study
showed post-tax NPV of €2.256B
(full project, no phasing)
Lithium extraction pilot plant
commissioned & successfully operating
with first results announced in May that
target specification for Direct Lithium
Extraction (DLE) were achieved.
GROWTH OF BEST
IN CLASS TEAM
Best-in-class team now over 75 personnel,
with the acquisition of expert geothermal
engineering companies and expansion of
chemicals team.
1 \ Vulcan Energy Resources Limited
2021 Annual Report / 2
CEO’s
Message
Dr Francis Wedin
Managing Director
& Founder-CEO
Dear Shareholders,
FY 21 has been a transformational year for
Vulcan, on our journey as we develop our globally
unique Zero Carbon Lithium™ and renewable
energy business. During the year, we showed
that it doesn’t need to cost more to be green,
with the right rigorous scientific approach, by
demonstrating outstanding financial metrics in our
Pre-Feasibility Study for our planned renewable
energy and lithium battery chemicals project in
Germany, which will have a net negative carbon
footprint (Scopes 1, 2 and 3) and will use zero
fossil fuels to power the process.
Because of our uncompromising approach to the
climate and the environment, we have attracted,
retained, and continue to grow, a unique world-
leading scientific and commercial team in the fields
of lithium chemicals and geothermal renewable
energy. This best-in-class team is one of the key
strengths of Vulcan and will be instrumental in
our ability to successfully execute on our project
development strategy in the months and years to
come. We continue to be approached by the world’s
best, who want to work for a company that fits with
their values.
We were the first to commission a Life Cycle
Assessment (LCA) study on the global lithium
hydroxide supply chain in 2019, which put lithium
under the spotlight as having a high carbon and
water footprint. We have since updated our
study this year, which meticulously backs up the
environmental credentials of our Zero Carbon
Lithium™ business, demonstrating world-beating
figures on all ecological metrics, including the lowest
Greenhouse Gas (GHG) option for the global supply
chain. Importantly, we don’t intend to be net zero at
some arbitrary point in the future, postponing the
issue for future generations, but net zero now and
throughout our development and production ramp
up. We don’t believe a company should be called
“green” without doing the hard scientific work to
build a green process.
We ensured that we are fully funded to completion of
our Definitive Feasibility Study (DFS) for our current
projects, by raising $120m with Goldman Sachs and
Canaccord Genuity in February. As part of this, we
saw highly respected Australian institutions such
as Hancock Prospecting join our register, as well
as ESG-focused European funds such as the BNP
Paribas Energy Transition Fund. The strong
support from our shareholders old and new is
much appreciated.
We have now commenced our Definitive Feasibility
Study (DFS), which includes a Pilot Plant that was
constructed and commissioned by the Vulcan
team and has been successfully extracting lithium
from “live” geothermal brine for a few months now.
Putting in place the correct precautions, we have
ensured that we continue to meet our tight targets
for rapid project development. We hope to continue
to execute our DFS and project development
for our Upper Rhine Valley projects steadily and
methodically in the coming year.
“
During the year, we added
to our Zero Carbon Lithium™
Project resource base, which
was already the largest lithium
resource in Europe.
A key differentiating factor for us is expected to be
our ability to scale up to meet the unprecedented
demand that is building in the European markets.
We will be assessing further avenues to build out
our future production capability, as we seek to
make a significant decarbonising impact on the
lithium industry.
I would like to thank the whole Vulcan family, our
shareholders and all our other stakeholders for
their contributions during this transformational
year. As we continue to challenge and disrupt the
industry towards our mission of decarbonising
the battery materials sector, it is our shared drive
to decarbonise the world, coupled with our strict
environmental values, that will be fundamental
to ensuring that our journey together is a
successful one.
3 \ Vulcan Energy Resources Limited
2021 Annual Report / 4
CEO’s
Message
Vulcan, on our journey as we develop our globally
up. We don’t believe a company should be called
Dr Francis Wedin
Managing Director
& Founder-CEO
Dear Shareholders,
FY 21 has been a transformational year for
unique Zero Carbon Lithium™ and renewable
energy business. During the year, we showed
that it doesn’t need to cost more to be green,
with the right rigorous scientific approach, by
demonstrating outstanding financial metrics in our
Pre-Feasibility Study for our planned renewable
energy and lithium battery chemicals project in
Germany, which will have a net negative carbon
footprint (Scopes 1, 2 and 3) and will use zero
fossil fuels to power the process.
Because of our uncompromising approach to the
climate and the environment, we have attracted,
retained, and continue to grow, a unique world-
leading scientific and commercial team in the fields
of lithium chemicals and geothermal renewable
energy. This best-in-class team is one of the key
strengths of Vulcan and will be instrumental in
our ability to successfully execute on our project
development strategy in the months and years to
come. We continue to be approached by the world’s
best, who want to work for a company that fits with
their values.
We were the first to commission a Life Cycle
Assessment (LCA) study on the global lithium
hydroxide supply chain in 2019, which put lithium
under the spotlight as having a high carbon and
water footprint. We have since updated our
study this year, which meticulously backs up the
environmental credentials of our Zero Carbon
Lithium™ business, demonstrating world-beating
figures on all ecological metrics, including the lowest
Greenhouse Gas (GHG) option for the global supply
chain. Importantly, we don’t intend to be net zero at
some arbitrary point in the future, postponing the
issue for future generations, but net zero now and
throughout our development and production ramp
“green” without doing the hard scientific work to
build a green process.
We ensured that we are fully funded to completion of
our Definitive Feasibility Study (DFS) for our current
projects, by raising $120m with Goldman Sachs and
Canaccord Genuity in February. As part of this, we
saw highly respected Australian institutions such
as Hancock Prospecting join our register, as well
as ESG-focused European funds such as the BNP
Paribas Energy Transition Fund. The strong
support from our shareholders old and new is
much appreciated.
We have now commenced our Definitive Feasibility
Study (DFS), which includes a Pilot Plant that was
constructed and commissioned by the Vulcan
team and has been successfully extracting lithium
from “live” geothermal brine for a few months now.
Putting in place the correct precautions, we have
ensured that we continue to meet our tight targets
for rapid project development. We hope to continue
to execute our DFS and project development
for our Upper Rhine Valley projects steadily and
methodically in the coming year.
“
During the year, we added
to our Zero Carbon Lithium™
Project resource base, which
was already the largest lithium
resource in Europe.
A key differentiating factor for us is expected to be
our ability to scale up to meet the unprecedented
demand that is building in the European markets.
We will be assessing further avenues to build out
our future production capability, as we seek to
make a significant decarbonising impact on the
lithium industry.
I would like to thank the whole Vulcan family, our
shareholders and all our other stakeholders for
their contributions during this transformational
year. As we continue to challenge and disrupt the
industry towards our mission of decarbonising
the battery materials sector, it is our shared drive
to decarbonise the world, coupled with our strict
environmental values, that will be fundamental
to ensuring that our journey together is a
successful one.
3 \ Vulcan Energy Resources Limited
2021 Annual Report / 4
Dear Shareholders,Your company has made great strides in the past 12-months towards bringing our valuable Zero Carbon Lithium™ Project in the Upper Rhine Valley, Germany, closer to fruition. Following upon the release of the Pre-Feasibility Study in January, we secured significant equity capital through Goldman Sachs and Canaccord Genuity, acquired additional permits as well as acquiring leading businesses in Germany in both below ground geothermal wells and above ground geothermal plant engineering. We have also successfully operated our pilot plant for lithium chloride extraction from live brines with over 90% initial recovery and secured valuable binding offtake agreements with LG Energy Solutions and Renault, post the end of the 2021 Financial Year.In addition to a number of key hires in management during the period to support our MD, Dr Francis Wedin, we also welcomed new Directors, Dr Heidi Grön, Annie Liu and Josephine Bush, who respectively add considerable experience and expertise to the Board in the chemicals industry, lithium supply chain, and renewable energy funding, tax and ESG reporting. These skills add to the ESG communication skills bought to the Board by Ranya Alkadamani appointed in 2020. We are also fortunate to have Julia Poliscanova, a senior Director of EU’s Transport and Environment, appointed as a Board Advisor bringing additional experience on EU policy shaping renewables, energy efficiency and sustainable transport.Your company is not only an important part of Europe’s pathway to a local source of sustainable lithium to support the European battery metals industry and EV revolution but is also leading the way as an ESG centric company that ensures ESG goals are not merely aspirations but govern the way your company operates in practice.Under the leadership of Dr Francis Wedin and his management team in Germany and Australia we have developed a success driven culture orientated towards delivering our Zero Carbon Lithium™ Project utilising the best technologies and world-leading experts to deliver shareholder value with consequent benefits to the local communities in which we operate; the European battery metals industry and OEMs in the EV revolution. Our efforts are dovetailed with German local and Federal Government and EU climate change policies and will help achieve carbon emission reduction targets, Independent life cycle assessment studies of our Zero Carbon Lithium™ Project show an unrivalled net reduction of 15 tonnes of carbon dioxide for every tonne of lithium hydroxide produced relative to traditional hard rock mining.Our move to list on the regulated market of the Frankfurt Stock Exchange is an important step to enable greater ownership by the European investment community for what is an important European asset.In the next 12 months, as we progress our Definitive Feasibility Study and commence the financing stage for the Zero Carbon Lithium™ Project, we will also use the expertise we have developed in geothermal lithium to grow our business in other parts of the world where the right geological conditions occur for geothermal lithium production. Such opportunities must represent similar environmental benefits and low operating costs as demonstrated in the Upper Rhine Valley.On behalf of the Board and of the Company, I thank you all for your support and I look forward to Vulcan continuing to deliver valuable returns for shareholders in the years to come.Chairman's MessageGavin RezosChairmanWe have developed a success driven culture orientated towards delivering our Zero Carbon Lithium™ Project utilising the best technologies and world leading experts.“2021 Annual Report / 65 \ Vulcan Energy Resources Limited Dear Shareholders,Your company has made great strides in the past 12-months towards bringing our valuable Zero Carbon Lithium™ Project in the Upper Rhine Valley, Germany, closer to fruition. Following upon the release of the Pre-Feasibility Study in January, we secured significant equity capital through Goldman Sachs and Canaccord Genuity, acquired additional permits as well as acquiring leading businesses in Germany in both below ground geothermal wells and above ground geothermal plant engineering. We have also successfully operated our pilot plant for lithium chloride extraction from live brines with over 90% initial recovery and secured valuable binding offtake agreements with LG Energy Solutions and Renault, post the end of the 2021 Financial Year.In addition to a number of key hires in management during the period to support our MD, Dr Francis Wedin, we also welcomed new Directors, Dr Heidi Grön, Annie Liu and Josephine Bush, who respectively add considerable experience and expertise to the Board in the chemicals industry, lithium supply chain, and renewable energy funding, tax and ESG reporting. These skills add to the ESG communication skills bought to the Board by Ranya Alkadamani appointed in 2020. We are also fortunate to have Julia Poliscanova, a senior Director of EU’s Transport and Environment, appointed as a Board Advisor bringing additional experience on EU policy shaping renewables, energy efficiency and sustainable transport.Your company is not only an important part of Europe’s pathway to a local source of sustainable lithium to support the European battery metals industry and EV revolution but is also leading the way as an ESG centric company that ensures ESG goals are not merely aspirations but govern the way your company operates in practice.Under the leadership of Dr Francis Wedin and his management team in Germany and Australia we have developed a success driven culture orientated towards delivering our Zero Carbon Lithium™ Project utilising the best technologies and world-leading experts to deliver shareholder value with consequent benefits to the local communities in which we operate; the European battery metals industry and OEMs in the EV revolution. Our efforts are dovetailed with German local and Federal Government and EU climate change policies and will help achieve carbon emission reduction targets, Independent life cycle assessment studies of our Zero Carbon Lithium™ Project show an unrivalled net reduction of 15 tonnes of carbon dioxide for every tonne of lithium hydroxide produced relative to traditional hard rock mining.Our move to list on the regulated market of the Frankfurt Stock Exchange is an important step to enable greater ownership by the European investment community for what is an important European asset.In the next 12 months, as we progress our Definitive Feasibility Study and commence the financing stage for the Zero Carbon Lithium™ Project, we will also use the expertise we have developed in geothermal lithium to grow our business in other parts of the world where the right geological conditions occur for geothermal lithium production. Such opportunities must represent similar environmental benefits and low operating costs as demonstrated in the Upper Rhine Valley.On behalf of the Board and of the Company, I thank you all for your support and I look forward to Vulcan continuing to deliver valuable returns for shareholders in the years to come.Chairman's MessageGavin RezosChairmanWe have developed a success driven culture orientated towards delivering our Zero Carbon Lithium™ Project utilising the best technologies and world leading experts.“2021 Annual Report / 65 \ Vulcan Energy Resources Limited About
Vulcan
Our Purpose is Zero Carbon
Lithium to Decarbonise E-
mobility & Produce
Renewable Energy.
Vulcan is aiming to become the world’s first lithium producer with net zero greenhouse
gas emissions. Its ZERO CARBON LITHIUM™ Project intends to produce a battery-quality
lithium hydroxide chemical product from its combined geothermal energy and lithium
resource, which is Europe’s largest lithium resource, in Germany.
Vulcan’s unique, Zero Carbon Lithium™ Project aims to produce both renewable
geothermal energy, and lithium hydroxide, from the same deep brine source. In doing
so, Vulcan intends to address the EU market's lithium requirements by reducing the high
carbon and water footprint of production, and total reliance on imports.
Vulcan aims to supply the lithium-ion battery and electric vehicle market in Europe,
which is the fastest growing in the world. The Vulcan Zero Carbon Lithium™ Project has
a resource which can satisfy Europe’s needs for the electric vehicle transition, from a
source with net zero greenhouse gas emissions, for many years to come.
Our Culture and Values
We come from all over the globe. We are united by a passion for environmentalism
and leveraging scientific solutions to fix man-made problems.
Environmentalism
Progress
Through Science
Fortitude
Family
Integrity
Quality of Life
Stretch Targets
Future Focused
7 \ Vulcan Energy Resources Limited
2021 Annual Report / 8
About
Vulcan
Our Purpose is Zero Carbon
Lithium to Decarbonise E-
mobility & Produce
Renewable Energy.
Vulcan is aiming to become the world’s first lithium producer with net zero greenhouse
gas emissions. Its ZERO CARBON LITHIUM™ Project intends to produce a battery-quality
lithium hydroxide chemical product from its combined geothermal energy and lithium
resource, which is Europe’s largest lithium resource, in Germany.
Vulcan’s unique, Zero Carbon Lithium™ Project aims to produce both renewable
geothermal energy, and lithium hydroxide, from the same deep brine source. In doing
so, Vulcan intends to address the EU market's lithium requirements by reducing the high
carbon and water footprint of production, and total reliance on imports.
Vulcan aims to supply the lithium-ion battery and electric vehicle market in Europe,
which is the fastest growing in the world. The Vulcan Zero Carbon Lithium™ Project has
a resource which can satisfy Europe’s needs for the electric vehicle transition, from a
source with net zero greenhouse gas emissions, for many years to come.
Our Culture and Values
We come from all over the globe. We are united by a passion for environmentalism
and leveraging scientific solutions to fix man-made problems.
Environmentalism
Progress
Through Science
Fortitude
Family
Integrity
Quality of Life
Stretch Targets
Future Focused
7 \ Vulcan Energy Resources Limited
2021 Annual Report / 8
Vulcan Zero Carbon Lithium TMLargest JORC lithium Resource in EuropeGeothermal & DLE in GermanyTeam of world leading expertsIn the heart of the fastest growing lithium market in the worldWorld-first Zero Carbon Lithium™ ProjectStrong cash positionPotential for very low OPEX operationDual revenue Green energy & lithiumProject supported by the EUENERGY BUSINESS74MW Renewable ElectricityLITHIUM BUSINESS40,000 tonnes per year Lithium Hydroxide2021 Annual Report / 109 \ Vulcan Energy Resources Limited Vulcan Zero Carbon Lithium TMLargest JORC lithium Resource in EuropeGeothermal & DLE in GermanyTeam of world leading expertsIn the heart of the fastest growing lithium market in the worldWorld-first Zero Carbon Lithium™ ProjectStrong cash positionPotential for very low OPEX operationDual revenue Green energy & lithiumProject supported by the EUENERGY BUSINESS74MW Renewable ElectricityLITHIUM BUSINESS40,000 tonnes per year Lithium Hydroxide2021 Annual Report / 109 \ Vulcan Energy Resources Limited Meet
the Team
Board of Directors
Dr. Francis Wedin
Managing Director
& Founder-CEO
Gavin Rezos
Chairman
Dr. Heidi Grön
Non-Executive Director
Josephine Bush
Non-Executive Director
• Founder of Vulcan Zero Carbon Lithium™
• Executive Chair/CEO positions of two
Project. Lithium industry executive since 2014.
• Previously Executive Director of ASX-listed
Exore Resources Ltd.
companies that grew from start-ups to the
ASX 300.
• Extensive international investment banking
• Track record of success in lithium industry
as an executive since 2014, including
the discovery of three resources on two
continents.
• PhD in Geology, MBA in Renewable Energy,
global experience in battery metals sector.
experience.
•
Investment banking Director of HSBC with
senior multi-regional roles in investment
banking, legal and compliance functions.
• Currently Chair of Resource and Energy
Group, principal of Viaticus Capital and
Non-Executive Director of Kuniko Limited.
• Previously Non-Executive Director of Iluka
Resources, Alexium International Group.
Dr. Horst Kreuter
Co-Founder
& Board Advisor
Annie Liu
Non-Executive Director
• Ex-CEO of Geothermal Group Germany GmbH
and GeoThermal Engineering GmbH (GeoT).
• Former Tesla Head of Battery and Energy
Supply Chain.
• Co- Founder of Vulcan Zero Carbon Lithium™
• Led and managed Tesla’s multi-billion-dollar
Project.
• Successful geothermal project development
& permitting in Germany and worldwide.
• Widespread political, investor and industry
network in Germany and Europe.
• Based in Karlsruhe, local to the project area
in the Upper Rhine Valley.
strategic partnerships and sourcing portfolios
that support Tesla’s Energy and Battery
business units including Battery, Battery Raw
Material, Energy Storage, Solar and Solar
Glass, including raw materials sourcing efforts
such as lithium for battery cells.
• 20 years’ experience with Tesla and Microsoft.
• Dr. Grön is a chemical engineer by background
• Member of the EY Power and Utilities Board.
with 20 years’ experience in the chemicals
industry.
• Since 2007, Dr. Grön has been a senior
executive with Evonik, one of the largest
specialty chemicals companies in the world,
with a market capitalization of €14B and 32,000
• At Evonik, Dr. Grön is currently responsible for:
employees.
• Global product;
•
Impact assessment and development of solutions
for the chemicals strategy for sustainability; and
• Management of Evonik’s major investment
volumes.
• Led and delivered the EY Global Renewables
and Sustainable Business Plan and
spearheaded a series of major Renewable
Market Transactions.
• Successfully advised on the first
environmental yieldco London Stock Exchange
listing, Greencoat UK Wind PLC.
• Ms. Bush is a Chartered Tax Advisor, holds an
MA Law degree from St Catharine’s College,
Cambridge, and brings a wealth of experience
in ESG strategic advisory.
Ranya Alkadamani
Non-Executive Director
Julia Poliscanova
Special Advisor
• Founder of Impact Group International.
• Senior Director with the EU’s Transport
• A communications strategist, focused on
and Environment.
amplifying the work of companies that have a
•
Instrumental in shaping policies around EU
positive social or environmental impact.
vehicle CO2 standards & sustainable batteries.
• Experience in working across media markets
• On the steering committee for the Battery
and for high profile people, including one of
Australia’s leading philanthropists, Andrew
Forrest and Australia’s former Foreign Minister
and former Prime Minister, Kevin Rudd.
CO2 Passport program of the Global Battery
Alliance.
• Previously worked for the Mayor of London and
in the European Parliament following EU
legislation on renewables, energy efficiency
and sustainable transport.
11 \ Vulcan Energy Resources Limited
2021 Annual Report / 12
Meet
the Team
Board of Directors
Dr. Francis Wedin
Managing Director
& Founder-CEO
Gavin Rezos
Chairman
Dr. Heidi Grön
Non-Executive Director
Josephine Bush
Non-Executive Director
• Founder of Vulcan Zero Carbon Lithium™
• Executive Chair/CEO positions of two
Project. Lithium industry executive since 2014.
companies that grew from start-ups to the
• Previously Executive Director of ASX-listed
Exore Resources Ltd.
• Extensive international investment banking
ASX 300.
experience.
• Track record of success in lithium industry
as an executive since 2014, including
the discovery of three resources on two
continents.
• PhD in Geology, MBA in Renewable Energy,
global experience in battery metals sector.
•
Investment banking Director of HSBC with
senior multi-regional roles in investment
banking, legal and compliance functions.
• Currently Chair of Resource and Energy
Group, principal of Viaticus Capital and
Non-Executive Director of Kuniko Limited.
• Previously Non-Executive Director of Iluka
Resources, Alexium International Group.
Dr. Horst Kreuter
Co-Founder
& Board Advisor
Annie Liu
Non-Executive Director
• Ex-CEO of Geothermal Group Germany GmbH
• Former Tesla Head of Battery and Energy
and GeoThermal Engineering GmbH (GeoT).
Supply Chain.
• Co- Founder of Vulcan Zero Carbon Lithium™
• Led and managed Tesla’s multi-billion-dollar
Project.
• Successful geothermal project development
& permitting in Germany and worldwide.
• Widespread political, investor and industry
network in Germany and Europe.
• Based in Karlsruhe, local to the project area
in the Upper Rhine Valley.
strategic partnerships and sourcing portfolios
that support Tesla’s Energy and Battery
business units including Battery, Battery Raw
Material, Energy Storage, Solar and Solar
Glass, including raw materials sourcing efforts
such as lithium for battery cells.
• 20 years’ experience with Tesla and Microsoft.
• Dr. Grön is a chemical engineer by background
with 20 years’ experience in the chemicals
industry.
• Since 2007, Dr. Grön has been a senior
executive with Evonik, one of the largest
specialty chemicals companies in the world,
with a market capitalization of €14B and 32,000
employees.
• At Evonik, Dr. Grön is currently responsible for:
• Global product;
•
Impact assessment and development of solutions
for the chemicals strategy for sustainability; and
• Management of Evonik’s major investment
volumes.
• Member of the EY Power and Utilities Board.
• Led and delivered the EY Global Renewables
and Sustainable Business Plan and
spearheaded a series of major Renewable
Market Transactions.
• Successfully advised on the first
environmental yieldco London Stock Exchange
listing, Greencoat UK Wind PLC.
• Ms. Bush is a Chartered Tax Advisor, holds an
MA Law degree from St Catharine’s College,
Cambridge, and brings a wealth of experience
in ESG strategic advisory.
Ranya Alkadamani
Non-Executive Director
Julia Poliscanova
Special Advisor
• Founder of Impact Group International.
• Senior Director with the EU’s Transport
• A communications strategist, focused on
amplifying the work of companies that have a
positive social or environmental impact.
• Experience in working across media markets
and for high profile people, including one of
Australia’s leading philanthropists, Andrew
Forrest and Australia’s former Foreign Minister
and former Prime Minister, Kevin Rudd.
and Environment.
•
Instrumental in shaping policies around EU
vehicle CO2 standards & sustainable batteries.
• On the steering committee for the Battery
CO2 Passport program of the Global Battery
Alliance.
• Previously worked for the Mayor of London and
in the European Parliament following EU
legislation on renewables, energy efficiency
and sustainable transport.
11 \ Vulcan Energy Resources Limited
2021 Annual Report / 12
•Daniel is an experienced corporate lawyer with over 15 years’ experience across a wide range of corporate, commercial and finance areas including initial publicofferings; equity and debt capital raisings; corporate regulatory compliance; asset and share salesand purchases; corporate governance; corporate restructuring and re-organisations; and litigation.•Most recently, Daniel held a senior position atSteinepreis Paganin and prior to that, worked at Clayton Utz and Phillips Fox (now DLA Piper).Daniel TyddeCompany Secretary & In-House Legal Counsel•Jess has extensive experience advising top 20 ASX companies on communications, media and investor relations including six years with Fortescue Metals Group as Senior Media and Corporate Affairs Specialist.•Jess was previously an adviser to Prime Minister Kevin Rudd working across government and internationalorganisations.•She brings academic qualifications in social policyand community development from the University ofQueensland and post-graduate qualifications in public relations and investor relations.Jess BukowskiPublic & Investor Relations Manager•Vincent was previously Executive Director – Corporate Strategy at Infinity Lithium Corporation, where Vincent led the project to become the first tosecure EU funding.•Vincent was also appointed as a Lithium Expert by the European Commission.•He previously worked at IHS Markit where he led thelithium and battery materials research team covering the entire industry’s supply chain from raw materialsto E-mobility.•Vincent holds a Business Masters in Risk Management and International Purchasing from ESDES Business School in France.Vincent Ledoux-PedaillesVice President – Business Development•Robert is a Chartered Accountant and Chartered Secretary with over 20 years experience, predominately with ASX and AIM listed resource and oil and gas exploration and production companies.•He has extensive experience in financial and commercial management including experience incorporate governance, debt and capital raising, taxplanning, risk management, treasury management, insurance, corporate acquisitions and divestment and farm in/farm out transactions.•Robert holds a Bachelor of Commerce degree from Curtin University, a Graduate Diploma in Applied Corporate Governance from the Governance Institute of Australia and a Graduate Certificate of Applied Finance and Investment from theSecurities Institute of Australia.Rob Ierace Chief Financial Officer70+ PeopleWorld Leading Engineering TeamWorld-Class Team40% Female WorkforceOur team of world-renowned experts in geology, chemistry and engineering is supported by a Board with decades of leadership and expertise in renewable energy, project finance, chemicals and the lithium-ion battery industry.“2021 Annual Report / 1413 \ Vulcan Energy Resources Limited •Daniel is an experienced corporate lawyer with over 15 years’ experience across a wide range of corporate, commercial and finance areas including initial publicofferings; equity and debt capital raisings; corporate regulatory compliance; asset and share salesand purchases; corporate governance; corporate restructuring and re-organisations; and litigation.•Most recently, Daniel held a senior position atSteinepreis Paganin and prior to that, worked at Clayton Utz and Phillips Fox (now DLA Piper).Daniel TyddeCompany Secretary & In-House Legal Counsel•Jess has extensive experience advising top 20 ASX companies on communications, media and investor relations including six years with Fortescue Metals Group as Senior Media and Corporate Affairs Specialist.•Jess was previously an adviser to Prime Minister Kevin Rudd working across government and internationalorganisations.•She brings academic qualifications in social policyand community development from the University ofQueensland and post-graduate qualifications in public relations and investor relations.Jess BukowskiPublic & Investor Relations Manager•Vincent was previously Executive Director – Corporate Strategy at Infinity Lithium Corporation, where Vincent led the project to become the first tosecure EU funding.•Vincent was also appointed as a Lithium Expert by the European Commission.•He previously worked at IHS Markit where he led thelithium and battery materials research team covering the entire industry’s supply chain from raw materialsto E-mobility.•Vincent holds a Business Masters in Risk Management and International Purchasing from ESDES Business School in France.Vincent Ledoux-PedaillesVice President – Business Development•Robert is a Chartered Accountant and Chartered Secretary with over 20 years experience, predominately with ASX and AIM listed resource and oil and gas exploration and production companies.•He has extensive experience in financial and commercial management including experience incorporate governance, debt and capital raising, taxplanning, risk management, treasury management, insurance, corporate acquisitions and divestment and farm in/farm out transactions.•Robert holds a Bachelor of Commerce degree from Curtin University, a Graduate Diploma in Applied Corporate Governance from the Governance Institute of Australia and a Graduate Certificate of Applied Finance and Investment from theSecurities Institute of Australia.Rob Ierace Chief Financial Officer70+ PeopleWorld Leading Engineering TeamWorld-Class Team40% Female WorkforceOur team of world-renowned experts in geology, chemistry and engineering is supported by a Board with decades of leadership and expertise in renewable energy, project finance, chemicals and the lithium-ion battery industry.“2021 Annual Report / 1413 \ Vulcan Energy Resources Limited An Experienced Development TeamLITHIUM BUSINESSProject Development team based in Germany. World-leading experts in the fields of lithium chemistry, DLE and chemical engineering.Renewable Energy BusinessLithium Chemicals BusinessEngineering company focused on deep geothermal projects at surface: power plant, heat stations, drill pads, and permitting. More than 300 years engineering knowledge of Gec-Co’s team. Created in 2012.Planning and Engineering company for deep geothermal energy projects, based in the Upper Rhine Valley, Germany. Highly credentialed scientific team with >100 years of combined worldleading expertise. Created in 2005.Tobias HochschildCEO GeoThermalEngineering GmbHExploration geologist with +15 years’ experience in deep geothermal project development and realisation team lead of Vulcans reservoir experts wide range of know-how from data acquisition to interpretation, modelling and operations.Project manager with +10 years’ experience across all aspects of geothermal project development. Extensive knowledge including plant technology and thermodynamics of geothermal, technical due diligence, mechanical and electronic engineering, risk analysis and deep drilling technologies.Markus RuffCEO Global Engineering andConsulting Company GmbH•Expert in geothermal and drilling technology, with more than 25 years of professional experience.•Thorsten is Technical Manager of the German GeothermalAssociation (Bundesverband Geothermie e.V.) and he is well connected in the German geothermal industry.•Thorsten has a diploma in Engineering (Technical University of Munich) and an MBA (Universities of Augsburg and Pittsburgh).Thorsten WeimannChief Operating Officer•CTO of Simbol Materials for seven years (2008-2015), where heled the scientific and engineering teams through a rapid process development, taking less than one year to develop a process toextract lithium from geothermal brine.•As CEO of Rakehill Technology LLC, Dr. Harrison has sinceconsulted to the lithium industry on various lithium extraction technologiesincluding sorbents.Dr. Stephen HarrisonChief Technical Officer•Markus has over 20 years' experience in finance roles within the chemicals industry.•His previous role was as Head of Finance at Currenta, a chemical park service provider in Germany formerly part of Bayer, with ~EUR 1.7bn turnover, ~5,300 emoployees and ~EUR 250m EBITDA.•Markus was also CFO of the Bayer Group of companies in SouthKorea and Head of Corporate M&A in the APAC region for Bayer.Markus RitzauerVulcan Energie CFODr Thomas AicherChemical Engineer LeadLaboratory TeamChemical Engineering TeamLeading chemical engineering expert with +25 years' experience in chemical process innovation and industrial scale-up. Thomas was Business Development Manager for KIC Innoenergy and Head of Group at Fraunhofer Institute. Thomas has a PhD and MSc in Chemical Engineering.2021 Annual Report/1615 \ Vulcan Energy Resources Limited An Experienced Development TeamLITHIUM BUSINESSProject Development team based in Germany. World-leading experts in the fields of lithium chemistry, DLE and chemical engineering.Renewable Energy BusinessLithium Chemicals BusinessEngineering company focused on deep geothermal projects at surface: power plant, heat stations, drill pads, and permitting. More than 300 years engineering knowledge of Gec-Co’s team. Created in 2012.Planning and Engineering company for deep geothermal energy projects, based in the Upper Rhine Valley, Germany.Highly credentialed scientific team with >100 years of combined worldleading expertise. Created in 2005.Tobias HochschildCEO GeoThermalEngineering GmbHExploration geologist with +15 years’ experience in deep geothermal project development and realisation team lead of Vulcans reservoir experts wide range of know-how from data acquisition to interpretation, modelling and operations.Project manager with +10 years’ experience across all aspects of geothermal project development. Extensive knowledge including plant technology and thermodynamics of geothermal, technical due diligence, mechanical and electronic engineering, risk analysis and deep drilling technologies.Markus RuffCEO Global Engineering andConsulting Company GmbH•Expert in geothermal and drilling technology, with more than 25 years of professional experience.•Thorsten is Technical Manager of the German GeothermalAssociation (Bundesverband Geothermie e.V.) and he is well connected in the German geothermal industry.•Thorsten has a diploma in Engineering (Technical University of Munich)and an MBA (Universities of Augsburg and Pittsburgh).Thorsten WeimannChief Operating Officer•CTO of Simbol Materials for seven years (2008-2015), where heled the scientific and engineering teams through a rapid process development, taking less than one year to develop a process toextract lithium from geothermal brine.•As CEO of Rakehill Technology LLC, Dr. Harrison has sinceconsulted to the lithium industry on various lithium extraction technologies including sorbents.Dr. Stephen HarrisonChief Technical Officer•Markus has over 20 years' experience in finance roles within the chemicals industry.•His previous role was as Head of Finance at Currenta, a chemical park service provider in Germany formerly part of Bayer, with ~EUR 1.7bn turnover, ~5,300 emoployees and ~EUR 250m EBITDA.•Markus was also CFO of the Bayer Group of companies in SouthKorea and Head of Corporate M&A in the APAC region for Bayer.Markus RitzauerVulcan EnergieCFODr Thomas AicherChemical Engineer LeadLaboratory TeamChemical Engineering TeamLeading chemical engineering expert with +25 years' experience in chemical process innovation and industrial scale-up. Thomas was Business Development Manager for KIC Innoenergy and Head of Group at Fraunhofer Institute. Thomas has a PhD and MSc in Chemical Engineering.2021 Annual Report / 1615\Vulcan Energy Resources Limited Sustainability ReportSUPPLY CHAIN Traceability & CO2 MeasurementPEOPLE Powering Jobs & EducationGOVERNANCE Oversight, Ethics, Compliance, TCFDEnergising the Green Future of ExtractionENVIRONMENT Strict Zero Carbon focusINNOVATION R&D Fuelling Zero CarbonProcess development and R&D development of world-first lithium and renewable energy co-production process in Pre- Feasibility Study: Zero Carbon Lithium™.Life cycle assessment shows peerless environmental credentials including negative carbon footprint (Scope 1, 2, 3) for planned lithium production, a world first.Working with Circulor to achieve world-first lithium traceability and dynamic CO2 measurement across supply chain.Admission to Global Battery Alliance toward advancing battery materials traceability and transparency.CARBON NEUTRAL NOW, NOT IN THE FUTURE.17 \ Vulcan Energy Resources Limited2021 Annual Report / 18 Sustainability ReportSUPPLY CHAIN Traceability & CO2 MeasurementPEOPLE Powering Jobs & EducationGOVERNANCE Oversight, Ethics, Compliance, TCFDEnergising the Green Future of ExtractionENVIRONMENT Strict Zero Carbon focusINNOVATION R&D Fuelling Zero CarbonProcess development and R&D development of world-first lithium and renewable energy co-production process in Pre- Feasibility Study: Zero Carbon Lithium™.Life cycle assessment shows peerless environmental credentials including negative carbon footprint (Scope 1, 2, 3) for planned lithium production, a world first.Working with Circulor to achieve world-first lithium traceability and dynamic CO2 measurement across supply chain.Admission to Global Battery Alliance toward advancing battery materials traceability and transparency.CARBON NEUTRAL NOW, NOT IN THE FUTURE.17 \ Vulcan Energy Resources Limited2021 Annual Report / 18 Commitment to the United Nations Sustainable Development GoalsThe United Nations Sustainable Development Goals (SDGs) adopted in 2015, set the 2030 global agenda for sustainable development. The SDGs are a call for global action by national governments to end poverty, protect the planet and to ensure all people are able to enjoy peace and prosperity. We have aligned Vulcan’s approach to sustainability with the SDGs and will continue to work to meet these goals.Vulcan is particularly focusing on 10 of those SDGs: Good Health and Well-Being; Gender Equality; Clean Water and Sanitation; Affordable and Clean Energy; Decent Work and Economic Growth; Industry, Innovation and Infrastructure; Sustainable Cities and Communities; Responsible Consumption and Production; Climate Action; and Life on Land.2021 Annual Report/2019 \ Vulcan Energy Resources Limited Commitment to the United Nations Sustainable Development GoalsThe United Nations Sustainable Development Goals (SDGs) adopted in 2015, set the 2030 global agenda for sustainable development. The SDGs are a call for global action by national governments to end poverty, protect the planet and to ensure all people are able to enjoy peace and prosperity. We have aligned Vulcan’s approach to sustainability with the SDGs and will continue to work to meet these goals.Vulcan is particularly focusing on 10 of those SDGs: Good Health and Well-Being; Gender Equality; Clean Water and Sanitation; Affordable and Clean Energy; Decent Work and Economic Growth; Industry; Innovation and Infrastructure; Sustainable Cities and Communities; Responsible Consumption and Production; Climate Action; and Life on Land.2021 Annual Report / 2019 \ Vulcan Energy Resources Limited ENVIRONMENT
Vulcan certified as a carbon neutral business in Australia
Vulcan’s Australian business has been certified as
carbon neutral by Climate Active. Climate Active is
a partnership between the Australian Government
and Australian businesses, to encourage voluntary
climate action. It is the most rigorous and credible
carbon neutral certification available in Australia
and supports and guides businesses as they account
for, and reduce, carbon emissions. The certification
helps the community take action by making it easier
to identify and choose brands that are making a
real difference and the brand unites Australian
businesses and Government to amplify positive
impacts. As part of the Climate Active Network,
Vulcan has joined a network of organisations and
businesses leading voluntary action on climate
change. While Vulcan is still working towards
production, the company is dedicated to being
net zero carbon verified. Vulcan is seeking similar
certification for its European Union operations.
Environmental Performance and Life Cycle Assessment
essential for understanding and controlling impacts
while we scale up our project. This activity is
essential for us to achieve our mission.
We do not believe in calling our project “green”
without doing the hard work of making it “green”
first. In this section, we share the breakdown of
our LCA results and comparison to legacy lithium
production to demonstrate our planned leading
environmental performance resulting from our
deliberate technical decisions.
“
We do not believe in calling
our project “green” without
doing the hard work of
making it “green” first.
INTRODUCTION
Vulcan’s mission is to decarbonise the
manufacturing of lithium chemicals for electric
vehicle batteries. The company and its combined
geothermal energy and lithium project in the
Upper Rhine Valley in Germany are built around
this mission. Vulcan recognises the importance
of the three tenets of the Environmental, Social, and
Governance (ESG) movement. This chapter will focus
on the “E” of “ESG”, and explain what the Company is
doing to develop its project to have the highest
environmental performance, with the lowest
impacts, of any lithium project anywhere
in the world.
Vulcan uses prospective life cycle assessment
(LCA) as part of our geothermal lithium process
development in order to reduce environmental
impacts of our process for making lithium hydroxide
monohydrate (LiOH•H2O) before capital expenditures
are incurred. This allows us to quantify our
environmental impacts, understand drivers of our
impacts, and make decisions about our supply chains
and energy use to minimise those impacts.
We work with Minviro, global experts in battery
metals LCA, to build ISO-compliant LCA models of
our process at both Scoping Study stage (late 2019)
and more recently at Pre-Feasibility Study (PFS)
stage (early 2021). We believe that environmental
impact modeling at each stage of development is
21 \ Vulcan Energy Resources Limited
LEGACY PRODUCTION ROUTES
VS. VULCAN’S APPROACH
Lithium chemicals are essential for manufacturing
high-performance batteries used in electric vehicles.
Lithium hydroxide is necessary for building the
European EV fleet. Lithium chemicals are made using
different processes from different resources. Each
process has a different set of environmental impacts.
Two of the largest sources of supply are from brines
(salty groundwater) at the Salar de Atacama in Chile,
and spodumene minerals mined in Western Australia,
concentrated, and shipped to China, where they are
processed into chemicals. Vulcan will produce
lithium hydroxide using technologies with
significantly lower environmental impacts than legacy
production routes.
At the Salar de Atacama and some other operations in
Argentina, brines are pumped from underground and
placed into evaporation ponds to remove water,
crystallising impurity salts from the brine, in order to
produce a lithium chloride concentrate which can be
converted into lithium chemicals. Meanwhile,
Western Australian spodumene minerals are blasted,
Legacy Lithium Production Routes
mined, crushed, and concentrated to produce a
mineral concentrate which is processed into lithium
chemicals in China. In this section we compare
Vulcan’s geothermal lithium process with these
legacy operational routes.
Vulcan will process a deep, hot brine by first
extracting the energy using conventional geothermal
energy technology already operating in the Upper
Rhine Valley, then extracting the lithium using direct
lithium extraction (“DLE”). The use of DLE will result
in all of the water and impurities in the brine being
reinjected into the same aquifer from which the brine
was produced, just without the heat and lithium.
Vulcan’s project will produce two products with
almost zero CO2 emissions: lithium and electricity.
Low CO2 intense electricity is needed in Germany
to decarbonise the country’s coal-heavy electrical
grid. Germany has made numerous pledges to reduce
its CO2 footprint, but its electricity sector has been
slow to decarbonise. Vulcan’s renewable power
production will play a crucial role in decarbonising
Germany’s electrical grid.
Australia Mining
INFOGRAPHIC TBC
& China Conversion
Mining, Concentration
and Transport using
Diesel and Bunker Fuel
Chemical Conversion
Using Gas, Coal, Sulfuric
Acid and Caustic
Chile Brine Ponds
and Conversion
Evaporation Ponds
to Remove Water and
Impurities from Brine
Chemical Conversion
Using Gas, Oil, Soda,
Ash and Lime
Geothermal Energy
Production & Direct
Chemical Conversion
Using Decarbonised
Lithium Extraction (DLE)
Electricty
LiOH
LiOH
LiOH
CO2 Emissions from Different Energy Sources
f
o
y
t
i
s
n
e
t
n
I
O
C
2
2
)
h
W
k
/
O
C
g
(
r
e
w
o
P
1,000
750
500
250
0
Average German Power Grid 2021 (1)
Coal
Natural
Gas
Flash-Steam
Geothermal
(California)
ORC
Geothermal
(Germany)
Wind
Solar
2021 Annual Report / 22
ENVIRONMENT
Vulcan certified as a carbon neutral business in Australia
Vulcan’s Australian business has been certified as
real difference and the brand unites Australian
carbon neutral by Climate Active. Climate Active is
businesses and Government to amplify positive
a partnership between the Australian Government
impacts. As part of the Climate Active Network,
and Australian businesses, to encourage voluntary
Vulcan has joined a network of organisations and
climate action. It is the most rigorous and credible
carbon neutral certification available in Australia
businesses leading voluntary action on climate
change. While Vulcan is still working towards
and supports and guides businesses as they account
production, the company is dedicated to being
for, and reduce, carbon emissions. The certification
net zero carbon verified. Vulcan is seeking similar
helps the community take action by making it easier
certification for its European Union operations.
to identify and choose brands that are making a
Environmental Performance and Life Cycle Assessment
INTRODUCTION
Vulcan’s mission is to decarbonise the
manufacturing of lithium chemicals for electric
vehicle batteries. The company and its combined
geothermal energy and lithium project in the
Upper Rhine Valley in Germany are built around
this mission. Vulcan recognises the importance
essential for understanding and controlling impacts
while we scale up our project. This activity is
essential for us to achieve our mission.
We do not believe in calling our project “green”
without doing the hard work of making it “green”
first. In this section, we share the breakdown of
our LCA results and comparison to legacy lithium
of the three tenets of the Environmental, Social, and
production to demonstrate our planned leading
Governance (ESG) movement. This chapter will focus
environmental performance resulting from our
on the “E” of “ESG”, and explain what the Company is
deliberate technical decisions.
“
We do not believe in calling
our project “green” without
doing the hard work of
making it “green” first.
doing to develop its project to have the highest
environmental performance, with the lowest
impacts, of any lithium project anywhere
in the world.
Vulcan uses prospective life cycle assessment
(LCA) as part of our geothermal lithium process
development in order to reduce environmental
impacts of our process for making lithium hydroxide
monohydrate (LiOH•H2O) before capital expenditures
are incurred. This allows us to quantify our
environmental impacts, understand drivers of our
impacts, and make decisions about our supply chains
and energy use to minimise those impacts.
We work with Minviro, global experts in battery
metals LCA, to build ISO-compliant LCA models of
our process at both Scoping Study stage (late 2019)
and more recently at Pre-Feasibility Study (PFS)
stage (early 2021). We believe that environmental
impact modeling at each stage of development is
21 \ Vulcan Energy Resources Limited
LEGACY PRODUCTION ROUTES
VS. VULCAN’S APPROACH
Lithium chemicals are essential for manufacturing
high-performance batteries used in electric vehicles.
Lithium hydroxide is necessary for building the
European EV fleet. Lithium chemicals are made using
different processes from different resources. Each
process has a different set of environmental impacts.
Two of the largest sources of supply are from brines
(salty groundwater) at the Salar de Atacama in Chile,
and spodumene minerals mined in Western Australia,
concentrated, and shipped to China, where they are
processed into chemicals. Vulcan will produce
lithium hydroxide using technologies with
significantly lower environmental impacts than legacy
production routes.
At the Salar de Atacama and some other operations in
Argentina, brines are pumped from underground and
placed into evaporation ponds to remove water,
crystallising impurity salts from the brine, in order to
produce a lithium chloride concentrate which can be
converted into lithium chemicals. Meanwhile,
Western Australian spodumene minerals are blasted,
Legacy Lithium Production Routes
mined, crushed, and concentrated to produce a
mineral concentrate which is processed into lithium
chemicals in China. In this section we compare
Vulcan’s geothermal lithium process with these
legacy operational routes.
Vulcan will process a deep, hot brine by first
extracting the energy using conventional geothermal
energy technology already operating in the Upper
Rhine Valley, then extracting the lithium using direct
lithium extraction (“DLE”). The use of DLE will result
in all of the water and impurities in the brine being
reinjected into the same aquifer from which the brine
was produced, just without the heat and lithium.
Vulcan’s project will produce two products with
almost zero CO2 emissions: lithium and electricity.
Low CO2 intense electricity is needed in Germany
to decarbonise the country’s coal-heavy electrical
grid. Germany has made numerous pledges to reduce
its CO2 footprint, but its electricity sector has been
slow to decarbonise. Vulcan’s renewable power
production will play a crucial role in decarbonising
Germany’s electrical grid.
INFOGRAPHIC TBC
Australia Mining
& China Conversion
Mining, Concentration
and Transport using
Diesel and Bunker Fuel
Chemical Conversion
Using Gas, Coal, Sulfuric
Acid and Caustic
Chile Brine Ponds
and Conversion
Evaporation Ponds
to Remove Water and
Impurities from Brine
Chemical Conversion
Using Gas, Oil, Soda,
Ash and Lime
Geothermal Energy
Production & Direct
Lithium Extraction (DLE)
Chemical Conversion
Using Decarbonised
Electricty
LiOH
LiOH
LiOH
CO2 Emissions from Different Energy Sources
f
o
y
t
i
s
n
e
t
n
I
2
O
C
)
h
W
k
/
2
O
C
g
(
r
e
w
o
P
1,000
750
500
250
0
Average German Power Grid 2021 (1)
Coal
Natural
Gas
Flash-Steam
Geothermal
(California)
ORC
Geothermal
(Germany)
Wind
Solar
2021 Annual Report / 22
PROSPECTIVE LIFE CYCLE ASSESSMENT
RESULTS FOR VULCAN’S LITHIUM PRODUCT
The LCA conducted on our PFS-level extraction and
chemical process shows that Vulcan will most likely
have the lowest CO2 intensity of production of any
lithium chemical in the world. This is due to three
main reasons:
• Vulcan will burn zero fossil fuels while producing
lithium chemicals and electricity.
• Vulcan will co-produce low-CO2 electricity for the
high CO2 intensity German grid. We will produce
more power than we will use, decarbonising the
grid.
• Vulcan is making deliberate technology decisions
to reduce CO2 emissions, notably the choice of
electrochemical lithium hydroxide conversion
instead of reagent intense processing through
lithium carbonate.
The breakdown of our expected CO2 footprint is shown below.
Breakdown of the Expected Global
Warming Potential of Vulcan’s Lithium Chemical
Vulcan’s Expected Global Warming
Potential by Scope of Emission
0
-4
f
o
y
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i
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/
2
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(
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c
u
d
o
r
p
Scope 1: Direct emissions, e.g fossil fuel combustions
Scope 2: Embodied emissions of electricity
Scope 3: Embodied emissions of upstream supply chain
-2 tCO2/
tLiOH • H2O
2
O
C
e
.
i
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a
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•
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/
2
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k
(
4
0
-4
-8
Geothermal
Power
Excess
Production
DLE
Plants
LiOH • H2O
Chemical
Plant
Transport
-8
Geothermal
Power
Excess
Production
DLE
Plants
LiOH • H2O
Chemical
Plant
Transport
Total
Global Warming Potential, or CO2 Emissions, of Different Lithium Chemicals
2
O
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e
.
i
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/
2
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C
g
k
(
15
10
5
0
-5
Australian Mining and
China Conversion
Chile Brine Ponds
and Conversion
23 \ Vulcan Energy Resources Limited
Vulcan’s CO2 emissions can be broken down into
“scopes” of emissions according to the Greenhouse
Gas Protocol. In alignment with future European
regulations and best practice CO2 emission
reporting, we disclose our expected Scopes 1, 2,
methodology in LCA involves the use of regional
water scarcity factors in order to make comparisons
of water use in different locations globally. The water
scarcity factor quantifies the potential for water
deprivation to humans or ecosystems per unit of
and 3 emissions up to the “gate” of lithium hydroxide
surface in a given watershed relative to the world
product delivery to our customers.
average.
• 0.2 kgCO2/kgLiOH•H2O scope 1 emissions because
Vulcan will not burn any fossil fuels, and will not
release CO2 in the brine to the atmosphere.
•
-3.7 kgCO2/kgLiOH•H2O Scope 2 emissions
Scarcity factors range from 0.1 (plenty of water
available) to 100 (no water available with more
extraction than is sustainable). Since there is
significantly more water in Germany than is needed
because Vulcan will produce excess zero-carbon
by humans or ecosystems, the scarcity factor is 0.7.
power which will decarbonise the coal-heavy
German electrical grid.
• 0.6 kgCO2/kgLiOH•H2O Scope 3 emissions
(upstream and downstream to gate of delivery to
customer) due to Vulcan’s decision to use ultra-
low reagent consumption electrochemical lithium
hydroxide chemical processing.
In the Atacama it is 100, the highest water scarcity
factor possible. Though Australian hard rock may
have a similar direct water use profile to Vulcan, the
Australian route leads to ~70x higher local stress
on humans and ecosystems due to the aridity of
Western Australia.
Vulcan’s water use will have virtually no local impact
• We will engage in continuous dialogue with future
on water availability compared to water used in
customers and investors to ensure our reporting
places like the Atacama and Western Australia.
is aligned with their long-term net-zero CO2
commitments.
Spodumene mines and evaporation ponds for brine
processing occupy large areas of land in rural places
LCAs have been conducted by Minviro and Argonne
that are important to indigenous people, natural
National Laboratory on lithium chemicals produced
ecosystems, and tourism industries. Vulcan’s
geothermal lithium process will produce large
quantities of lithium chemicals and power from an
exponentially smaller physical footprint. Geothermal
lithium projects like Vulcan’s involve no open pits,
no mining, no blasting, no digging, no tailings piles,
and no tailings dams. They also do not require
evaporation ponds.
Direct Water Use by Different
Lithium Chemical Operations
from the Salar de Atacama in Chile and lithium
chemicals produced by Chinese converters using
Australian spodumene concentrate as feedstock.
Vulcan’s lithium product will have a far lower
CO2 emissions intensity than existing modes of
production.
LOCAL IMPACTS ON HUMANS AND ENVIRONMENT:
WATER AND LAND USE
Water is consumed in all lithium extraction and
processing. In evaporation ponds, large quantities
of water are evaporated from brine to produce
lithium chloride concentrates which are converted
into lithium chemicals.
Despite the fact that water in brine cannot
be consumed or used for agriculture directly,
withdrawal of water in brine from the ecosystem
has been found to be causing dehydration of soil
and reduction of flora in places like the Salar de
Atacama. There is also concern about the impact of
depletive brine extraction on freshwater aquifers
which sit on top of brine aquifers at the Atacama.
Vulcan’s geothermal lithium process will involve
replacement of all the water in the brine back
to where it originally came from, and separated
from shallow freshwater aquifers by kilometres of
impermeable rock formations.
The Available Water Remaining (“AWARE”)
600
450
300
150
)
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n
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t
/
3
m
(
Australian
Mining and
China
Conversion
Chile Brine
Ponds and
Conversion
2021 Annual Report / 24
PROSPECTIVE LIFE CYCLE ASSESSMENT
RESULTS FOR VULCAN’S LITHIUM PRODUCT
The LCA conducted on our PFS-level extraction and
chemical process shows that Vulcan will most likely
have the lowest CO2 intensity of production of any
lithium chemical in the world. This is due to three
main reasons:
• Vulcan will burn zero fossil fuels while producing
lithium chemicals and electricity.
• Vulcan will co-produce low-CO2 electricity for the
high CO2 intensity German grid. We will produce
more power than we will use, decarbonising the
grid.
• Vulcan is making deliberate technology decisions
to reduce CO2 emissions, notably the choice of
electrochemical lithium hydroxide conversion
instead of reagent intense processing through
lithium carbonate.
The breakdown of our expected CO2 footprint is shown below.
Breakdown of the Expected Global
Warming Potential of Vulcan’s Lithium Chemical
Vulcan’s Expected Global Warming
Potential by Scope of Emission
Scope 1: Direct emissions, e.g fossil fuel combustions
Scope 2: Embodied emissions of electricity
Scope 3: Embodied emissions of upstream supply chain
-2 tCO2/
tLiOH • H2O
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LiOH • H2O
Transport
Total
-8
Power
Excess
Production
Plants
Chemical
Plant
-8
Geothermal
DLE
LiOH • H2O
Transport
Power
Excess
Production
Plants
Chemical
Plant
Global Warming Potential, or CO2 Emissions, of Different Lithium Chemicals
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Australian Mining and
China Conversion
Chile Brine Ponds
and Conversion
23 \ Vulcan Energy Resources Limited
Vulcan’s CO2 emissions can be broken down into
“scopes” of emissions according to the Greenhouse
Gas Protocol. In alignment with future European
regulations and best practice CO2 emission
reporting, we disclose our expected Scopes 1, 2,
and 3 emissions up to the “gate” of lithium hydroxide
product delivery to our customers.
• 0.2 kgCO2/kgLiOH•H2O scope 1 emissions because
Vulcan will not burn any fossil fuels, and will not
release CO2 in the brine to the atmosphere.
-3.7 kgCO2/kgLiOH•H2O Scope 2 emissions
because Vulcan will produce excess zero-carbon
power which will decarbonise the coal-heavy
German electrical grid.
•
• 0.6 kgCO2/kgLiOH•H2O Scope 3 emissions
(upstream and downstream to gate of delivery to
customer) due to Vulcan’s decision to use ultra-
low reagent consumption electrochemical lithium
hydroxide chemical processing.
• We will engage in continuous dialogue with future
customers and investors to ensure our reporting
is aligned with their long-term net-zero CO2
commitments.
LCAs have been conducted by Minviro and Argonne
National Laboratory on lithium chemicals produced
from the Salar de Atacama in Chile and lithium
chemicals produced by Chinese converters using
Australian spodumene concentrate as feedstock.
Vulcan’s lithium product will have a far lower
CO2 emissions intensity than existing modes of
production.
LOCAL IMPACTS ON HUMANS AND ENVIRONMENT:
WATER AND LAND USE
Water is consumed in all lithium extraction and
processing. In evaporation ponds, large quantities
of water are evaporated from brine to produce
lithium chloride concentrates which are converted
into lithium chemicals.
Despite the fact that water in brine cannot
be consumed or used for agriculture directly,
withdrawal of water in brine from the ecosystem
has been found to be causing dehydration of soil
and reduction of flora in places like the Salar de
Atacama. There is also concern about the impact of
depletive brine extraction on freshwater aquifers
which sit on top of brine aquifers at the Atacama.
Vulcan’s geothermal lithium process will involve
replacement of all the water in the brine back
to where it originally came from, and separated
from shallow freshwater aquifers by kilometres of
impermeable rock formations.
The Available Water Remaining (“AWARE”)
methodology in LCA involves the use of regional
water scarcity factors in order to make comparisons
of water use in different locations globally. The water
scarcity factor quantifies the potential for water
deprivation to humans or ecosystems per unit of
surface in a given watershed relative to the world
average.
Scarcity factors range from 0.1 (plenty of water
available) to 100 (no water available with more
extraction than is sustainable). Since there is
significantly more water in Germany than is needed
by humans or ecosystems, the scarcity factor is 0.7.
In the Atacama it is 100, the highest water scarcity
factor possible. Though Australian hard rock may
have a similar direct water use profile to Vulcan, the
Australian route leads to ~70x higher local stress
on humans and ecosystems due to the aridity of
Western Australia.
Vulcan’s water use will have virtually no local impact
on water availability compared to water used in
places like the Atacama and Western Australia.
Spodumene mines and evaporation ponds for brine
processing occupy large areas of land in rural places
that are important to indigenous people, natural
ecosystems, and tourism industries. Vulcan’s
geothermal lithium process will produce large
quantities of lithium chemicals and power from an
exponentially smaller physical footprint. Geothermal
lithium projects like Vulcan’s involve no open pits,
no mining, no blasting, no digging, no tailings piles,
and no tailings dams. They also do not require
evaporation ponds.
Direct Water Use by Different
Lithium Chemical Operations
600
450
300
150
)
e
n
i
r
b
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•
H
O
i
L
e
n
n
o
t
/
3
m
(
Australian
Mining and
China
Conversion
Chile Brine
Ponds and
Conversion
2021 Annual Report / 24
Water Scarcity Factors for Different
Lithium Production Locations
Direct Water Use by Different
Lithium Chemical Operations
100
75
50
25
)
E
R
A
W
A
(
r
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t
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c
r
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Western
Australia
Salar de
Atacama
Upper Rhine
Valley
1,500
1,000
500
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n
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2
m
(
Australian
Mining and
China
Conversion
Chile Brine
Ponds and
Conversion
OTHER IMPACTS: REAGENT CONSUMPTION, WASTE
PRODUCTION, AND TRANSPORT DISTANCE
Significant quantities of chemicals are used
to manufacture lithium chemicals from legacy
production routes. Using evaporation ponds,
significant quantities of lime and soda ash are used
to extract lithium from lower grade, less pure brines,
meaning the data shown here for Chilean production
is comparatively low.
Vulcan’s process will use electricity for chemical
processing, thus removing upstream scope 3 CO2
emissions from its supply chain. The use of specific
process technologies is what enables Vulcan’s Zero
Carbon Lithium™ Project.
Natural resources contain low concentrations of
lithium with concentrations never above 1%. This
means that significant quantities of waste materials
can be produced from separating lithium from waste
rock or other salts which are usually stacked in
tailings piles instead of being put back where they
came from.
Vulcan’s DLE process will selectively remove lithium
from geothermal brine and almost 100% of the
contents of the brine will be returned to where it
came from underground. Above ground, Vulcan’s
low-reagent process minimises waste production
as well. Vulcan’s lithium chemicals will be produced
with virtually no associated waste products.
Mass of Reagents Consumed by
Different Processes
Mass of Waste Produced by
Different Processes
4.0
3.0
2.0
1.0
)
O
2
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•
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O
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L
e
n
n
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t
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f
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s
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l
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150
100
50
d
e
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s
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)
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e
n
n
o
t
/
e
n
n
o
t
(
Australian
Mining and
China
Conversion
Chile Brine
Ponds and
Conversion
Australian
Mining and
China
Conversion
Chile Brine
Ponds and
Conversion
Convoluted global supply chains introduce unnecessary complexity, and allow for exploitation of people in
developing nations. This represents supply interruption risk and higher social impact on indigenous people
compared to lithium production in Europe.
SUPPLY CHAIN
Supply Chain Traceability & CO2 Measurement
Vulcan announced in March 2021 that it will
use Circulor’s full traceability and dynamic CO2
measurement solution for its lithium products
across the European Lithium-ion battery and
Circulor’s CO2 solution provides a dynamic month-
to-month visibility of CO2 intensity across the supply
chain and its participants. Battery raw materials
transparency, traceability and sustainability were
Electric Vehicle (EV) supply chain, in a world-first
directly targeted in the latest European Commission
for the lithium sector.
Battery Regulation proposed in December 2020.
Circulor’s customers include major European
automotive manufacturers such as Volvo Cars,
Vulcan will be implementing Ciculor’s solution to its
future lithium supply contracts with European OEMs to
Daimler, Polestar and Jaguar Land Rover, indicating
help meet their sustainability objectives for material
OEMs’ growing need to demonstrate responsible
traceability and CO2 transparency. Circulor’s solution
sourcing of raw materials like lithium, allowing them
will first be used during Vulcan’s project development,
to track and manage the embedded CO2
emissions in
their upstream supply chain for EVs as they strive
including at a pilot and demonstration plant level,
when the first samples are dispatched to customers.
towards their net zero targets.
Circulor offers a software solution that enables
customers to track raw materials through supply
chains to demonstrate responsible sourcing and
sustainability. This system implementation enables
reputational protection, proof of compliance with
regulations and dynamic carbon tracking.
Circulor and Vulcan will work together to prepare
Vulcan and its supply chain for full traceability of
Vulcan’s lithium product at the production start
in 2024.
Vulcan joins Lithium ISO standards committee
Vulcan’s lithium team has joined the German
Together with experts from the other 15 countries
National Committee of ISO/TC 333 that coordinates
that currently embody the global ISO/TC 333
the standardisation process in the field of lithium
Committee, the team will help to improve the
chemicals at national level and is responsible for
quality and value proposition of sustainable lithium
organising German participation in standards work
products made in Europe.
at European and international level.
“
I have always been a nature-loving person. In my spare time I love
to ride my bike and often go hiking. As a self-supporter, I also have
a small vegetable garden at home and we get part of the energy
from solar power. I am proud to be a part of Team Zero Carbon to
contribute further to the fight against climate change.
Gerlinde Sterns | Executive Assistant
25 \ Vulcan Energy Resources Limited
2021 Annual Report / 26
Water Scarcity Factors for Different
Lithium Production Locations
Direct Water Use by Different
Lithium Chemical Operations
Western
Australia
Salar de
Atacama
Upper Rhine
Valley
Australian
Mining and
China
Conversion
Chile Brine
Ponds and
Conversion
OTHER IMPACTS: REAGENT CONSUMPTION, WASTE
Natural resources contain low concentrations of
PRODUCTION, AND TRANSPORT DISTANCE
Significant quantities of chemicals are used
to manufacture lithium chemicals from legacy
production routes. Using evaporation ponds,
lithium with concentrations never above 1%. This
means that significant quantities of waste materials
can be produced from separating lithium from waste
rock or other salts which are usually stacked in
tailings piles instead of being put back where they
significant quantities of lime and soda ash are used
to extract lithium from lower grade, less pure brines,
came from.
meaning the data shown here for Chilean production
Vulcan’s DLE process will selectively remove lithium
is comparatively low.
Vulcan’s process will use electricity for chemical
processing, thus removing upstream scope 3 CO2
emissions from its supply chain. The use of specific
process technologies is what enables Vulcan’s Zero
Carbon Lithium™ Project.
from geothermal brine and almost 100% of the
contents of the brine will be returned to where it
came from underground. Above ground, Vulcan’s
low-reagent process minimises waste production
as well. Vulcan’s lithium chemicals will be produced
with virtually no associated waste products.
Mass of Reagents Consumed by
Different Processes
Mass of Waste Produced by
Different Processes
1,500
2
1,000
500
n
o
i
t
c
u
d
o
r
p
r
o
f
t
n
i
r
p
t
o
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f
d
n
a
l
t
c
e
r
i
D
)
r
a
e
y
/
O
H
•
H
O
i
L
e
n
n
o
t
/
2
m
(
150
100
50
d
e
c
u
d
o
r
p
e
t
s
a
w
f
o
s
s
a
M
2
)
O
H
•
H
O
i
L
e
n
n
o
t
/
e
n
n
o
t
(
100
75
50
25
)
E
R
A
W
A
(
r
o
t
c
a
f
y
t
i
c
r
a
c
s
r
e
t
a
W
4.0
2
3.0
2.0
1.0
)
O
H
•
H
O
i
L
e
n
n
o
t
/
e
n
n
o
t
(
d
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m
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s
n
o
c
s
t
n
e
g
a
e
r
f
o
s
s
a
m
l
a
t
o
T
Australian
Mining and
China
Conversion
Chile Brine
Ponds and
Conversion
Australian
Mining and
China
Conversion
Chile Brine
Ponds and
Conversion
Convoluted global supply chains introduce unnecessary complexity, and allow for exploitation of people in
developing nations. This represents supply interruption risk and higher social impact on indigenous people
compared to lithium production in Europe.
SUPPLY CHAIN
Supply Chain Traceability & CO2 Measurement
Vulcan announced in March 2021 that it will
use Circulor’s full traceability and dynamic CO2
measurement solution for its lithium products
across the European Lithium-ion battery and
Electric Vehicle (EV) supply chain, in a world-first
for the lithium sector.
Circulor’s customers include major European
automotive manufacturers such as Volvo Cars,
Daimler, Polestar and Jaguar Land Rover, indicating
OEMs’ growing need to demonstrate responsible
sourcing of raw materials like lithium, allowing them
emissions in
to track and manage the embedded CO2
their upstream supply chain for EVs as they strive
towards their net zero targets.
Circulor offers a software solution that enables
customers to track raw materials through supply
chains to demonstrate responsible sourcing and
sustainability. This system implementation enables
reputational protection, proof of compliance with
regulations and dynamic carbon tracking.
Circulor’s CO2 solution provides a dynamic month-
to-month visibility of CO2 intensity across the supply
chain and its participants. Battery raw materials
transparency, traceability and sustainability were
directly targeted in the latest European Commission
Battery Regulation proposed in December 2020.
Vulcan will be implementing Ciculor’s solution to its
future lithium supply contracts with European OEMs to
help meet their sustainability objectives for material
traceability and CO2 transparency. Circulor’s solution
will first be used during Vulcan’s project development,
including at a pilot and demonstration plant level,
when the first samples are dispatched to customers.
Circulor and Vulcan will work together to prepare
Vulcan and its supply chain for full traceability of
Vulcan’s lithium product at the production start
in 2024.
Vulcan joins Lithium ISO standards committee
Vulcan’s lithium team has joined the German
National Committee of ISO/TC 333 that coordinates
the standardisation process in the field of lithium
chemicals at national level and is responsible for
organising German participation in standards work
at European and international level.
Together with experts from the other 15 countries
that currently embody the global ISO/TC 333
Committee, the team will help to improve the
quality and value proposition of sustainable lithium
products made in Europe.
“
I have always been a nature-loving person. In my spare time I love
to ride my bike and often go hiking. As a self-supporter, I also have
a small vegetable garden at home and we get part of the energy
from solar power. I am proud to be a part of Team Zero Carbon to
contribute further to the fight against climate change.
Gerlinde Sterns | Executive Assistant
25 \ Vulcan Energy Resources Limited
2021 Annual Report / 26
Vulcan admitted to the Global Battery AllianceVulcan has been accepted as a Member of the Global Battery Alliance (GBA), an umbrella partnership made up of 70 members workings towards a globally sustainable battery value chain.Industry members include BMW Group, BASF, BP, Google, Renault Group, LG Chem, Umicore, Volkswagen Group and Volvo Group. Vulcan joins SQM and Wesfarmers as members from the lithium sector.The GBA follows ten guiding principles covering issues including the circular recovery of battery materials, ensuring transparency of greenhouse gas emissions and their progressive reduction, and eliminating child and forced labour.The GBA is also developing the Battery Passport, a global solution for securely sharing information and data to prove responsibility and sustainability to consumers with a “quality seal”, while enabling resource efficiency across the battery life cycle.Vulcan will be participating in advancing projects and initiatives around battery materials traceability and transparency that will shape the industry.10 GBA PRINCIPLES FOR A SUSTAINABLE BATTERY VALUE CHAINEstablish a circular battery value chain as a major driver to achieve the Paris Agreement1. Maximising the productivity of batteries in their first life2. Enabling productive and safe second life use3. Ensuring the circular recovery of battery materialsEstablish a low carbon economy in the value chain, create new jobs and additional economic value4. Ensuring transparency of greenhouse gas emissions and their progressive reduction5. Prioritising energy efficiency measures and substantially increasing the use of renewable energy as a source of power and heat when available6. Fostering battery-enabed renewable energy integration and access with a focus on developing countries 7. Supporting high quality job creation and skills developmentSafeguard human rights and economic development consistent with the UN Sustainable Development Goals8. Immediately and urgently eliminating child and forced labour, strengthening communities and respecting the human rights of those employed by the value chain9. Fostering protection of public health and the environment, minimising and remediating the impact from pollution in the value chain10. Supporting responsible trade and anti-corruption practices, local value creation and economic diversificationGBA Assurance PlatformPrescribing certain rules /framing rulesAuditing dataEnsuring data integrityBenchmarking (Transparency level)Government InstitutionNGO'sBattery value chain stakeholdersGeneral PublicConsumer battery appAuditorsTraining auditors134Data InputData InputMinersModule producersRefinersBattery producersActive materials ProducersAutomotive OEMsCell producersCollection remanufactureRecover/ recyclersData InputData OutputData OutputData OutputData Output256ENTERPRISE LEVELWHAT IS THE GBA BATTERY PASSPORT?The Battery Passport is a digital representation of a battery that conveys information about all Environmental-Social-Governance (ESG) and lifecycle requirements based on a comprehensive definition of a sustainable battery. The Battery Passport will enable the following outcomes: • Provide transparency in practices and impact of the battery along the value chain.• Create a framework for benchmarking batteries against criteria by identifying those that are best and worst in class and providing minimum acceptable standards for a sustainable and responsible battery.• Validate and track progress on the pathway to sustainable, responsible and resource-efficient batteries.2021 Annual Report / 2827 \ Vulcan Energy Resources Limited Vulcan admitted to the Global Battery AllianceVulcan has been accepted as a Member of the Global Battery Alliance (GBA), an umbrella partnership made up of 70 members workings towards a globally sustainable battery value chain.Industry members include BMW Group, BASF, BP, Google, Renault Group, LG Chem, Umicore, Volkswagen Group and Volvo Group. Vulcan joins SQM and Wesfarmers as members from the lithium sector.The GBA follows ten guiding principles covering issues including the circular recovery of battery materials, ensuring transparency of greenhouse gas emissions and their progressive reduction, and eliminating child and forced labour.The GBA is also developing the Battery Passport, a global solution for securely sharing information and data to prove responsibility and sustainability to consumers with a “quality seal”, while enabling resource efficiency across the battery life cycle.Vulcan will be participating in advancing projects and initiatives around battery materials traceability and transparency that will shape the industry.10 GBA PRINCIPLES FOR A SUSTAINABLE BATTERY VALUE CHAINEstablish a circular battery value chain as a major driver to achieve the Paris Agreement1. Maximising the productivity of batteries in their first life2. Enabling productive and safe second life use3. Ensuring the circular recovery of battery materialsEstablish a low carbon economy in the value chain, create new jobs and additional economic value4. Ensuring transparency of greenhouse gas emissions and their progressive reduction5. Prioritising energy efficiency measures and substantially increasing the use of renewable energy as a source of power and heat when available6. Fostering battery-enabed renewable energy integration and access with a focus on developing countries 7. Supporting high quality job creation and skills developmentSafeguard human rights and economic development consistent with the UN Sustainable Development Goals8. Immediately and urgently eliminating child and forced labour, strengthening communities and respecting the human rights of those employed by the value chain9. Fostering protection of public health and the environment, minimising and remediating the impact from pollution in the value chain10. Supporting responsible trade and anti-corruption practices, local value creation and economic diversificationGBA Assurance PlatformPrescribing certain rules /framing rulesAuditing dataEnsuring data integrityBenchmarking (Transparency level)Government InstitutionNGO'sBattery value chain stakeholdersGeneral PublicConsumer battery appAuditorsTraining auditors134Data InputData InputMinersModule producersRefinersBattery producersActive materials ProducersAutomotive OEMsCell producersCollection remanufactureRecover/ recyclersData InputData OutputData OutputData OutputData Output256ENTERPRISE LEVELWHAT IS THE GBA BATTERY PASSPORT?The Battery Passport is a digital representation of a battery that conveys information about all Environmental-Social-Governance (ESG) and lifecycle requirements based on a comprehensive definition of a sustainable battery. The Battery Passport will enable the following outcomes: • Provide transparency in practices and impact of the battery along the value chain.• Create a framework for benchmarking batteries against criteria by identifying those that are best and worst in class and providing minimum acceptable standards for a sustainable and responsible battery.• Validate and track progress on the pathway to sustainable, responsible and resource-efficient batteries.2021 Annual Report / 2827 \ Vulcan Energy Resources Limited Lithium Offtake AgreementsVulcan has recently entered into two agreements with LG Energy Solution and Renault Group to provide solutions that will reduce their carbon footprint. LG Energy Solution is the largest producer of lithium-ion batteries for electric vehicles in the world and supplies its products to top global OEMs. The Agreement is for a binding, initial five-year lithium offtake term sheet with start of commercial delivery set for 2025. LG Energy Solution will purchase 5,000 metric tonnes of battery grade lithium hydroxide for the first year of the supply term, ramping up to 10,000 metric tonnes per year during the second and subsequent years of the supply term.Managing Director, Dr Francis Wedin, commented: “This is the first binding lithium offtake term sheet for the Zero Carbon Lithium™ Project, so it is fitting that it is with the largest EV battery producer in the world. LGES' operations are of course global, but it is already producing batteries in Europe. The agreement is in line with our strategy to work with Tier One battery and automotive companies in the European market. We look forward to a long and productive relationship with LGES.”Renault Group and Vulcan have also signed a five-year strategic partnership for Vulcan to supply Renault with battery grade lithium chemicals. In line with Renault Group’s ambition to offer ‘made in Europe’cars, and following the launch of Renault ElectriCity –the most competitive and efficient productionunit for electric vehicles in Europe – the Group willpurchase between 6,000 to 17,000 metric tonnes per year of battery grade lithium chemicals produced in Germany by Vulcan. Renault Group, which has set the aim to achieve carbon neutrality worldwide in 2050, continues to accelerate its EV strategy to reach the greenest mix in the European market in 2025, withover 65% of electric and electrified vehicles in thesales mix, and up to 90% battery electric vehiclessales mix in 2030. Thanks to Vulcan, which intends toproduce a battery quality lithium chemical productfrom its combined geothermal energy and lithiumresource while reducing lithium’s high carbon and water footprint on production, Renault Group will beable to avoid from 300 to 700 kg of CO2 for a 50-kWhbattery.Gianluca De Ficchy, Alliance EVP, Purchasing and Managing Director of Alliance Purchasing Organisation at Renault Group, explained: “We are very proud to partner with a European lithium producer with net zero greenhouse gas emissions such as Vulcan Energy. Our environmental and social responsibility is at the heart of the Renaulution and this must also apply to the providers we partner with if we want to create real value and offer the most sustainable vehicles in the market.”Renewable energies have been the focus of my professional life for the last 20 years. For the most part, I have been working on renewable hydrogen production, hydrogen storage and the conversion of biomass to bio-fuels. Since July 2020, I am glad to work on our Zero Carbon Lithium™ Project because this fits perfectly with my attitude to life. Personally, I ride my bike in the city and use the train for long distance travelling. In fact, I do not own a car, but with electric vehicles taking over mobility, I might be open to change this. When I am not at work I like the outdoors, going on long bike tours, hiking in the black forest and doing alpine tours in the Swiss Alps.Thomas Aicher | Project Manager Extraction“Transport Distances for Different Lithium ChemicalsTransport Distances for Different Lithium Chemicals10,000DRC Mining and China ConversionAustralia Mining and China ConversionAustralia Mining and ConversionChile Brine Evaporation and Conversion20,00030,000ShipTruckRailLithium ChemicalsSpodumene“As well as having a carbon neutral process, the Vulcan Zero Carbon Lithium™ Project also intends to reduce the transport distance of lithium chemicals into Europe to almost zero, compared with Europe’s current options which are geopolitically undesirable and/or have a large carbon footprint of transport.2021 Annual Report/3029 \ Vulcan Energy Resources Limited Lithium Offtake AgreementsVulcan has recently entered into two agreements with LG Energy Solution and Renault Group toprovide solutions that will reduce their carbon footprint. LG Energy Solution is the largest producer of lithium-ion batteries for electric vehicles in the world and supplies its products to top global OEMs. The Agreement is for a binding, initial five-year lithium offtake term sheet with start of commercial delivery set for 2025. LG Energy Solution will purchase 5,000 metric tonnes of battery grade lithium hydroxide for the first year of the supply term, ramping up to 10,000 metric tonnes per year during the second and subsequent years of the supply term.Managing Director, Dr Francis Wedin, commented:“This is the first binding lithium offtake term sheet for the Zero Carbon Lithium™ Project, so it is fitting that it is with the largest EV battery producer inthe world. LGES' operations are of course global, but it is already producing batteries in Europe. The agreement is in line with our strategy to work with Tier One battery and automotive companies in the European market. We look forward to a long and productive relationship with LGES.”Renault Group and Vulcan have also signed a five-year strategic partnership for Vulcan to supply Renault with battery grade lithium chemicals. In line with Renault Group’s ambition to offer ‘made in Europe’cars, and following the launch of Renault ElectriCity – the most competitive and efficient production unit for electric vehicles in Europe – the Group will purchase between 6,000 to 17,000 metric tonnes per year of battery grade lithium chemicals produced in Germanyby Vulcan. Renault Group, which has set the aim to achieve carbon neutrality worldwide in 2050,continues to accelerate its EV strategy to reach the greenest mix in the European market in 2025, with over 65% of electric and electrified vehicles in the sales mix, and up to 90% battery electric vehicles sales mix in 2030. Thanks to Vulcan, which intends toproduce a battery quality lithium chemical product from its combined geothermal energy and lithium resource while reducing lithium’s high carbon and water footprint on production, Renault Group will be able to avoid from 300 to 700 kg of CO2 for a 50-kWh battery.Gianluca De Ficchy, Alliance EVP, Purchasing andManaging Director of Alliance Purchasing Organisation at Renault Group, explained: “We are very proud to partner with a European lithium producer with net zero greenhouse gas emissions such as Vulcan Energy. Our environmental and social responsibility is at the heart of the Renaulution and this must also apply to the providers we partner with if we want to create real value and offer the most sustainable vehicles in the market.”Renewable energies have been the focus of my professional life for the last 20 years. For the most part, I have been working on renewable hydrogen production, hydrogen storage and the conversion of biomass to bio-fuels. Since July 2020, I am glad to work on our Zero Carbon Lithium™ Project because this perfectly fits my attitude to life. Personally, I ride my bike in the city and use the train for long distance travelling. In fact, I do not own a car, but with electric vehicles taking over mobility, I might be open to change this. When I am not at work I like the outdoors, going on long bike tours, hiking in the black forest and doing alpine tours in the Swiss Alps.”Thomas Aicher | Project Manager Extraction“Transport Distances for Different Lithium ChemicalsTransport Distances for Different Lithium Chemicals10,000DRC Mining and China ConversionAustralia Mining and China ConversionAustralia Mining and ConversionChile Brine Evaporation and Conversion20,00030,000ShipTruckRailLithium ChemicalsSpodumene“As well as having a carbon neutral process, the Vulcan Zero Carbon Lithium™ Project also intends to reduce the transport distance of lithium chemicals into Europe to almost zero, compared with Europe’s current options which are geopolitically undesirable and/or have a large carbon footprint of transport.2021 Annual Report / 3029\Vulcan Energy Resources Limited PEOPLE
People
Vulcan’s public relations team in Germany is focused
on the general communication of the topic of lithium
extraction from thermal water in the Upper Rhine
Graben. Thus, a communication concept is being
tailored gradually for each project location.
Communication measures include:
• Letters to Mayors and community stakeholders
• Organisation of personal meetings, Informational
materials including flyers, posters and handouts
as well as townhall meetings.
• Social media positioning.
• Project and community landing pages.
• Press articles.
COMMUNICATION TEAM
Vulcan has built a team of local communication
experts to tailor Vulcan’s messaging to best inform
local stakeholders about Vulcan’s planned activities.
Vulcan has attracted significant interest in its
Zero Carbon Lithium™ Project at a federal and
international level.
Local project websites are being set up for each
area within the Upper Rhine Valley, such as the local
website for the license area of Ortenau (https://
natuerlich-ortenau.de/) which was recently
deployed in preparation for the exploration activities
starting in September. Editorial contributions have
been initiated in the local community news, and
Vulcan has local project channels on Facebook and
Instagram to inform local stakeholders. Meetings
with community stakeholders and politicians as
well as town hall meetings are a regular platform to
inform about Vulcan and its activities. In addition,
regional institutions in charge of permitting and
supervising Vulcan's technical developments
are informed beforehand and advice is given by
them to facilitate the administrative steps in the
development of the projects.
COMMUNITY ENGAGEMENT AND INVOLVEMENT
With planned field activities scheduled to begin
shortly, the communication team supported by
students will be present in the marketplaces of the
main communities in the region. A trailer has been
fitted as a billboard to attract attention (see picture
on page 36). The trailer itself contains information
material to attract discussions about Vulcan and
the Zero Carbon Lithium™ Project.At all stages
going forward, local stakeholders will be informed
regularly about further project development. In
cooperation with the State Ministry of Baden-
Württemberg and the University of Stuttgart, a
participation concept will also be carried out,
following the guidelines of the State of Baden-
Württemberg, to involve stakeholders.
COOPERATION WITH UNIVERSITIES AND RESEARCH
While Vulcan is focused on project development
using proven technology where possible, R&D
will be performed with research partners like the
Karlsruhe Institute of Technology, the University
of Stuttgart, TU Darmstadt and other institutions
to clarify geological parameters and optimise
lithium extraction processes during the scale up of
the project. Masters and PhD theses are currently
performed by students of different universities in
conjunction with Vulcan. Several of the students
from these universities have already joined the
Vulcan family and we expect more to do so in
the future.
MEMBERSHIP
Memberships in associations help us network and
raise awareness of renewable energy and E-mobility.
Company association helps to develop partnerships
and alliances, and meeting members of the
administration also helps support us toward
project development.
Vulcan and/or its local subsidiaries have
memberships of or associations with the
following organisations:
German
• Tiger (gec-co)
• Pether (GeoT & gec-co)
• Auge (GeoT)
• DG Rollout (GeoT)
• EIV (GeoT)
• Trace (GeoT)
• Simon (GeoT
Gec-co is an advisor on the topic of geothermal
energy to the German federal Ministry of Economy
and Energy and is in charge of the review of all
geothermal developments producing electricity
in Germany.
“Vulcan is now leading
the way with a 67%
female Board composition.
• Kompetenznetzwerk Lithium Ionen Batterie
• PlayType (GeoT)
Geothermal
•
International Geothermal Association (IGA),
Bonn https://www.geothermal-energy.org/
• European Geothermal Energy Council (EGEC),
Brussels https://www.egec.org/
• Bundesverband Geothermie (BVG), Berlin
https://www.geothermie.de/
Lithium and Batteries
(KLiB), Berlin https://klib-org.de/
• European Battery Allience (EBA250),
Brussels https://www.eba250.com/
• Global Battery Alliance
Energy
• EIT InnoEnergy SE, Eindhoven
https://www.innoenergy.com/
• Wirtschaftsrat Deutschland, Berlin https://www.
Business Community
wirtschaftsrat.de/
Wirtschaft,
• BVMW - Bundesverband mittelständische
• Unternehmerverband Deutschlands e.V.,
Berlin https://www.bvmw.de/
Automotive
• Automotive Engineering Network (aen), Karlsruhe
https://ae-network.de/en/
RESEARCH & DEVELOPMENT
Vulcan recently acquired geothermal engineering
companies GeoThermal Engineering (GeoT) and
Global Engineering and Consulting (gec-co), which
are now both members of the Vulcan group. Both
companies have been involved in numerous research
& development projects on European and national
German level. Examples are:
Europe (Horizon 2020)
• Georisk (gec-co & GeoT)
• Crowdthermal (GeoT & gec-co)
• S4CE (Science for Clean Energy) (GeoT)
• MEET (GeoT)
31 \ Vulcan Energy Resources Limited
2021 Annual Report / 32
Vulcan’s public relations team in Germany is focused
main communities in the region. A trailer has been
on the general communication of the topic of lithium
fitted as a billboard to attract attention (see picture
• Organisation of personal meetings, Informational
Württemberg and the University of Stuttgart, a
PEOPLE
People
extraction from thermal water in the Upper Rhine
Graben. Thus, a communication concept is being
tailored gradually for each project location.
Communication measures include:
• Letters to Mayors and community stakeholders
materials including flyers, posters and handouts
as well as townhall meetings.
• Social media positioning.
• Project and community landing pages.
• Press articles.
COMMUNICATION TEAM
Vulcan has built a team of local communication
experts to tailor Vulcan’s messaging to best inform
local stakeholders about Vulcan’s planned activities.
Vulcan has attracted significant interest in its
Zero Carbon Lithium™ Project at a federal and
international level.
Local project websites are being set up for each
area within the Upper Rhine Valley, such as the local
website for the license area of Ortenau (https://
natuerlich-ortenau.de/) which was recently
deployed in preparation for the exploration activities
starting in September. Editorial contributions have
been initiated in the local community news, and
Vulcan has local project channels on Facebook and
Instagram to inform local stakeholders. Meetings
with community stakeholders and politicians as
well as town hall meetings are a regular platform to
inform about Vulcan and its activities. In addition,
regional institutions in charge of permitting and
supervising Vulcan's technical developments
are informed beforehand and advice is given by
them to facilitate the administrative steps in the
development of the projects.
COMMUNITY ENGAGEMENT AND INVOLVEMENT
With planned field activities scheduled to begin
shortly, the communication team supported by
students will be present in the marketplaces of the
on page 36). The trailer itself contains information
material to attract discussions about Vulcan and
the Zero Carbon Lithium™ Project.At all stages
going forward, local stakeholders will be informed
regularly about further project development. In
cooperation with the State Ministry of Baden-
participation concept will also be carried out,
following the guidelines of the State of Baden-
Württemberg, to involve stakeholders.
COOPERATION WITH UNIVERSITIES AND RESEARCH
While Vulcan is focused on project development
using proven technology where possible, R&D
will be performed with research partners like the
Karlsruhe Institute of Technology, the University
of Stuttgart, TU Darmstadt and other institutions
to clarify geological parameters and optimise
lithium extraction processes during the scale up of
the project. Masters and PhD theses are currently
performed by students of different universities in
conjunction with Vulcan. Several of the students
from these universities have already joined the
Vulcan family and we expect more to do so in
the future.
MEMBERSHIP
Memberships in associations help us network and
raise awareness of renewable energy and E-mobility.
Company association helps to develop partnerships
and alliances, and meeting members of the
administration also helps support us toward
project development.
Vulcan and/or its local subsidiaries have
memberships of or associations with the
following organisations:
German
• Tiger (gec-co)
• Pether (GeoT & gec-co)
• Auge (GeoT)
• DG Rollout (GeoT)
• EIV (GeoT)
• Trace (GeoT)
• Simon (GeoT
• PlayType (GeoT)
Gec-co is an advisor on the topic of geothermal
energy to the German federal Ministry of Economy
and Energy and is in charge of the review of all
geothermal developments producing electricity
in Germany.
“Vulcan is now leading
the way with a 67%
female Board composition.
Geothermal
•
International Geothermal Association (IGA),
Bonn https://www.geothermal-energy.org/
• European Geothermal Energy Council (EGEC),
Brussels https://www.egec.org/
• Bundesverband Geothermie (BVG), Berlin
https://www.geothermie.de/
Lithium and Batteries
• Kompetenznetzwerk Lithium Ionen Batterie
(KLiB), Berlin https://klib-org.de/
• European Battery Allience (EBA250),
Brussels https://www.eba250.com/
• Global Battery Alliance
Energy
• EIT InnoEnergy SE, Eindhoven
https://www.innoenergy.com/
Business Community
• Wirtschaftsrat Deutschland, Berlin https://www.
wirtschaftsrat.de/
• BVMW - Bundesverband mittelständische
Wirtschaft,
• Unternehmerverband Deutschlands e.V.,
Berlin https://www.bvmw.de/
Automotive
• Automotive Engineering Network (aen), Karlsruhe
https://ae-network.de/en/
RESEARCH & DEVELOPMENT
Vulcan recently acquired geothermal engineering
companies GeoThermal Engineering (GeoT) and
Global Engineering and Consulting (gec-co), which
are now both members of the Vulcan group. Both
companies have been involved in numerous research
& development projects on European and national
German level. Examples are:
Europe (Horizon 2020)
• Georisk (gec-co & GeoT)
• Crowdthermal (GeoT & gec-co)
• S4CE (Science for Clean Energy) (GeoT)
• MEET (GeoT)
31 \ Vulcan Energy Resources Limited
2021 Annual Report / 32
GOVERNANCEDISCLOSE THE ORGANISATION’S GOVERNANCE AROUND CLIMATE-RELATED RISKS AND OPPORTUNITIESBOARD’S OVERSIGHT OF CLIMATE RELATED RISKS AND OPPORTUNITIESClimate-related risks and opportunities are overseen by the Board, and specifically addressed within the Audit, Risk and ESG Committee, which is chaired by former EY Senior Partner in Renewables Josephine Bush, who is a Non-Executive Director on the Board of Vulcan. The other Committee Members are Vulcan Non-Executive Director Dr. Heidi Grön, and Vulcan Non-Executive Chair Gavin Rezos. The Committee meets regularly to discuss risks and opportunities associated with climate-related matters and subsequently presents these findings at monthly Board meetings. Climate-related issues are considered whenreviewing and guiding strategy at Board meetings. Management is invited to participate at these meetings and provide information to the Committee on climate-related issues for the business. Strategy and major plans of action for the Company have been demonstrably guided by climate-related issues, including the decision in 2019 to acquire and develop a Zero Carbon Lithium™ business, with a strict exclusion of fossil fuels from process development flowsheets, and the use of renewable geothermal energy to drive the lithium extraction process. This was further demonstrated when Vulcan decided to spin-out a business with a strict focus on zero carbon battery metals development (Kuniko Ltd), focused on Norway, where 98% of power comes from renewable sources. Risk management is also linked to climate-related issues, with the Board encouraging management to incorporate climate issues into Enterprise Risk Management (ERM)processes.Climate-related issues are factored into annual budgets and financial models, with specific examples such as modelling of a potential premiumlinked to the carbon avoidance associated with Vulcan’s planned product. Business plans drafted by the management team and presented to the Board, including the Company’s Pre-Feasibility Study (PFS), are entirely designed around climate-relatedissues, since the core mission of the Company is to decarbonise the battery metals supply chain, as well as to build out baseload renewable power and heating projects. Performance objectives linked to climate-related issues have been set for the management team, i.e., achieving lowest quartile GHG emissions from operations, and certified net zero carbon footprint across all operations. Tomonitor implementation and performance, as well as relying on feedback from the management team, the Committee and Board also rely on third party independent consultancies to provide guidance as to the climate impact of the Company’s current and planned operations, with recommendations to eliminate these impacts provided where they arise. This takes the form of ESG ratings providers such as Sustainalytics, Life Cycle Assessment (LCA) provider Minviro, and carbon neutral assessment and certifying bodies such as Climate Active.Almost the entirety of the capital investment of the Company, as reviewed and approved by the Board, is focused around its Zero Carbon Lithium™ Project, and is therefore demonstrably linked to climate-related risks and opportunities. Other tangible examples of considering climate-related issues when reviewing and guiding capital expenditure,acquisitions and divestitures, include the Company’s development of its Kuniko spin-out, with its focused Zero Carbon Battery Metals™ strategy (excluding lithium), the investment into solar panels and electric vehicle charging points on the Company’s new laboratory facilities, and the strict usage of only electric vehicles as Company vehicles. Other examples include the recent acquisition of the geothermal consultancies GeoT and gec-co, which the Company regards as a long-term climate-related investment, since the need for geothermal development teams is likely to increase significantly in the years to come as Europe accelerates its decarbonisation efforts. Goals and targets for addressing climate related issues, such as “zero carbon” certification of Vulcan’s lithium extraction process as well as current operations, are monitored and overseen by the Board, which is regularly updated by management at Board meetings. INNOVATIONPilot PlantVulcan has designed, built, commissioned and is now successfully operating its own Pilot Plant to sustainably extract lithium. The team has successfully achieved target specification for Direct Lithium Extraction (DLE) feed into its Pilot Plant and has also achieved target recovery of greater than 90% for lithium chloride from Upper Rhine Valley brine. Initial success provided further momentum as the Pilot Plant operation scaled up to full capacity and Vulcan’s systematic execution on our Zero Carbon Lithium™ Project ensures that the global transition to renewables, energy storage, and electric mobility is conducted in a sustainable, net zero manner. Alongside the Pilot Plant, Vulcan have also secured our own laboratory based in Karlsruhe and are working with world-leading research organisations to achieve the best possible performance across our zero fossil fuels, zero carbon flowsheet. Vulcan have worked strategically over the last year to attract world-leading experts and build the facilities required to innovate traditional forms of lithium extraction and move successfully into full operation in the shortest amount of time while also ensuring that we are always adhering to our net zero emissions, environmentally focused purpose.I am from Syria and I have been living in Germany for 6 years. I finished my education as a chemical lab technician in Germany. My hobbies are painting, sports and reading. As a chemical technical assistant in Vulcan's laboratory, I am working with lithium extraction and ICP-OES instruments. I am a part of the Vulcan team because I like new challenges: exploring how to extract and produce lithium optimally so that in the future we can supply many European countries with lithium and reduce our climate and land of as much CO2 as possible.Aziz Mohadeen | Technician“2021 Annual Report/3433 \ Vulcan Energy Resources Limited GOVERNANCEDISCLOSE THE ORGANISATION’S GOVERNANCE AROUND CLIMATE-RELATED RISKS AND OPPORTUNITIESBOARD’S OVERSIGHT OF CLIMATE RELATED RISKS AND OPPORTUNITIESClimate-related risks and opportunities are overseen by the Board, and specifically addressed within the Audit, Risk and ESG Committee, which is chaired by former EY Senior Partner in Renewables Josephine Bush, who is a Non-Executive Director on the Board of Vulcan. The other Committee Members are Vulcan Non-Executive Director Dr. Heidi Grön, and Vulcan Non-Executive Chair Gavin Rezos. The Committee meets regularly to discuss risks and opportunities associated with climate-related matters and subsequently presents these findings at monthly Board meetings. Climate-related issues are considered when reviewing and guiding strategy at Board meetings. Management is invited to participate at these meetings and provide information to the Committee on climate-related issues for the business. Strategy and major plans of action for the Company have been demonstrably guided by climate-related issues, including the decision in 2019 to acquire and develop a Zero Carbon Lithium™ business, with a strict exclusion of fossil fuels from process development flowsheets, and the use of renewable geothermal energy to drive the lithium extraction process. This was further demonstrated when Vulcan decided to spin-out a business with a strict focus on zero carbon battery metals development (Kuniko Ltd), focused on Norway, where 98% of power comes from renewable sources. Risk management is also linked to climate-related issues, with the Board encouraging management to incorporate climate issues into Enterprise Risk Management (ERM) processes.Climate-related issues are factored into annual budgets and financial models, with specific examples such as modelling of a potential premium linked to the carbon avoidance associated with Vulcan’s planned product. Business plans drafted by the management team and presented to the Board, including the Company’s Pre-Feasibility Study (PFS), are entirely designed around climate-related issues, since the core mission of the Company is to decarbonise the battery metals supply chain, as well as to build out baseload renewable power and heating projects. Performance objectives linked to climate-related issues have been set for the management team, i.e., achieving lowest quartile GHG emissions from operations, and certified net zero carbon footprint across all operations. To monitor implementation and performance, as well as relying on feedback from the management team, the Committee and Board also rely on third party independent consultancies to provide guidance as to the climate impact of the Company’s current and planned operations, with recommendations to eliminate these impacts provided where they arise. This takes the form of ESG ratings providers such as Sustainalytics, Life Cycle Assessment (LCA) provider Minviro, and carbon neutral assessment and certifying bodies such as Climate Active.Almost the entirety of the capital investment of the Company, as reviewed and approved by the Board, is focused around its Zero Carbon Lithium™ Project, and is therefore demonstrably linked to climate-related risks and opportunities. Other tangible examples of considering climate-related issues when reviewing and guiding capital expenditure, acquisitions and divestitures, include the Company’s development of its Kuniko spin-out, with its focused Zero Carbon Battery Metals™ strategy (excluding lithium), the investment into solar panels and electric vehicle charging points on the Company’s new laboratory facilities, and the strict usage of only electric vehicles as Company vehicles. Other examples include the recent acquisition of the geothermal consultancies GeoT and gec-co, which the Company regards as a long-term climate-related investment, since the need for geothermal development teams is likely to increase significantly in the years to come as Europe accelerates its decarbonisation efforts. Goals and targets for addressing climate related issues, such as “zero carbon” certification of Vulcan’s lithium extraction process as well as current operations, are monitored and overseen by the Board, which is regularly updated by management at Board meetings. INNOVATIONPilot PlantVulcan has designed, built, commissioned and is now successfully operating its own Pilot Plant to sustainably extract lithium. The team has successfully achieved target specification for Direct Lithium Extraction (DLE) feed into its Pilot Plant and has also achieved target recovery of greater than 90% for lithium chloride from Upper Rhine Valley brine. Initial success provided further momentum as the Pilot Plant operation scaled up to full capacity and Vulcan’s systematic execution on our Zero Carbon Lithium™ Project ensures that the global transition to renewables, energy storage, and electric mobility is conducted in a sustainable, net zero manner. Alongside the Pilot Plant, Vulcan have also secured our own laboratory based in Karlsruhe and are working with world-leading research organisations to achieve the best possible performance across our zero fossil fuels, zero carbon flowsheet. Vulcan have worked strategically over the last year to attract world-leading experts and build the facilities required to innovate traditional forms of lithium extraction and move successfully into full operation in the shortest amount of time while also ensuring that we are always adhering to our net zero emissions, environmentally focused purpose.I am from Syria and I have been living in Germany for 6 years. I finished my education as a chemical lab technician in Germany. My hobbies are painting, sports and reading. As a chemical technical assistant in Vulcan's laboratory, I am working with lithium extraction and ICP-OES instruments. I am a part of the Vulcan team because I like new challenges: exploring how to extract and produce lithium optimally so that in the future we can supply many European countries with lithium and reduce our climate and land of CO2 as possible.Aziz Mohadeen | Technician“2021 Annual Report / 3433 \ Vulcan Energy Resources Limited MANAGEMENT’S ROLE IN ASSESSING AND MANAGING CLIMATE RELATED RISKS AND OPPORTUNITIESClimate-related responsibilities have been sub-divided and delegated amongst the management team, with the Administration Manager being in charge of ensuring activities are carbon neutral, and the Business Development Manager leading the ESG performance rating and monitoring, as well as the LCA workstream. Management regularly liaises with independent third-party consultants to guide the assessment and benchmarking of climate-related matters. These include LCA, which the Company regularly updates for its planned project developments, to assess Global Warming Potential (GWP), water use and AWARE factor, acidification potential, freshwater eutrophication potential, terrestrial eutrophication potential, marine eutrophication potential, land use – biotic production, land use – erosion potential, land use – groundwater regeneration, land use – infiltration reduction, and land use - physicochemical filtration. Structurally, these managers report to the Managing Director, who reports on climate-related issues and performance to the Board. By invitation, management is periodically invited toparticipate and provide input to discussions on climate related risks and opportunities at the regular Audit, Risk and ESG Committee meetings. Short term incentive (STI) components of remuneration for key management personnel have been linked to ESG performance including climate, i.e., lowest quartile GHG emissions from operations, and certified net zero carbon footprint across all operations. In addition, as part of its Enterprise Risk Management (ERM), Vulcan seeks to involve all key management personnel in periodical risk review workshops, which include the assessment of climate related risks and opportunities. Management is informed about climate-related issues through internal reports and communications, for example the Zero Carbon Lithium™ Project’s LCA and the Company’s Climate Neutral certification process. Specific climate-related issues are monitored by the Executive Director in Germany, who is closely involved with geothermal project development and decarbonisation in Germany, and the management team is also updated on climate-related issues by Special Advisor Julia Poliscanova, who is Senior Director with the EU’s Transport and Environment, and instrumental in shaping policies around EU vehicle CO2 standards and sustainable batteries.The Task Force on Climate-Related Financial Disclosures (TCFD)The Financial Stability Board established the Task Force on Climate-Related Financial Disclosures (TCFD) to develop recommendations for more effective climate-related disclosures that could promote more informed investment, credit, and insurance underwriting decisions and, in turn, enable stakeholders to understand better the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to climate-related risks.The TCFD is committed to market transparency and stability. They believe that better information will allow companies to incorporate climate-related risks and opportunities into their risk management and strategic planning processes. As this occurs, companies’ and investors’ understanding of the financial implications associated with climate change will grow, empowering the markets to channel investment to sustainable and resilient solutions, opportunities, and business models.Vulcan will follow the guidance of the TCFD as it evolves its recommendations for listed companies over the coming years. StrategyIn accordance with TCFD guidelines, the Company provides a description of what they consider to be the relevant short, medium, and long term time horizons, taking into consideration the useful life of the organisation’s assets or infrastructure and the fact that climate-related issues often manifest themselves over the medium and longer terms. The Company outlines that, considering the Zero Carbon Lithium™ Project business case has been based on a thirty year project, asset and infrastructure life, the Company should treat “short term” as within the next four years until 2025, when the Company is expected to be entering into full production, “medium term” as within the first half of the Zero Carbon Lithium™ Project’s currently modelled life, i.e. until 2040, and “long term” as being the second half of the Project’s modelled life, until 2054. A description of the specific climate-related issues for each time horizon (short, medium, and long term) that could have a material financial impact on the organisation, and a description of the process(es) used to determine which risks and opportunities could have a material financial impact on the organisation. CLIMATE RELATED RISKS AND OPPORTUNITIES THE ORGANIZATION HAS IDENTIFIED OVER THE SHORT, MEDIUM, AND LONG TERMSince Vulcan’s whole strategy and project development has been built around a “zero carbon” strategy with its Zero Carbon Lithium™ Project, much of what would be considered as a climate-related risk for most companies can be seen as opportunities for Vulcan. 2021 Annual Report / 3635 \ Vulcan Energy Resources Limited MANAGEMENT’S ROLE IN ASSESSING AND MANAGING CLIMATE RELATED RISKS AND OPPORTUNITIESClimate-related responsibilities have been sub-divided and delegated amongst the management team, with the Administration Manager being in charge of ensuring activities are carbon neutral, and the Business Development Manager leading the ESG performance rating and monitoring, as well as the LCA workstream. Management regularly liaises with independent third-party consultants to guide the assessment and benchmarking of climate-related matters. These include LCA, which the Company regularly updates for its planned project developments, to assess Global Warming Potential (GWP), water use and AWARE factor, acidification potential, freshwater eutrophication potential, terrestrial eutrophication potential, marine eutrophication potential, land use – biotic production, land use – erosion potential, land use – groundwater regeneration, land use – infiltration reduction, and land use - physicochemical filtration. Structurally, these managers report to the Managing Director, who reports on climate-related issues and performance to the Board. By invitation, management is periodically invited toparticipate and provide input to discussions on climate related risks and opportunities at the regular Audit, Risk and ESG Committee meetings. Short term incentive (STI) components of remuneration for key management personnel have been linked to ESG performance including climate, i.e., lowest quartile GHG emissions from operations, and certified net zero carbon footprint across all operations. In addition, as part of its Enterprise Risk Management (ERM), Vulcan seeks to involve all key management personnel in periodical risk review workshops, which include the assessment of climate related risks and opportunities. Management is informed about climate-related issues through internal reports and communications, for example the Zero Carbon Lithium™ Project’s LCA and the Company’s Climate Neutral certification process. Specific climate-related issues are monitored by the Executive Director in Germany, who is closely involved with geothermal project development and decarbonisation in Germany, and the management team is also updated on climate-related issues by Special Advisor Julia Poliscanova, who is Senior Director with the EU’s Transport and Environment, and instrumental in shaping policies around EU vehicle CO2 standards and sustainable batteries.The Task Force on Climate-Related Financial Disclosures (TCFD)The Financial Stability Board established the Task Force on Climate-Related Financial Disclosures (TCFD) to develop recommendations for more effective climate-related disclosures that could promote more informed investment, credit, and insurance underwriting decisions and, in turn, enable stakeholders to understand better the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to climate-related risks.The TCFD is committed to market transparency and stability. They believe that better information will allow companies to incorporate climate-related risks and opportunities into their risk management and strategic planning processes. As this occurs, companies’ and investors’ understanding of the financial implications associated with climate change will grow, empowering the markets to channel investment to sustainable and resilient solutions, opportunities, and business models.Vulcan will follow the guidance of the TCFD as it evolves its recommendations for listed companies over the coming years. StrategyIn accordance with TCFD guidelines, the Company provides a description of what they consider to be the relevant short, medium, and long term time horizons, taking into consideration the useful life of the organisation’s assets or infrastructure and the fact that climate-related issues often manifest themselves over the medium and longer terms. The Company outlines that, considering the Zero Carbon Lithium™ Project business case has been based on a thirty year project, asset and infrastructure life, the Company should treat “short term” as within the next four years until 2025, when the Company is expected to be entering into full production, “medium term” as within the first half of the Zero Carbon Lithium™ Project’s currently modelled life, i.e. until 2040, and “long term” as being the second half of the Project’s modelled life, until 2054. A description of the specific climate-related issues for each time horizon (short, medium, and long term) that could have a material financial impact on the organisation, and a description of the process(es) used to determine which risks and opportunities could have a material financial impact on the organisation. CLIMATE RELATED RISKS AND OPPORTUNITIES THE ORGANIZATION HAS IDENTIFIED OVER THE SHORT, MEDIUM, AND LONG TERMSince Vulcan’s whole strategy and project development has been built around a “zero carbon” strategy with its Zero Carbon Lithium™ Project, much of what would be considered as a climate-related risk for most companies can be seen as opportunities for Vulcan. 2021 Annual Report / 3635 \ Vulcan Energy Resources Limited IMPACT OF CLIMATE-RELATED RISKS AND OPPORTUNITIES ON THE ORGANISATION’S BUSINESSES, STRATEGY, AND FINANCIAL PLANNINGSince 2019, Vulcan has been focused on the development of its Zero Carbon Lithium™ business. This strategy has been driven almost entirely by the recognition that decarbonisation efforts need to ramp up across the world, and the electrification of transportation with mass battery production should be a part of the solution, not a part of the problem. Vulcan’s strategy and financial planning has therefore been entirely focused, since 2019, on making sure its planned developments use zero fossil fuels, and have a net zero greenhouse gas emission footprint.As mentioned in the previous section, Vulcan’s products and value chain has been entirely designed around the production of a lithium product for batteries used in electric vehicles, with net zero carbon footprint and zero use of fossil fuels to power the process, with a renewable energy by-product. Therefore, the increasing prominence of climate-related factors on policy and consumer behaviour should only stand to benefit Vulcan’s planned operations in the future. As described in the sections above, while climate-related risks to the business exist, these are generally far outweighed by the opportunities, since the Company has been built from the ground up to be zero carbon, including early investment into R&D and process development in these fields. Vulcan has made conscious strategic and financial planning choices at a management and Board level to exclude fossil fuels from its power requirements for its process flowsheets and include technologies such as electrolysis which can use green power for its lithium chemicals production.Vulcan’s long term financial planning is generally conducted over a 30-year time frame, in that the planned project life is currently 30 years, and its financial models for its project are designed accordingly.Climate-related issues, as previously mentioned, represent the core of this financial planning, since the project is focus on decarbonisation and production of renewable energy and battery chemicals to enable the transition to zero emissions e-mobility. This financial planning includesoperating costs and revenues, capital expenditure,acquisitions or divestments and access to capital of which all are being driven by the Company’s climate-related Zero Carbon Lithium™ strategy. Risks and opportunities are discussed and prioritised among management, both within the individual geothermal and lithium teams, andat a strategic cross-business level. Risks andopportunities are then prioritised using a series of industry standard metrics, and presented to theBoard on a regular basis, as well as being presentedand discussed at the Audit, Risk and ESG Committee.Vulcan’s ability to create value in the future is interdependent on its ability to scale up and roll out its dual geothermal-DLE plants, and downstream lithium chemical plant, whilst having continued regulatory and stakeholder support, assuming a public environment which continues to support climate-related action to transition to renewable power, renewable heating and e-mobility. Since Vulcan does not have any current commercial operations and is in the development stage, Vulcan uses a third-party Life Cycle Assessment (LCA) tool as a means of scenario analysis to examine future climate-related impacts and examine ways to further reduce Vulcan’s footprint. As an example, scenario analysis was conducted to determine the environmental impact of modifying Vulcan’s project configuration to produce a lithium carbonate intermediate from geothermal brine, which further is refined into an equivalent lithium hydroxide product, as opposed to Vulcan’s current preferred route to use green power to create a direct lithium hydroxide product. The more traditional route to produce lithium carbonate initially was found to have a higher carbon footprint, which, along with financial considerations, was a major driver in informing strategic planning towards the direct lithium hydroxide production route. RESILIENCE OF THE ORGANISATION’S STRATEGY, TAKING INTO CONSIDERATION DIFFERENT CLIMATE-RELATED SCENARIOSSince Vulcan’s entire business model has been built around its Zero Carbon Lithium™ business, the whole premise of which is to decarbonise battery metals for e-mobility with co-production of renewable heat and power, Vulcan considers its strategy to be very resilient to climate-related risks and very good exposure to climate-related opportunities, taking into consideration a transition to a lower-carbon economy which Vulcan considers itself at the forefront of. This also takes into account a 2oC or lower scenario, which Vulcan believes is critical to maintaining our ecosystem and way of life. Vulcan is constantly assessing physical climate-related risks, and will continue to do so as part of its Enterprise Risk Management and Audit, Risk and ESG Committee. At present, despite increased climactic instability worldwide, Vulcan believes it is at a low risk of being affected by physical climate-related risks. Risks and opportunities related to Vulcan’s Zero Carbon Lithium™ Project, including their time horizons and potential future changes in strategies are substantially outlined in the previous sections.2021 Annual Report / 3837 \ Vulcan Energy Resources Limited IMPACT OF CLIMATE-RELATED RISKS AND OPPORTUNITIES ON THE ORGANISATION’S BUSINESSES, STRATEGY, AND FINANCIAL PLANNINGSince 2019, Vulcan has been focused on the development of its Zero Carbon Lithium™ business. This strategy has been driven almost entirely by the recognition that decarbonisation efforts need to ramp up across the world, and the electrification of transportation with mass battery production should be a part of the solution, not a part of the problem. Vulcan’s strategy and financial planning has therefore been entirely focused, since 2019, on making sure its planned developments use zero fossil fuels, and have a net zero greenhouse gas emission footprint.As mentioned in the previous section, Vulcan’s products and value chain has been entirely designed around the production of a lithium product for batteries used in electric vehicles, with net zero carbon footprint and zero use of fossil fuels to power the process, with a renewable energy by-product. Therefore, the increasing prominence of climate-related factors on policy and consumer behaviour should only stand to benefit Vulcan’s planned operations in the future. As described in the sections above, while climate-related risks to the business exist, these are generally far outweighed by the opportunities, since the Company has been built from the ground up to be zero carbon, including early investment into R&D and process development in these fields. Vulcan has made conscious strategic and financial planning choices at a management and Board level to exclude fossil fuels from its power requirements for its process flowsheets and include technologies such as electrolysis which can use green power for its lithium chemicals production.Vulcan’s long term financial planning is generally conducted over a 30-year time frame, in that the planned project life is currently 30 years, and its financial models for its project are designed accordingly.Climate-related issues, as previously mentioned, represent the core of this financial planning, since the project is focus on decarbonisation and production of renewable energy and battery chemicals to enable the transition to zero emissions e-mobility. This financial planning includesoperating costs and revenues, capital expenditure,acquisitions or divestments and access to capital of which all are being driven by the Company’s climate-related Zero Carbon Lithium™ strategy. Risks and opportunities are discussed and prioritised among management, both within the individual geothermal and lithium teams, andat a strategic cross-business level. Risks andopportunities are then prioritised using a series of industry standard metrics, and presented to theBoard on a regular basis, as well as being presentedand discussed at the Audit, Risk and ESG Committee.Vulcan’s ability to create value in the future is interdependent on its ability to scale up and roll out its dual geothermal-DLE plants, and downstream lithium chemical plant, whilst having continued regulatory and stakeholder support, assuming a public environment which continues to support climate-related action to transition to renewable power, renewable heating and e-mobility. Since Vulcan does not have any current commercial operations and is in the development stage, Vulcan uses a third-party Life Cycle Assessment (LCA) tool as a means of scenario analysis to examine future climate-related impacts and examine ways to further reduce Vulcan’s footprint. As an example, scenario analysis was conducted to determine the environmental impact of modifying Vulcan’s project configuration to produce a lithium carbonate intermediate from geothermal brine, which further is refined into an equivalent lithium hydroxide product, as opposed to Vulcan’s current preferred route to use green power to create a direct lithium hydroxide product. The more traditional route to produce lithium carbonate initially was found to have a higher carbon footprint, which, along with financial considerations, was a major driver in informing strategic planning towards the direct lithium hydroxide production route. RESILIENCE OF THE ORGANISATION’S STRATEGY, TAKING INTO CONSIDERATION DIFFERENT CLIMATE-RELATED SCENARIOSSince Vulcan’s entire business model has been built around its Zero Carbon Lithium™ business, the whole premise of which is to decarbonise battery metals for e-mobility with co-production of renewable heat and power, Vulcan considers its strategy to be very resilient to climate-related risks and very good exposure to climate-related opportunities, taking into consideration a transition to a lower-carbon economy which Vulcan considers itself at the forefront of. This also takes into account a 2oC or lower scenario, which Vulcan believes is critical to maintaining our ecosystem and way of life. Vulcan is constantly assessing physical climate-related risks, and will continue to do so as part of its Enterprise Risk Management and Audit, Risk and ESG Committee. At present, despite increased climactic instability worldwide, Vulcan believes it is at a low risk of being affected by physical climate-related risks. Risks and opportunities related to Vulcan’s Zero Carbon Lithium™ Project, including their time horizons and potential future changes in strategies are substantially outlined in the previous sections.2021 Annual Report / 3837 \ Vulcan Energy Resources Limited Risk Management
ORGANISATION’S PROCESSES FOR IDENTIFYING
AND ASSESSING CLIMATE RELATED RISKS
Climate-related risks are identified, assessed and
managed by executive management. These risks are
also presented and discussed at the Audit, Risk and
ESG Committee meetings, and further discussed
and assessed at Board meetings. Since Vulcan has
consciously put climate-related risks at the core
of its strategy, product and branding, building its
entire business around a zero-carbon process and
product, the relative significance of climate-related
risks in relation to other risks is clearly major.
Vulcan’s approach to risk management to date has
been an iterative approach, which has involved
some elements, but not all, of the COSO approach to
Enterprise Risk Management (ERM). Vulcan’s senior
management, i.e. CEO, CFO and Executive Director,
have been running the ERM process to date. Non-
executive Board and Audit, Risk and ESG Committee
input and oversight has been sought when the Risk
Register has been shared and discussed at meetings,
which generally occur monthly or bi-monthly. An
inventory of the existing Risk Management practices
of the organisation has been carried out, however,
the recent acquisitions of two new businesses in
Germany (GeoT and gec-co), and as the project has
advanced and the company grown, means Vulcan
needs to restart this process, take feedback from
the different newly acquired sectors of the business,
and establish a common risk language. Initial
assessment of key strategies and related strategic
risks has been conducted from the inception of the
company and the process to date has been broadly in
line with COSO’s recommended process, but needs
restarting and refreshing with the increasing size of
the business.
ORGANISATION’S PROCESSES FOR
MANAGING CLIMATE RELATED RISKS
A consolidated action plan is developed based on
each risk, and communicated to the Board and
management. Actions arising from the Risk Register
to date have been woven into the “to-do list” of
management, and continuous improvement has
been achieved to date from action plans arising out
of this. Communication has been to the Board and
management via regular meetings. Going forward:
a larger, more consolidated action plan is likely
to arise out of the next ERM process. In terms of
risk reporting, the approach has comprised a Risk
Register including scorecards, colour-based visuals
39 \ Vulcan Energy Resources Limited
and clear language for ease of understanding.
Going forward, visual tools showing the
organisation's objectives and strategies, and how
they link to risk management, should be the next
goal of the ERM process, with a particular focus on
climate-related risk given the importance of climate
goals for the business.
HOW PROCESSES FOR IDENTIFYING, ASSESSING,
AND MANAGING CLIMATE-RELATED RISKS ARE
INTEGRATED INTO THE ORGANISATION’S OVERALL
RISK MANAGEMENT
Vulcan does not see climate-related risks or
opportunities as separate to its overall risk
management, but an integral part of the risk
management process, and therefore by its nature
is already integrated into the organisation’s overall
risk management identification, assessment
and management.
Metrics and Targets
METRICS USED BY THE ORGANISATION TO ASSESS
CLIMATE-RELATED RISKS AND OPPORTUNITIES IN
LINE WITH ITS STRATEGY AND RISK MANAGEMENT
PROCESS
Vulcan is not currently in commercial operation
and therefore currently has a negligible climate-
related impact. However, in line with its strategy to
develop an operation with zero carbon footprint,
zero fossil fuel consumption, and industry leading
environmental metrics across other systems of
measurement, Vulcan regularly updates its Life
Cycle Assessment of its planned developments, and
uses the metrics generated by this LCA to assess
climate-related risks and opportunities in line with
its strategy and risk management process. These
metrics are outlined in greater detail throughout the
LCA component of this document, but in brief cover:
Global Warming Potential (GWP), water use and
AWARE factor, acidification potential, freshwater
eutrophication potential, terrestrial eutrophication
potential, marine eutrophication potential,
land use – biotic production, land use – erosion
potential, land use – groundwater regeneration,
land use – infiltration reduction, and land use -
physicochemical filtration.
SCOPE 1, SCOPE 2, AND SCOPE 3
GREENHOUSE GAS (GHG) EMISSIONS
Vulcan is not currently operating any commercial
sized renewable energy or lithium extraction plants,
and is in the process of conducting feasibility studies
towards funding and constructing such operations.
Vulcan’s current operations have a negligible GHG
footprint, since the operations comprise only a
series of offices, a laboratory, a modest-sized pilot
lithium extraction plant and some limited travel
for management. Vulcan has quantified its GHG
Regulation proposed in December 2020. Vulcan will
be implementing Circulor’s solution to its future
lithium supply contracts with European OEMs to
help them meet their sustainability objectives for
material traceability and CO2 transparency.
TARGETS USED BY THE ORGANISATION TO MANAGE
CLIMATE RELATED RISKS AND OPPORTUNITIES AND
PERFORMANCE AGAINST TARGETS
As well as negative carbon emissions, Vulcan is
also targeting minimum environmental impact on a
emissions from current operations in Australia, and
number of other factors such as water consumption,
purchased 283 tonnes recognised offsets to achieve
harmful chemicals consumption, land use and waste
carbon neutral certification from Climate Active.
Vulcan is seeking a similar certification for its
German operations. In this manner, Vulcan intends
to be not “net zero” at some date in the future, but
generation. Vulcan’s goal is to be a world leader in
sustainable lithium production and is targeting to
stay in line with the results published in Minviro’s
LCA (section III). Those targets will be based on our
net zero in the present day and throughout Vulcan’s
commercial operations. However, until then, Vulcan’s
Australian business has already been certified as
carbon neutral by Climate Active and the European
business is looking at implementing the same
practise by the end of the year.
Vulcan’s Expected Global Warming
Potential by Scope of Emission
Scope 1: Direct emissions, e.g fossil fuel combustions
Scope 2: Embodied emissions of electricity
Scope 3: Embodied emissions of upstream supply chain
development of its Zero Carbon Lithium™ Project.
Vulcan’s planned CO2 emissions for its Zero Carbon
Lithium™ Project development has been estimated
with an independent, ISO-compliant Life Cycle
Assessment (LCA). This can be broken down into
“scopes” of emissions according to the Greenhouse
Gas Protocol. In alignment with future European
regulations and best practice CO2 emission
reporting, we disclose our expected scopes 1, 2,
and 3 emissions up to the “gate” of LiOH•H2O
product delivery to our customers:
• 0.2 kg CO2/kg LiOH•H2O Scope 1 emissions
because Vulcan will not burn any fossil fuels, and
will not release CO2 in the brine to the atmosphere.
• -3.7 kg CO2/kg LiOH•H2O Scope 2 emissions
because Vulcan will produce excess zero-carbon
power which will decarbonize the coal-heavy
German electrical grid.
• 0.6 kg CO2/kg LiOH•H2O Scope 3 emissions
(upstream and downstream to gate of delivery to
customer) due to Vulcan’s decision to use ultra-
low reagent consumption electrochemical lithium
hydroxide chemical processing.
We will engage in continuous dialogue with future
customers and investors to ensure our reporting
is aligned with their long-term net zero CO2
commitments. Vulcan will be using Circulor’s CO2
solution providing a dynamic month-to-month
visibility of CO2 intensity across the supply chain and
its participants. Battery raw materials transparency,
traceability and sustainability were directly
targeted in the latest European Commission Battery
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2021 Annual Report / 40
Risk Management
ORGANISATION’S PROCESSES FOR IDENTIFYING
and clear language for ease of understanding.
AND ASSESSING CLIMATE RELATED RISKS
Going forward, visual tools showing the
Climate-related risks are identified, assessed and
managed by executive management. These risks are
also presented and discussed at the Audit, Risk and
ESG Committee meetings, and further discussed
and assessed at Board meetings. Since Vulcan has
consciously put climate-related risks at the core
of its strategy, product and branding, building its
entire business around a zero-carbon process and
product, the relative significance of climate-related
risks in relation to other risks is clearly major.
organisation's objectives and strategies, and how
they link to risk management, should be the next
goal of the ERM process, with a particular focus on
climate-related risk given the importance of climate
goals for the business.
HOW PROCESSES FOR IDENTIFYING, ASSESSING,
AND MANAGING CLIMATE-RELATED RISKS ARE
INTEGRATED INTO THE ORGANISATION’S OVERALL
RISK MANAGEMENT
Vulcan’s approach to risk management to date has
Vulcan does not see climate-related risks or
been an iterative approach, which has involved
opportunities as separate to its overall risk
some elements, but not all, of the COSO approach to
management, but an integral part of the risk
Enterprise Risk Management (ERM). Vulcan’s senior
management process, and therefore by its nature
management, i.e. CEO, CFO and Executive Director,
is already integrated into the organisation’s overall
have been running the ERM process to date. Non-
risk management identification, assessment
executive Board and Audit, Risk and ESG Committee
and management.
input and oversight has been sought when the Risk
Register has been shared and discussed at meetings,
which generally occur monthly or bi-monthly. An
inventory of the existing Risk Management practices
of the organisation has been carried out, however,
the recent acquisitions of two new businesses in
Metrics and Targets
Germany (GeoT and gec-co), and as the project has
METRICS USED BY THE ORGANISATION TO ASSESS
advanced and the company grown, means Vulcan
CLIMATE-RELATED RISKS AND OPPORTUNITIES IN
needs to restart this process, take feedback from
LINE WITH ITS STRATEGY AND RISK MANAGEMENT
the different newly acquired sectors of the business,
PROCESS
and establish a common risk language. Initial
assessment of key strategies and related strategic
risks has been conducted from the inception of the
company and the process to date has been broadly in
line with COSO’s recommended process, but needs
restarting and refreshing with the increasing size of
the business.
ORGANISATION’S PROCESSES FOR
MANAGING CLIMATE RELATED RISKS
Vulcan is not currently in commercial operation
and therefore currently has a negligible climate-
related impact. However, in line with its strategy to
develop an operation with zero carbon footprint,
zero fossil fuel consumption, and industry leading
environmental metrics across other systems of
measurement, Vulcan regularly updates its Life
Cycle Assessment of its planned developments, and
uses the metrics generated by this LCA to assess
climate-related risks and opportunities in line with
A consolidated action plan is developed based on
its strategy and risk management process. These
each risk, and communicated to the Board and
metrics are outlined in greater detail throughout the
management. Actions arising from the Risk Register
LCA component of this document, but in brief cover:
to date have been woven into the “to-do list” of
management, and continuous improvement has
Global Warming Potential (GWP), water use and
AWARE factor, acidification potential, freshwater
been achieved to date from action plans arising out
eutrophication potential, terrestrial eutrophication
of this. Communication has been to the Board and
potential, marine eutrophication potential,
management via regular meetings. Going forward:
land use – biotic production, land use – erosion
a larger, more consolidated action plan is likely
to arise out of the next ERM process. In terms of
potential, land use – groundwater regeneration,
land use – infiltration reduction, and land use -
risk reporting, the approach has comprised a Risk
physicochemical filtration.
Register including scorecards, colour-based visuals
SCOPE 1, SCOPE 2, AND SCOPE 3
GREENHOUSE GAS (GHG) EMISSIONS
Vulcan is not currently operating any commercial
sized renewable energy or lithium extraction plants,
and is in the process of conducting feasibility studies
towards funding and constructing such operations.
Vulcan’s current operations have a negligible GHG
footprint, since the operations comprise only a
series of offices, a laboratory, a modest-sized pilot
lithium extraction plant and some limited travel
for management. Vulcan has quantified its GHG
emissions from current operations in Australia, and
purchased 283 tonnes recognised offsets to achieve
carbon neutral certification from Climate Active.
Vulcan is seeking a similar certification for its
German operations. In this manner, Vulcan intends
to be not “net zero” at some date in the future, but
net zero in the present day and throughout Vulcan’s
development of its Zero Carbon Lithium™ Project.
Vulcan’s planned CO2 emissions for its Zero Carbon
Lithium™ Project development has been estimated
with an independent, ISO-compliant Life Cycle
Assessment (LCA). This can be broken down into
“scopes” of emissions according to the Greenhouse
Gas Protocol. In alignment with future European
regulations and best practice CO2 emission
reporting, we disclose our expected scopes 1, 2,
and 3 emissions up to the “gate” of LiOH•H2O
product delivery to our customers:
• 0.2 kg CO2/kg LiOH•H2O Scope 1 emissions
because Vulcan will not burn any fossil fuels, and
will not release CO2 in the brine to the atmosphere.
• -3.7 kg CO2/kg LiOH•H2O Scope 2 emissions
because Vulcan will produce excess zero-carbon
power which will decarbonize the coal-heavy
German electrical grid.
• 0.6 kg CO2/kg LiOH•H2O Scope 3 emissions
(upstream and downstream to gate of delivery to
customer) due to Vulcan’s decision to use ultra-
low reagent consumption electrochemical lithium
hydroxide chemical processing.
We will engage in continuous dialogue with future
customers and investors to ensure our reporting
is aligned with their long-term net zero CO2
commitments. Vulcan will be using Circulor’s CO2
solution providing a dynamic month-to-month
visibility of CO2 intensity across the supply chain and
its participants. Battery raw materials transparency,
traceability and sustainability were directly
targeted in the latest European Commission Battery
Regulation proposed in December 2020. Vulcan will
be implementing Circulor’s solution to its future
lithium supply contracts with European OEMs to
help them meet their sustainability objectives for
material traceability and CO2 transparency.
TARGETS USED BY THE ORGANISATION TO MANAGE
CLIMATE RELATED RISKS AND OPPORTUNITIES AND
PERFORMANCE AGAINST TARGETS
As well as negative carbon emissions, Vulcan is
also targeting minimum environmental impact on a
number of other factors such as water consumption,
harmful chemicals consumption, land use and waste
generation. Vulcan’s goal is to be a world leader in
sustainable lithium production and is targeting to
stay in line with the results published in Minviro’s
LCA (section III). Those targets will be based on our
commercial operations. However, until then, Vulcan’s
Australian business has already been certified as
carbon neutral by Climate Active and the European
business is looking at implementing the same
practise by the end of the year.
Vulcan’s Expected Global Warming
Potential by Scope of Emission
Scope 1: Direct emissions, e.g fossil fuel combustions
Scope 2: Embodied emissions of electricity
Scope 3: Embodied emissions of upstream supply chain
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39 \ Vulcan Energy Resources Limited
2021 Annual Report / 40
CLIMATE-RELATED RISKS & OPPORTUNITIES
POLICY & LEGAL
Increased pricing of GHG emissions
Short–Medium Term
Risk: While Vulcan will make every effort to source material for its plant and equipment from sustainable sources, Vulcan
will need to purchase materials such as steel and cement to build its plants. The cost of these materials may increase with a
rising carbon price in Europe, if Vulcan cannot source “green steel” or “green cement”.
Opportunity: According to its Life Cycle Assessment (LCA), Vulcan will have a negative carbon footprint of 2.9 tonnes of CO2
per ton of Lithium Hydroxide Monohydrate (LHM) produced. As well as helping battery and automakers to decarbonise their
cells and EVs from the Zero Carbon Lithium™ Project as opposed to using carbon-intensive lithium chemicals from China,
Vulcan could potentially also sell carbon avoidance credits from its operations. Additionally, the European Parliament is
looking at implementing a carbon border adjustment mechanism (CBAM) as quickly as possible which is a levy on carbon-
intensive products imported into Europe.
This CBAM mechanism will decrease the risk of carbon leakage which occurs when companies transfer production to or
source products from countries that are less strict about emissions, by putting a carbon price on imports of certain goods
from outside the EU. A European committee stated that the CBAM should cover all imports, but as a starting point already
by 2023, it should cover the power sector and energy-intensive industrial sectors such as manufacturing of cement, steel,
chemicals and fertilisers. The levy will be linked to a reformed emissions trading scheme (ETS) and the money raised used
for climate objectives in the EU and internationally. As stated by Thierry Breton, EU Commissioner, “We (the EU) are 100%
dependent on lithium chemical imports”.
Lithium could eventually fall into the “chemicals” category targeted by the CBAM. Today, more than 80% of the global lithium
hydroxide supply comes from China. Production of lithium chemicals production in China is estimated to be the most
polluting in the world. According to an LCA by the London-based consulting firm Minviro, every tonne of LHM produced
in China generates 15 tonnes of CO2 emissions. As an example, assume the CBAM is in place by 2025 for lithium and that a
European buyer was going to purchase 10,000 tonnes of LHM from a Chinese producer emitting 15 tonnes of CO2 per tonne
of LHM. Assuming that the CBAM is in place with strict CO2 neutrality targets and the carbon prices are at US$100 per tonne,
as targeted by the Bank of England, the buyer would be charged an additional US$1,500 per tonne of LHM to account for the
CBAM, or an additional US$15M per year. This and any increase of GHG emissions would push buyers to secure volume from
local and sustainable producers like Vulcan, making this a climate-related opportunity for Vulcan.
Enhanced emissions-reporting obligations
Medium Term
Risk: increasing reporting costs as emissions reporting obligations are advanced. It should be noted however, that Vulcan
already follows very high reporting standards compared to industry norms.
Opportunity: Vulcan was the first lithium company in the world to look at live-tracking its CO2 emissions from its operations.
As reported in the above Supply Chain section, Vulcan and Circulor are working together to establish a world-first full
lithium traceability and CO2 measurement. Circulor’s CO2 solution provides a dynamic month-to-month visibility of CO2
intensity across the supply chain and its participants. Battery raw materials transparency, traceability and sustainability
were directly targeted in the latest European Commission Battery Regulation proposed in December 2020. Vulcan will be
implementing Ciculor’s solution to its future lithium supply contracts with European OEMs to help meet their sustainability
objectives for material traceability and CO2 transparency.
Circulor’s solution will first be used during Vulcan’s project development including at a pilot and demonstration plant level,
when the first samples are dispatched to customers. Circulor and Vulcan will work together to prepare Vulcan and its
supply chain for full traceability of Vulcan’s lithium product at the production start in 2024. This ability to provide a first and
best-in-class dynamic CO2 tracing for Vulcan’s lithium products is a climate-related opportunity for Vulcan to become a
preferred customer for lithium buyers.
Mandates on and regulation of existing products and services
Medium Term
Risk: Vulcan is working within the Global Battery Alliance and with ISO on lithium and battery standards. There is a risk that
proposed regulation on carbon footprint for raw materials within batteries, and for lithium production, could be watered
down by certain industry participants. Vulcan still believes its product would be preferred compared to competitors,
however this could slow the market impetus to decarbonise battery raw materials.
Opportunity: EU Battery Regulation. The European Commission proposed a new Batteries Regulation on 10 December
2020. This Regulation aims to ensure that batteries placed in the EU market are sustainable and safe throughout their
entire life cycle. Vulcan welcomes the ambition of the proposed Regulation concerning batteries and waste batteries – in
particular the envisioned carbon thresholds as well as environmental and social due diligence standards for the entire
supply chain, including lithium. Vulcan most notably supports the introduction of a carbon footprint declaration, maximum
carbon thresholds and mandatory social and environmental due diligence. To maximise the benefit, it is key that these
requirements holistically cover the supply chain of batteries, including the extraction of raw materials such as lithium.
The inclusion of these requirements is a climate-related opportunity for Vulcan, since Vulcan plans to produce the lowest
carbon footprint lithium chemicals on the market.
TECHNOLOGY
Substitution of existing products and services with lower emissions options
Medium Term
Risk: Although it has taken decades for lithium-ion batteries to be accepted by the auto-industry, with its tough standards
for safety and durability, there will always be the risk that a lower emission battery technology that does not contain lithium
could emerge, relative to lithium-ion or solid state (lithium metal). Given the long development lead time from laboratory to
commercialisation for batteries, and given that Vulcan has the flexibility to produce lithium chloride, lithium carbonate and/
or lithium hydroxide, which covers most of the conceived battery technologies on the horizon, Vulcan believes the risk of
battery technology substitution which will not use Vulcan’s lithium products is relatively low. Vulcan also notes that it will
also derive revenue from its geothermal renewable energy operations, albeit the planned energy revenue is much less than
the planned revenue from lithium sales.
Opportunity: Historically, lithium buyers were mostly looking at price, volume and quality when securing lithium. Now
there are two additional requirements for them: location and sustainability. Automakers are looking at regionalising their
supply chain and developing vertical integration, potentially all the way up to mining and refining. Additionally, almost all
automakers have announced their goals to become carbon neutral and will be working with suppliers who are operating
sustainably. Vulcan offers a unique solution to European companies, being local, sustainable but also low cost and large
scale. As its Zero Carbon Lithium™ Business is centred on the premise of substituting existing products with a lower
emissions option, this is an opportunity for Vulcan.
Unsuccessful investment in new technologies
Medium Term
Opportunity: Investment in new technologies: in order to demonstrate that Vulcan’s process flowsheet, using adaptations
of predominantly commercially available technology, will be able to produce lithium at a large commercial scale and at low
cost, significant piloting work needs to be carried out. Our first pilot plant has been operating since February 2021 and has
been directly connected to an existing geothermal plant since April 2021, and our piloting activities will be further scaled
up during the course of the coming year. Our piloting campaign is allowing us to de-risk our production process further
and takes us towards commercial production. Our project development phase is fully financed up to our Final Investment
Decision (FID) following a capital raise executed in January 2021. While we are confident in the Direct Lithium Extraction
(DLE) and geothermal expertise of our team, and we have had encouraging results from our piloting to date, there is
always the risk that our investment in our technology to produce lithium with net zero greenhouse gas emissions will
be unsuccessful.
41 \ Vulcan Energy Resources Limited
2021 Annual Report / 42
CLIMATE-RELATED RISKS & OPPORTUNITIES
POLICY & LEGAL
Increased pricing of GHG emissions
Short–Medium Term
Risk: While Vulcan will make every effort to source material for its plant and equipment from sustainable sources, Vulcan
will need to purchase materials such as steel and cement to build its plants. The cost of these materials may increase with a
rising carbon price in Europe, if Vulcan cannot source “green steel” or “green cement”.
Opportunity: According to its Life Cycle Assessment (LCA), Vulcan will have a negative carbon footprint of 2.9 tonnes of CO2
per ton of Lithium Hydroxide Monohydrate (LHM) produced. As well as helping battery and automakers to decarbonise their
cells and EVs from the Zero Carbon Lithium™ Project as opposed to using carbon-intensive lithium chemicals from China,
Vulcan could potentially also sell carbon avoidance credits from its operations. Additionally, the European Parliament is
looking at implementing a carbon border adjustment mechanism (CBAM) as quickly as possible which is a levy on carbon-
intensive products imported into Europe.
This CBAM mechanism will decrease the risk of carbon leakage which occurs when companies transfer production to or
source products from countries that are less strict about emissions, by putting a carbon price on imports of certain goods
from outside the EU. A European committee stated that the CBAM should cover all imports, but as a starting point already
by 2023, it should cover the power sector and energy-intensive industrial sectors such as manufacturing of cement, steel,
chemicals and fertilisers. The levy will be linked to a reformed emissions trading scheme (ETS) and the money raised used
for climate objectives in the EU and internationally. As stated by Thierry Breton, EU Commissioner, “We (the EU) are 100%
dependent on lithium chemical imports”.
Lithium could eventually fall into the “chemicals” category targeted by the CBAM. Today, more than 80% of the global lithium
hydroxide supply comes from China. Production of lithium chemicals production in China is estimated to be the most
polluting in the world. According to an LCA by the London-based consulting firm Minviro, every tonne of LHM produced
in China generates 15 tonnes of CO2 emissions. As an example, assume the CBAM is in place by 2025 for lithium and that a
European buyer was going to purchase 10,000 tonnes of LHM from a Chinese producer emitting 15 tonnes of CO2 per tonne
of LHM. Assuming that the CBAM is in place with strict CO2 neutrality targets and the carbon prices are at US$100 per tonne,
as targeted by the Bank of England, the buyer would be charged an additional US$1,500 per tonne of LHM to account for the
CBAM, or an additional US$15M per year. This and any increase of GHG emissions would push buyers to secure volume from
local and sustainable producers like Vulcan, making this a climate-related opportunity for Vulcan.
Enhanced emissions-reporting obligations
Medium Term
Risk: increasing reporting costs as emissions reporting obligations are advanced. It should be noted however, that Vulcan
already follows very high reporting standards compared to industry norms.
Opportunity: Vulcan was the first lithium company in the world to look at live-tracking its CO2 emissions from its operations.
As reported in the above Supply Chain section, Vulcan and Circulor are working together to establish a world-first full
lithium traceability and CO2 measurement. Circulor’s CO2 solution provides a dynamic month-to-month visibility of CO2
intensity across the supply chain and its participants. Battery raw materials transparency, traceability and sustainability
were directly targeted in the latest European Commission Battery Regulation proposed in December 2020. Vulcan will be
implementing Ciculor’s solution to its future lithium supply contracts with European OEMs to help meet their sustainability
objectives for material traceability and CO2 transparency.
Circulor’s solution will first be used during Vulcan’s project development including at a pilot and demonstration plant level,
when the first samples are dispatched to customers. Circulor and Vulcan will work together to prepare Vulcan and its
supply chain for full traceability of Vulcan’s lithium product at the production start in 2024. This ability to provide a first and
best-in-class dynamic CO2 tracing for Vulcan’s lithium products is a climate-related opportunity for Vulcan to become a
preferred customer for lithium buyers.
Mandates on and regulation of existing products and services
Medium Term
Risk: Vulcan is working within the Global Battery Alliance and with ISO on lithium and battery standards. There is a risk that
proposed regulation on carbon footprint for raw materials within batteries, and for lithium production, could be watered
down by certain industry participants. Vulcan still believes its product would be preferred compared to competitors,
however this could slow the market impetus to decarbonise battery raw materials.
Opportunity: EU Battery Regulation. The European Commission proposed a new Batteries Regulation on 10 December
2020. This Regulation aims to ensure that batteries placed in the EU market are sustainable and safe throughout their
entire life cycle. Vulcan welcomes the ambition of the proposed Regulation concerning batteries and waste batteries – in
particular the envisioned carbon thresholds as well as environmental and social due diligence standards for the entire
supply chain, including lithium. Vulcan most notably supports the introduction of a carbon footprint declaration, maximum
carbon thresholds and mandatory social and environmental due diligence. To maximise the benefit, it is key that these
requirements holistically cover the supply chain of batteries, including the extraction of raw materials such as lithium.
The inclusion of these requirements is a climate-related opportunity for Vulcan, since Vulcan plans to produce the lowest
carbon footprint lithium chemicals on the market.
TECHNOLOGY
Substitution of existing products and services with lower emissions options
Medium Term
Risk: Although it has taken decades for lithium-ion batteries to be accepted by the auto-industry, with its tough standards
for safety and durability, there will always be the risk that a lower emission battery technology that does not contain lithium
could emerge, relative to lithium-ion or solid state (lithium metal). Given the long development lead time from laboratory to
commercialisation for batteries, and given that Vulcan has the flexibility to produce lithium chloride, lithium carbonate and/
or lithium hydroxide, which covers most of the conceived battery technologies on the horizon, Vulcan believes the risk of
battery technology substitution which will not use Vulcan’s lithium products is relatively low. Vulcan also notes that it will
also derive revenue from its geothermal renewable energy operations, albeit the planned energy revenue is much less than
the planned revenue from lithium sales.
Opportunity: Historically, lithium buyers were mostly looking at price, volume and quality when securing lithium. Now
there are two additional requirements for them: location and sustainability. Automakers are looking at regionalising their
supply chain and developing vertical integration, potentially all the way up to mining and refining. Additionally, almost all
automakers have announced their goals to become carbon neutral and will be working with suppliers who are operating
sustainably. Vulcan offers a unique solution to European companies, being local, sustainable but also low cost and large
scale. As its Zero Carbon Lithium™ Business is centred on the premise of substituting existing products with a lower
emissions option, this is an opportunity for Vulcan.
Unsuccessful investment in new technologies
Medium Term
Opportunity: Investment in new technologies: in order to demonstrate that Vulcan’s process flowsheet, using adaptations
of predominantly commercially available technology, will be able to produce lithium at a large commercial scale and at low
cost, significant piloting work needs to be carried out. Our first pilot plant has been operating since February 2021 and has
been directly connected to an existing geothermal plant since April 2021, and our piloting activities will be further scaled
up during the course of the coming year. Our piloting campaign is allowing us to de-risk our production process further
and takes us towards commercial production. Our project development phase is fully financed up to our Final Investment
Decision (FID) following a capital raise executed in January 2021. While we are confident in the Direct Lithium Extraction
(DLE) and geothermal expertise of our team, and we have had encouraging results from our piloting to date, there is
always the risk that our investment in our technology to produce lithium with net zero greenhouse gas emissions will
be unsuccessful.
41 \ Vulcan Energy Resources Limited
2021 Annual Report / 42
Costs to transition to lower emissions technologyMedium TermOpportunity: Vulcan’s project is designed with a zero-carbon emission output at the centre of its decision process. The lithium part of the business requires a larger investment than the geothermal but also generates more revenues. Our project is also organised in two phases. Based on our PFS published in January 2021, phase one will require an investment of around €700M, €230M of which will be allocated to the two geothermal plants construction and €470m will be used to build our two DLE plants and our central lithium plant. This will allow the production of around 15,000 tonnes per year of battery quality lithium hydroxide, which can be directly consumed in European batteries. Phase two targets an investment of more than one billion euros, €700M on the lithium side, to reach a total of around 40,000 tonnes per year of lithium hydroxide production. Despite a significant upfront cost, the project has a four-year payback period thanks to a very low operating cost. Based on our PFS published in January 2021, our production costs are around $3,100 per ton of lithium hydroxide. It would represent the lowest lithium production cost in the world and this is explained by three main reasons: • Vulcan’s “feedstock”, its brine, is secured at no cost from its own operations and has a dual purpose: lithium production and energy production in the form of renewable electricity. As a comparison, a Chinese lithium producer would have to purchase feedstock, in the form of a mineral called spodumene, which is currently mined and concentrated in Australia. The cost of this feedstock today to produce one tonne of lithium hydroxide is estimated at more than $3,500. Our feedstock is essentially a waste brine from a geothermal plant, so can be considered “free”, and is also used to generate revenues, in the form of heat and electricity, which pays for the geothermal wells and plant. • Vulcan uses DLE to isolate lithium as opposed to using large volumes of chemicals to process the brine, like in South America, where the largest production costs are chemicals. DLE generally requires the brine to be heated to work. This is expensive in South America, which is why DLE operations are rare. In our operations, our brine will be re-heated, as it is geothermal in nature. This also lowers the production cost.• Vulcan also uses low-cost energy directly from its geothermal operations, in the form of steam, to drive the concentration process of its lithium product.This means sustainably and locally produced lithium doesn’t have to be more expensive relative to the conventional way of producing the metal, but could actually be a lot cheaper.Finally, because Vulcan is not “transitioning” to lower emissions technology, but actually building its whole process around zero emissions technology, it has a competitive advantage compared to competitors with sunk capital in higher emissions lithium production plants.MARKETChanging customer behaviourMedium TermRisk: There is a risk that vehicles will be increasingly shared in the future as a means of reducing carbon footprint, leading to overall lower consumption of lithium-ion batteries and thus lower than forecast lithium demand. However, lithium demand to electrify global transport will still be substantial, even in this scenario. Opportunity: A few years ago market observers, when looking at EVs, were wondering if the transition to e-mobility was going to happen. A couple of years ago the question changed from if to when, and now the question is how quickly will Internal Combustion Engines (ICE) disappear. In July 2021, the European Commission proposed that by 2030 carmakers must reduce emissions of new cars by 55%, rising to 100% in 2035, effectively spelling the end of the ICE. According to Macquarie, sales volumes of electric vehicles are forecast to increase at 33% per year from 2021 to 2025, with equivalent Lithium-ion Battery (LIB) production increasing from 244GWh in 2021 to 968GWh by 2025. Led by this transition to a lower emission option by rapidly changing customer behaviour, the global annual demand of lithium is expected to increase from 278,000 tonnes in 2020 to 2.4 million tonnes in 2030, multiplied by 9 in 10 years, according to Canaccord Genuity1. Automakers and battery/cathode makers are also increasingly favouring sustainable sources of battery raw materials. Therefore, changing customer behaviour towards increased electric vehicle purchasing leading to increased lithium demand, as well as changing customer behaviour toward more sustainable sources of lithium, represents an opportunity for Vulcan. 1Please refer to v-er.eu/investor-centre for Canaccord Genuity reportUncertainty in market signalsMedium TermRisk: There is a risk that a slower shift to electric vehicles than anticipated could result in lower demand for lithium, and too much supply relative to demand.Opportunity: There is a possibility that rate of EV uptake will surpass current forecasts, resulting in higher demand for lithium and perhaps therefore a higher price environment, if supply cannot keep up with demand.Increased cost of raw materialsMedium TermRisk: There is a risk that the raw materials required to build Vulcan’s plant increase in price, if green alternatives cannot be found, for example for steel and cement.Opportunity: If a price premium for “green” lithium emerges, Vulcan is likely to benefit, by producing from the only Zero Carbon Lithium™ Project in the world.Hiking in the Bunter Sandstone reservoir rocks on the shoulder of the Upper Rhine Graben. For a geologist and the Vulcan project the Bunter Sandstone reservoir and its permeability is key. The Vulcan project combines the merit of renewable energy and the value of Zero Carbon LithiumTM for batteries. To support the transitions from conventional to renewable energies and from combustion engine cars to electric cars and fight climate change is my main motive to help make Vulcan a success.Dr Horst Kreuter | Co-Founder & Board Advisor“2021 Annual Report / 4443 \ Vulcan Energy Resources Limited Costs to transition to lower emissions technologyMedium TermOpportunity: Vulcan’s project is designed with a zero-carbon emission output at the centre of its decision process. The lithium part of the business requires a larger investment than the geothermal but also generates more revenues. Our project is also organised in two phases. Based on our PFS published in January 2021, phase one will require an investment of around €700M, €230M of which will be allocated to the two geothermal plants construction and €470m will be used to build our two DLE plants and our central lithium plant. This will allow the production of around 15,000 tonnes per year of battery quality lithium hydroxide, which can be directly consumed in European batteries. Phase two targets an investment of more than one billion euros, €700M on the lithium side, to reach a total of around 40,000 tonnes per year of lithium hydroxide production. Despite a significant upfront cost, the project has a four-year payback period thanks to a very low operating cost. Based on our PFS published in January 2021, our production costs are around $3,100 per ton of lithium hydroxide. It would represent the lowest lithium production cost in the world and this is explained by three main reasons: • Vulcan’s “feedstock”, its brine, is secured at no cost from its own operations and has a dual purpose: lithium production and energy production in the form of renewable electricity. As a comparison, a Chinese lithium producer would have to purchase feedstock, in the form of a mineral called spodumene, which is currently mined and concentrated in Australia. The cost of this feedstock today to produce one tonne of lithium hydroxide is estimated at more than $3,500. Our feedstock is essentially a waste brine from a geothermal plant, so can be considered “free”, and is also used to generate revenues, in the form of heat and electricity, which pays for the geothermal wells and plant. • Vulcan uses DLE to isolate lithium as opposed to using large volumes of chemicals to process the brine, like in South America, where the largest production costs are chemicals. DLE generally requires the brine to be heated to work. This is expensive in South America, which is why DLE operations are rare. In our operations, our brine will be re-heated, as it is geothermal in nature. This also lowers the production cost.• Vulcan also uses low-cost energy directly from its geothermal operations, in the form of steam, to drive the concentration process of its lithium product.This means sustainably and locally produced lithium doesn’t have to be more expensive relative to the conventional way of producing the metal, but could actually be a lot cheaper.Finally, because Vulcan is not “transitioning” to lower emissions technology, but actually building its whole process around zero emissions technology, it has a competitive advantage compared to competitors with sunk capital in higher emissions lithium production plants.MARKETChanging customer behaviourMedium TermRisk: There is a risk that vehicles will be increasingly shared in the future as a means of reducing carbon footprint, leading to overall lower consumption of lithium-ion batteries and thus lower than forecast lithium demand. However, lithium demand to electrify global transport will still be substantial, even in this scenario. Opportunity: A few years ago market observers, when looking at EVs, were wondering if the transition to e-mobility was going to happen. A couple of years ago the question changed from if to when, and now the question is how quickly will Internal Combustion Engines (ICE) disappear. In July 2021, the European Commission proposed that by 2030 carmakers must reduce emissions of new cars by 55%, rising to 100% in 2035, effectively spelling the end of the ICE. According to Macquarie, sales volumes of electric vehicles are forecast to increase at 33% per year from 2021 to 2025, with equivalent Lithium-ion Battery (LIB) production increasing from 244GWh in 2021 to 968GWh by 2025. Led by this transition to a lower emission option by rapidly changing customer behaviour, the global annual demand of lithium is expected to increase from 278,000 tonnes in 2020 to 2.4 million tonnes in 2030, multiplied by 9 in 10 years, according to Canaccord Genuity1. Automakers and battery/cathode makers are also increasingly favouring sustainable sources of battery raw materials. Therefore, changing customer behaviour towards increased electric vehicle purchasing leading to increased lithium demand, as well as changing customer behaviour toward more sustainable sources of lithium, represents an opportunity for Vulcan. 1Please refer to v-er.eu/investor-centre for Canaccord Genuity reportUncertainty in market signalsMedium TermRisk: There is a risk that a slower shift to electric vehicles than anticipated could result in lower demand for lithium, and too much supply relative to demand.Opportunity: There is a possibility that rate of EV uptake will surpass current forecasts, resulting in higher demand for lithium and perhaps therefore a higher price environment, if supply cannot keep up with demand.Increased cost of raw materialsMedium TermRisk: There is a risk that the raw materials required to build Vulcan’s plant increase in price, if green alternatives cannot be found, for example for steel and cement.Opportunity: If a price premium for “green” lithium emerges, Vulcan is likely to benefit, by producing from the only Zero Carbon Lithium™ Project in the world.Hiking in the Bunter Sandstone reservoir rocks on the shoulder of the Upper Rhine Graben. For a geologist and the Vulcan project the Bunter Sandstone reservoir and its permeability is key. The Vulcan project combines the merit of renewable energy and the value of Zero Carbon LithiumTM for batteries. To support the transitions from conventional to renewable energies and from combustion engine cars to electric cars and fight climate change is my main motive to help make Vulcan a success.Dr Horst Kreuter | Co-Founder & Board Advisor“2021 Annual Report / 4443 \ Vulcan Energy Resources Limited REPUTATION
Shifts in consumer preferences
Medium Term
Opportunity: Vulcan’s Zero Carbon Lithium™ business and branding stands to potentially gain from increased customer
awareness around sustainability of sources of raw materials going into batteries and electric vehicles.
Opportunity: Vulcan’s renewable energy business stands to potentially gain from increasing consumer preference for
renewable heating and power.
Stigmatisation of sector
Medium Term
Risk: There is a perception in some groups that EVs have a high carbon footprint of production. While Vulcan is part of the
solution, not the problem, and, while studies have shown that EVs are much greener over their life cycle than ICE vehicles,
Vulcan is aware of a small risk of stigmatisation of EVs, and part of Vulcan’s mission is to correct this.
Opportunity: Vulcan’s Zero Carbon Lithium™ business can potentially gain market share as higher carbon or higher water
footprint sources of lithium become increasingly stigmatised and undesirable, in an increasingly climate-aware world, for
customers buying EVs.
Vulcan’s renewable energy business can potentially gain customers for heating and power, as traditional suppliers from the
fossil fuel sector become increasingly stigmatised due to their carbon footprint.
Increased stakeholder concern or negative stakeholder feedback
Medium Term
Risk: Just like solar and wind, geothermal energy has its opponents, especially from climate change sceptics. While not
climate-related, Vulcan will always work closely with local stakeholders to ensure that any stakeholder concern is listened
to and mutually resolved.
Opportunity: While capital availability and reduced share prices are negatively affecting the fossil fuel industry, Vulcan may
benefit from a more attractive valuation, and better ability to raise capital, due to its zero carbon mission and credentials.
PHYSICAL RISKS
Increased severity of extreme weather events such as cyclones and floods
Medium Term
Risk: As seen in recent weeks, no place on Earth is safe from the effects of climate change. Germany, where Vulcan’s main
operations are and will be located, is no different, and some regions of Germany have experienced severe flooding. While
Vulcan’s operations have not been affected to date, there remains a risk that operations could be affected by more acute
acute weather events in the future, this could have a negative impact on revenue due to decreased production capacity,
and higher costs from negative impacts on workforce, for example health, safety and absenteeism. Increased insurance
premiums could also result from this, albeit we are not aware that any of our planned locations are in a particularly high risk
zone for flooding. This is another reason to decarbonise the global economy and more impetus behind the need for our
Zero Carbon Lithium™ Project.
Changes in precipitation patterns and extreme variability in weather patterns
Medium Term
Risk: Reduced precipitation in the Upper Rhine region could reduce the ability to barge our lithium product to a chemical
processing facility. This could lead to higher trucking costs, albeit trucking has already been factored into our financial model.
Rising mean temperatures
Medium Term
Rising sea levels
Medium Term
Risk: Geothermal plants operate with lower efficiency in higher temperature environments. The trend in Germany with
climate change has been towards a warming climate. There could be some periods over the summertime when the
efficiency of the plant is reduced, reducing revenue from energy production.
Opportunity: Increased demand for electricity during the summer months to run air conditioning units could increase
demand for Vulcan’s planned renewable electricity production.
Vulcan’s operations are not thought to be affected by rising sea levels associated with climate change.
RESOURCE EFFICIENCY
Use of more efficient modes of transport
Medium Term
Opportunity: As discussed above, the increasing use of e-mobility by consumers should have a favourable effect on the
outlook for lithium demand and pricing, which should favour Vulcan’s Zero Carbon Lithium™ Project economics. Within the
planned Project, electric trucks are intended to be used for transportation of lithium chloride to the central lithium processing
plant. The wider availability and expected lower cost of such modes of transport could be an opportunity for Vulcan to lower
its operating costs in the future.
Use of more efficient production and distribution processes
Medium Term
Opportunity: Vulcan is evaluating ways to make renewable energy generation and distribution more efficient from its planned
geothermal operations, and more efficient usage of the renewable heat and power to drive its lithium extraction process. This
could, if proven, result in more efficient production and therefore increased revenues.
Use of recycling
Medium Term
Opportunity: Vulcan is intending to build as much water recycling capability as possible into its process,
allowing for a potentially cheaper and more efficient DLE process which could increase revenue in the future.
45 \ Vulcan Energy Resources Limited
2021 Annual Report / 46
REPUTATION
Shifts in consumer preferences
Medium Term
renewable heating and power.
Stigmatisation of sector
Medium Term
Opportunity: Vulcan’s Zero Carbon Lithium™ business and branding stands to potentially gain from increased customer
awareness around sustainability of sources of raw materials going into batteries and electric vehicles.
Opportunity: Vulcan’s renewable energy business stands to potentially gain from increasing consumer preference for
Risk: There is a perception in some groups that EVs have a high carbon footprint of production. While Vulcan is part of the
solution, not the problem, and, while studies have shown that EVs are much greener over their life cycle than ICE vehicles,
Vulcan is aware of a small risk of stigmatisation of EVs, and part of Vulcan’s mission is to correct this.
Opportunity: Vulcan’s Zero Carbon Lithium™ business can potentially gain market share as higher carbon or higher water
footprint sources of lithium become increasingly stigmatised and undesirable, in an increasingly climate-aware world, for
customers buying EVs.
Vulcan’s renewable energy business can potentially gain customers for heating and power, as traditional suppliers from the
fossil fuel sector become increasingly stigmatised due to their carbon footprint.
Increased stakeholder concern or negative stakeholder feedback
Medium Term
Risk: Just like solar and wind, geothermal energy has its opponents, especially from climate change sceptics. While not
climate-related, Vulcan will always work closely with local stakeholders to ensure that any stakeholder concern is listened
to and mutually resolved.
Opportunity: While capital availability and reduced share prices are negatively affecting the fossil fuel industry, Vulcan may
benefit from a more attractive valuation, and better ability to raise capital, due to its zero carbon mission and credentials.
PHYSICAL RISKS
Increased severity of extreme weather events such as cyclones and floods
Medium Term
Risk: As seen in recent weeks, no place on Earth is safe from the effects of climate change. Germany, where Vulcan’s main
operations are and will be located, is no different, and some regions of Germany have experienced severe flooding. While
Vulcan’s operations have not been affected to date, there remains a risk that operations could be affected by more acute
acute weather events in the future, this could have a negative impact on revenue due to decreased production capacity,
and higher costs from negative impacts on workforce, for example health, safety and absenteeism. Increased insurance
premiums could also result from this, albeit we are not aware that any of our planned locations are in a particularly high risk
zone for flooding. This is another reason to decarbonise the global economy and more impetus behind the need for our
Zero Carbon Lithium™ Project.
Changes in precipitation patterns and extreme variability in weather patterns
Medium Term
Risk: Reduced precipitation in the Upper Rhine region could reduce the ability to barge our lithium product to a chemical
processing facility. This could lead to higher trucking costs, albeit trucking has already been factored into our financial model.
Rising mean temperatures
Medium Term
Risk: Geothermal plants operate with lower efficiency in higher temperature environments. The trend in Germany with
climate change has been towards a warming climate. There could be some periods over the summertime when the
efficiency of the plant is reduced, reducing revenue from energy production.
Opportunity: Increased demand for electricity during the summer months to run air conditioning units could increase
demand for Vulcan’s planned renewable electricity production.
Rising sea levels
Medium Term
Vulcan’s operations are not thought to be affected by rising sea levels associated with climate change.
RESOURCE EFFICIENCY
Use of more efficient modes of transport
Medium Term
Opportunity: As discussed above, the increasing use of e-mobility by consumers should have a favourable effect on the
outlook for lithium demand and pricing, which should favour Vulcan’s Zero Carbon Lithium™ Project economics. Within the
planned Project, electric trucks are intended to be used for transportation of lithium chloride to the central lithium processing
plant. The wider availability and expected lower cost of such modes of transport could be an opportunity for Vulcan to lower
its operating costs in the future.
Use of more efficient production and distribution processes
Medium Term
Opportunity: Vulcan is evaluating ways to make renewable energy generation and distribution more efficient from its planned
geothermal operations, and more efficient usage of the renewable heat and power to drive its lithium extraction process. This
could, if proven, result in more efficient production and therefore increased revenues.
Use of recycling
Medium Term
Opportunity: Vulcan is intending to build as much water recycling capability as possible into its process,
allowing for a potentially cheaper and more efficient DLE process which could increase revenue in the future.
45 \ Vulcan Energy Resources Limited
2021 Annual Report / 46
Move to more efficient buildings
Medium Term
Shift toward decentralised energy generation
Medium Term
Opportunity: Vulcan is in the process of moving one of its offices and its laboratory in Germany to more efficient buildings.
This should have benefits to workforce management and planning, including improved health and employee satisfaction
outcomes, as well as lower costs.
Opportunity: Vulcan intends to build a number of distributed geothermal renewable energy plants across the Upper Rhine
Valley region. Germany is increasingly trying to decarbonise its heating and power grids, with a focus on decentralised,
renewable energy. This policy and consumer shift toward decentralised energy generation favours Vulcan’s business model.
Reduced water usage and consumption
Medium Term
Opportunity: Vulcan is evaluating a range of high performing DLE sorbents, some of which present the opportunity to reduce
water consumption further during the DLE process. This and the attempt to recycle as much water as possible during the
process could reduce costs.
PRODUCTS AND SERVICES
ENERGY SOURCE
Use of lower-emission sources of energy
Medium Term
Opportunity: As well as using geothermal heat to drive its lithium extraction process, selling geothermal energy into the grid
and buying green power to run its lithium chemicals process, Vulcan is in the process of installing solar power at its laboratory,
and will do so at its planned future operations as well. This use of renewable electricity may present potential for lower costs
in the future. Vulcan’s exclusive use of renewable energy to power its processes means that it may have increased capital
availability, as more investors favour lower-emissions producers. It also means that Vulcan will in effect have no material
exposure to future fossil fuel price increases.
Use of supportive policy incentives
Medium Term
Opportunity: Vulcan intends to produce renewable electricity and power from its geothermal operations. This should benefit
from a €0.252/kWh Feed-in Tariff for geothermal power under the German Renewable Energy Law. No supportive policy
incentives at the German Federal Level are currently in place for the production of lithium with net zero greenhouse gas
emissions, but the potential of such incentives exist, and represents a future opportunity.
Use of new technologies
Medium Term
Opportunity: Vulcan is pursuing a world-leading effort to produce lithium for batteries with a net zero greenhouse gas
footprint. This may have reputational benefits resulting in increased demand for product bought from the Vulcan Zero
Carbon Lithium™ Project.
Participation in carbon market
Medium Term
Opportunity: Vulcan’s Zero Carbon Lithium™ Project may have the potential to be counted as a form of monetisable
carbon abatement, given it plans to decarbonise the currently high carbon footprint of the lithium industry. This potential
participation in the carbon market is an opportunity for Vulcan.
Development and/or expansion of low emission goods and services
Medium Term
Opportunity: Since Vulcan is aiming to produce the world’s first lithium products with net zero greenhouse gas emissions
from its Zero Carbon Lithium™ Project, with co-production and sales of renewable energy, increasing demand for lower
emissions products and services represents an opportunity for Vulcan.
Development of climate adaptation and insurance risk solutions
Medium Term
Opportunity: Vulcan has the ability, without having sunk significant capital into plant and infrastructure at this early stage
of the project’s life, to enable the development of climate adaptation solutions to its plant and buildings which could lower
insurance costs and lower future CAPEX requirements in the event of climate-related incidents.
Development of new products or services through R&D and innovation
Medium Term
Opportunity: Vulcan is seeking to adapt existing technologies to most efficiently extract lithium from its geothermal brine
areas with net zero carbon footprint, and is therefore investing into its planned product through R&D and innovation.
This should put Vulcan in a better competitive position to reflect the shifting consumer preference towards sustainable
products, which has shifted rapidly.
Ability to diversify business activities
Medium Term
Shift in consumer preferences
Medium Term
Opportunity: Vulcan’s strategic decision to develop both a renewable energy and battery chemicals business means that it
is able to potentially source revenue from multiple sources, allowing de-risking diversification.
Opportunity: Most Original Equipment Manufacturers (OEMs) have sustainability-focused procurement policies for battery
raw materials, and aim to produce net zero carbon EVs. This shift in consumer preferences is an opportunity for Vulcan to
become a preferred supplier, something borne out by the execution of lithium offtake term sheets by Vulcan with Tier One
battery and EV producers.
47 \ Vulcan Energy Resources Limited
2021 Annual Report / 48
Move to more efficient buildings
Medium Term
outcomes, as well as lower costs.
Reduced water usage and consumption
Medium Term
ENERGY SOURCE
Use of lower-emission sources of energy
Medium Term
exposure to future fossil fuel price increases.
Use of supportive policy incentives
Medium Term
Use of new technologies
Medium Term
Carbon Lithium™ Project.
Participation in carbon market
Medium Term
47 \ Vulcan Energy Resources Limited
Opportunity: As well as using geothermal heat to drive its lithium extraction process, selling geothermal energy into the grid
and buying green power to run its lithium chemicals process, Vulcan is in the process of installing solar power at its laboratory,
and will do so at its planned future operations as well. This use of renewable electricity may present potential for lower costs
in the future. Vulcan’s exclusive use of renewable energy to power its processes means that it may have increased capital
availability, as more investors favour lower-emissions producers. It also means that Vulcan will in effect have no material
Opportunity: Vulcan intends to produce renewable electricity and power from its geothermal operations. This should benefit
from a €0.252/kWh Feed-in Tariff for geothermal power under the German Renewable Energy Law. No supportive policy
incentives at the German Federal Level are currently in place for the production of lithium with net zero greenhouse gas
emissions, but the potential of such incentives exist, and represents a future opportunity.
Opportunity: Vulcan is pursuing a world-leading effort to produce lithium for batteries with net zero greenhouse gas
footprint. This may have reputational benefits resulting in increased demand for product bought from the Vulcan Zero
Opportunity: Vulcan’s Zero Carbon Lithium™ Project may have the potential to be counted as a form of monetisable
carbon abatement, given it plans to decarbonise the currently high carbon footprint of the lithium industry. This potential
participation in the carbon market is an opportunity for Vulcan.
Opportunity: Vulcan is in the process of moving one of its offices and its laboratory in Germany to more efficient buildings.
This should have benefits to workforce management and planning, including improved health and employee satisfaction
Opportunity: Vulcan intends to build a number of distributed geothermal renewable energy plants across the Upper Rhine
Valley region. Germany is increasingly trying to decarbonise its heating and power grids, with a focus on decentralised,
renewable energy. This policy and consumer shift toward decentralised energy generation favours Vulcan’s business model.
Shift toward decentralised energy generation
Medium Term
Opportunity: Vulcan is evaluating a range of high performing DLE sorbents, some of which present the opportunity to reduce
water consumption further during the DLE process. This and the attempt to recycle as much water as possible during the
process could reduce costs.
PRODUCTS AND SERVICES
Development and/or expansion of low emission goods and services
Medium Term
Opportunity: Since Vulcan is aiming to produce the world’s first lithium products with net zero greenhouse gas emissions
from its Zero Carbon Lithium™ Project, with co-production and sales of renewable energy, increasing demand for lower
emissions products and services represents an opportunity for Vulcan.
Development of climate adaptation and insurance risk solutions
Medium Term
Opportunity: Vulcan has the ability, without having sunk significant capital into plant and infrastructure at this early stage
of the project’s life, to enable the development of climate adaptation solutions to its plant and buildings which could lower
insurance costs and lower future CAPEX requirements in the event of climate-related incidents.
Development of new products or services through R&D and innovation
Medium Term
Opportunity: Vulcan is seeking to adapt existing technologies to most efficiently extract lithium from its geothermal brine
areas with net zero carbon footprint, and is therefore investing into its planned product through R&D and innovation.
This should put Vulcan in a better competitive position to reflect the shifting consumer preference towards sustainable
products, which has shifted rapidly.
Ability to diversify business activities
Medium Term
Opportunity: Vulcan’s strategic decision to develop both a renewable energy and battery chemicals business means that it
is able to potentially source revenue from multiple sources, allowing de-risking diversification.
Shift in consumer preferences
Medium Term
Opportunity: Most Original Equipment Manufacturers (OEMs) have sustainability-focused procurement policies for battery
raw materials, and aim to produce net zero carbon EVs. This shift in consumer preferences is an opportunity for Vulcan to
become a preferred supplier, something borne out by the execution of lithium offtake term sheets by Vulcan with Tier One
battery and EV producers.
2021 Annual Report / 48
MARKETSAccess to new marketsMedium TermOpportunity: Vulcan’s team has a unique set of skills in the fields of surface and sub-surface geothermal project development and DLE. All three sets of skills are quite rare, and to have all three teams in one company is really quite unique. This unique know-how in lithium and geothermal could help Vulcan unlock access to new markets in the future, which could bring in new revenue streams.Use of public-sector incentivesMedium TermOpportunity: Because of the green and climate credentials of the Zero Carbon Lithium™ Project, Vulcan may have the opportunity in the future to obtain use of public sector incentives, including grants. The European Investment Bank (EIB) is also potentially able to support a project like Vulcan’s, which fits with many of the objectives of the European Green Deal. This public-sector support is a potential opportunity for Vulcan.Favourable forms of fundingMedium TermOpportunity: Vulcan may have the potential to secure so-called “green financing”, and once in production, has the potential to re-finance using “green bonds”, which could reduce the cost of borrowing.RESILIENCEParticipation in renewable energy programs and adoption of energy efficiency measuresMedium TermOpportunity: Vulcan’s Zero Carbon Lithium™ business and strong ESG focus, which is at the core of its business plan, has the potential to result in increased market valuation since companies with a strong ESG focus and track record have been shown to outperform those that do not.Resource substitutes/diversificationMedium TermOpportunity: Vulcan intends to increasingly evaluate the production and sale of heat as well as power from its planned geothermal projects, as heating is expected to play a bigger part in decarbonisation in Europe. Vulcan is also evaluating the production of lithium carbonate as well as lithium hydroxide, as battery chemistry preferences shift, which it is well positioned to do. This flexibility around production is an opportunity for Vulcan. 2021 Annual Report / 5049 \ Vulcan Energy Resources Limited MARKETSAccess to new marketsMedium TermOpportunity: Vulcan’s team has a unique set of skills in the fields of surface and sub-surface geothermal project development and DLE. All three sets of skills are quite rare, and to have all three teams in one company is really quite unique. This unique know-how in lithium and geothermal could help Vulcan unlock access to new markets in the future, which could bring in new revenue streams.Use of public-sector incentivesMedium TermOpportunity: Because of the green and climate credentials of the Zero Carbon Lithium™ Project, Vulcan may have the opportunity in the future to obtain use of public sector incentives, including grants. The European Investment Bank (EIB) is also potentially able to support a project like Vulcan’s, which fits with many of the objectives of the European Green Deal. This public-sector support is a potential opportunity for Vulcan.Favourable forms of fundingMedium TermOpportunity: Vulcan may have the potential to secure so-called “green financing”, and once in production, has the potential to re-finance using “green bonds”, which could reduce the cost of borrowing.RESILIENCEParticipation in renewable energy programs and adoption of energy efficiency measuresMedium TermOpportunity: Vulcan’s Zero Carbon Lithium™ business and strong ESG focus, which is at the core of its business plan, has the potential to result in increased market valuation since companies with a strong ESG focus and track record have been shown to outperform those that do not.Resource substitutes/diversificationMedium TermOpportunity: Vulcan intends to increasingly evaluate the production and sale of heat as well as power from its planned geothermal projects, as heating is expected to play a bigger part in decarbonisation in Europe. Vulcan is also evaluating the production of lithium carbonate as well as lithium hydroxide, as battery chemistry preferences shift, which it is well positioned to do. This flexibility around production is an opportunity for Vulcan. 2021 Annual Report / 5049 \ Vulcan Energy Resources Limited Review & Results of OperationsZero carbon process development & ESG excellenceglobally. Industry members include BMW Group, BASF, BP, Google, Renault Group, LG Chem, Umicore, Volkswagen Group and Volvo Group. Vulcan joins SQM and Wesfarmers as members from the lithium sector. The GBA follows ten guiding principles, covering including the circular recovery of battery materials, ensuring transparency of greenhouse gas emissions and their progressive reduction and eliminating child and forced labour. The GBA is also developing the Battery Passport, a global solution for securely sharing information and data to prove responsibility and sustainability to consumers with a “quality seal” while enabling resource efficiency across the battery life cycle. Vulcan will be participating in advancing projects and initiatives around battery materials traceability and transparency that will shape the industry. Vulcan’s Australian business has been certified as carbon neutral by Climate Active for the Australian operations. Climate neutral certification confirms that a carbon neutral claim is based on best practice, international standards and represents genuine emissions reduction. Climate Active has a network of Members who have achieved this certification through rigorous process and testing, this means that these certified organisations and their customers can be sure they are genuinely carbon neutral. The Australian Government’s carbon neutral certification is the most rigorous and credible carbon neutral certification available in Australia1. Vulcan is seeking similar certification for its German operations.These represent important steps as part of Vulcan’s stated mission to decarbonise the lithium supply chain.1 (https://www.climateactive.org.au/buy-climate-active/certified-members/vulcan-energy-resources)Strengthened cash position:$120m raised from ESG investorsIn February, the Company raised A$120 million (before costs) through a strongly supported placement at $6.50 per share to a suite of ESG-focused institutions, including the BNP Paribas Energy Transition Fund. Goldman Sachs and Canaccord Genuity acted as Joint Lead Managers. Proceeds from the Placement will support the Company through to final investment decision at its Zero Carbon Lithium™ Project, with funds being applied to:•Project development, feasibility study costs and permitting;•Drill site acquisition and preparation; and•Strategic opportunities to accelerateproject development.The cornerstone investment was provided by Hancock Prospecting Pty Ltd, one of the most successful private companies in Australian history and a leader in the resources industry, which is led by Executive Chair Mrs. Gina Rinehart. 2021 Annual Report/52LIFE CYCLE ASSESSMENTIn February, Minviro was appointed by Vulcan to conduct an updated cradle-to-gate life cycle assessment (LCA) on the production of lithium hydroxide monohydrate (LHM) from project and process data produced at a PFS level. Five different impact categories were evaluated: global warming potential, acidification potential, eutrophication potential, water use, and land use. Results of the updated LCA estimate negative 2.9t of CO2 emitted per tonne of LHM to be produced from Vulcan’s Zero Carbon Lithium™ Project, including Scope 1, 2 and 3 emissions.CIRCULOR During the year, Vulcan announced that it would use Circulor’s full traceability and dynamic CO2 measurement solution for its carbon neutral lithium products across the European lithium-ion battery and electric vehicle (EV) supply chain, a world first for the lithium sector. Circulor’s customers include major European automotive manufacturers such as Volvo Cars, Daimler, Polestar and Jaguar Land Rover, which indicates Original Equipment Manufacturer's (OEMs) growing need to demonstrate responsible sourcing of raw materials like lithium, and to track and manage the embedded CO2 emission in their upstream supply chain, as they strive towards their net zero targets. Circulor’s system implementation enables reputational protection, proof of compliance with regulations and dynamic carbon tracking.GLOBAL BATTERY ALLIANCE & CLIMATE ACTIVEDuring the year, Vulcan was accepted as a Member of the Global Battery Alliance (GBA), an umbrella partnership made up of 70 members working towards a sustainable battery value chain 51 \ Vulcan Energy Resources Limited Review & Results ofOperationsZero carbon process development & ESG excellenceglobally. Industry members include BMW Group, BASF, BP, Google, Renault Group, LG Chem, Umicore, Volkswagen Group and Volvo Group. Vulcan joins SQM and Wesfarmers as members from the lithium sector. The GBA follows ten guiding principles, covering including the circular recovery of battery materials, ensuring transparency of greenhouse gas emissions and their progressive reduction and eliminating child and forced labour. The GBA is also developing the Battery Passport, a global solution for securely sharing information and data to prove responsibility and sustainability to consumers with a “quality seal” while enabling resource efficiency across the battery life cycle. Vulcan will be participating in advancing projects and initiatives around battery materials traceability and transparency that will shape the industry.Vulcan’s Australian business has been certified as carbon neutral by Climate Active for the Australian operations. Climate neutral certification confirms that a carbon neutral claim is based on best practice, international standards and represents genuine emissions reduction. Climate Active has a network of Members who have achieved this certification through rigorous process and testing, this means that these certified organisations and their customers can be sure they are genuinely carbon neutral. The Australian Government’s carbon neutral certification is the most rigorous and credible carbon neutral certification available in Australia1. Vulcan is seeking similar certification for its German operations.These represent important steps as part of Vulcan’s stated mission to decarbonise the lithium supply chain.1 (https://www.climateactive.org.au/buy-climate-active/certified-members/vulcan-energy-resources)Strengthened cash position: $120m raised from ESG investorsIn February, the Company raised $120 million (before costs) through a strongly supported placement at $6.50 per share to a suite of ESG-focused institutions, including the BNP Paribas Energy Transition Fund. Goldman Sachs and Canaccord Genuity acted as Joint Lead Managers. Proceeds from the Placement will support the Company through to final investment decision at its Zero Carbon Lithium™ Project, with funds being applied to:•Project development, feasibility study costs and permitting;•Drill site acquisition and preparation; and•Strategic opportunities to accelerateproject development.The cornerstone investment was provided by Hancock Prospecting Pty Ltd, one of the most successful private companies in Australian history and a leader in the resources industry, which is led by Executive Chair Mrs. Gina Rinehart. 2021 Annual Report / 52LIFE CYCLE ASSESSMENTIn February, Minviro was appointed by Vulcan to conduct an updated cradle-to-gate life cycle assessment (LCA) on the production of lithium hydroxide monohydrate (LHM) from project and process data produced at a PFS level. Five different impact categories were evaluated: global warming potential, acidification potential, eutrophication potential, water use, and land use. Results of the updated LCA estimate negative 2.9t of CO2 emitted per tonne of LHM to be produced from Vulcan’s Zero Carbon Lithium™ Project, including Scope 1, 2 and 3 emissions.CIRCULOR During the year, Vulcan announced that itwould use Circulor’s full traceability and dynamic CO2measurement solution for its carbon neutral lithium products across the European lithium-ion battery and electric vehicle (EV) supply chain, a world first for the lithium sector. Circulor’s customers include major European automotive manufacturers such as Volvo Cars, Daimler, Polestar and Jaguar Land Rover,which indicates Original Equipment Manufacturer's (OEMs) growing need to demonstrate responsible sourcing of raw materials like lithium, and to track and manage the embedded CO2 emission in their upstream supply chain, as they strive towards their net zero targets. Circulor’s system implementation enables reputational protection, proof of compliance with regulations and dynamic carbon tracking.GLOBAL BATTERY ALLIANCE & CLIMATE ACTIVEDuring the year, Vulcan was accepted as aMember of the Global Battery Alliance (GBA), an umbrella partnership made up of 70 members working towards a sustainable battery value chain 51\Vulcan Energy Resources Limited Project ExecutionDLE PILOT PLANT & DFSVulcan has designed, built, commissioned, and is now operating a DLE Pilot Plant to demonstrate lithium extraction from live geothermal brine. The team is focused on demonstrating pre-treatment and DLE processes, as well as the durability of the process over hundreds of cycles, which will feed into its Definitive Feasibility Study (DFS). Vulcan will use the data from the Pilot Plant to inform and finalise design of a larger, Demonstration Plant, which will also contribute information towards the DFS. Vulcan’s technology partners and internal experts have indicated that key process operations will scale up to commercial scale with minimal risk from the Demonstration scale.In May, Vulcan announced that the Pilot Plant team had successfully achieved target specification for Direct Lithium Extraction (DLE) feed into its pilot plant. They also achieved target recovery of greater than 90% for lithium chloride from Upper Rhine Valley brine. The laboratory team also successfully demonstrated, via the first step of test work, post-treated DLE brine to be materially the same composition, within analytical error, as production brine, excluding extracted lithium and silica. Next steps will include:•Ramp up of DLE pilot plant to 24/7 operation.•Production of lithium chloride solution to be converted to lithium hydroxide.•Production of samples for potentialcustomers/offtakers.•Further work on post-treatment of brine.Post June 2021 Quarter to date: •Key consultants Hatch Ltd. and GLJ Ltd. havebeen engaged to assist Vulcan with its DefinitiveFeasibility Study (DFS).•New exploration license granted inUpper Rhine Valley.•Binding Lithium Offtake term sheet signed withLG Energy Solution to supply 10,000 metric tonnes per year of lithium hydroxide.•Strategic partnership signed with Renault Groupfor Vulcan to supply Renault with between 6,000and 17,000 metric tonnes per year of batterygrade lithium chemicals.Vulcan’s in-house technical team continues to methodically execute on and progressively de-risk its Zero Carbon Lithium™ Project development in a stepwise manner.POSITIVE PRE-FEASIBILITY STUDY (PFS)In January, Vulcan announced the successful completion of its PFS, which was conducted with world-leading experts in the fields of lithium extraction, chemistry, chemical engineering, geothermal plant engineering and geology. Hatch Ltd. led the lithium processing plant design, engineering and cost estimates. German geothermal experts gec-co and Geo-T (now in-house and part of Vulcan) led the engineering studies and cost estimates for the geothermal plant and the sub-surface well design and production study respectively. GLJ Ltd. provided review and sign-off on the Maiden Probable JORC Ore Reserves. APEX Geoscience Ltd. conducted the resource modelling and estimation for the Upper Rhine Valley Project (URVP) Li-brine Indicated Resources used in the PFS as announced to market on November 12, 2020 (Taro Licence) and December 15, 2020 (Ortenau Licence). Laboratory test work was conducted with brine experts IBZ Salzchemie, alongside other providers. Optiro Ltd. carried out the financial modelling. PFS ECONOMICSThe PFS showed a positive post-tax NPV of €2.25B (full project, no phasing); phased option shows €700m NPV in Phase 1 and €1.4B NPV in Phase 2. Combined renewable energy-lithium project (no phasing) showed a pre-tax IRR of 26% and post-tax IRR of 21%. Lithium as a separate entity from energy shows pre-tax IRR of 31% and post-tax IRR of 26%.Vulcan has designed, built, commissioned, and is now operating a DLE Pilot Plant to demonstrate lithium extraction from live geothermal brine.INTEGRATED BUSINESSES SEPARATE BUSINESSES For further details on the PFS please refer to ASX announcement dated 15 January 2021. “2021 Annual Report/5453 \ Vulcan Energy Resources Limited Project ExecutionDLE PILOT PLANT & DFSVulcan has designed, built, commissioned, and is now operating a DLE Pilot Plant to demonstrate lithium extraction from live geothermal brine. The team is focused on demonstrating pre-treatment and DLE processes, as well as the durability of the process over hundreds of cycles, which will feed into its Definitive Feasibility Study (DFS). Vulcan will use the data from the Pilot Plant to inform and finalise design of a larger, Demonstration Plant, which will also contribute information towards the DFS. Vulcan’s technology partners and internal experts have indicated that key process operations will scale up to commercial scale with minimal risk from the Demonstration scale.In May, Vulcan announced that the Pilot Plant team had successfully achieved target specification for Direct Lithium Extraction (DLE) feed into its pilot plant. They also achieved target recovery of greater than 90% for lithium chloride from Upper Rhine Valley brine. The laboratory team also successfully demonstrated, via the first step of test work, post-treated DLE brine to be materially the same composition, within analytical error, as production brine, excluding extracted lithium and silica. Next steps will include:•Ramp up of DLE pilot plant to 24/7 operation.•Production of lithium chloride solution to be converted to lithium hydroxide.•Production of samples for potentialcustomers/offtakers.•Further work on post-treatment of brine.Post June 2021 Quarter to date: •Key consultants Hatch Ltd. and GLJ Ltd. have been engaged to assist Vulcan with its Definitive Feasibility Study (DFS). •New exploration license granted in Upper Rhine Valley.•Binding Lithium Offtake term sheet signed with LG Energy Solution to supply 10,000 metric tonnes per year of lithium hydroxide.•Strategic partnership signed with Renault Group for Vulcan to supply Renault with between 6,000 and 17,000 metric tonnes per year of battery grade lithium chemicals.Vulcan’s in-house technical team continues to methodically execute on and progressively de-risk its Zero Carbon Lithium™ Project development in a stepwise manner.POSITIVE PRE-FEASIBILITY STUDY (PFS)In January, Vulcan announced the successful completion of its PFS, which was conducted with world-leading experts in the fields of lithium extraction, chemistry, chemical engineering, geothermal plant engineering and geology. Hatch Ltd. led the lithium processing plant design, engineering and cost estimates. German geothermal experts gec-co and Geo-T (now in-house and part of Vulcan) led the engineering studies and cost estimates for the geothermal plant and the sub-surface well design and production study respectively. GLJ Ltd. provided review and sign-off on the Maiden Probable JORC Ore Reserves. APEX Geoscience Ltd. conducted the resource modelling and estimation for the Upper Rhine Valley Project (URVP) Li-brine Indicated Resources used in the PFS as announced to market on November 12, 2020 (Taro Licence) and December 15, 2020 (Ortenau Licence). Laboratory test work was conducted with brine experts IBZ Salzchemie, alongside other providers. Optiro Ltd. carried out the financial modelling. PFS ECONOMICSThe PFS showed a positive post-tax NPV of €2.25B (full project, no phasing); phased option shows €700m NPV in Phase 1 and €1.4B NPV in Phase 2. Combined renewable energy-lithium project (no phasing) showed a pre-tax IRR of 26% and post-tax IRR of 21%. Lithium as a separate entity from energy shows pre-tax IRR of 31% and post-tax IRR of 26%.Vulcan has designed, built, commissioned, and is now operating a DLE Pilot Plant to demonstrate lithium extraction from live geothermal brine.INTEGRATED BUSINESSES SEPARATE BUSINESSES For further details on the PFS please refer to ASX announcement dated 15 January 2021. “2021 Annual Report / 5453 \ Vulcan Energy Resources Limited MAIDEN JORC RESERVES
Vulcan also published a maiden Probable Ore Reserve of 1.12 Mt LCE at 181 mg/l Li
across the Ortenau and Taro licenses.
Classification
Proven
Probable - Taro
Probable - Ortenau
Total
Million Tonnes LCE
Grade (Li ppm)
-
0.42
0.70
1.12
-
181
181
181
For further details on the Maiden JORC Ore Reserve please refer to ASX announcement dated 15 January 2021.
The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement
and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not
materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified
from the original market announcement.
LITHIUM EXTRACTION TEST WORK RESULTS
SHOW EXCELLENT LITHIUM RECOVERIES
Vulcan successfully completed initial bench-scale
test work on Upper Rhine Valley geothermal brine,
using absorbent-type direct lithium extraction
(DLE) technological approaches. Vulcan was able to
quickly identify and test the best DLE technology
options for the Upper Rhine Valley brine by
leveraging the experiences of its in-house chemical
engineering team and external consultants, who
have worked on multiple geothermal lithium
projects with numerous DLE technologies. Lithium
chloride (LiCl) concentrates were produced from
real geothermal brine that was supplied at ambient
pressure from Vulcan’s area of focus in the Upper
Rhine Valley.
Materials and techniques used during the extraction
process are similar to those already used in other
commercial and near-commercial lithium brine
projects. The produced LiCl concentrate is an
industry standard precursor used for conversion into
battery-quality lithium hydroxide using conventional,
off the shelf processes. This initial test work
campaign was performed on the 10L scale and
showed >90% lithium recovery. This is an important
first step to demonstrate that LiCl can be extracted
from the geothermal brine without the need to
evaporate the water, or remove the calcium, sodium,
or large quantities of other salts. This is required
in evaporative processes in South America, which
creates major waste streams, and also may disturb
freshwater aquifers connected to brine aquifers
if brine is not reinjected. The Upper Rhine Valley
brine is a unique geothermal brine which contains
both high grades of lithium and lower impurities
compared to other lithium-rich geothermal brines.
The concentration of LiCl concentrate produced
from geothermal brine will be further increased
using reverse osmosis and mechanical evaporation.
The power and heat needed for these processes
will come from renewable geothermal energy which
Vulcan will co-produce alongside lithium chemicals.
Different, industry-standard downstream process
flowsheets are then available to produce battery
grade lithium hydroxide, with a focus on carbon-
neutral processing and minimal environmental and
physical footprints. Results from this test work were
used in Vulcan’s Pre-Feasibility Study.
COMPLETION OF ACQUISITION OF 3D SEISMIC
PACKAGE TO ACCELERATE PROJECT
DEVELOPMENT
Vulcan completed the acquisition of a data package
over several of its license application areas, within
the Vulcan Zero Carbon Lithium™ Project in the
Upper Rhine Valley, Germany, consisting of:
• A 3D seismic survey of approx. 50km2 size.
• Eight 2D seismic lines of a total length of 80 km.
• Several reports and studies on the geology of the
explored area.
With this acquisition Vulcan has saved over a year of
exploration time in certain areas and approximately
70% of the survey cost.
UPDATED TARO INDICATED AND INFERRED LITHIUM-
BRINE RESOURCE & INCREASED ZERO CARBON
LITHIUM™ PROJECT JORC RESOURCE
Vulcan announced the grant of its Taro license in
the Vulcan Zero Carbon Lithium™ Project area in the
Upper Rhine Valley during the year. In December,
Vulcan announced an updated Indicated and Inferred
lithium-brine (Li-brine) Resource Estimation for its
Taro License in the Vulcan Zero Carbon Lithium™
Project area in the Upper Rhine Valley. In conjunction
with this, Vulcan re-totalled the collective Mineral
Resource estimations for the Upper Rhine Valley
Project (URVP) area within the Zero Carbon Lithium™
Project.
The Taro Exploration License has been granted to
Global Geothermal Holding UG (GGH), which has now
been 100% acquired by Vulcan.
The updated JORC Indicated Mineral Resource
Estimation at Taro is 0.83 Mt contained LCE at a
grade of 181 mg/l Li. The updated Inferred Mineral
Resource Estimation at Taro is 1.44 Mt contained LCE
at a grade of 181 mg/l Li.
UPDATED ORTENAU INDICATED AND INFERRED
LITHIUM-BRINE RESOURCE & ZERO CARBON
LITHIUM™ PROJECT JORC RESOURCE
Vulcan also announced updated Indicated and
Inferred Li-brine Resource Estimations for its
Ortenau license in the Vulcan Zero Carbon Lithium™
Project area in the Upper Rhine Valley. In conjunction
with this, Vulcan re-totalled the collective Mineral
Resource estimations for the Company’s URVP area
within the Zero Carbon Lithium™ Project.
The Ortenau Exploration License is held 100% held
by Vulcan. The now disclosed and updated JORC
Indicated Mineral Resource Estimation at Ortenau is
2.06 Mt contained LCE in the Buntsandstein Group
fault zone domain at a grade of 181 mg/l Li. The
updated Inferred Mineral Resource Estimation at
Ortenau is 10.80 Mt contained LCE in the remaining
Buntsandstein Group domain at a grade of
181 mg/l Li.
With the addition of the updated Ortenau Li-brine
mineral resources, Vulcan’s total combined URVP
resource is now estimated at 15.85 Mt LCE at a grade
of 181 mg/l Li (Indicated & Inferred Resources), the
largest JORC lithium resource in Europe, and with
further growth potential. The Ortenau project was
subsequently integrated into the PFS at the Vulcan
Zero Carbon Lithium™ Project.
55 \ Vulcan Energy Resources Limited
2021 Annual Report / 56
MAIDEN JORC RESERVES
Vulcan also published a maiden Probable Ore Reserve of 1.12 Mt LCE at 181 mg/l Li
across the Ortenau and Taro licenses.
Million Tonnes LCE
Grade (Li ppm)
Classification
Proven
Probable - Taro
Probable - Ortenau
Total
-
0.42
0.70
1.12
-
181
181
181
For further details on the Maiden JORC Ore Reserve please refer to ASX announcement dated 15 January 2021.
The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement
and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not
materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified
from the original market announcement.
LITHIUM EXTRACTION TEST WORK RESULTS
SHOW EXCELLENT LITHIUM RECOVERIES
Vulcan successfully completed initial bench-scale
test work on Upper Rhine Valley geothermal brine,
using absorbent-type direct lithium extraction
(DLE) technological approaches. Vulcan was able to
quickly identify and test the best DLE technology
options for the Upper Rhine Valley brine by
leveraging the experiences of its in-house chemical
engineering team and external consultants, who
have worked on multiple geothermal lithium
projects with numerous DLE technologies. Lithium
chloride (LiCl) concentrates were produced from
real geothermal brine that was supplied at ambient
pressure from Vulcan’s area of focus in the Upper
Rhine Valley.
if brine is not reinjected. The Upper Rhine Valley
brine is a unique geothermal brine which contains
both high grades of lithium and lower impurities
compared to other lithium-rich geothermal brines.
The concentration of LiCl concentrate produced
from geothermal brine will be further increased
using reverse osmosis and mechanical evaporation.
The power and heat needed for these processes
will come from renewable geothermal energy which
Vulcan will co-produce alongside lithium chemicals.
Different, industry-standard downstream process
flowsheets are then available to produce battery
grade lithium hydroxide, with a focus on carbon-
neutral processing and minimal environmental and
physical footprints. Results from this test work were
used in Vulcan’s Pre-Feasibility Study.
Materials and techniques used during the extraction
COMPLETION OF ACQUISITION OF 3D SEISMIC
process are similar to those already used in other
PACKAGE TO ACCELERATE PROJECT
commercial and near-commercial lithium brine
projects. The produced LiCl concentrate is an
industry standard precursor used for conversion into
battery-quality lithium hydroxide using conventional,
off the shelf processes. This initial test work
campaign was performed on the 10L scale and
showed >90% lithium recovery. This is an important
first step to demonstrate that LiCl can be extracted
from the geothermal brine without the need to
evaporate the water, or remove the calcium, sodium,
or large quantities of other salts. This is required
in evaporative processes in South America, which
creates major waste streams, and also may disturb
freshwater aquifers connected to brine aquifers
DEVELOPMENT
Vulcan completed the acquisition of a data package
over several of its license application areas, within
the Vulcan Zero Carbon Lithium™ Project in the
Upper Rhine Valley, Germany, consisting of:
• A 3D seismic survey of approx. 50km2 size.
• Eight 2D seismic lines of a total length of 80 km.
• Several reports and studies on the geology of the
explored area.
With this acquisition Vulcan has saved over a year of
exploration time in certain areas and approximately
70% of the survey cost.
UPDATED TARO INDICATED AND INFERRED LITHIUM-
BRINE RESOURCE & INCREASED ZERO CARBON
LITHIUM™ PROJECT JORC RESOURCE
Vulcan announced the grant of its Taro license in
the Vulcan Zero Carbon Lithium™ Project area in the
Upper Rhine Valley during the year. In December,
Vulcan announced an updated Indicated and Inferred
lithium-brine (Li-brine) Resource Estimation for its
Taro License in the Vulcan Zero Carbon Lithium™
Project area in the Upper Rhine Valley. In conjunction
with this, Vulcan re-totalled the collective Mineral
Resource estimations for the Upper Rhine Valley
Project (URVP) area within the Zero Carbon Lithium™
Project.
The Taro Exploration License has been granted to
Global Geothermal Holding UG (GGH), which has now
been 100% acquired by Vulcan.
The updated JORC Indicated Mineral Resource
Estimation at Taro is 0.83 Mt contained LCE at a
grade of 181 mg/l Li. The updated Inferred Mineral
Resource Estimation at Taro is 1.44 Mt contained LCE
at a grade of 181 mg/l Li.
UPDATED ORTENAU INDICATED AND INFERRED
LITHIUM-BRINE RESOURCE & ZERO CARBON
LITHIUM™ PROJECT JORC RESOURCE
Vulcan also announced updated Indicated and
Inferred Li-brine Resource Estimations for its
Ortenau license in the Vulcan Zero Carbon Lithium™
Project area in the Upper Rhine Valley. In conjunction
with this, Vulcan re-totalled the collective Mineral
Resource estimations for the Company’s URVP area
within the Zero Carbon Lithium™ Project.
The Ortenau Exploration License is held 100% held
by Vulcan. The now disclosed and updated JORC
Indicated Mineral Resource Estimation at Ortenau is
2.06 Mt contained LCE in the Buntsandstein Group
fault zone domain at a grade of 181 mg/l Li. The
updated Inferred Mineral Resource Estimation at
Ortenau is 10.80 Mt contained LCE in the remaining
Buntsandstein Group domain at a grade of
181 mg/l Li.
With the addition of the updated Ortenau Li-brine
mineral resources, Vulcan’s total combined URVP
resource is now estimated at 15.85 Mt LCE at a grade
of 181 mg/l Li (Indicated & Inferred Resources), the
largest JORC lithium resource in Europe, and with
further growth potential. The Ortenau project was
subsequently integrated into the PFS at the Vulcan
Zero Carbon Lithium™ Project.
55 \ Vulcan Energy Resources Limited
2021 Annual Report / 56
VULCAN’S COMBINED UPPER RHINE VALLEY PROJECT LI-BRINE INDICATED
AND INFERRED MINERAL RESOURCE ESTIMATES.
URVP Resources
Aquifer
Volume
(km3)
Brine
Volume
(km3)
Avg. Li
Conc.
(mg/l Li)
Avg.
Porosity
(%)
Contained
Elemental
Li Resource
Tonnes
Contained
LCE Million
Tonnes
Ortenau Inferred Resource
estimation
117.974
11.208
Ortenau Indicated
Resource estimation
Taro Inferred Resource
estimation
17.001
2.142
15.924
1.497
181
181
181
Taro Indicated Resource
estimation
8.419
0.861
181
Geothermal MoU area
Indicated Resource
estimation
Total URVP Indicated
Resources used in PFS
8.322
0.749
25.42
3.003
Total URVP Indicated and
Inferred Resource
167.64
16.457
181
181
181
9.50
2,029,000
10.80
12.60
388,000
2.06
9 .5 (Bunt)
9.0 (Rot)
12.6 (BFZ)
9.5 (BHRE)
12.1 (RFZ)
9.0 (RHRE)
217,000
1.44
156,000
0.83
9.00 (P-T)
136,000
0.72
/
/
544,000
2.89
2,980,000
15.85
Note 1: Mineral resources are not mineral reserves and do not have demonstrated economic viability. Note 2: The weights are reported in metric tonnes (1,000 kg or 2,204.6
lbs). Numbers may not add up due to rounding of the resource values percentages (rounded to the nearest 1,000 unit). Note 3: The total volume and weights are estimated
at the average porosities cited in the table. Taro resource abbreviations: Bunt – Buntsandstein Group; Rot – Rotliegend Group; P-T – Permo-Triassic; BFZ – Buntsandstein
fault zone; BHRE - Buntsandstein host rock envelope; RFZ – Rotliegend fault zone; RHRE – Rotliegend host rock envelope. Note 4: The Vulcan Li-brine Project estimation
was completed and reported using a lower cutoff of 100 mg/L Li. Note 5: In order to describe the resource in terms of industry standard, a conversion factor of 5.323 is
used to convert elemental Li to Li2CO3, or Lithium Carbonate Equivalent (LCE). 6: The Mineral Resources that underpin the PFS results are reported inclusive of any
reserves. 7: There has been no change to this Mineral Resource statement since publication. The Company confirms that it is not aware of any new information or data
that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the
estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the
Competent Person’s findings are presented have not been materially modified from the original market announcement.
ZERO CARBON LITHIUM™ PROJECT
INTELLECTUAL PROPERTY UPDATE
The Company was recently granted a utility patent in
Germany for its system of direct lithium extraction
and production of low carbon intensity lithium
chemicals from geothermal brines. An international
Patent Cooperation Treaty (PCT) application has
been submitted and is pending.
DUPONT COLLABORATION
Vulcan announced that it will collaborate with DuPont
Water Solutions, a leader in water filtration and
purification, to test and scale up DLE solutions for
Vulcan’s lithium extraction process.
57 \ Vulcan Energy Resources Limited
DuPont will leverage its portfolio of proprietary DLE
products to assist Vulcan with input and test-work
during Vulcan’s DFS. As part of the project, DuPont
will be developing and testing an integrated DLE
Process for Vulcan’s brine. DuPont’s multi-technology
portfolio of lithium selective sorbent, nanofiltration,
reverse osmosis, ion exchange resins, ultrafiltration,
and close circuit reverse osmosis will be leveraged
for the study. This agreement is in line with the
Company’s strategy to test and pursue commercially
mature DLE products from major suppliers for its
project to minimise technical risks and accelerate
development of the project.
For further details on the DuPont collaboration Please refer to the ASX
Announcement dated 15 December 2020 which refers to the Company’s Mineral
Resource.
2021 Annual Report / 58
VULCAN’S COMBINED UPPER RHINE VALLEY PROJECT LI-BRINE INDICATED
AND INFERRED MINERAL RESOURCE ESTIMATES.
URVP Resources
Aquifer
Volume
(km3)
Brine
Volume
(km3)
Avg. Li
Conc.
Avg.
Porosity
(mg/l Li)
(%)
Contained
Elemental
Li Resource
Tonnes
Contained
LCE Million
Tonnes
Ortenau Inferred Resource
estimation
Ortenau Indicated
Resource estimation
Taro Inferred Resource
estimation
Taro Indicated Resource
estimation
Geothermal MoU area
Indicated Resource
estimation
Total URVP Indicated
Resources used in PFS
117.974
11.208
9.50
2,029,000
10.80
17.001
2.142
12.60
388,000
2.06
15.924
1.497
217,000
1.44
8.419
0.861
181
156,000
0.83
8.322
0.749
9.00 (P-T)
136,000
0.72
25.42
3.003
544,000
2.89
181
181
181
181
181
181
9 .5 (Bunt)
9.0 (Rot)
12.6 (BFZ)
9.5 (BHRE)
12.1 (RFZ)
9.0 (RHRE)
/
/
Total URVP Indicated and
Inferred Resource
167.64
16.457
2,980,000
15.85
Note 1: Mineral resources are not mineral reserves and do not have demonstrated economic viability. Note 2: The weights are reported in metric tonnes (1,000 kg or 2,204.6
lbs). Numbers may not add up due to rounding of the resource values percentages (rounded to the nearest 1,000 unit). Note 3: The total volume and weights are estimated
at the average porosities cited in the table. Taro resource abbreviations: Bunt – Buntsandstein Group; Rot – Rotliegend Group; P-T – Permo-Triassic; BFZ – Buntsandstein
fault zone; BHRE - Buntsandstein host rock envelope; RFZ – Rotliegend fault zone; RHRE – Rotliegend host rock envelope. Note 4: The Vulcan Li-brine Project estimation
was completed and reported using a lower cutoff of 100 mg/L Li. Note 5: In order to describe the resource in terms of industry standard, a conversion factor of 5.323 is
used to convert elemental Li to Li2CO3, or Lithium Carbonate Equivalent (LCE). 6: The Mineral Resources that underpin the PFS results are reported inclusive of any
reserves. 7: There has been no change to this Mineral Resource statement since publication. For further details on the DuPont collaboration Please refer to the ASX
Announcement dated 15 December 2020 which refers to the Company’sMineral Resource. The company confirms that it is not aware of any new information or data that
materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates
in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent
Person’s findings are presented have not been materially modified from the original market announcement.
ZERO CARBON LITHIUM™ PROJECT
INTELLECTUAL PROPERTY UPDATE
The Company was recently granted a utility patent in
Germany for its system of direct lithium extraction
and production of low carbon intensity lithium
chemicals from geothermal brines. An international
Patent Cooperation Treaty (PCT) application has
been submitted and is pending.
DUPONT COLLABORATION
Vulcan announced that it will collaborate with DuPont
Water Solutions, a leader in water filtration and
purification, to test and scale up DLE solutions for
Vulcan’s lithium extraction process.
57 \ Vulcan Energy Resources Limited
DuPont will leverage its portfolio of proprietary DLE
products to assist Vulcan with input and test-work
during Vulcan’s DFS. As part of the project, DuPont
will be developing and testing an integrated DLE
Process for Vulcan’s brine. DuPont’s multi-technology
portfolio of lithium selective sorbent, nanofiltration,
reverse osmosis, ion exchange resins, ultrafiltration,
and close circuit reverse osmosis will be leveraged
for the study. This agreement is in line with the
Company’s strategy to test and pursue commercially
mature DLE products from major suppliers for its
project to minimise technical risks and accelerate
development of the project.
2021 Annual Report / 58
Strengthened cash position - $120m raised from ESG investors$120 MILLION INSTITUTIONAL PLACEMENTThe Company raised $120 million (before costs) through a strongly supported placement at $6.50 per share to a suite of ESG-focused institutions. Goldman Sachs and Canaccord Genuity acted as Joint Lead Managers. Proceeds from the Placement will support the Company through to final investment decision at its Zero Carbon Lithium™ Project, with funds being applied to:•Project development, feasibility study costs and permitting;•Drill site acquisition and preparation;•Strategic opportunities to accelerate projectdevelopment – Vulcan is assessing options toacquire existing infrastructure in Germany to accelerate development.Growth of best-in class teamGENERAL COMMENTARY ABOUT GROWING INTO A WORLD-CLASS, 70+ STRONG TEAMVulcan continues to assemble a best-in-class team of professionals in the fields of geothermal renewable energy project development and lithium extraction across its two business sectors.ACQUISITION OF WORLD-LEADING GERMANBASED GEOTHERMAL CONSULTANCY TEAMThe Company signed a Binding agreement to acquire 100% of geothermal sub-surface engineering company GeoThermal Engineering GmbH (GeoT). GeoT has a highly credentialed, world-leading scientific team with over a century of combined expertise in sub-surface development of geothermal projects, encompassing everything from exploration to production drilling. GeoT is based in the Upper Rhine Valley, Germany, and is owned by Vulcan Executive Director Dr Horst Kreuter. GeoT has been working closely with the Vulcan team since the inception of Vulcan’s Zero Carbon Lithium™ Project. This acquisition was completed following the close of the 2021 Financial Year.For further information on the acquisition of GeoT, please refer to ASX announcement dated 10 February 2021.ACQUISITION OF GLOBAL ENGINEERING & CONSULTING GMBHThe Company has acquired 100% of geothermal surface consultancy company Global Engineering and Consulting GmbH (Gec-co). Gec-co has a world-leading engineering team with significant experience in surface development of geothermal projects world-wide.For further information on the acquisition of Gec-Co, please refer to ASX announcement dated 27 April 2021.Agreement to acquire GeoThermal Engineering GmbHOur process replicated existing operations taking place commercially across the world. What is unique about us is the combination of these different steps. Regulatory EnvironmentEU BACKED INVESTMENT & PROJECT SUPPORT AGREEMENTA project support agreement and investment agreement was signed with EU-backed EIT InnoEnergy during the year.EUROPEAN COMMISSION REGULATION ON SUSTAINABLE BATTERIES AND CARBON FOOTPRINTA proposed new Regulation from the European Commission during the year included mandatory requirements on carbon footprint rules and responsibly sourced materials within lithium-ion batteries production and consumption in the EU. From 1 January 2026, lithium-ion batteries will have to bear a carbon intensity performance class label and from 1 July 2027, must comply with maximum carbon footprint thresholds.Manufacturers will have to demonstrate that they are sourcing raw materials in a responsible way through a digital passport, tracking all battery materials used in the battery composition. European Commission Vice-President Maroš Šefčovič: “[The new EU battery CO2 regulation] will have an The cornerstone investment was provided by Hancock Prospecting Pty Ltd, one of the most successful private companies in Australian history and a leader in the resources industry, which is led by Executive Chair Mrs. Gina Rinehart. Chairman, Gavin Rezos, participated in the Placement for $250,000 (38,461 New Shares), which was approved by shareholders at the Extraordinary General Meeting (EGM) on 24 June 2021.immediate impact on the market, which up until now has been driven only by price.” EU commissioner Thierry Breton “We are 100% dependent on lithium imports. The EU, if finding the right environmental approach, will be self-sufficient in a few years, using its resources.”This announcement is highly relevant to Vulcan’s strategy to develop the world’s first Zero Carbon LithiumTM Project directly supplying the European market from within Europe.GERMAN LEGISLATION EMBRACES GEOTHERMAL ENERGYDuring the year, the German Parliament and Federal Council (Bundesrat) voted to encourage geothermal electricity production by postponing the degression of the Feed-in Tariff of €0.252/kWh, one of the most favourable geothermal Feed-in Tariffs in the world. Vulcan’s Zero Carbon LithiumTM Project has the potential to generate dual revenue from geothermal renewable electricity and lithium sales.Binary Cycle Geothermal PlantDirect Lithium Extraction PlantCentral Lithium Plant1.2.3.Above SurfaceSub SurfaceGeology & hydrogeology geothermal sub-surfaceGeothermal BrineUpper Rhine Valley ReservoirEngineering studies for geothermal plantIs now part ofGec-co - Engineering company focused on deep geothermal projects at surface: power plant, heat stations, drill pads, and permitting. More than 300 years engineering knowledge of gec-co’s team. Created in 2012.Geothermal Engineering - Planning and Engineering company for deep geothermal energy projects, based in the Upper Rhine Valley, Germany. Highly credentialed scientific team with >100 years of combined world-leading expertise. Created in 2005.2021 Annual Report/6059 \ Vulcan Energy Resources Limited Strengthened cash position - $120m raised from ESG investorsA$120 MILLION INSTITUTIONAL PLACEMENTThe Company raised A$120 million (before costs)through a strongly supported placement at A$6.50 per share to a suite of ESG-focused institutions. Goldman Sachs and Canaccord Genuity acted as Joint Lead Managers. Proceeds from the Placement will support the Company through to final investment decision at its Zero Carbon Lithium™ Project, with funds being applied to:•Project development, feasibility study costsand permitting;•Drill site acquisition and preparation;•Strategic opportunities to accelerate projectdevelopment – Vulcan is assessing options to acquire existing infrastructure in Germany to accelerate development.Growth of best-in class teamGENERAL COMMENTARY ABOUT GROWING INTO A WORLD-CLASS, 70+ STRONG TEAMVulcan continues to assemble a best-in-class team of professionals in the fields of geothermal renewable energy project development and lithium extraction across its two business sectors.ACQUISITION OF WORLD-LEADING GERMAN BASED GEOTHERMAL CONSULTANCY TEAMThe Company signed a Binding agreement to acquire 100% of geothermal sub-surface engineering company GeoThermal Engineering GmbH (GeoT). GeoT has a highly credentialed, world-leading scientific team with over a century of combined expertise in sub-surface development of geothermal projects, encompassing everything from exploration to production drilling. GeoT is based in the Upper Rhine Valley, Germany, and is owned by Vulcan Executive Director Dr Horst Kreuter. GeoT has been working closely with the Vulcan team since the inception of Vulcan’s Zero Carbon Lithium™ Project. This acquisition was completed following the close of the 2021 Financial Year.For further information on the acquisition of GeoT, please refer to ASX announcement dated 10 February 2021.ACQUISITION OF GLOBAL ENGINEERING & CONSULTING GMBHThe Company has acquired 100% of geothermal surface consultancy company Global Engineering and Consulting GmbH (Gec-co). Gec-co has a world-leading engineering team with significant experience in surface development of geothermal projects world-wide.For further information on the acquisition of Gec-Co, please refer to ASX announcement dated 27 April 2021.Our process replicated existing operations taking place commercially across the world. What is unique about us is the combination of these different steps. Regulatory EnvironmentEU BACKED INVESTMENT & PROJECT SUPPORT AGREEMENTA project support agreement and investment agreement was signed with EU-backed EIT InnoEnergy during the year.EUROPEAN COMMISSION REGULATION ON SUSTAINABLE BATTERIES AND CARBON FOOTPRINTA proposed new Regulation from the European Commission during the year included mandatory requirements on carbon footprint rules and responsibly sourced materials within lithium-ion batteries production and consumption in the EU.From 1 January 2026, lithium-ion batteries will have to bear a carbon intensity performance class label and from 1 July 2027, must comply with maximum carbon footprint thresholds.Manufacturers will have to demonstrate that they are sourcing raw materials in a responsible way through a digital passport, tracking all battery materials used in the battery composition. European Commission Vice-President Maroš Šefčovič: “[The new EU battery CO2 regulation] will have an The cornerstone investment was provided by Hancock Prospecting Pty Ltd, one of the most successful private companies in Australian history and a leader in the resources industry, which is led by Executive Chair Mrs. Gina Rinehart. Chairman, Gavin Rezos, participated in the Placement for $250,000 (38,461 New Shares), which was approved by shareholders at the Extraordinary General Meeting (EGM) on 24 June 2021.immediate impact on the market, which up until now has been driven only by price.” EU commissioner Thierry Breton “We are 100% dependent on lithium imports. The EU, if finding the right environmental approach, will be self-sufficient in a few years, using its resources.”This announcement is highly relevant to Vulcan’s strategy to develop the world’s first Zero Carbon LithiumTM Project directly supplying the European market from within Europe.GERMAN LEGISLATION EMBRACES GEOTHERMAL ENERGYDuring the year, the German Parliament and Federal Council (Bundesrat) voted to encourage geothermal electricity production by postponing the degression of the Feed-in Tariff of €0.252/kWh, one of the most favourable geothermal Feed-in Tariffs in the world. Vulcan’s Zero Carbon LithiumTMProject has the potential to generate dual revenue from geothermal renewable electricity and lithium sales.Binary Cycle Geothermal PlantDirect Lithium Extraction PlantCentral Lithium Plant1.2.3.Above SurfaceSub SurfaceGeology & hydrogeology geothermal sub-surfaceGeothermal BrineUpper Rhine Valley ReservoirEngineering studies for geothermal plantIs now part ofGec-co - Engineering company focused on deep geothermal projects at surface: power plant, heat stations, drill pads, and permitting. More than 300 years engineering knowledge of gec-co’s team. Created in 2012.Geothermal Engineering - Planning and Engineering company for deep geothermal energy projects, based in the Upper Rhine Valley, Germany. Highly credentialed scientific team with >100 years of combined world-leading expertise. Created in 2005.2021 Annual Report / 6059\Vulcan Energy Resources Limited ACQUISITION OF GLOBAL GEOTHERMAL HO LDING UG
Vulcan signed a Binding agreement to acquire 100% of
Global Geothermal Holding UG (GGH), subject to
shareholder approval. GGH is Vulcan’s joint venture
partner holding the granted Taro license in the Upper
Rhine Valley as well as the Ludwig and Heßbach
(formerly Rheinau) exploration license applications.
The Taro license has a JORC Resource Estimation of
2.27 Mt contained Lithium Carbonate Equivalent (LCE)
at a grade of 181 mg/l Li (Indicated and Inferred). This
acquisition consolidates Vulcan’s major strategic
holding in the Upper Rhine Valley, as part of the plan
to rapidly advance the Zero Carbon Lithium™ Project
towards production. The acquisition was completed
following the close of the 2021 Financial Year.
For further details on the acquisition of GGH please refer to
ASX announcement dated 15 February 2021.
VULCAN TEAM APPOINTMENTS
The Company employed a Chief Operating Officer in
Germany, Mr Thorsten Weimann. Mr Weimann has +25
years’ experience in geothermal project development
and operation in Germany, with a strong track record
since 2007 of successful geothermal project
execution as CEO of Global Engineering & Consulting
GmbH. Mr Weimann is a mechanical engineer with a
diploma from Technical University of Munich and an
MBA from the University of Augsburg and Pittsburgh.
New Board appointments include former Tesla head
of Battery Supply Chain Ms. Annie Liu, and Senior
Executive for German chemicals company Evonik, Dr.
Heidi Grön, as Non-Executive Directors. Ms.
Liu led and managed Tesla’s multi-billion-dollar
strategic partnerships and sourcing portfolios
that support Tesla’s Energy and Battery business
units including Batteries, Battery Raw Material,
Energy Storage, Solar and Solar Glass, including raw
materials sourcing efforts such as lithium for battery
cells. Ms. Liu is also a cofounder of Alto Group Inc, a
trusted advisor and counsellor to many of the world’s
influential businesses in the EV value chain. Dr Grön is
a chemical engineer by background with 20 years’
experience in the chemicals industry. In her capacity
as Senior Vice President Production & Technology at
Evonik, Dr Grön is currently responsible for Global
Product Safety of nine large growth business units,
impact assessment and development of solutions for
the chemicals strategy for sustainability
as an essential part of the EU Green Deal, and
management of Evonik’s major investment volumes.
61 \ Vulcan Energy Resources Limited
In parallel to the new Board appointments, Dr Horst
Kreuter retired from the Vulcan Board to fully focus
on his role as Executive Director for Vulcan’s project
development company in Germany. Dr Kreuter has
been appointed as a Board Advisor in relation to
geothermal project development. This change is
in line with the Board policy of having a majority of
independent directors.
The Company also welcomed Julia Poliscanova, EU
sustainable battery and CO2 policy expert, as special
advisor to the Board. Ms. Poliscanova is a Senior
Director with the EU’s Transport and Environment
(T&E). She has been instrumental in shaping policies
around EU vehicle CO2 standards and sustainable
batteries, heading T&E’s vehicles programme
since 2019 which recently culminated in the EU CO2
battery regulations announced in December 2020,
effectively banning high-CO2 & “uncircular”
batteries in the EU.
Former EY Senior Global Renewables Partner
Josephine Bush joined the Vulcan Board as a Non-
Executive Director. Ms Bush led the Renewables
Tax Practice of EY from a greenfield proposal to a
multi-million pound annual turnover business.
Ms Bush also advised on the structuring of the first
environmental yieldco London Stock Exchange
listing, Greencoat UK Wind (with a market cap. of
£2 billion) and successfully advised on a series of
OFTO and offshore wind investments in the United
Kingdom and United States for both Pension Fund,
Infra and Corporate Investors.
The Company appointed lithium process expert Dr
Stephen Harrison as Chief Technical Officer. Dr.
Harrison has a diverse multi-industry background
in electrochemistry and lithium extraction, with
thorough knowledge of all steps of industry process
and product commercialisation in the lithium
industry dating back to 1998. Dr Harrison was CTO of
Simbol Materials for seven years where he oversaw
their patent DLE process. Dr. Harrison holds a PhD
for Chemical Engineering from the University of
Newcastle-upon-Tyne and Master of Science (M.Sc.),
Electrochemical Science, from the University of
Southampton.
The Company also appointed Daniel Tydde as
Company Secretary and In-House Legal Counsel. Mr
Tydde brings over 15 years’ experience across a wide
range of corporate, commercial and finance areas
including, corporate regulatory compliance;
corporate governance; equity and debt capital
raisings; asset and share sales and purchases; initial
public offerings; corporate restructuring and re-
organisations; and litigation. Most recently, Daniel
held a senior position at Steinepreis Paganin and
prior to that, worked at Clayton Utz and Phillips Fox
engineering company Fluor Inc.
(now DLA Piper). Daniel holds a Bachelor of Laws and
a Bachelor of Commerce from the University of Notre
SPIN-OFF OF NON-CORE SCANDINAVIAN
Dame Australia.
BATTERY METALS PROJECTS
In June, the Company announced the lodgement
of the Kuniko Limited IPO Prospectus to raise
$7,886,213 (before costs) to form a new standalone
‘Zero Carbon Copper, Nickel, Cobalt’ company. The
spin-off of the Scandinavian projects enables the
Company to be fully focused on development of its
core Zero Carbon Lithium™ combined renewable
energy and lithium chemicals Project in Germany.
Focus will be on Kuniko’s 262km2 Ni-Co-Cu
license portfolio:
• Nickel: Ni-Cu-Co projects in the historically
important Feøy and Romsås mining districts
located in south-western Norway.
• Cobalt: Co-Cu-Au project, part of the historically
important Skuterud mining district of central-
southern Norway, previously the largest cobalt
mining area in the world.
• Copper: Undal Cu-Zn-Co project and Vangrøfta
Cu-Co-Au projects located in the Trondheim
region of central Norway.
Antony Beckmand, a highly experienced senior
mining executive who has over 25 years’ experience
in financial and executive roles within the mining
industry, including significant experience in Norway,
commenced as Chief Executive Officer of Kuniko on
1 September 2021.
The spin-off of Kuniko allows the Vulcan team to be
fully focused on the development of its Zero Carbon
Lithium™ Business, whilst creating value for the
Company’s shareholders.
Vincent Ledoux-Pedailles was announced to
have joined Vulcan as Vice President – Business
Development. Vincent was previously Executive
Director - Corporate Strategy at Infinity Lithium
Corporation, where he led the project to become
the first to secure EU funding. Vincent was also
appointed as a Lithium Expert by the European
Commission.
Vincent previously worked at IHS Markit where he
led the lithium and battery materials research team
covering the entire industry’s supply chain from raw
materials to E-mobility. When he joined IHS Markit he
first focused on chemical trading and led the EMEA
Chlor-alkali team.
Earlier in his career, he worked for Talison Lithium
located in Perth, Australia, tracking the lithium
industry in China and Europe. He also worked
for Roskill, an international metals and minerals
research and consulting company. Vincent is a
regular speaker at various industry events across
the world presenting at chemical, mining, and energy
related conferences.
Vincent holds a Business Masters in Risk
Management and International Purchasing from
ESDES Business School in France. He wrote his
master's thesis on the development and deployment
of electric vehicles powered by lithium-ion batteries.
He has also studied at Copenhagen Business School,
Denmark and Marshall University, US.
Vulcan announced the appointment of expert
chemical & mechanical engineer Dr. Thomas Aicher
to the Vulcan Zero Carbon Lithium™ team, as
Chemical Engineering Lead.
Dr. Aicher has 25 years’ experience in chemical
process innovation and industrial scale-up across
a range of industries. Awarded a PhD and MSc in
Chemical Engineering from the world-renowned
Karlsruhe Institute of Technology (KIT), Dr. Aicher
was also a visiting scientist at the Massachusetts
Institute of Technology (MIT). Dr. Aicher was Head
of Group at Fraunhofer Institute, one of the most
prestigious organisations of applied sciences
in Europe, and Process Engineer at Fortune 500
2021 Annual Report / 62
ACQUISITION TO ACQUIRE GLOBAL
GEOTHERMAL HOLDING UG
Vulcan signed a Binding agreement to acquire 100%
of Global Geothermal Holding UG (GGH), subject to
shareholder approval. GGH is Vulcan’s joint venture
partner holding the granted Taro license in the Upper
Rhine Valley as well as the Ludwig and Heßbach
(formerly Rheinau) exploration license applications.
In parallel to the new Board appointments, Dr Horst
Kreuter retired from the Vulcan Board to fully focus
on his role as Executive Director for Vulcan’s project
development company in Germany. Dr Kreuter has
been appointed as a Board Advisor in relation to
geothermal project development. This change is
in line with the Board policy of having a majority of
independent directors.
The Taro license has a JORC Resource Estimation of
The Company also welcomed Julia Poliscanova, EU
2.27 Mt contained Lithium Carbonate Equivalent (LCE)
at a grade of 181 mg/l Li (Indicated and Inferred). This
sustainable battery and CO2 policy expert, as special
advisor to the Board. Ms. Poliscanova is a Senior
acquisition consolidates Vulcan’s major strategic
Director with the EU’s Transport and Environment
holding in the Upper Rhine Valley, as part of the plan
(T&E). She has been instrumental in shaping policies
to rapidly advance the Zero Carbon Lithium™ Project
towards production. The acquisition was completed
following the close of the 2021 Financial Year.
For further details on the acquisition of GGH please refer to
ASX announcement dated 15 February 2021.
VULCAN TEAM APPOINTMENTS
The Company employed a Chief Operating Officer in
Germany, Mr Thorsten Weimann. Mr Weimann has +25
years’ experience in geothermal project development
and operation in Germany, with a strong track record
since 2007 of successful geothermal project
execution as CEO of Global Engineering & Consulting
GmbH. Mr Weimann is a mechanical engineer with a
diploma from Technical University of Munich and an
MBA from the University of Augsburg and Pittsburgh.
New Board appointments include former Tesla head
of Battery Supply Chain Ms. Annie Liu, and Senior
Executive for German chemicals company Evonik, Dr.
Heidi Grön, as Non-Executive Directors. Ms.
Liu led and managed Tesla’s multi-billion-dollar
strategic partnerships and sourcing portfolios
that support Tesla’s Energy and Battery business
units including Batteries, Battery Raw Material,
Energy Storage, Solar and Solar Glass, including raw
materials sourcing efforts such as lithium for battery
cells. Ms. Liu is also a cofounder of Alto Group Inc, a
trusted advisor and counsellor to many of the world’s
influential businesses in the EV value chain. Dr Grön is
a chemical engineer by background with 20 years’
experience in the chemicals industry. In her capacity
as Senior Vice President Production & Technology at
Evonik, Dr Grön is currently responsible for Global
Product Safety of nine large growth business units,
impact assessment and development of solutions for
the chemicals strategy for sustainability
as an essential part of the EU Green Deal, and
management of Evonik’s major investment volumes.
around EU vehicle CO2 standards and sustainable
batteries, heading T&E’s vehicles programme
since 2019 which recently culminated in the EU CO2
battery regulations announced in December 2020,
effectively banning high-CO2 & “uncircular”
batteries in the EU.
Former EY Senior Global Renewables Partner
Josephine Bush joined the Vulcan Board as a Non-
Executive Director. Ms Bush led the Renewables
Tax Practice of EY from a greenfield proposal to a
multi-million pound annual turnover business.
Ms Bush also advised on the structuring of the first
environmental yieldco London Stock Exchange
listing, Greencoat UK Wind (with a market cap. of
£2 billion) and successfully advised on a series of
OFTO and offshore wind investments in the United
Kingdom and United States for both Pension Fund,
Infra and Corporate Investors.
The Company appointed lithium process expert Dr
Stephen Harrison as Chief Technical Officer. Dr.
Harrison has a diverse multi-industry background
in electrochemistry and lithium extraction, with
thorough knowledge of all steps of industry process
and product commercialisation in the lithium
industry dating back to 1998. Dr Harrison was CTO of
Simbol Materials for seven years where he oversaw
their patent DLE process. Dr. Harrison holds a PhD
for Chemical Engineering from the University of
Newcastle-upon-Tyne and Master of Science (M.Sc.),
Electrochemical Science, from the University of
Southampton.
The Company also appointed Daniel Tydde as
Company Secretary and In-House Legal Counsel. Mr
Tydde brings over 15 years’ experience across a wide
range of corporate, commercial and finance areas
including, corporate regulatory compliance;
corporate governance; equity and debt capital
raisings; asset and share sales and purchases; initial
public offerings; corporate restructuring and re-
organisations; and litigation. Most recently, Daniel
held a senior position at Steinepreis Paganin and
engineering company Fluor Inc.
SPIN-OFF OF NON-CORE SCANDINAVIAN
BATTERY METALS PROJECTS
In June, the Company announced the lodgement
of the Kuniko Limited IPO Prospectus to raise
$7,886,213 (before costs) to form a new standalone
‘Zero Carbon Copper, Nickel, Cobalt’ company. The
spin-off of the Scandinavian projects enables the
Company to be fully focused on development of its
core Zero Carbon Lithium™ combined renewable
energy and lithium chemicals Project in Germany.
Focus will be on Kuniko’s 262km2 Ni-Co-Cu
license portfolio:
• Nickel: Ni-Cu-Co projects in the historically
important Feøy and Romsås mining districts
located in south-western Norway.
• Cobalt: Co-Cu-Au project, part of the historically
important Skuterud mining district of central-
southern Norway, previously the largest cobalt
mining area in the world.
• Copper: Undal Cu-Zn-Co project and Vangrøfta
Cu-Co-Au projects located in the Trondheim
region of central Norway.
Antony Beckmand, a highly experienced senior
mining executive who has over 25 years’ experience
in financial and executive roles within the mining
industry, including significant experience in Norway,
commenced as Chief Executive Officer of Kuniko on
1 September 2021.
The spin-off of Kuniko allows the Vulcan team to be
fully focused on the development of its Zero Carbon
Lithium™ Business, whilst creating value for the
Company’s shareholders.
prior to that, worked at Clayton Utz and Phillips Fox
(now DLA Piper). Daniel holds a Bachelor of Laws and
a Bachelor of Commerce from the University of Notre
Dame Australia.
Vincent Ledoux-Pedailles was announced to
have joined Vulcan as Vice President – Business
Development. Vincent was previously Executive
Director - Corporate Strategy at Infinity Lithium
Corporation, where he led the project to become
the first to secure EU funding. Vincent was also
appointed as a Lithium Expert by the European
Commission.
Vincent previously worked at IHS Markit where he
led the lithium and battery materials research team
covering the entire industry’s supply chain from raw
materials to E-mobility. When he joined IHS Markit he
first focused on chemical trading and led the EMEA
Chlor-alkali team.
Earlier in his career, he worked for Talison Lithium
located in Perth, Australia, tracking the lithium
industry in China and Europe. He also worked
for Roskill, an international metals and minerals
research and consulting company. Vincent is a
regular speaker at various industry events across
the world presenting at chemical, mining, and energy
related conferences.
Vincent holds a Business Masters in Risk
Management and International Purchasing from
ESDES Business School in France. He wrote his
master's thesis on the development and deployment
of electric vehicles powered by lithium-ion batteries.
He has also studied at Copenhagen Business School,
Denmark and Marshall University, US.
Vulcan announced the appointment of expert
chemical & mechanical engineer Dr. Thomas Aicher
to the Vulcan Zero Carbon Lithium™ team, as
Chemical Engineering Lead.
Dr. Aicher has 25 years’ experience in chemical
process innovation and industrial scale-up across
a range of industries. Awarded a PhD and MSc in
Chemical Engineering from the world-renowned
Karlsruhe Institute of Technology (KIT), Dr. Aicher
was also a visiting scientist at the Massachusetts
Institute of Technology (MIT). Dr. Aicher was Head
of Group at Fraunhofer Institute, one of the most
prestigious organisations of applied sciences
in Europe, and Process Engineer at Fortune 500
61 \ Vulcan Energy Resources L imited
2021 Annual Report / 62
Corporate
Directory
Board of Directors
Solicitors
Bankers
Ashurst
Brookfield Place Tower II
Level 10 & 11 St Georges Terrace
Perth WA 6000
Westpac Banking Corporation
Level 4, Brookfield Place, Tower Two
123 St Georges Terrace
Perth WA 6000
Share Registry
Automic Share Registry
Level 2, 267 St Georges Terrace
Perth WA 6000
Telephone:
1300 288 664
Mr Gavin Rezos
Non-Executive Chairman (appointed 4 September 2019)
Dr Francis Wedin
Managing Director (appointed 4 September 2019)
Ms Ranya Alkadamani
Non-Executive Director (appointed 29 April 2020)
Ms Annie Liu
Non-Executive Director (appointed 18 March 2021)
Dr Heidi Grön
Non-Executive Director (appointed 25 March 2021)
Ms Josephine Bush
Non-Executive Director (appointed 19 April 2021)
Dr Horst Kreuter
Executive Director (appointed 20 December 2019, resigned 25 March 2021)
Dr Katharina Gerber
Non-Executive Director (appointed 11 May 2020, resigned 1 September 2020)
Company Secretary
Registered Office
Mr Daniel Tydde
Level 11, Brookfield Place
125 St Georges Terrace
Perth WA 6005
Telephone:
Website:
08 6189 8767
www.v-er.eu
Stock Exchange Listing
Auditors
Listed on the Australian
Securities Exchange (ASX Code: VUL)
RSM Australia Partners
Level 32, 2 The Esplanade
Perth WA 6000
63 \ Vulcan Energy Resources Limited
2021 Annual Report / 64
Board of Directors
Solicitors
Bankers
Ashurst
Brookfield Place Tower II
Level 10 & 11 St Georges Terrace
Perth WA 6000
Westpac Banking Corporation
Level 4, Brookfield Place, Tower Two
123 St Georges Terrace
Perth WA 6000
Share Registry
Automic Share Registry
Level 2, 267 St Georges Terrace
Perth WA 6000
Telephone:
1300 288 664
Corporate
Directory
Mr Gavin Rezos
Non-Executive Chairman (appointed 4 September 2019)
Dr Francis Wedin
Managing Director (appointed 4 September 2019)
Ms Ranya Alkadamani
Non-Executive Director (appointed 29 April 2020)
Ms Annie Liu
Non-Executive Director (appointed 18 March 2021)
Dr Heidi Grön
Non-Executive Director (appointed 25 March 2021)
Ms Josephine Bush
Non-Executive Director (appointed 19 April 2021)
Dr Horst Kreuter
Executive Director (appointed 20 December 2019, resigned 25 March 2021)
Dr Katharina Gerber
Non-Executive Director (appointed 11 May 2020, resigned 1 September 2020)
Company Secretary
Registered Office
Mr Daniel Tydde
Level 11, Brookfield Place
125 St Georges Terrace
Perth WA 6005
Telephone:
Website:
08 6189 8767
www.v-er.eu
Stock Exchange Listing
Auditors
Listed on the Australian
Securities Exchange (ASX Code: VUL)
RSM Australia Partners
Level 32, 2 The Esplanade
Perth WA 6000
63 \ Vulcan Energy Resources Limited
2021 Annual Report / 64
Financial Report Financial Report Directors' Report
Directors’ Report
The Directors of Vulcan Energy Resources Limited (“Vulcan” or “the Company”) present their report, together
with the financial statements, on the consolidated entity consisting of Vulcan Energy Resources Limited and its
controlled entities (the “Group”) for the financial year ended 30 June 2021.
DIRECTORS
The names and particulars of the Company’s directors in office during the financial year and at the date of this
report are as follows. Directors held office for this entire year unless otherwise stated.
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter (resigned on 25 March 2021)
Ms Ranya Alkadamani
Ms Annie Liu (appointed 18 March 2021)
Dr Heidi Grön (appointed 25 March 2021)
Ms Josephine Bush (appointed 16 April 2021)
Dr Katharina Gerber (resigned 1 September 2020)
INTERESTS IN SHARES AND OPTIONS OF THE COMPANY
The following table sets out each current Director’s relevant interest in shares, performance rights and
performance shares of the Company as at the date of this report.
Name
Title
Director
Mr Gavin Rezos
Dr Francis Wedin
Ms Ranya Alkadamani
Ms Annie Liu
Dr Heidi Grön
Ms Josephine Bush
Total
PRINCIPAL ACTIVITIES
Ordinary
Shares
Performance
Rights
Performance
Shares
6,068,668
13,005,834
100,000
22,080
-
4,214
19,200,796
3,250,000
-
200,000
12,896
12,896
12,896
3,488,688
-
4,180,000
-
-
-
-
4,180,000
The principal activities of the Company during the year were geothermal energy and lithium exploration in Europe.
REVIEW OF OPERATIONS
The review and results on operations form part of the Director's Report for the financial year ended 30 June 2021.
Directors' Report
Directors’ Report
INFORMATION ON DIRECTORS
Vulcan Energy Resources Limited – Annual Report 2021
The names and particulars of the Company’s directors in office during the financial year and at the date of this
report are as follows. Directors held office for this entire year unless otherwise stated.
Name
Title
Qualifications
Experience and expertise
Mr Gavin Rezos
Non-Executive Chairman
B. Juris, LLB, BA, Law, Economics, International Politics
Mr Rezos has extensive Australian and international investment banking
experience and is a former investment banking Director of HSBC Group
with regional roles during his career in London, Sydney and Dubai. Gavin
has held Chairman, Board and CEO positions of companies in the materials,
technology and resources sector in Australia, the United Kingdom, the
United States and Singapore and was formerly a non-executive director of
Iluka Resources and of Rowing Australia, the peak Olympics sports body for
rowing in Australia. He is a principal of Viaticus Capital and Non-
Executive Chairman of Kuniko Limited. During the past three years, Mr
Rezos held the following directorships in other ASX listed companies:
• Non-Executive Chairman of Resource and Energy Group (current).
Qualifications
PhD & BSc (Hons) Geology & Mineral exploration, MBA in
Experience and expertise
Dr Wedin is a battery raw materials industry executive, with a diverse
Dr Francis Wedin
Managing Director
Renewable Energy
career spanning four continents and multiple commodities. Dr
Wedin founded the Vulcan Zero Carbon Lithium™ Project in Germany.
Dr Wedin was previously Executive Director of successful ASX-listed Exore
Resources Ltd (ASX:ERX). During this time, he discovered and defined two
new JORC lithium resources, on two continents, in under a year. This
included Lynas Find, which was bought by Pilbara Minerals to become
part of its large Pilgangoora Lithium Project, now in production
(ASX:PLS). Dr Wedin has a PhD and BSc (Hons) in geology and mineral
exploration, and an MBA in renewable energy. He is a Fellow of the
Geological Society, London, and a member of the Australasian
Institute of Mining and Metallurgy. He is bilingual in English and Turkish,
with proficiencies in other languages.
During the past three years, Dr Wedin held the following directorships in
other ASX listed companies:
•
Executive Director of Exore Resources Limited (resigned).
Advisor
PhD Engineering Geology, MSc Applied Geology
Dr. Horst Kreuter is a highly experienced businessman and engineering
geologist, with an outstanding record of project development and
consulting in the geothermal sector. Dr Kreuter is Executive Director of
Vulcan Energie Ressourcen GmbH as well as Board Advisory to Vulcan
Energy Ltd. Previous to this this, Dr Kreuter was CEO of Geothermal Group
Germany GmbH, and GeoThermal Engineering GmbH (GeoT). He is based in
Karlsruhe, local to Vulcan’s Zero Carbon Lithium™ Project area in the Upper
Rhine Valley and has a broad political and corporate network in Germany.
Name
Title
Dr Horst Kreuter (resigned 25 March 2021)
Executive Director (Vulcan Energie Ressourcen) and Board
Qualifications
Experience and expertise
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Directors' Report
Directors’ Report
DIRECTORS
The Directors of Vulcan Energy Resources Limited (“Vulcan” or “the Company”) present their report, together
with the financial statements, on the consolidated entity consisting of Vulcan Energy Resources Limited and its
controlled entities (the “Group”) for the financial year ended 30 June 2021.
The names and particulars of the Company’s directors in office during the financial year and at the date of this
report are as follows. Directors held office for this entire year unless otherwise stated.
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter (resigned on 25 March 2021)
Ms Ranya Alkadamani
Ms Annie Liu (appointed 18 March 2021)
Dr Heidi Grön (appointed 25 March 2021)
Ms Josephine Bush (appointed 16 April 2021)
Dr Katharina Gerber (resigned 1 September 2020)
INTERESTS IN SHARES AND OPTIONS OF THE COMPANY
The following table sets out each current Director’s relevant interest in shares, performance rights and
performance shares of the Company as at the date of this report.
Ordinary
Shares
6,068,668
13,005,834
100,000
22,080
-
4,214
Performance
Performance
Rights
3,250,000
Shares
4,180,000
-
200,000
12,896
12,896
12,896
-
-
-
-
-
19,200,796
3,488,688
4,180,000
Director
Mr Gavin Rezos
Dr Francis Wedin
Ms Ranya Alkadamani
Ms Annie Liu
Dr Heidi Grön
Ms Josephine Bush
Total
PRINCIPAL ACTIVITIES
REVIEW OF OPERATIONS
The principal activities of the Company during the year were geothermal energy and lithium exploration in Europe.
The review and results on operations form part of the Director's Report for the financial year ended 30 June 2021.
Directors' Report
Directors’ Report
INFORMATION ON DIRECTORS
Vulcan Energy Resources Limited – Annual Report 2021
The names and particulars of the Company’s directors in office during the financial year and at the date of this
report are as follows. Directors held office for this entire year unless otherwise stated.
Name
Title
Qualifications
Experience and expertise
Name
Title
Qualifications
Experience and expertise
Name
Title
Qualifications
Experience and expertise
Mr Gavin Rezos
Non-Executive Chairman
B. Juris, LLB, BA, Law, Economics, International Politics
Mr Rezos has extensive Australian and international investment banking
experience and is a former investment banking Director of HSBC Group
with regional roles during his career in London, Sydney and Dubai. Gavin
has held Chairman, Board and CEO positions of companies in the materials,
technology and resources sector in Australia, the United Kingdom, the
United States and Singapore and was formerly a non-executive director of
Iluka Resources and of Rowing Australia, the peak Olympics sports body for
rowing in Australia. He is a principal of Viaticus Capital and Non-
Executive Chairman of Kuniko Limited. During the past three years, Mr
Rezos held the following directorships in other ASX listed companies:
• Non-Executive Chairman of Resource and Energy Group (current).
Dr Francis Wedin
Managing Director
PhD & BSc (Hons) Geology & Mineral exploration, MBA in
Renewable Energy
Dr Wedin is a battery raw materials industry executive, with a diverse
career spanning four continents and multiple commodities. Dr
Wedin founded the Vulcan Zero Carbon Lithium™ Project in Germany.
Dr Wedin was previously Executive Director of successful ASX-listed Exore
Resources Ltd (ASX:ERX). During this time, he discovered and defined two
new JORC lithium resources, on two continents, in under a year. This
included Lynas Find, which was bought by Pilbara Minerals to become
part of its large Pilgangoora Lithium Project, now in production
(ASX:PLS). Dr Wedin has a PhD and BSc (Hons) in geology and mineral
exploration, and an MBA in renewable energy. He is a Fellow of the
Geological Society, London, and a member of the Australasian
Institute of Mining and Metallurgy. He is bilingual in English and Turkish,
with proficiencies in other languages.
During the past three years, Dr Wedin held the following directorships in
other ASX listed companies:
•
Executive Director of Exore Resources Limited (resigned).
Dr Horst Kreuter (resigned 25 March 2021)
Executive Director (Vulcan Energie Ressourcen) and Board
Advisor
PhD Engineering Geology, MSc Applied Geology
Dr. Horst Kreuter is a highly experienced businessman and engineering
geologist, with an outstanding record of project development and
consulting in the geothermal sector. Dr Kreuter is Executive Director of
Vulcan Energie Ressourcen GmbH as well as Board Advisory to Vulcan
Energy Ltd. Previous to this this, Dr Kreuter was CEO of Geothermal Group
Germany GmbH, and GeoThermal Engineering GmbH (GeoT). He is based in
Karlsruhe, local to Vulcan’s Zero Carbon Lithium™ Project area in the Upper
Rhine Valley and has a broad political and corporate network in Germany.
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Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
Name
Title
Qualifications
Experience and expertise
Name
Title
Qualifications
Experience and expertise
Name
Title
Qualifications
Experience and expertise
Ms Ranya Alkadamani
Independent Non-Executive Director
BA Media, Communication, Media Studies, MA International
Relations & Affairs, MA International Communications
Ms Alkadamani is currently Founder and CEO of Impact Group
International, an experienced team of experts focused on strategic
communications advice for innovators, incredible organisations,
ASX-listed companies, and philanthropists that are all doing something
that will better our society or environment.
She works extensively in the impact investment space in Australia and
internationally and has a strong network of clients and investors in
the clean energy and renewables sector.
She is also a Non-Executive Director of Australian Associated Pres,
Australia’s newswire, Director of the Impact Investment Summit, Asia
Pacific and an Advisory Board member at Murdoch University.
Ms Alkadamani was formerly Strategic Communications and External
Affairs Director of Andrew Forrest’s Minderoo Foundation and Minderoo
Group; Press Secretary to former Australian Prime Minister, the Hon.
Kevin Rudd during his time as Australian Foreign Minister; and a
spokesperson for the Australian Department of Foreign Affairs and Trade.
Ms Annie Liu (appointed 18 March 2021)
Independent Non-Executive Director
BEng Industrial Engineering & Operations Research
Ms Liu led and managed Tesla’s multi-billion-dollar strategic partnerships
and sourcing portfolios that support Tesla’s Energy and Battery business
units including Battery, Battery Raw Material, Energy Storage, Solar and
Solar Glass, including raw materials sourcing efforts such as lithium for
battery cells. Ms Liu has 20 years’ experience with Tesla and Microsoft,
building and leading teams from product incubation stage to mature
market.
Ms. Liu is a cofounder of Alto Group Inc, a trusted advisor and counsellor to
many of the world’s influential businesses in the EV value chain. Alto Group
also serves private and institutional investor clients in deal generation and
due diligence with a focus on sustainable energy sectors.
Dr Heidi Grön (appointed 25 March 2021)
Independent Non-Executive Director
PhD Chemical Process Engineering, Dip. Chemical Engineering
Dr Grön is a chemical engineer by background with 20 years’ experience in
the chemicals industry.
Since 2012, Dr Grön has been a senior executive with Evonik, one of the
largest specialty chemicals companies in the world, with a market
capitalization of €14B and 32,000 employees.
At Evonik, Dr Grön is currently responsible for:
Global product stewardship;
Asset & portfolio strategy development based on the impact
assessment of the EU Chemicals Strategy for Sustainability; and
•
•
• Management of Evonik’s major investment volumes.
Directors' Report
Directors’ Report
Name
Title
Ms Josephine Bush (appointed 16 April 2021)
Independent Non-Executive Director
Qualifications
CTA, MA (Hons) Law CFA, ESG investing, Sustainable Finance
Experience and expertise
Certification
Ms Bush was a member of the EY Power and Utilities Board. She led and
delivered the EY Global Renewables and Sustainable Business Plan and
spearheaded a series of major Renewable Market Transactions, including
Public Listings, Global Reorganisations and Cross Border Tax structuring
assignments.
Ms Bush successfully advised on the first environmental yieldco London
Stock Exchange listing, Greencoat UK Wind PLC (with a current market
cap. of over £2 billion). She also advised on a series of OFTO and offshore
wind investments, and other renewable technologies, in the UK, Europe
and USA for pension fund, infrastructure and corporate investors and
developers. Ms Bush is currently Non-Executive Director of Net Zero Now
Limited, a member of the investment committee for Gresham Houses
sustainable infrastructure investment fund, and a strategic advisor to
Guernsey Green Finance.
Name
Title
Dr Katharina Gerber (resigned 1 September 2020)
Non-Executive Director
Qualifications
PhD Inorganic Chemistry, MA Inorganic Chemistry, BSc
Experience and expertise
Chemistry
Dr Gerber is a Project Manager at the California Energy Commission (CEC)
where she provides scientific & technical leadership in determining
research priorities for R&D programs with focus on emerging energy
storage technologies and lithium extraction from geothermal brine. In her
role at the CEC Dr Gerber directs and executes requests for proposals
(RFPs) and leads evaluation of project applications & contract bids.
In addition, Dr Gerber participates in multiple interagency working groups,
such as the “California Lithium Valley” initiative, conducting complex
technological and market assessments on future availability of critical
minerals used
in
lithium-ion battery
technology, and develops
recommendations for policymakers and stakeholders.
Ms Poliscanova is a senior director with the EU’s Transport and Environment. She is instrumental in shaping
policies around EU vehicle CO2 standards and sustainable batteries and previously worked for the Mayor of
London as a senior EU policy officer. Julia is also on the steering committee for the Battery CO2 Passport
SPECIAL ADVISORS TO THE BOARD
Ms Julia Poliscanova
(appointed 16 March 2021)
program of the Global Battery Alliance.
Horst Kreuter
(appointed 25 March 2021)
Role as Board Advisor as noted above.
COMPANY SECRETARY & IN-HOUSE LEGAL COUNSEL
Mr Daniel Tydde
(appointed 15 June 2021)
Mr Tydde is an experienced corporate lawyer with over 15 years’ experience across a wide range of
corporate, commercial and finance areas including, corporate regulatory compliance; corporate governance;
equity and debt capital raisings; asset and share sales and purchases; initial public offerings; corporate
restructuring and re-organisations; and litigation. Most recently, Mr Tydde held a senior position at Steinepreis
Paganin and prior to that, worked at Clayton Utz and Phillips Fox (now DLA Piper). Mr Tydde holds a Bachelor of
Laws and a Bachelor of Commerce from the University of Notre Dame Australia.
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Directors' Report
Directors’ Report
Name
Title
Qualifications
Experience and expertise
Name
Title
Qualifications
Experience and expertise
Ms Ranya Alkadamani
Independent Non-Executive Director
BA Media, Communication, Media Studies, MA International
Relations & Affairs, MA International Communications
Ms Alkadamani is currently Founder and CEO of Impact Group
International, an experienced team of experts focused on strategic
communications advice for innovators, incredible organisations,
ASX-listed companies, and philanthropists that are all doing something
that will better our society or environment.
She works extensively in the impact investment space in Australia and
internationally and has a strong network of clients and investors in
the clean energy and renewables sector.
She is also a Non-Executive Director of Australian Associated Pres,
Australia’s newswire, Director of the Impact Investment Summit, Asia
Pacific and an Advisory Board member at Murdoch University.
Ms Alkadamani was formerly Strategic Communications and External
Affairs Director of Andrew Forrest’s Minderoo Foundation and Minderoo
Group; Press Secretary to former Australian Prime Minister, the Hon.
Kevin Rudd during his time as Australian Foreign Minister; and a
spokesperson for the Australian Department of Foreign Affairs and Trade.
Ms Annie Liu (appointed 18 March 2021)
Independent Non-Executive Director
BEng Industrial Engineering & Operations Research
Ms Liu led and managed Tesla’s multi-billion-dollar strategic partnerships
and sourcing portfolios that support Tesla’s Energy and Battery business
units including Battery, Battery Raw Material, Energy Storage, Solar and
Solar Glass, including raw materials sourcing efforts such as lithium for
battery cells. Ms Liu has 20 years’ experience with Tesla and Microsoft,
building and leading teams from product incubation stage to mature
market.
Ms. Liu is a cofounder of Alto Group Inc, a trusted advisor and counsellor to
many of the world’s influential businesses in the EV value chain. Alto Group
also serves private and institutional investor clients in deal generation and
due diligence with a focus on sustainable energy sectors.
Name
Title
Dr Heidi Grön (appointed 25 March 2021)
Independent Non-Executive Director
Qualifications
Experience and expertise
PhD Chemical Process Engineering, Dip. Chemical Engineering
Dr Grön is a chemical engineer by background with 20 years’ experience in
the chemicals industry.
Since 2012, Dr Grön has been a senior executive with Evonik, one of the
largest specialty chemicals companies in the world, with a market
capitalization of €14B and 32,000 employees.
At Evonik, Dr Grön is currently responsible for:
Global product stewardship;
•
•
Asset & portfolio strategy development based on the impact
assessment of the EU Chemicals Strategy for Sustainability; and
• Management of Evonik’s major investment volumes.
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
Name
Title
Qualifications
Experience and expertise
Name
Title
Qualifications
Experience and expertise
Ms Josephine Bush (appointed 16 April 2021)
Independent Non-Executive Director
CTA, MA (Hons) Law CFA, ESG investing, Sustainable Finance
Certification
Ms Bush was a member of the EY Power and Utilities Board. She led and
delivered the EY Global Renewables and Sustainable Business Plan and
spearheaded a series of major Renewable Market Transactions, including
Public Listings, Global Reorganisations and Cross Border Tax structuring
assignments.
Ms Bush successfully advised on the first environmental yieldco London
Stock Exchange listing, Greencoat UK Wind PLC (with a current market
cap. of over £2 billion). She also advised on a series of OFTO and offshore
wind investments, and other renewable technologies, in the UK, Europe
and USA for pension fund, infrastructure and corporate investors and
developers. Ms Bush is currently Non-Executive Director of Net Zero Now
Limited, a member of the investment committee for Gresham Houses
sustainable infrastructure investment fund, and a strategic advisor to
Guernsey Green Finance.
Dr Katharina Gerber (resigned 1 September 2020)
Non-Executive Director
PhD Inorganic Chemistry, MA Inorganic Chemistry, BSc
Chemistry
Dr Gerber is a Project Manager at the California Energy Commission (CEC)
where she provides scientific & technical leadership in determining
research priorities for R&D programs with focus on emerging energy
storage technologies and lithium extraction from geothermal brine. In her
role at the CEC Dr Gerber directs and executes requests for proposals
(RFPs) and leads evaluation of project applications & contract bids.
In addition, Dr Gerber participates in multiple interagency working groups,
such as the “California Lithium Valley” initiative, conducting complex
technological and market assessments on future availability of critical
minerals used
technology, and develops
recommendations for policymakers and stakeholders.
lithium-ion battery
in
SPECIAL ADVISORS TO THE BOARD
Ms Julia Poliscanova
(appointed 16 March 2021)
Ms Poliscanova is a senior director with the EU’s Transport and Environment. She is instrumental in shaping
policies around EU vehicle CO2 standards and sustainable batteries and previously worked for the Mayor of
London as a senior EU policy officer. Julia is also on the steering committee for the Battery CO2 Passport
program of the Global Battery Alliance.
Horst Kreuter
(appointed 25 March 2021)
Role as Board Advisor as noted above.
COMPANY SECRETARY & IN-HOUSE LEGAL COUNSEL
Mr Daniel Tydde
(appointed 15 June 2021)
Mr Tydde is an experienced corporate lawyer with over 15 years’ experience across a wide range of
corporate, commercial and finance areas including, corporate regulatory compliance; corporate governance;
equity and debt capital raisings; asset and share sales and purchases; initial public offerings; corporate
restructuring and re-organisations; and litigation. Most recently, Mr Tydde held a senior position at Steinepreis
Paganin and prior to that, worked at Clayton Utz and Phillips Fox (now DLA Piper). Mr Tydde holds a Bachelor of
Laws and a Bachelor of Commerce from the University of Notre Dame Australia.
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Directors’ Report
Directors' Report
Directors’ Report
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Mr Robert Ierace
(resigned as Company Secretary 14 June 2021, continuing as Chief Financial Officer)
Mr Ierace is a Chartered Accountant and Chartered Secretary with over 20 years’ experience, predominately
with ASX and AIM-listed resource and oil and gas exploration and production companies. He has extensive
experience in financial and commercial management including experience in corporate governance, debt and
capital raising, tax planning, risk management, treasury management, insurance, corporate acquisitions and
divestment and farm in/farm out transactions. Mr Ierace holds a Bachelor of Commerce degree from Curtin
University, a Graduate Diploma in Applied Corporate Governance from the Governance Institute of Australia and
a Graduate Certificate of Applied Finance and Investment from the Securities Institute of Australia. Robert
has previously served in senior finance roles with a number of ASX-listed companies including Gulf Manganese
Corporation Limited, Key Petroleum Limited, Amadeus Energy Limited, Kimberley Diamond Company NL and
Rio Tinto Iron Ore.
DIRECTORS’ MEETINGS
The number of Directors’ meetings held during the financial year and the number of meetings attended by each
Director during the time the Director held office are:
Director
Full Board
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya Alkadamani
Ms Annie Liu
Dr Heidi Grön
Ms Josephine Bush
Dr Katharina Gerber
Attended
10
10
7
9
3
3
2
1
Audit, Risk &, ESG
Committee
Held
10
10
7
10
3
3
2
1
Attended
1
1
-
-
-
1
1
-
Held
1
1
-
-
-
1
1
-
People &
Performance
Held
1
1
-
1
1
-
-
-
Attended
1
1
-
1
1
-
-
-
In addition to the scheduled Board meetings, Directors regularly communicate by telephone, email or other
electronic means, and where necessary, circular resolutions are executed to effect decisions. For details of the
function of the Board, refer to the Corporate Governance Statement.
CORPORATE
FINANCIAL PERFORMANCE
The financial results of the Group for the year ended 30 June 2021 and period ended 30 June 2020 are:
Cash and cash equivalents ($)
Net Assets ($)
Revenue ($)
Net loss after tax ($)
Loss per share (cents per share) ($)
DIVIDENDS
30 June 2021
114,705,865
128,984,547
631,542
(10,744,614)
(12.32)
30 June 2020
6,421,557
8,886,039
95,342
(3,553,359)
(7.37)
No dividend is recommended in respect of the current financial year.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Positive Pre-Feasibility Study (FPS)
In January 2021, Vulcan announced the successful completion of its PFS, which was conducted with world-
leading experts in the fields of lithium extraction, chemistry, chemical engineering, geothermal plant
engineering and geology. Hatch Ltd. led the lithium processing plant design, engineering, and cost estimates.
German geothermal experts gec-co and GeoT (now in-house and part of Vulcan) led the engineering studies and
cost estimates for the geothermal plant and the sub-surface well design and production study respectively.
The PFS showed a positive post-tax NPV of €2.25B (full project, no phasing); phased option shows €700m NPV in
Phase 1 and €1.4B NPV in Phase 2. Combined renewable energy-lithium project (no phasing) showed a pre-tax IRR
of 26% and post-tax IRR of 21%. Lithium as a separate entity from energy shows pre-tax IRR of 31% and post-tax
IRR of 26%.
$120 million Capital Raise to strengthen cash position
In February 2021, the Company raised A$120 million (before costs) through a strongly supported placement
at $6.50 per share to a suite of ESG-focused institutions including Hancock Prospecting Pty Ltd. Goldman
Sachs and Canaccord Genuity acted as Joint Lead Managers. Proceeds from the Placement will support the
Company through to financial investment decision at its Zero Carbon Lithium™ Project.
DLE Pilot Plant & DFS
The Company has designed, built, commissioned, and is now operating a Direct Lithium Extraction (DLE) Pilot
Plant to demonstrate lithium extraction
from
live geothermal brine. The
team
is
focused on
demonstrating pre-treatment and DLE processes, as well as the durability of the process over hundreds
of cycles, which will feed into its Definitive Feasibility Study (DFS).
Vulcan will use the data from the Pilot Plant to inform and finalise design of a larger, Demonstration Plant, which
will also contribute information towards the DFS. Vulcan’s technology partners and internal experts have
indicated that key process operations will scale up to commercial scale with minimal risk from the Demonstration
scale.
In May 2021, the Company announced that the pilot plant team had successfully achieved target specification for
DLE feed into its pilot plant. They also achieved target recovery of greater than 90% for lithium chloride from
Upper Rhine Valley brine. The laboratory team also successfully demonstrated, via the first step of test work,
post-treated DLE brine to be materially the same composition, within analytical error, as production brine,
excluding extracted lithium and silica.
Spin-off of non-core Scandinavian battery metals projects
In June 2021, the Company announced the lodgement of the Kuniko Limited IPO Prospectus to raise $7,886,213
(before costs) to form a new standalone ‘Zero Carbon Copper, Nickel, Cobalt’ company. The spin-off of the
Scandinavian projects enables the Company to be fully focused on development of its core Zero Carbon Lithium™
combined renewable energy and lithium chemicals Project in Germany. Kuniko listed on 24 August 2021
(ASX:KNI), with Vulcan Energy Resources Limited retaining 25.85% of the company.
Acquisition of world-leading German based geothermal consultancy team
The Company signed a Binding agreement to acquire 100% of geothermal sub-surface engineering company
GeoThermal Engineering GmbH (GeoT). GeoT has a highly credentialed, world-leading scientific team with over a
century of combined expertise in sub-surface development of geothermal projects, from exploration to
production drilling. This acquisition is part of Vulcan’s plans to accelerate its Zero Carbon Lithium™ Project in
Germany.
Acquisition to acquire Global Geothermal Holding UG
The Company signed a Binding agreement to acquire 100% of Global Geothermal Holding UG (GGH), subject to
shareholder approval. GGH is Vulcan’s joint venture partner holding the granted Taro license in the Upper Rhine
Valley as well as the Ludwig and Heßbach (formerly Rheinau) exploration license applications. The Taro license
has a JORC Resource Estimation of 2.27 Mt contained Lithium Carbonate Equivalent (LCE) at a grade of 181 mg/l
Li (Indicated and Inferred). This acquisition consolidates Vulcan’s major strategic holding in the Upper Rhine
Valley, as part of the plan to rapidly advance the Zero Carbon Lithium™ Project towards production.
Acquisition to acquire Global Engineering and Consulting GmbH
In April 2021, the Company announced that a binding agreement had been signed to acquire 100% of geothermal
surface consultancy company Global Engineering and Consulting Gmbh (“Gec-co”)), subject to shareholder
approval. Gec-co has a world-leading engineering team of 33 personnel, with significant experience in surface
development of geothermal projects in Germany and world-wide, with offices in Augsburg, Bremen, and
Karlsruhe. This acquisition is part of Vulcan’s plans to accelerate its Zero Carbon Lithium™ Project in Germany.
71 \ Vulcan Energy Resources Limited
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is
from
team
live geothermal brine. The
The Company has designed, built, commissioned, and is now operating a Direct Lithium Extraction (DLE) Pilot
Plant to demonstrate lithium extraction
focused on
demonstrating pre-treatment and DLE processes, as well as the durability of the process over hundreds
of cycles, which will feed into its Definitive Feasibility Study (DFS).
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
The PFS showed a positive post-tax NPV of €2.25B (full project, no phasing); phased option shows €700m NPV in
Phase 1 and €1.4B NPV in Phase 2. Combined renewable energy-lithium project (no phasing) showed a pre-tax IRR
of 26% and post-tax IRR of 21%. Lithium as a separate entity from energy shows pre-tax IRR of 31% and post-tax
IRR of 26%.
$120 million Capital Raise to strengthen cash position
In February 2021, the Company
raised A$120 million (before costs) through a strongly supported placement
at $6.50 per share to a suite of ESG -focused institutions including Hancock Prospecting Pty Ltd. Goldman
Sachs and Canaccord Genuity acted as Joint Lead Managers. Proceeds from the Placement will support the
Company through to financial investment decision at its Zero Carbon Lithium™ Project.
DLE Pilot Plant & DFS
Directors' Report
Directors’ Report
Mr Robert Ierace
(resigned as Company Secretary 14 June 2021, continuing as Chief Financial Officer)
Mr Ierace is a Chartered Accountant and Chartered Secretary with over 20 years’ experience, predominately
with ASX and AIM-listed resource and oil and gas exploration and production companies. He has extensive
experience in financial and commercial management including experience in corporate governance, debt and
capital raising, tax planning, risk management, treasury management, insurance, corporate acquisitions and
divestment and farm in/farm out transactions. Mr Ierace holds a Bachelor of Commerce degree from Curtin
University, a Graduate Diploma in Applied Corporate Governance from the Governance Institute of Australia and
a Graduate Certificate of Applied Finance and Investment from the Securities Institute of Australia. Robert
has previously served in senior finance roles with a number of ASX-listed companies including Gulf Manganese
Corporation Limited, Key Petroleum Limited, Amadeus Energy Limited, Kimberley Diamond Company NL and
Rio Tinto Iron Ore.
DIRECTORS’ MEETINGS
The number of Directors’ meetings held during the financial year and the number of meetings attended by each
Director during the time the Director held office are:
Director
Full Board
Attended
Held
Attended
Held
Attended
Held
Audit, Risk &, ESG
Committee
People &
Performance
Mr Gavin Rezos
Dr Francis Wedin
Dr Horst Kreuter
Ms Ranya Alkadamani
Ms Annie Liu
Dr Heidi Grön
Ms Josephine Bush
Dr Katharina Gerber
10
10
7
9
3
3
2
1
10
10
7
10
3
3
2
1
1
1
-
-
-
1
1
-
1
1
-
-
-
1
1
-
1
1
-
1
1
-
-
-
1
1
-
1
1
-
-
-
In addition to the scheduled Board meetings, Directors regularly communicate by telephone, email or other
electronic means, and where necessary, circular resolutions are executed to effect decisions. For details of the
function of the Board, refer to the Corporate Governance Statement.
CORPORATE
FINANCIAL PERFORMANCE
Cash and cash equivalents ($)
Net Assets ($)
Revenue ($)
Net loss after tax ($)
Loss per share (cents per share) ($)
DIVIDENDS
The financial results of the Group for the year ended 30 June 2021 and period ended 30 June 2020 are:
30 June 2021
114,705,865
128,984,547
631,542
(10,744,614)
(12.32)
30 June 2020
6,421,557
8,886,039
95,342
(3,553,359)
(7.37)
No dividend is recommended in respect of the current financial year.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Positive Pre-Feasibility Study (FPS)
In January 2021, Vulcan announced the successful completion of its PFS, which was conducted with world-
leading experts in the fields of lithium extraction, chemistry, chemical engineering, geothermal plant
engineering and geology. Hatch Ltd. led the lithium processing plant design, engineering, and cost estimates.
German geothermal experts gec-co and GeoT (now in-house and part of Vulcan) led the engineering studies and
cost estimates for the geothermal plant and the sub-surface well design and production study respectively.
Vulcan will use the data from the Pilot Plant to inform and finalise design of a larger, Demonstration Plant, which
will also contribute information towards the DFS. Vulcan’s technology partners and internal
experts hav e
indicated that key process operations will scale up to commercial scale with minimal risk from the Demonstration
scale.
In May 2021, the Company announced that the pilot plant team had successfully achieved target specification for
DLE feed into its pilot plant. They also achieved target recovery of greater than 90% for lithium chloride from
Upper Rhine Valley brine. The laboratory team also successfully demonstrated, via the first step of test work,
post-treated DLE brine to be materially the same composition, within analytical error, as production brine,
excluding extracted lithium and silica.
Spin-off of non-core Scandinavian battery metals projects
In June 2021, the Company announced the lodgement of the Kuniko Limited IPO Prospectus to raise $7,886,213
(before costs) to form a new standalone ‘Zero Carbon Copper, Nickel, Cobalt’
company. The spin-off of the
Scandinavian projects enables the Company to be fully focused on development of its core Zero Carbon Lithium™
combined renewable energy and lithium chemicals Project in Germany.
Kuniko listed on 24 August 2021
(ASX:KNI), with Vulcan Energy Resources Limited retaining 25.85% of the company.
Acquisition of world-leading German based geothermal consultancy team
The Company signed a Binding agreement to acquire 100% of geothermal sub -surface engineering company
GeoThermal Engineering GmbH (GeoT). GeoT has a highly credentialed, world-leading scientific team with over a
century of combined expertise in sub -surface development of geothermal projects, from exploration to
production drilling. This acquisition is part of Vulcan’s plans to accelerate its Zero Carbon Lithium™ Project in
Germany.
Acquisition of Global Geothermal Holding UG
The Company signed a Binding agreement to acquire 100% of Global Geothermal Holding UG (GGH), subject to
shareholder approval. GGH is Vulcan’s joint venture partner holding the granted Taro license in the Upper Rhine
Valley as well as the Ludwig and Heßbach (formerly Rheinau) exploration license applications. The Taro license
has a JORC Resource Estimation of 2.27 Mt contained Lithium Carbonate Equivalent (LCE) at a grade of 181 mg/l
Li (Indicated and Inferred). This acquisition consolidates Vulcan’s major strategic holding in the Upper Rhine
Valley, as part of the plan to rapidly advance the Zero Carbon Lithium™ Project towards production.
Acquisition of Global Engineering and Consulting GmbH
In April 2021, the Company announced that a binding agreement had been signed to acquire 100% of geothermal
surface consultancy company Global Engineering and Consulting Gmbh (“Gec-c
approval. Gec-co has a world-leading engineering team of 33 personnel, with significant experience in surface
development of geothermal projects in Germany and world- wide, with offices in Augsburg, Bremen, and
Karlsruhe. This acquisition is part of Vulcan’s plans to accelerate its Zero Carbon Lithium™ Project in Germany.
o”)), subject to shareholder
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Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
MATTERS SUBSEQUENT TO THE REPORTING PERIOD
On 6 July 2021, the Company issued 336,396 shares and 91,174 performance shares in the Company, comprising:
•
•
11,396 shares and 91,174 performance shares, being the security consideration for the acquisition of
Global Geothermal Holding UG (a company incorporated under the laws of Germany); and
325,000 shares (216,667 of which are escrowed until 6 July 2022) being the share consideration for the
acquisition of Global Engineering & Consulting Company GmbH (a company incorporated under the laws
of Germany),
in both cases, as approved by shareholders at a General Meeting held on 24 June 2021. The Company
also completed the acquisition of GeoThermal Engineering GmbH on 2 July 2021. Dr Horst Kreuter was a
Key Management Personnel (KMP) of Vulcan for the financial year ended 30 June 2021 and is a shareholder of
Global Geothermal Holding UG and GeoThermal Engineering GmbH.
On 12 July 2021, the Company announced that new exploration license for geothermal energy, geothermal heat,
brine and lithium has been granted in the Upper Rhine Valley for a three-year period. The license covers 108km2
of area considered by the Company to be prospective for geothermal and lithium brine.
On 13 July 2021, Markus Ri
1 September 2021. Mr. Ritzauer has over 20 years’ experience in finance roles within the chemicals industry. He
is currently Head of Finance at Currenta, a chemical park service provider in Germany formerly part of Bayer.
tzauer was appointed as CFO of Vulcan’s German operations, effective from
On 19 July 2021, the Company signed a binding lithium hydroxide offtake term sheet (“Agreement”) with LG
Energy Solution (“LGES”). LGES is the largest producer of lithium-ion
world and supplies its products to top global OEMs. The Agreement is for an initial five-year term which can be
extended by a further five years, with start of commercial delivery set for 2025. LGES are
set to purchase
5,000 metric tonnes of battery grade lithium hydroxide for the first year of the supply term, ramping up to
10,000 metric tonnes per year during the second and subsequent years of the supply term.
Pricing will be
based on market prices for lithium hydroxide. Conditions precedent to start of commercial deliv ery include
the execution of a
the same terms by the end of
November 2021, successful start of commercial operation and full product qualification.
definitive formal offtake agreement
batteries for electric vehicles in the
on materially
On 27 July 2021, the Company announced, further to its announcement of 21 April 2021, the close of the $7.88
million IPO raise for the spin out of its wholly owned subsidiary Kuniko Limited. The Company is expecting the
spin off and listing of Kuniko Limited to complete on 24 August 2021. Following the spin-off Vulcan will retain a
25.15% holding in Kuniko Limited.
On 2 August 2021, the Company and Renault Group, top automotive player and pioneer in the European EV
market have signed a lithium offtake term sheet. The agreement is for an initial five-year term which can be
extended if mutually agreed, with a start of commercial delivery set for 2026. In line with Renault Group’s
ambition to offer ‘made in Europe’ cars and following the
launch of Renault ElectriCity – the most
competitive and efficient production unit for electric vehicles in Europe – the Group will purchase between
6,000 to 17,000 metric tonnes per year of battery grade lithium chemicals produced in Germany by Vulcan.
On 4 August 2021, the Company announced that, after having originally commissioned the world’s first Life Cycle
Assessment (LCA) and global study on the environmental footprint of lithium hydroxide (LHM) production, it
again commissioned Minviro Ltd. to update its independent LCA based on more recent data from
Vulcan’s Pre-Feasibility Study (PFS). Results of the updated LCA estimates a negative 2.9t of CO2 emitted per
tonne of LHM to be produced from Vulcan’s Zero Carbon Lithium™ Project, including Scope 1, 2 and 3 emissions.
Vulcan’s negative CO2 emission intensity is a product of the significant impact offset generated by renewable
lithium processing, and
geothermal energy production as well as use of geothermal heat to drive
Vulcan’s industry-leading move to strictly exclude fossil fuels as an energy source from its planned
operations. According to public data, this result confirms that Vulcan’s Zero Carbon Lithium™ Project has
the lowest planned carbon footprint in the world compared to any LCA results previously published in
the lithium industry.
On 9 August 2021, the Company announced that it is to apply for dual listing on the regulated market of the
Frankfurt Stock Exchange
highest transparency requirements of all segments on the FSE.
in the Prime Standard market segment, which has the very
(FSE),
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Directors' Report
Directors’ Report
seasons.
Zero Carbon Lithium™ Project.
25.85% shareholding.
On 19 August 2021 the Company announced it had signed a partnership agreement with Mr. Nico Rosberg (2016
Formula One Champion) and the Rosberg X Racing (RXR) electric racing team. Mr Rosberg is a leading figure in
motor sports and an active leader promoting sustainability initiatives and climate change awareness. The
Partnership Agreement sees Vulcan Energy becoming an Official Partner of RXR and RXR and Mr Rosberg
becoming shareholders in Vulcan in return for advertising and promotional rights for the 2021 and 2022 racing
On 23 August 2021 the Company announced it had signed BNP Paribas as financial advisor towards financing the
On 24 August 2021 Kuniko Limited successfully listed on the Australian Stock Exchange (ASX:KNI), thereby
completing the Norwegian assets spin-off announced in June 2021. The Company still
retains a
Apart from the above, no other matter or circumstance has arisen since 30 June 2021 that has significantly
affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the
consolidated entity's state of affairs in future financial years.
Likely Developments and Expected Results
Over the next 12 months, the Group plans to rapidly advance the Vulcan Zero Carbon Lithium™ Project to
completion of a Definitive Feasibility Study and construction of a Demonstration Plant.
Remuneration Report (AUDITED)
This remuneration report for the year ended 30 June 2021 outlines the remuneration arrangements of the Group
in accordance with the requirements of the Corporations Act 2001 (“the Act”) and its regulations. This
information has been audited as required by section 308(3C) of the Act.
The Remuneration Report details the remuneration arrangements for Key Management Personnel (KMP). KMP in
2021 comprised the Managing Director and other key executives (Executive KMP), as well as
Non- Executive Directors
a) Key Management Personnel Disclosed in this Report
Managing Director
Chief Executive Officer Germany
Chief Financial Officer
Mr Vincent Ledoux-Pedailles
Vice President – Business Development
Managing Director
Dr Francis Wedin
Current Executive KMP
Dr Horst Kreuter
Mr Robert Ierace
Current Non-Executive Directors
Mr Gavin Rezos
Ms Ranya Alkadamani
Ms Annie Liu
Dr Heidi Grön
Ms Josephine Bush
Former Non-Executive Directors
Dr Katharina Gerber
Non-Executive Chairman
Non-Executive Director
Non-Executive Director (appointed 18 March 2021)
Non-Executive Director (appointed 25 March 2021)
Non-Executive Director (appointed 16 April 2021)
Non-Executive Director (resigned 1 September 2020
& ceased to be a KMP)
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
MATTERS SUBSEQUENT TO THE REPORTING PERIOD
On 6 July 2021, the Company issued 336,396 shares and 91,174 performance shares in the Company, comprising:
11,396 shares and 91,174 performance shares, being the security consideration for the acquisition of
Global Geothermal Holding UG (a company incorporated under the laws of Germany); and
325,000 shares (216,667 of which are escrowed until 6 July 2022) being the share consideration for the
acquisition of Global Engineering & Consulting Company GmbH (a company incorporated under the laws
•
•
of Germany),
in both cases, as approved by shareholders at a General Meeting held on 24 June 2021. The Company also
completed the acquisition of GeoThermal Engineering GmbH on the 2 July 2021. Dr Horst Kreuter was a Key
Management Personnel (KMP) of Vulcan for the financial year ended 30 June 2021 and is a shareholder of Global
Geothermal Holding UG and GeoThermal Engineering GmbH.
On 12 July 2021, the Company announced that new exploration license for geothermal energy, geothermal heat,
brine and lithium has been granted in the Upper Rhine Valley for a three-year period. The license covers 108km2
of area considered by the Company to be prospective for geothermal and lithium brine.
On 13 July 2021, Markus Ritzauer was appointed as CFO of Vulcan’s German operations, effective from
1 September 2021. Mr. Ritzauer has over 20 years’ experience in finance roles within the chemicals industry. He
is currently Head of Finance at Currenta, a chemical park service provider in Germany formerly part of Bayer.
On 19 July 2021, the Company signed a binding lithium hydroxide offtake term sheet (“Agreement”) with LG
Energy Solution (“LGES”). LGES is the largest producer of lithium-ion batteries for electric vehicles in the
world and supplies its products to top global OEMs. The Agreement is for an initial five-year term which can be
extended by a further five years, with start of commercial delivery set for 2025. LGES are set to purchase
5,000 metric tonnes of battery grade lithium hydroxide for the first year of the supply term, ramping up to
10,000 metric tonnes per year during the second and subsequent years of the supply term. Pricing will be
based on market prices for lithium hydroxide. Conditions precedent to start of commercial delivery include
the execution of a definitive formal offtake agreement on materially the same terms by the end of
November 2021, successful start of commercial operation and full product qualification.
On 27 July 2021, the Company announced, further to its announcement of 21 April 2021, the close of the
$7.88 million IPO raise for the spin out of its wholly owned subsidiary Kuniko Limited.
On 27 July 2021, the Company announced, further to its announcement of 21 April 2021, the close of the $7.88
million IPO raise for the spin out of its wholly owned subsidiary Kuniko Limited. The Company is expecting the
spin off and listing of Kuniko Limited to complete on 24 August 2021. Following the spin-off Vulcan will retain a
25.15% holding in Kuniko Limited.
On 2 August 2021, the Company and Renault Group, top automotive player and pioneer in the European EV
market have signed a lithium offtake term sheet. The agreement is for an initial five-year term which can be
extended if mutually agreed, with a start of commercial delivery set for 2026. In line with Renault Group’s
ambition to offer ‘made in Europe’ cars and following the
launch of Renault ElectriCity – the most
competitive and efficient production unit for electric vehicles in Europe – the Group will purchase between
6,000 to 17,000 metric tonnes per year of battery grade lithium chemicals produced in Germany by Vulcan.
On 4 August 2021, the Company announced that, after having originally commissioned the world’s first Life Cycle
Assessment (LCA) and global study on the environmental footprint of lithium hydroxide (LHM) production, it
again commissioned Minviro Ltd. to update its independent LCA based on more recent data from
Vulcan’s Pre-Feasibility Study (PFS). Results of the updated LCA estimates a negative 2.9t of CO2 emitted per
tonne of LHM to be produced from Vulcan’s Zero Carbon Lithium™ Project, including Scope 1, 2 and 3 emissions.
Vulcan’s negative CO2 emission intensity is a product of the significant impact offset generated by renewable
geothermal energy production as well as use of geothermal heat to drive
lithium processing, and
Vulcan’s industry-leading move to strictly exclude fossil fuels as an energy source from its planned
operations. According to public data, this result confirms that Vulcan’s Zero Carbon Lithium™ Project has
the lowest planned carbon footprint in the world compared to any LCA results previously published in
the lithium industry.
On 9 August 2021, the Company announced that it is to apply for dual listing on the regulated market of the
Frankfurt Stock Exchange
(FSE),
in the Prime Standard market segment, which has the very
highest transparency requirements of all segments on the FSE.
Directors' Report
Directors’ Report
On 19 August 2021 the Company announced it had signed a partnership agreement with Mr. Nico Rosberg (2016
Formula One Champion) and the Rosberg X Racing (RXR) electric racing team. Mr Rosberg is a leading figure in
motor sports and an active leader promoting sustainability initiatives and climate change awareness. The
Partnership Agreement sees Vulcan Energy becoming an Official Partner of RXR and RXR and Mr Rosberg
becoming shareholders in Vulcan in return for advertising and promotional rights for the 2021 and 2022 racing
seasons.
On 23 August 2021 the Company announced it had signed BNP Paribas as financial advisor towards financing the
Zero Carbon Lithium™ Project.
On 24 August 2021 Kuniko Limited successfully listed on the Australian Stock Exchange (ASX:KNI), thereby
completing the Norwegian assets spin-off announced
in June 2021. The Company still retains a
25.85% shareholding.
Apart from the above, no other matter or circumstance has arisen since 30 June 2021 that has significantly
affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the
consolidated entity's state of affairs in future financial years.
Likely Developments and Expected Results
Over the next 12 months, the Group plans to rapidly advance the Vulcan Zero Carbon Lithium™ Project to
completion of a Definitive Feasibility Study and construction of a Demonstration Plant.
Remuneration Report (AUDITED)
This remuneration report for the year ended 30 June 2021 outlines the remuneration arrangements of the Group
in accordance with the requirements of the Corporations Act 2001 (“the Act”) and its regulations. This
information has been audited as required by section 308(3C) of the Act.
The Remuneration Report details the remuneration arrangements for Key Management Personnel (KMP). KMP in
(Executive KMP), as well as
2021 comprised the Managing Director and other key executives
Non- Executive Directors
a) Key Management Personnel Disclosed in this Report
Managing Director
Dr Francis Wedin
Current Executive KMP
Dr Horst Kreuter
Mr Robert Ierace
Mr Vincent Ledoux-Pedailles
Current Non-Executive Directors
Mr Gavin Rezos
Ms Ranya Alkadamani
Ms Annie Liu
Dr Heidi Grön
Ms Josephine Bush
Former Non-Executive Directors
Dr Katharina Gerber
Managing Director
Chief Executive Officer Germany
Chief Financial Officer
Vice President – Business Development
Non-Executive Chairman
Non-Executive Director
Non-Executive Director (appointed 18 March 2021)
Non-Executive Director (appointed 25 March 2021)
Non-Executive Director (appointed 16 April 2021)
Non-Executive Director (resigned 1 September 2020
& ceased to be a KMP)
73 \ Vulcan Energy Resources Limited
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Directors' Report
Directors’ Report
Remuneration Report (CONT)
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
There have been no other changes after the reporting date and up to the date that the financial report was
authorised for issue.
The Remuneration Report is set out under the following main headings:
The nature and amount of remuneration is collectively considered by the Board of Directors with reference to
relevant employment conditions and fees commensurate to a company of similar size and level of activity, with
the overall objective of ensuring maximum stakeholder benefit from the retention of high-performing Directors
with the requisite skills and experience required by the Company based upon its business and level of
A
B
C
D
E
F
G
H
I
J
K
Remuneration Philosophy
Remuneration Governance, Structure and Approvals
Remuneration and Performance
Details of Remuneration
Contractual Arrangements
Share-based Compensation
Equity Instruments Issued on Exercise of Remuneration Options
Voting and Comments Made at the Company’s 2018 Annual General Meeting
Loans with KMP
Other Transactions with KMP
Additional Information
A Remuneration Philosophy
KMP have authority and responsibility for planning, directing and controlling the activities of the Group.
C
Remuneration and Performance
The Group’s broad remuneration policy is to ensure the remuneration package properly reflects the person’s
duties and responsibilities and that remuneration is competitive in attracting, retaining and motivating people of
the highest quality.
B
Remuneration Governance, Structure and Approvals
Remuneration of Directors is currently set by the People and Performance Committee which was established
during the year. The Company engaged a tax advisor for tax advice relating to proposed Director long-term
incentive awards. The People and Performance Committee, acting as a Remuneration Committee, is primarily
responsible for:
•
•
•
•
The over-arching executive remuneration framework;
Operation of the incentive plans which apply to Executive Directors and senior executives, including
key performance indicators and performance hurdles;
Remuneration levels of executives; and
Non-Executive Director fees.
Their objective is to ensure that remuneration policies and structures are fair and competitive and aligned with
the long-term interests of the Company.
v Non-Executive Remuneration Structure
The remuneration of Non-Executive Directors consists of Board and Committee fees. The total aggregate fixed
sum per annum to be paid to Non-Executive Directors shall be no more than $650,000 as approved by ordinary
resolution of the Shareholders in General Meeting held on 24 June 2021.
Remuneration of Non-Executive Directors is based on fees approved by the People and Performance Committee
and is set at levels to reflect market conditions and encourage the continued services of the Directors. The Chair’s
fees are determined independently to the fees of the Non-Executive Director’s based on comparative roles in the
external market. In accordance with the Company’s Constitution, the Directors may at any time, subject to the
Listing Rules, adopt any scheme or plan which they consider to be in the interests of the Company and which is
designed to provide superannuation benefits for both present and future Non-Executive Directors, and they may
from time to time vary this scheme or plan.
The remuneration of Non-Executive Directors is detailed in Table 1 and their contractual arrangements are
disclosed in “Section E – Contractual Arrangements”.
Remuneration may also include an invitation for Non-Executive Directors to participate in share-based
incentives.
12 | P a g e
75 \ Vulcan Energy Resources Limited
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
development from time to time.
v Executive Remuneration Structure
The nature and amount of remuneration of executives is assessed on a periodic basis with the overall objective
of ensuring maximum stakeholder benefit from the retention of high-performance Directors.
The main objectives sought when reviewing executive remuneration is that the Company has:
•
•
•
Coherent remuneration policies and practices to attract and retain Executives;
Executives who will create value for shareholders; and
Fair and responsible rewards to Executives having regard to the performance of the Group,
the performance of the Executives and the general pay environment.
Refer below for details of Executive Directors’ remuneration.
The following table shows the gross revenue, losses, earnings per share (“EPS”) and share price of the Group as
at 30 June 2021 and 30 June 2020.
Revenue ($)
Net loss after tax ($)
EPS (cents per share)
Share price ($)
30-Jun-21
631,542
(10,744,614)
(12.32)
7.70
30-Jun-20
95,342
(3,553,359)
(7.37)
0.57
Relationship between Remuneration and Company Performance
Given the current phase of the Company’s development, the Board does not consider earnings during
the current financial year when determining, and in relation to, the nature and amount of remuneration
of KMP.
The pay and reward framework for key management personnel may consist of the following areas:
a) Fixed Remuneration – base salary
b) Variable Short-Term Incentives
c) Variable Long-Term Incentives
The combination of these would comprise the key management personnel’s total remuneration.
a)
Fixed Remuneration – Base Salary
The fixed remuneration for each KMP is influenced by the nature and responsibilities of each role
and knowledge, skills and experience required for each position. Fixed remuneration provides a
base level of remuneration which is market competitive and comprises a base salary inclusive of
statutory superannuation or equivalent in the place of employment. It is structured as a total
employment cost package.
Key management personnel are offered a competitive base salary that comprises the fixed
component of pay and rewards. External remuneration consultants may provide analysis and
advice to ensure base pay is set to reflect the market for a comparable role.
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Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
The nature and amount of remuneration is collectively considered by the Board of Directors with reference to
relevant employment conditions and fees commensurate to a company of similar size and level of activity, with
the overall objective of ensuring maximum stakeholder benefit from the retention of high-performing Directors
with the requisite skills and experience required by the Company based upon its business and level of
development from time to time.
v Executive Remuneration Structure
The nature and amount of remuneration of executives is assessed on a periodic basis with the overall objective
of ensuring maximum stakeholder benefit from the retention of high-performance Directors.
The main objectives sought when reviewing executive remuneration is that the Company has:
•
•
•
Coherent remuneration policies and practices to attract and retain Executives;
Executives who will create value for shareholders; and
Fair and responsible rewards to Executives having regard to the performance of the Group,
the performance of the Executives and the general pay environment.
Refer below for details of Executive Directors’ remuneration.
KMP have authority and responsibility for planning, directing and controlling the activities of the Group.
C
Remuneration and Performance
The Group’s broad remuneration policy is to ensure the remuneration package properly reflects the person’s
duties and responsibilities and that remuneration is competitive in attracting, retaining and motivating people of
The following table shows the gross revenue, losses, earnings per share (“EPS”) and share price of the Group as
at 30 June 2021 and 30 June 2020.
Revenue ($)
Net loss after tax ($)
EPS (cents per share)
Share price ($)
30-Jun-21
631,542
(10,744,614)
(12.32)
7.70
30-Jun-20
95,342
(3,553,359)
(7.37)
0.57
Relationship between Remuneration and Company Performance
Given the current phase of the Company’s development, the Board does not consider earnings during
the current financial year when determining, and in relation to, the nature and amount of remuneration
of KMP.
The pay and reward framework for key management personnel may consist of the following areas:
a) Fixed Remuneration – base salary
b) Variable Short-Term Incentives
c) Variable Long-Term Incentives
The combination of these would comprise the key management personnel’s total remuneration.
a)
Fixed Remuneration – Base Salary
The fixed remuneration for each KMP is influenced by the nature and responsibilities of each role
and knowledge, skills and experience required for each position. Fixed remuneration provides a
base level of remuneration which is market competitive and comprises a base salary inclusive of
statutory superannuation or equivalent in the place of employment. It is structured as a total
employment cost package.
Key management personnel are offered a competitive base salary that comprises the fixed
component of pay and rewards. External remuneration consultants may provide analysis and
advice to ensure base pay is set to reflect the market for a comparable role.
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2021 Annual Report / 76
A
B
C
D
E
F
G
H
I
J
K
•
•
•
•
There have been no other changes after the reporting date and up to the date that the financial report was
Directors' Report
Directors’ Report
Remuneration Report (CONT)
authorised for issue.
The Remuneration Report is set out under the following main headings:
Remuneration Philosophy
Remuneration Governance, Structure and Approvals
Remuneration and Performance
Details of Remuneration
Contractual Arrangements
Share-based Compensation
Loans with KMP
Other Transactions with KMP
Additional Information
Equity Instruments Issued on Exercise of Remuneration Options
Voting and Comments Made at the Company’s 2018 Annual General Meeting
A Remuneration Philosophy
the highest quality.
B
Remuneration Governance, Structure and Approvals
Remuneration of Directors is currently set by the People and Performance Committee which was established
during the year. The Company engaged a tax advisor for tax advice relating to proposed Director long-term
incentive awards. The People and Performance Committee, acting as a Remuneration Committee, is primarily
responsible for:
The over-arching executive remuneration framework;
Operation of the incentive plans which apply to Executive Directors and senior executives, including
key performance indicators and performance hurdles;
Remuneration levels of executives; and
Non-Executive Director fees.
the long-term interests of the Company.
v Non-Executive Remuneration Structure
Their objective is to ensure that remuneration policies and structures are fair and competitive and aligned with
The remuneration of Non-Executive Directors consists of Board and Committee fees. The total aggregate fixed
sum per annum to be paid to Non-Executive Directors shall be no more than $650,000 as approved by ordinary
resolution of the Shareholders in General Meeting held on 24 June 2021.
Remuneration of Non-Executive Directors is based on fees approved by the People and Performance Committee
and is set at levels to reflect market conditions and encourage the continued services of the Directors. The Chair’s
fees are determined independently to the fees of the Non-Executive Director’s based on comparative roles in the
external market. In accordance with the Company’s Constitution, the Directors may at any time, subject to the
Listing Rules, adopt any scheme or plan which they consider to be in the interests of the Company and which is
designed to provide superannuation benefits for both present and future Non-Executive Directors, and they may
from time to time vary this scheme or plan.
The remuneration of Non-Executive Directors is detailed in Table 1 and their contractual arrangements are
disclosed in “Section E – Contractual Arrangements”.
Remuneration may also include an invitation for Non-Executive Directors to participate in share-based
incentives.
75 \ Vulcan Energy Resources Limited
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Table 1 – Remuneration of KMP of the Group for the year ended 30 June 2021 is set out below:
Short-term Employee Benefits
Post-Employment
Share Based
Total
Non-
Others
Superannuation
Shares & Rights
Payments
30-Jun-2021
Salary
& fees
monetary
benefits
$
$
$
$
$
$
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya
Alkadamani
Dr Heidi Grön
Ms Annie Liu
Ms Josephine
Bush
Former Non-
Executive
Directors
Dr Katharina
Gerber1
Executive KMP
Dr Francis Wedin
Dr Horst Kreuter
Mr Robert Ierace
Mr Vincent
Ledoux-
Pedailles
113,150
31,963
13,542
14,249
10,725
5,000
300,417
230,302
187,446
167,316
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,036
1,170,356
449,279
1,283,506
484,278
1,010
1,010
1,010
14,552
15,259
11,735
30,000
19,239
1,352
31,389
17,807
-
-
2,000,344
69,997
324,621
5,000
361,806
2,249,885
275,250
493,289
-
-
-
-
-
-
-
Total
1,074,110
50,591
52,232
4,017,627
5,194,560
1 Resigned as a Director and ceased to be a KMP on 1 September 2020.
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
b)
c)
No paid external advice was taken during the financial year. Determination of remuneration was
based upon publicly available data, surveys and trends for comparable roles in Australia and
Europe, published by remuneration consultants. Base salary for key management personnel
is reviewed annually to ensure the KMP’s pay is competitive with the market. The pay of
key management personnel is also reviewed on promotion. There is no guaranteed pay
increase included in any key management personnel’s contract.
Variable Remuneration – Short -Term Incentives (STI)
Discretionary cash bonuses may be paid to KMP annually, subject to the requisite Board and
shareholder approvals (where applicable). Bonus payments were made during the financial
year. For the 2021 Financial year, KMP’s have been set milestone based KPI’s which, if
achieved, will lead to cash bonus payments.
Variable Remuneration – Long-Term Incentives (LTI)
Options
There have been no options issued to employees at the date of this financial report.
Performance Rights Plan
The Performance Rights Plan (“Plan”) was adopted by the Group at the 30 November 2018 Annual General
Meeting (“AGM”).
The current Plan provides the Board with the discretion to grant Performance Rights to eligible
participants which will vest subject to the achievement of performance hurdles as determined by the
Board from time to time.
The objective of the Plan is to attract, motivate and retain KMPs and it is considered by the Group that the
Plan and the future issue of Performance Rights under the Plan will provide selected participants with the
opportunity to participate in the future growth of the Group. The Plan will enable the Group to make grants
to Eligible Participants so that long-term incentives form a key component of their total annual
remuneration.
The Board believes that grants under the Plan will serve a number of purposes including:
•
•
to act as a key retention tool; and
to focus attention on future shareholder value generation.
Under the Plan, eligible Participants will be granted Performance Rights. Vesting of any of these
Performance Rights will be subject to the achievement of various KPIs which can be varied each year and
aligned to the individual’s performance.
Each Performance Right represents a right to be issued one share at a future point in time, subject to the
satisfaction of any vesting conditions. No exercise price is payable. The quantum of the Performance
Rights to be granted will be determined with reference to market practice and will be subject to approval
by the Board.
Performance will be assessed at the end of the performance period.
Any grants under the Plan will be subject to the achievement of KPIs. Appropriate KPIs may be formulated
for each Eligible Participant to participate in the Plan based on their role and responsibilities in the Group.
Performance Rights will lapse if the participant leaves the Group prior to all the vesting conditions being
fulfilled although the Board has the ability, at its sole discretion, to vest some or all the Rights if “good
leaver” exemptions apply to the ceasing of employment. Persons who are terminated for “bad leaver”
reasons automatically lose their entitlement.
D
Details of Remuneration
Details of the nature and amount of each major element of the remuneration of each KMP of the Group during the
financial year are:
77 \ Vulcan Energy Resources Limited
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Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Table 1 – Remuneration of KMP of the Group for the year ended 30 June 2021 is set out below:
Short-term Employee Benefits
Post-Employment
Others
Superannuation
Share Based
Payments
Shares & Rights
Total
30-Jun-2021
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya
Alkadamani
Dr Heidi Grön
Ms Annie Liu
Ms Josephine
Bush
Former Non-
Executive
Directors
Dr Katharina
Gerber1
Executive KMP
Dr Francis Wedin
Dr Horst Kreuter
Mr Robert Ierace
Mr Vincent
Ledoux-
Pedailles
Salary
& fees
$
Non-
monetary
benefits
$
113,150
31,963
13,542
14,249
10,725
5,000
300,417
230,302
187,446
167,316
-
-
-
-
-
-
-
-
-
-
$
$
$
$
-
-
-
-
-
-
-
3,036
1,170,356
449,279
1,283,506
484,278
-
-
-
-
1,010
1,010
1,010
14,552
15,259
11,735
-
5,000
30,000
19,239
-
1,352
31,389
-
17,807
-
-
2,000,344
69,997
324,621
361,806
2,249,885
275,250
493,289
The Board believes that grants under the Plan will serve a number of purposes including:
1 Resigned as a Director and ceased to be a KMP on 1 September 2020.
Total
1,074,110
-
50,591
52,232
4,017,627
5,194,560
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Directors' Report
Directors’ Report
Remuneration Report (CONT.)
No paid external advice was taken during the financial year. Determination of remuneration was
based upon publicly available data, surveys and trends for comparable roles in Australia and
Europe, published by remuneration consultants. Base salary for key management personnel
is reviewed annually to ensure the KMP’s pay is competitive with the market. The pay of
key management personnel
is also reviewed on promotion. There is no guaranteed pay
increase included in any key management personnel’s contract.
b)
Variable Remuneration – Short -Term Incentives (STI)
Discretionary cash bonuses may be paid to KMP annually, subject to the requisite Board and
shareholder approvals (where applicable). Bonus payments were made during the financial
year. For the 2021 Financial year, KMP’s have been set milestone based KPI’s which, if
achieved, will lead to cash bonus payments.
c)
Variable Remuneration – Long-Term Incentives (LTI)
There have been no options issued to employees at the date of this financial report.
Options
Performance Rights Plan
Meeting (“AGM”).
Board from time to time.
The Performance Rights Plan (“Plan”) was adopted by the Group at the 30 November 2018 Annual General
The current Plan provides the Board with the discretion to grant Performance Rights to eligible
participants which will vest subject to the achievement of performance hurdles as determined by the
The objective of the Plan is to attract, motivate and retain KMPs and it is considered by the Group that the
Plan and the future issue of Performance Rights under the Plan will provide selected participants with the
opportunity to participate in the future growth of the Group. The Plan will enable the Group to make grants
to Eligible Participants so that long-term incentives form a key component of their total annual
remuneration.
to act as a key retention tool; and
•
•
to focus attention on future shareholder value generation.
Under the Plan, eligible Participants will be granted Performance Rights. Vesting of any of these
Performance Rights will be subject to the achievement of various KPIs which can be varied each year and
aligned to the individual’s performance.
Each Performance Right represents a right to be issued one share at a future point in time, subject to the
satisfaction of any vesting conditions. No exercise price is payable. The quantum of the Performance
Rights to be granted will be determined with reference to market practice and will be subject to approval
by the Board.
Performance will be assessed at the end of the performance period.
Any grants under the Plan will be subject to the achievement of KPIs. Appropriate KPIs may be formulated
for each Eligible Participant to participate in the Plan based on their role and responsibilities in the Group.
Performance Rights will lapse if the participant leaves the Group prior to all the vesting conditions being
fulfilled although the Board has the ability, at its sole discretion, to vest some or all the Rights if “good
leaver” exemptions apply to the ceasing of employment. Persons who are terminated for “bad leaver”
reasons automatically lose their entitlement.
Details of the nature and amount of each major element of the remuneration of each KMP of the Group during the
D
Details of Remuneration
financial year are:
77 \ Vulcan Energy Resources Limited
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Details of the remuneration of KMP of the Group for the year ended 30 June 2020 is set out below:
Table 3 – Shareholdings of KMP (direct and indirect holdings)
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Short-term Employee Benefits
Post-
Employment
Other
Superannuation
Share Based
Payments
Shares &
Rights
Total
30 June 2021
Granted
Placem
Exercise of
Balance
1/07/2020
ent
Listed
Options
Exercise of
Performan
ce Rights
Exercise of
Performan
ce Shares
Net Change
Balance
Other
30/06/2021
Salary &
fees
$
Non-
monetary
benefits
$
$
$
$
$
3,680,207
38,461
100,000
2,250,000
30-Jun-2020
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya
Alkadamani
Dr Katharina
Gerber
Mr Patrick Burke
Mr William Oliver
Ms Rebecca
Morgan
Executive KMP
Dr Francis
Wedin
Dr Horst Kreuter
Mr Robert Ierace
Total
70,125
4,566
4,194
45,000
24,000
10,667
185,625
102,357
25,000
471,534
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
434
-
-
-
-
17,634
-
2,375
20,443
252,372
322,497
-
5,000
4,194
117,837
80,284
10,667
203,259
102,357
30,498
72,837
56,284
-
-
-
3,123
384,616
876,593
The following table shows the relative proportions of remuneration that are linked to performance and those
that are fixed, based on the amounts disclosed as statutory remuneration expense in the tables above:
Table 2 – Relative proportion of fixed vs variable remuneration expense
Name
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya
Alkadamani
Dr Heidi Grön
Ms Annie Liu
Ms Josephine Bush
Former Non-
Executive
Directors
Dr Katharina Gerber
Executive KMP
Dr Francis Wedin
Dr Horst Kreuter
Mr Robert Ierace
Mr Vincent Ledoux-
Pedailles
Fixed Remuneration
At Risk – STI (%)
At Risk – LTI (%)
2021
2020
2021
2020
2021
2020
9%
7%
93%
93%
91%
100%
92%
10%
75%
34%
22%
100%
n/a
n/a
n/a
100%
100%
100%
90%
n/a
0%
0%
0%
0%
0%
-
8%
1%
0%
0%
-
-
n/a
n/a
n/a
-
-
-
-
-
91%
93%
7%
7%
9%
-
-
89%
25%
66%
78%
-
n/a
n/a
n/a
-
-
-
10%
n/a
16 | P a g e
79 \ Vulcan Energy Resources Limited
11,163,334
553,333
162,500
4,180,000
220,000
(2,500,000)
13,005,834
673,333
80,000
60,000
(100,000)
(80,000)
(60,000)
TOTAL
15,396,874
100,000
38,461
262,500
2,390,000
4,400,000
(2,735,786)
19,852,049
Table 4 – Option holdings of KMP (direct and indirect holdings)
30 June 2021
Balance
1/07/2020
Granted as
Vested during
Exercise of
Remuneration
the period
Lapse/
expired
Balance
30/06/2021
as
Remuner
ation
100,000
-
-
-
-
-
-
-
-
100,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya
Alkadamani
Dr Katharina Gerber
Dr Heidi Grön
Ms Annie Liu
Ms Josephine Bush
Former Non-
Executive Directors
Dr Katharina Gerber
Executive KMP
Dr Francis Wedin
Dr Horst Kreuter
Mr Robert Ierace
Mr Vincent Ledoux-
Pedailles
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya Alkadamani
Dr Katharina Gerber
Dr Heidi Grön
Ms Annie Liu
Ms Josephine Bush
Former Non-Executive
Directors
Dr Katharina Gerber
Executive KMP
Dr Francis Wedin
Dr Horst Kreuter
Mr Robert Ierace
Mr Vincent Ledoux-
Pedailles
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Listed
Options
(100,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,068,668
100,000
4,214
4,214
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
162,500
(162,500)
TOTAL
262,500
(262,500)
17 | P a g e
2021 Annual Report / 80
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Details of the remuneration of KMP of the Group for the year ended 30 June 2020 is set out below:
Table 3 – Shareholdings of KMP (direct and indirect holdings)
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Short-term Employee Benefits
Total
30 June 2021
Balance
1/07/2020
Granted
as
Remunera-
tion
Place-
ment
Exercise of
Listed
Options
Exercise of
Performan
ce Rights
Exercise of
Performan
ce Shares
Net Change
Other
Balance
30/06/2021
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya
Alkadamani
Dr Katharina Gerber
Dr Heidi Grön
Ms Annie Liu
Ms Josephine Bush
Former Non-
Executive Directors
Dr Katharina Gerber
Executive KMP
Dr Francis Wedin
Dr Horst Kreuter
Mr Robert Ierace
Mr Vincent Ledoux-
Pedailles
3,680,207
-
-
100,000
38,461
-
100,000
-
2,250,000
-
-
-
-
-
-
11,163,334
553,333
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,068,668
100,000
-
-
-
4,214
-
-
-
4,214
-
-
162,500
-
-
-
-
-
80,000
60,000
4,180,000
220,000
-
-
(2,500,000)
(100,000)
(80,000)
(60,000)
13,005,834
673,333
-
-
TOTAL
15,396,874
100,000
38,461
262,500
2,390,000
4,400,000
(2,735,786)
19,852,049
Table 4 – Option holdings of KMP (direct and indirect holdings)
30 June 2021
Balance
1/07/2020
Granted as
Remuneration
Vested during
the period
Exercise of
Listed
Options
Lapse/
expired
Balance
30/06/2021
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya Alkadamani
Dr Katharina Gerber
Dr Heidi Grön
Ms Annie Liu
Ms Josephine Bush
Former Non-Executive
Directors
Dr Katharina Gerber
Executive KMP
Dr Francis Wedin
Dr Horst Kreuter
Mr Robert Ierace
Mr Vincent Ledoux-
Pedailles
100,000
-
-
-
-
-
-
162,500
-
-
-
TOTAL
262,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(100,000)
-
-
-
-
-
-
(162,500)
-
-
-
(262,500)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17 | P a g e
2021 Annual Report / 80
Salary &
fees
$
Non-
monetary
benefits
$
Post-
Employment
Other
Superannuation
Share Based
Payments
Shares &
Rights
$
$
$
$
30-Jun-2020
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya
Alkadamani
Dr Katharina
Gerber
Mr Patrick Burke
Mr William Oliver
Ms Rebecca
Morgan
Executive KMP
Dr Francis
Wedin
Dr Horst Kreuter
Mr Robert Ierace
Total
70,125
4,566
4,194
45,000
24,000
10,667
185,625
102,357
25,000
471,534
Name
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya
Alkadamani
Dr Heidi Grön
Ms Annie Liu
Ms Josephine Bush
Former Non-
Executive
Directors
Executive KMP
Dr Francis Wedin
Dr Horst Kreuter
Mr Robert Ierace
Mr Vincent Ledoux-
Pedailles
9%
7%
93%
93%
91%
92%
10%
75%
34%
Dr Katharina Gerber
100%
79 \ Vulcan Energy Resources Limited
-
-
-
-
-
-
-
-
-
-
22%
100%
n/a
n/a
n/a
100%
100%
100%
90%
n/a
-
-
-
-
-
-
-
-
-
-
0%
0%
0%
0%
0%
-
8%
1%
0%
0%
-
-
-
-
-
-
17,634
2,375
20,443
-
-
n/a
n/a
n/a
-
-
-
-
-
252,372
322,497
434
-
5,000
72,837
56,284
-
-
-
4,194
117,837
80,284
10,667
203,259
102,357
30,498
3,123
384,616
876,593
91%
93%
7%
7%
9%
-
-
89%
25%
66%
78%
-
n/a
n/a
n/a
-
-
-
10%
n/a
16 | P a g e
The following table shows the relative proportions of remuneration that are linked to performance and those
that are fixed, based on the amounts disclosed as statutory remuneration expense in the tables above:
Table 2 – Relative proportion of fixed vs variable remuneration expense
Fixed Remuneration
At Risk – STI (%)
At Risk – LTI (%)
2021
2020
2021
2020
2021
2020
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Table 5 – Performance Rights holdings of KMP (direct and indirect holdings)
30 June 2021
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya
Alkadamani
Dr Heidi Grön
Ms Annie Liu
Ms Josephine
Bush
Former Non-
Executive
Directors
Dr Katharina
Gerber
Executive KMP
Dr Francis
Wedin
Dr Horst
Kreuter
Mr Robert
Ierace
Mr Vincent
Pedailles
Balance
1/07/2020
Granted as
Remune-
ration
Vested
during the
period
Exercise of
Performance
Rights
Balance
30/06/2021
Vested –
not
exercised
Unvested
2,500,000
-
3,000,000
200,000
2,250,000
-
(2,250,000)
-
3,250,000
200,000
-
-
-
-
-
12,896
12,896
12,896
-
-
-
-
-
-
-
-
-
-
-
-
12,896
12,896
12,896
-
-
-
-
-
-
-
-
-
3,250,000
200,000
12,896
12,896
12,896
-
-
-
4,500,000
1,500,000
-
4,500,000
1,500,000
3,000,000
500,000
-
250,000
(80,000)
420,000
170,000
250,000
-
750,000
250,000
(60,000)
690,000
190,000
500,000
TOTAL
3,000,000
8,488,688 4,250,000
(2,390,000)
9,098,688
1,860,000
7,238,688
Gavin Rezos – Non-Executive Chairman
Table 6 – Performance Shares holdings of KMP (direct and indirect holdings)
30 June 2021
Balance
1/07/2020
Granted as
Remune-
ration
Vested
during the
period
Exercise of
Performance
Shares
Lapse/
expired
Balance
30/06/2021
Unvested
Vested –
not
exercised
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya
Alkadamani
Dr Heidi Grön
Ms Annie Liu
Ms Josephine Bush
Former Non-
Executive
Directors
Dr Katharina Gerber
Executive KMP
Dr Francis Wedin
Dr Horst Kreuter
Mr Robert Ierace
Mr Vincent Pedailles
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,360,000
440,000
-
-
- 4,180,000
220,000
-
-
-
-
-
(4,180,000)
(220,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,180,000
220,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,180,000
220,000
-
-
TOTAL
8,800,000
- 4,400,000
(4,400,000)
-
4,400,000
4,400,000
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
E Contractual Arrangements
Executive KMP’s
Francis Wedin – Managing Director
•
•
•
•
•
•
•
•
•
Director’s Fee: $375,000 per annum plus superannuation.
• With effect from 1 July 2021, director’s fee increased to $390,000 per annum plus
superannuation.
Term: See Note 1 below for details pertaining to re-appointment and termination.
Horst Kreuter – Chief Executive Officer – Germany
Director’s Fee: Euro 115,000 per annum.
• With effect from 1 September 2020, director’s fee increased to Euro 150,000 per annum.
• With effect from 1 January 2021, a company car is provided.
Resigned from the Board on 25/03/2021, however continues to serve as CEO of Vulcan
Germany and Board Advisor.
Robert Ierace – Chief Financial Officer
•
Salary: $200,000 per annum plus superannuation.
• With effect from 1 April 2021, salary increased to $210,000 per annum plus superannuation.
• With effect from 1 July 2021, salary increased to $220,000 per annum plus superannuation.
Vincent Ledoux-Pedailles – Vice President Business Development
Contract: Commenced on 1 September 2020.
Fees: Euro 110,000 per annum.
• With effect from 24 March 2021, salary increased to GBP 130,000 per annum.
Non-Executive Directors
•
Director’s Fee: $85,000 per annum.
• With effect from 1 April 2021, director's fee increased to $162,000 per annum.
• With effect from 1 July 2021, Committee Fee of $5,000 per annum as a member of Audit, Risk
and ESG Committee and People & Performance Committee.
•
Term: See Note 1 below for details pertaining to re-appointment and termination.
Gavin Rezos – Non-Executive Chairman for Kuniko Limited
• Limited Agreement commenced: 11 June 2021
• Term of 12 Months
Director of Kuniko.
Ranya Alkadamani – Non-Executive Director
•
Director’s Fee: $30,000 per annum.
• Director fee's of $75,000 per annum or 2.5 times the fees paid to a Non-Executive
• With effect from 1 April 2021, director’s fee increased to $50,000 per annum.
• With effect from 1 July 2021, director’s fee increased to $60,000 per annum.
• With effect from 1 July 2021, Committee Fee of $10,000 per annum as Chair of the People &
Performance Committee.
Term: See Note 1 below for details pertaining to re-appointment and termination.
Annie Liu – Non-Executive Director
Contract: Commenced on 18 March 2021.
Director’s Fee: $50,000 per annum.
• With effect from 1 July 2021, director’s fee increased to $60,000 per annum.
• With effect from 1 July 2021, Committee Fee of $5,000 per annum as a member of the People &
Performance Committee.
Term: See Note 1 below for details pertaining to re-appointment and termination.
81 \ Vulcan Energy Resources Limited
18 | P a g e
19 | P a g e
2021 Annual Report / 82
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Table 5 – Performance Rights holdings of KMP (direct and indirect holdings)
30 June 2021
Vested
Exercise of
Balance
Vested –
Unvested
Balance
1/07/2020
Granted as
Remune-
ration
during the
Performance
30/06/2021
not
period
Rights
exercised
Mr Gavin Rezos
2,500,000
3,000,000
2,250,000
(2,250,000)
3,250,000
-
-
-
-
-
-
200,000
12,896
12,896
12,896
-
-
-
-
-
-
-
-
-
-
-
-
-
-
200,000
12,896
12,896
12,896
-
-
-
-
-
-
-
-
-
3,250,000
200,000
12,896
12,896
12,896
-
-
-
4,500,000
1,500,000
-
4,500,000
1,500,000
3,000,000
500,000
-
250,000
(80,000)
420,000
170,000
250,000
-
750,000
250,000
(60,000)
690,000
190,000
500,000
Non-Executive
Directors
Ms Ranya
Alkadamani
Dr Heidi Grön
Ms Annie Liu
Ms Josephine
Bush
Former Non-
Executive
Directors
Dr Katharina
Gerber
Executive KMP
Dr Francis
Wedin
Dr Horst
Kreuter
Mr Robert
Ierace
Mr Vincent
Pedailles
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
E Contractual Arrangements
Executive KMP’s
Francis Wedin – Managing Director
Director’s Fee: $375,000 per annum plus superannuation.
•
• With effect from 1 July 2021, director’s fee increased to $390,000 per annum plus
superannuation.
Term: See Note 1 below for details pertaining to re-appointment and termination.
•
Horst Kreuter – Chief Executive Officer – Germany
Director’s Fee: Euro 115,000 per annum.
•
• With effect from 1 September 2020, director’s fee increased to Euro 150,000 per annum.
• With effect from 1 January 2021, a company car is provided.
•
Resigned from the Board on 25/03/2021, however continues to serve as CEO of Vulcan
Germany and Board Advisor.
Robert Ierace – Chief Financial Officer
Salary: $200,000 per annum plus superannuation.
•
• With effect from 1 April 2021, salary increased to $210,000 per annum plus superannuation.
• With effect from 1 July 2021, salary increased to $220,000 per annum plus superannuation.
Vincent Ledoux-Pedailles – Vice President Business Development
Contract: Commenced on 1 September 2020.
Fees: Euro 110,000 per annum.
•
•
• With effect from 24 March 2021, salary increased to GBP 130,000 per annum.
Non-Executive Directors
TOTAL
3,000,000
8,488,688 4,250,000
(2,390,000)
9,098,688
1,860,000
7,238,688
Gavin Rezos – Non-Executive Chairman
Table 6 – Performance Shares holdings of KMP (direct and indirect holdings)
30 June 2021
Balance
1/07/2020
Granted as
Remune-
ration
Vested
Exercise of
during the
Performance
Lapse/
expired
Balance
30/06/2021
period
Shares
Vested –
Unvested
not
exercised
Non-Executive
Directors
Mr Gavin Rezos
Ms Ranya
Alkadamani
Dr Heidi Grön
Ms Annie Liu
Ms Josephine Bush
Former Non-
Executive
Directors
Dr Katharina Gerber
Executive KMP
Dr Francis Wedin
Dr Horst Kreuter
Mr Robert Ierace
Mr Vincent Pedailles
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,360,000
440,000
- 4,180,000
(4,180,000)
220,000
(220,000)
4,180,000
220,000
4,180,000
220,000
TOTAL
8,800,000
- 4,400,000
(4,400,000)
-
4,400,000
4,400,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
18 | P a g e
81 \ Vulcan Energy Resources Limited
Director’s Fee: $85,000 per annum.
•
• With effect from 1 April 2021, director's fee increased to $162,000 per annum.
• With effect from 1 July 2021, Committee Fee of $5,000 per annum as a member of Audit, Risk
and ESG Committee and People & Performance Committee.
Term: See Note 1 below for details pertaining to re-appointment and termination.
•
Gavin Rezos – Non-Executive Chairman for Kuniko Limited
• Limited Agreement commenced: 11 June 2021
• Term of 12 Months
• Director fee's of $75,000 per annum or 2.5 times the fees paid to a Non-Executive
Director of Kuniko.
Ranya Alkadamani – Non-Executive Director
Director’s Fee: $30,000 per annum.
•
• With effect from 1 April 2021, director’s fee increased to $50,000 per annum.
• With effect from 1 July 2021, director’s fee increased to $60,000 per annum.
• With effect from 1 July 2021, Committee Fee of $10,000 per annum as Chair of the People &
Performance Committee.
Term: See Note 1 below for details pertaining to re-appointment and termination.
•
Annie Liu – Non-Executive Director
Contract: Commenced on 18 March 2021.
Director’s Fee: $50,000 per annum.
•
•
• With effect from 1 July 2021, director’s fee increased to $60,000 per annum.
• With effect from 1 July 2021, Committee Fee of $5,000 per annum as a member of the People &
Performance Committee.
Term: See Note 1 below for details pertaining to re-appointment and termination.
19 | P a g e
2021 Annual Report / 82
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Heidi Grön – Non-Executive Director
Contract: Commenced on 25 March 2021.
Director’s Fee: $50,000 per annum.
•
•
• With effect from 1 July 2021, director’s fee increased to $60,000 per annum.
• With effect from 1 July 2021, Committee Fee of $5,000 per annum as a member of the Audit, Risk and
RSG Committee.
Term: See Note 1 below for details pertaining to re-appointment and termination.
•
Josephine Bush – Non-Executive Director
Contract: Commenced on 16 April 2021.
Director’s Fee: $50,000 per annum.
•
•
• With effect from 1 July 2021, director’s fee increased to $60,000 per annum.
• With effect from 1 July 2021, Committee Fee of $10,000 per annum as Chair of the Audit, Risk and ESG
Committee.
Term: See Note 1 below for details pertaining to re-appointment and termination.
•
Note 1: The term of each Director is open to the extent that they hold office subject to retirement by rotation, as
per the Company’s Constitution, at each AGM and are eligible for re-election as a Director at the meeting.
Appointment shall cease automatically in the event that the Director gives written notice to the Board, or the
Director is not re-elected as a Director by the shareholders of the Company. There are no entitlements to
termination or notice periods.
F
Share-based Compensation
The Company complements non-executive cash salaries with a service-based share award subject to
shareholder approval. Any such award is subject to forfeiture if each service period is not completed This enables
the Company to attract and retain highly skilled and competent non-executive directors and ensures
ongoing independence of Non-Executive Directors on the basis such awards are independent of company
performance once approved and are not related to any milestones or objectives in any way.
Shares
Details of shares issued to Directors and other key management personnel as part of compensation during the
current financial year are set below:
Name
Ms Ranya Alkadamani1
Grant Date
27/11/2020
Shares
Issue Price
$
100,000
$2.38
238,000
1 Shares were approved by Shareholders at the 2020 Annual General Meeting and are service based remuneration based on
continuous service as a director.
Options
There were no unlisted options provided to KMP during the current financial year.
Performance Rights
During the financial year, the Company issued 8,488,688 performance rights to Directors and other key
management personnel. The terms and conditions of each tranche of performance rights affecting remuneration
in the current or future reporting period are as follows:
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Name
Grant Date
Expiry Date
Value of
Vested
Number
Granted
each
Right ($)
Lapsed
Exercised
Mr Gavin Rezos
Class J
Class K(i)
Class L
Dr Horst Kreuter
Class J
Class M(ii)
Class N
Mr Vincent
Ledoux-Pedailles
Class H (iii)
Class I
Class P
Ms Ranya
Alkadamani
Class Q1
Class R1
Dr Heidi Grön, Ms
Annie Liu, Ms
Josephine Bush
Class S1
Class S1
Class S1
10/09/2020
10/09/2020
10/09/2020
1,000,000
1,000,000
1,000,000
16/09/2023
16/09/2023
16/09/2023
10/09/2020
10/09/2020
10/09/2020
1,500,000
1,500,000
1,500,000
16/9/2023
1/12/2023
1/12/2023
15/09/2020
15/09/2020
15/09/2020
250,000
250,000
250,000
1/12/2023
1/12/2023
1/12/2023
25/11/2020
25/11/2020
100,000
100,000
27/11/2021
27/11/2022
24/06/2021
24/06/2021
24/06/2021
12,896
12,896
12,896
24/06/2022
24/06/2023
24/06/2024
0.57
0.72
0.89
0.57
0.89
0.89
0.90
0.90
0.90
2.38
2.38
7.80
7.80
7.80
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
1,000,000
1,500,000
250,000
60,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(i) Class K vesting was subject to the Company announcing, within 36 months from the date of issue, a
positive Pre-Feasibility Study in relation to the Company’s Zero Carbon Lithium™ Project confirming it is
commercially viable; and the VWAP for Shares as traded on ASX over 20 consecutive trading days is equal
to or greater than 150% of the Reference Price. This class vested in January 2021 and was converted to
(ii) Class M vesting was subject to Company announcing, on or before 21 May 2021, a positive Pre-Feasibility
Study in relation to the Company’s Zero Carbon Lithium™ Project confirming it is commercially viable.
This class vested in January 2021, but has not yet elected to convert to shares as at 30 June 2021.
(iii)Class H vesting was subject to the Company announcing, on or before 18 May 2022, a positive Pre-
Feasibility Study in relation to the Company’s Zero Carbon Lithium Project™ confirming it is commercially
viable. This class vested in January 2021 and has converted 60,000 to shares.
The Company complements non-executive cash salaries with a service-based share award subject to shareholder approval and issued in the
form of Performance Rights. Any such award is subject to forfeiture if each service period is not completed This enables the Company to
attract and retain highly skilled and competent Non-Executive Directors and ensures ongoing independence of Non-Executive Directors
on the basis such awards are independent of company performance once approved and are not related to any milestones or objectives in
shares.
1 Class Q R & S
any way.
83 \ Vulcan Energy Resources Limited
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Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Heidi Grön – Non-Executive Director
Contract: Commenced on 25 March 2021.
Director’s Fee: $50,000 per annum.
•
•
•
•
•
• With effect from 1 July 2021, director’s fee increased to $60,000 per annum.
• With effect from 1 July 2021, Committee Fee of $5,000 per annum as a member of the Audit, Risk and
RSG Committee.
Term: See Note 1 below for details pertaining to re-appointment and termination.
Josephine Bush – Non-Executive Director
Contract: Commenced on 16 April 2021.
Director’s Fee: $50,000 per annum.
• With effect from 1 July 2021, director’s fee increased to $60,000 per annum.
• With effect from 1 July 2021, Committee Fee of $10,000 per annum as Chair of the Audit, Risk and ESG
Committee.
•
Term: See Note 1 below for details pertaining to re-appointment and termination.
Note 1: The term of each Director is open to the extent that they hold office subject to retirement by rotation, as
per the Company’s Constitution, at each AGM and are eligible for re-election as a Director at the meeting.
Appointment shall cease automatically in the event that the Director gives written notice to the Board, or the
Director is not re-elected as a Director by the shareholders of the Company. There are no entitlements to
termination or notice periods.
F
Share-based Compensation
The Company complements non-executive cash salaries with a service-based share award subject to
shareholder approval. Any such award is subject to forfeiture if each service period is not completed This enables
the Company to attract and retain highly skilled and competent non-executive directors and ensures
ongoing independence of Non-Executive Directors on the basis such awards are independent of company
performance once approved and are not related to any milestones or objectives in any way.
Shares
Details of shares issued to Directors and other key management personnel as part of compensation during the
current financial year are set below:
Name
Ms Ranya Alkadamani1
Grant Date
27/11/2020
Shares
100,000
Issue Price
$2.38
$
238,000
1 Shares were approved by Shareholders at the 2020 Annual General Meeting and are service based remuneration based on
continuous service as a director.
Options
Performance Rights
There were no unlisted options provided to KMP during the current financial year.
During the financial year, the Company issued 8,488,688 performance rights to Directors and other key
management personnel. The terms and conditions of each tranche of performance rights affecting remuneration
in the current or future reporting period are as follows:
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Name
Grant Date
Number
Granted
Expiry Date
Value of
each
Right ($)
Lapsed
Vested
Exercised
Mr Gavin Rezos
Class J
Class K(i)
Class L
Dr Horst Kreuter
Class J
Class M(ii)
Class N
Mr Vincent
Ledoux-Pedailles
Class H (iii)
Class I
Class P
Ms Ranya
Alkadamani
Class Q1
Class R1
Dr Heidi Grön, Ms
Annie Liu, Ms
Josephine Bush
Class S1
Class S1
Class S1
10/09/2020
10/09/2020
10/09/2020
1,000,000
1,000,000
1,000,000
16/09/2023
16/09/2023
16/09/2023
10/09/2020
10/09/2020
10/09/2020
1,500,000
1,500,000
1,500,000
16/9/2023
1/12/2023
1/12/2023
15/09/2020
15/09/2020
15/09/2020
250,000
250,000
250,000
1/12/2023
1/12/2023
1/12/2023
0.57
0.72
0.89
0.57
0.89
0.89
0.90
0.90
0.90
25/11/2020
25/11/2020
100,000
100,000
27/11/2021
27/11/2022
2.38
2.38
24/06/2021
24/06/2021
24/06/2021
12,896 24/06/2022
12,896 24/06/2023
12,896 24/06/2024
7.80
7.80
7.80
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
-
-
1,000,000
-
-
1,500,000
-
-
-
-
250,000
-
-
60,000
-
-
-
-
-
-
-
-
-
-
-
-
(i) Class K vesting was subject to the Company announcing, within 36 months from the date of issue, a
positive Pre-Feasibility Study in relation to the Company’s Zero Carbon Lithium™ Project confirming it is
commercially viable; and the VWAP for Shares as traded on ASX over 20 consecutive trading days is equal
to or greater than 150% of the Reference Price. This class vested in January 2021 and was converted to
shares.
(ii) Class M vesting was subject to Company announcing, on or before 21 May 2021, a positive Pre-Feasibility
Study in relation to the Company’s Zero Carbon Lithium™ Project confirming it is commercially viable.
This class vested in January 2021, but has not yet elected to convert to shares as at 30 June 2021.
(iii)Class H vesting was subject to the Company announcing, on or before 18 May 2022, a positive Pre-
Feasibility Study in relation to the Company’s Zero Carbon Lithium Project™ confirming it is commercially
viable. This class vested in January 2021 and has converted 60,000 to shares.
1 Class Q R & S
The Company complements non-executive cash salaries with a service-based share award subject to shareholder approval and issued in the
form of Performance Rights. Any such award is subject to forfeiture if each service period is not completed This enables the Company to
attract and retain highly skilled and competent Non-Executive Directors and ensures ongoing independence of Non-Executive Directors
on the basis such awards are independent of company performance once approved and are not related to any milestones or objectives in
any way.
83 \ Vulcan Energy Resources Limited
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2021 Annual Report / 84
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Diversity
During the financial year, the Company had five female Directors and three male Directors. As at the date of this
report the Company has four female Directors and two male Directors. As of the date of this report the
Company has 30 female and 46 male employees.
[End of Audited Remuneration Report]
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
The Company has indemnified the Directors and Executives of the Company for costs incurred, in their capacity
as a Director or Executive, for which they may be held personally liable, except where there is a lack of good
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and
Executives of the Company against a liability to the extent permitted by the Corporations Act 2001. The contract
of insurance prohibits disclosure of the nature of the liability and the amount of the premium. The Company has
not, during or since the end of the financial period, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor
of the Company or any related entity.
ENVIRONMENTAL REGULATIONS
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which
requires entities to report annual greenhouse gas emissions and energy use. The Australian operations of
the Company have been certified as carbon neutral under the Australian Climate Active initiative and
are investigating similar certification in Germany.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purposes
of taking responsibility on behalf of the Company for all or part of these proceedings.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF RSM AUSTRALIA PARTNERS
There are no officers of the Company who are former partners of RSM Australia Partners.
SHARE UNDER OPTION/PERFORMANCE RIGHTS/PERFORMANCE SHARES
At the date of this report there were the following unissued ordinary shares for which options, performance rights
and performance shares are outstanding:
Securities
Unlisted Warrants
Unlisted Warrants
Unlisted Warrants
Number
479,519
32,928
8,857
Expiry Date
16/9/2023
08/01/2024
09/08/2024
Exercise Price
Nil
Nil
Nil
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
The Performance Rights were issued for nil consideration and no consideration will be payable upon the vesting
of the Performance Rights. Rights granted under the Performance Rights Plan carry no dividend or voting rights.
Details of Performance Rights provided as part of remuneration to key management personnel are shown below.
The assessed fair value at grant date of Performance Rights granted to the individuals is allocated equally over
the period from grant date to vesting date, and the amount is included in the remuneration tables above.
Further information on the performance rights is set out in Note 19 to the financial statements.
G Equity Instruments Issued on Exercise of Remuneration Options, Performance Rights and
Performance Shares
No remuneration options were exercised during the financial year.
faith.
During the year, the company issued 2,390,000 shares upon exercise of 2,390,000 performance rights, 4,400,000
shares upon the exercise of 4,400,000 performance shares, and 262,500 shares upon exercise of 262,500
options.
H Voting and Comments made at the Company’s 2020 Annual General Meeting (‘AGM’)
At the 2020 AGM, 99.43% of the votes received supported the adoption of the Remuneration Report for the year
ended 30 June 2020. The Company did not receive any specific feedback at the AGM or throughout the year on
its remuneration practices.
I Loans with KMP
There were no loans made to any KMP during the year ended 30 June 2021 (2020: Nil).
J Other Transactions with KMP
During the financial year, payments for corporate advisory services outside of Australia of $45,000 (2020:
$73,185) were made to Viaticus Capital, a related party of Mr Rezos. Viaticus Capital also received fees of $49,256
(2020: $18,000) for capital raising fees associated with a placement undertaken in year ending 30 June 2021. The
outstanding balance to Viaticus Capital at 30 June 2021 was $68,836 (2020: $33,000). The corporate advisory
services agreement with Viaticus Capital entered into in 2018 was amended by mutual agreement during the
reporting period to exclude any capital raising, M&A or related services.
Dr Kreuter was CEO of GeoThermal Engineering GmbH (GeoT). GeoThermal Engineering GmbH provides
engineering services to Vulcan Energie Ressourcen GmbH, wholly sub of the Vulcan Energy Resources Ltd.
During the financial year, GeoThermal Engineering received €736,609 or A$1,176,710
from Vulcan
Energie Ressourcen GmbH (2020: €77,035 or A$130,128). There were no amounts outstanding at 30
June 2021 (2020: Nil).
During the financial year payments for consulting fees of $43,044 (2020: Nil) were made to Alto Group Inc., a
related party of Ms Annie Liu. The outstanding balance to Alto Group Inc., at 30 June 2021 was $17,493 (2020: Nil).
There were no other related party transactions during the previous financial year.
There were no loans made to any KMP during the year ended 30 June 2021 (2020: Nil).
All transactions were made on normal commercial terms and conditions and at market rates.
Other than the above, there were no other transactions with KMP during the year ended 30 June 2021.
K
Additional Information
The earnings of the consolidated entity for the two years to 30 June 2021 are summarised below. The Company
was incorporated on 5 February 2018.
Revenue ($)
Net loss after tax ($)
EPS (cents per share)
Share price ($)
85 \ Vulcan Energy Resources Limited
30-Jun-21
631,542
(10,744,614)
(12.32)
7.70
30-Jun-20
95,342
(3,553,359)
(7.37)
0.57
30-Jun-19
56,055
(836,664)
(2.64)
0.18
23 | P a g e
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2021 Annual Report / 86
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
The Performance Rights were issued for nil consideration and no consideration will be payable upon the vesting
of the Performance Rights. Rights granted under the Performance Rights Plan carry no dividend or voting rights.
Details of Performance Rights provided as part of remuneration to key management personnel are shown below.
The assessed fair value at grant date of Performance Rights granted to the individuals is allocated equally over
the period from grant date to vesting date, and the amount is included in the remuneration tables above.
Further information on the performance rights is set out in Note 19 to the financial statements.
G Equity Instruments Issued on Exercise of Remuneration Options, Performance Rights and
Performance Shares
No remuneration options were exercised during the financial year.
During the year, the company issued 2,390,000 shares upon exercise of 2,390,000 performance rights, 4,400,000
shares upon the exercise of 4,400,000 performance shares, and 262,500 shares upon exercise of 262,500
options.
H Voting and Comments made at the Company’s 2020 Annual General Meeting (‘AGM’)
At the 2020 AGM, 99.43% of the votes received supported the adoption of the Remuneration Report for the year
ended 30 June 2020. The Company did not receive any specific feedback at the AGM or throughout the year on
its remuneration practices.
I Loans with KMP
J Other Transactions with KMP
There were no loans made to any KMP during the year ended 30 June 2021 (2020: Nil).
During the financial year, payments for corporate advisory services outside of Australia of $45,000 (2020:
$73,185) were made to Viaticus Capital, a related party of Mr Rezos. Viaticus Capital also received fees of $49,256
(2020: $18,000) for capital raising fees associated with a placement undertaken in year ending 30 June 2021. The
outstanding balance to Viaticus Capital at 30 June 2021 was $68,836 (2020: $33,000). The corporate advisory
services agreement with Viaticus Capital entered into in 2018 was amended by mutual agreement during the
reporting period to exclude any capital raising, M&A or related services.
Dr Kreuter was CEO of GeoThermal Engineering GmbH (GeoT). GeoThermal Engineering GmbH provides
engineering services to Vulcan Energie Ressourcen GmbH, wholly sub of the Vulcan Energy Resources Ltd.
During the financial year, GeoThermal Engineering received €736,609 or A$1,176,710 from Vulcan
Energie Ressourcen GmbH (2020: €77,035 or A$130,128). There were no amounts outstanding at 30
June 2021 (2020: Nil).
During the financial year payments for consulting fees of $43,044 (2020: Nil) were made to Alto Group Inc., a
related party of Ms Annie Liu. The outstanding balance to Alto Group Inc., at 30 June 2021 was $17,493 (2020: Nil).
There were no other related party transactions during the previous financial year.
There were no loans made to any KMP during the year ended 30 June 2021 (2020: Nil).
All transactions were made on normal commercial terms and conditions and at market rates.
Other than the above, there were no other transactions with KMP during the year ended 30 June 2021.
The earnings of the consolidated entity for the two years to 30 June 2021 are summarised below. The Company
K
Additional Information
was incorporated on 5 February 2018.
Revenue ($)
Net loss after tax ($)
EPS (cents per share)
Share price ($)
85 \ Vulcan Energy Resources Limited
30-Jun-21
631,542
(10,744,614)
(12.32)
7.70
30-Jun-20
95,342
(3,553,359)
(7.37)
0.57
30-Jun-19
56,055
(836,664)
(2.64)
0.18
23 | P a g e
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Diversity
During the financial year, the Company had five female Directors and three male Directors. As at the date of this
report the Company has four female Directors and two male Directors. As of the date of this report the
Company has 30 female and 46 male employees.
[End of Audited Remuneration Report]
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
The Company has indemnified the Directors and Executives of the Company for costs incurred, in their capacity
as a Director or Executive, for which they may be held personally liable, except where there is a lack of good
faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and
Executives of the Company against a liability to the extent permitted by the Corporations Act 2001. The contract
of insurance prohibits disclosure of the nature of the liability and the amount of the premium. The Company has
not, during or since the end of the financial period, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor
of the Company or any related entity.
ENVIRONMENTAL REGULATIONS
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which
requires entities to report annual greenhouse gas emissions and energy use. The Australian operations of
the Company have been certified as carbon neutral under the Australian Climate Active initiative and
are investigating similar certification in Germany.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purposes
of taking responsibility on behalf of the Company for all or part of these proceedings.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF RSM AUSTRALIA PARTNERS
There are no officers of the Company who are former partners of RSM Australia Partners.
SHARE UNDER OPTION/PERFORMANCE RIGHTS/PERFORMANCE SHARES
At the date of this report there were the following unissued ordinary shares for which options, performance rights
and performance shares are outstanding:
Securities
Unlisted Warrants
Unlisted Warrants
Unlisted Warrants
Number
479,519
32,928
8,857
Expiry Date
16/9/2023
08/01/2024
09/08/2024
Exercise Price
Nil
Nil
Nil
25 | P a g e
2021 Annual Report / 86
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
Directors' Report
Directors’ Report
AUDITOR’S INDEPENDENCE DECLARATION
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Performance
rights
Number
Expiry Date
Exercise Price
The lead auditor’s independence declaration for the year ended 30 June 2021 as required under section 307C of
the Corporations Act 2001 has been received and included within these financial statements.
Class F
Class G
Class H
Class I
Class J
Class L
Class M
Class N
Class P
Class Q
Class R
Class S
Class T
Class U
Class V
Class W
1,250,000
250,000
990,000
1,000,000
2,500,000
1,000,000
1,500,000
1,500,000
310,000
100,000
100,000
38,688
250,000
250,000
100,000
100,000
4/9/2022
1/12/2023
1/12/2023
1/12/2023
16/9/2023
16/9/2023
1/12/2023
1/12/2023
1/12/2023
27/11/2021
27/11/2022
30/06/2025
1/12/2024
1/12/2024
1/12/2024
1/12/2024
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Performance
shares
Number
Expiry Date
Exercise Price
Class C
4,400,000
4/9/2022
Nil
Option/performance rights and performance shares holders do not have any rights to participate in any issues of
shares or other interests of the company or any other entity.
SHARE ISSUED ON THE EXERCISE OF OPTIONS
There were 13,513,424 ordinary shares issued during the year ended 30 June 2021 and up to the date of
this report on the exercise of options.
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
AUDITOR
NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where
the auditor’s expertise and experience with the Company and/or the Group are important.
Details of the amounts paid or payable to the auditor for non-audit services provided during the period by the
auditor are outlined in Note 23 to the financial statements.
The Board of Directors has considered the position and is satisfied that the provision of the non-audit services is
compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The
Directors are satisfied that the provision of non-audit services by the auditors, as set out below, did not
compromise the auditor independent requirements of the Corporations Act 2001 for the following reasons:
•
all non-audit services have been reviewed by the Board of Directors to ensure they do not impact
the impartiality and objectivity of the auditor; and
• None of the services undermine the general principles relating to the auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants.
This report is signed in accordance with a resolution of Board of Directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
Gavin Rezos
Chairman
2 September 2021
87 \ Vulcan Energy Resources Limited
26 | P a g e
27 | P a g e
2021 Annual Report / 88
Directors' Report
Directors’ Report
Remuneration Report (CONT.)
rights
Class F
Class G
Class H
Class I
Class J
Class L
Class M
Class N
Class P
Class Q
Class R
Class S
Class T
Class U
Class V
Class W
1,250,000
250,000
990,000
1,000,000
2,500,000
1,000,000
1,500,000
1,500,000
310,000
100,000
100,000
38,688
250,000
250,000
100,000
100,000
4/9/2022
1/12/2023
1/12/2023
1/12/2023
16/9/2023
16/9/2023
1/12/2023
1/12/2023
1/12/2023
27/11/2021
27/11/2022
30/06/2025
1/12/2024
1/12/2024
1/12/2024
1/12/2024
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Performance
shares
Number
Expiry Date
Exercise Price
Class C
4,400,000
4/9/2022
Nil
Option/performance rights and performance shares holders do not have any rights to participate in any issues of
shares or other interests of the company or any other entity.
SHARE ISSUED ON THE EXERCISE OF OPTIONS
There were 13,513,424 ordinary shares issued during the year ended 30 June 2021 and up to the date of
this report on the exercise of options.
Performance
Number
Expiry Date
Exercise Price
The lead auditor’s independence declaration for the year ended 30 June 2021 as required under section 307C of
the Corporations Act 2001 has been received and included within these financial statements.
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors' Report
Directors’ Report
AUDITOR’S INDEPENDENCE DECLARATION
AUDITOR
RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.
NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where
the auditor’s expertise and experience with the Company and/or the Group are important.
Details of the amounts paid or payable to the auditor for non-audit services provided during the period by the
auditor are outlined in Note 23 to the financial statements.
The Board of Directors has considered the position and is satisfied that the provision of the non-audit services is
compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The
Directors are satisfied that the provision of non-audit services by the auditors, as set out below, did not
compromise the auditor independent requirements of the Corporations Act 2001 for the following reasons:
•
all non-audit services have been reviewed by the Board of Directors to ensure they do not impact
the impartiality and objectivity of the auditor; and
• None of the services undermine the general principles relating to the auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants.
This report is signed in accordance with a resolution of Board of Directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
Gavin Rezos
Chairman
2 September 2021
87 \ Vulcan Energy Resources Limited
26 | P a g e
27 | P a g e
2021 Annual Report / 88
a)
The financial statements and accompanying notes are in accordance with the Corporations Act 2001,
For the Financial Year Ended 30 June 2021
Vulcan Energy Resources Limited – Annual Report 2021
Auditor’s Independence Declaration
Consolidated Statement of Profit
Vulcan Energy Resources Limited – Annual Report 2021
or Loss and Other Comprehensive Income
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
As at 30 June 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors’ Declaration
Directors’ Declaration
In the Directors’ opinion:
including:
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its
performance for the financial year ended on that date.
The financial statements and notes comply with International Financial Reporting Standards.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
b)
c)
become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section
295(5)(a) of the Corporations Act 2001 and is signed for and on behalf of the Directors by:
Gavin Rezos
Chairman
2 September 2021
Revenue from continuing operations
Other income
Expenses
Administrative expenses
Compliance and regulatory expenses
Consulting and legal fees
Depreciation
Employee benefit expenses
Investor relations
Introducer fee
Occupancy costs
Impairment expense
Share-based payments expense
Other expenses
Foreign currency gain/(losses)
Loss from continuing operations before income
tax
Income tax expense
Loss from continuing operations after income tax
Other comprehensive income
Other comprehensive income for the year, net of
tax
Total comprehensive loss attributable to the
members of Vulcan Energy Resources Limited
Loss per share for the year attributable to the
members Vulcan Energy Resources Limited:
Basic loss per share (cents)
Diluted loss per share (cents)
Note
4
5(a)
5(b)
10
19
6
7
7
2021
$
2020
$
631,542
95,342
(888,145)
(551,639)
(1,922,771)
(131,522)
(624,829)
(410,338)
-
(55,930)
(228,663)
(6,517,484)
(120,877)
76,042
(320,920)
(98,906)
(424,603)
-
(234,551)
(314,510)
(150,000)
(18,148)
(286,017)
(1,690,473)
(103,406)
(7,167)
(10,744,614)
(3,553,359)
-
-
(10,744,614)
(3,553,359)
(99,993)
(99,993)
(22,016)
(22,016)
(10,844,607)
(3,575,375)
(12.32)
(12.32)
(7.37)
(7.37)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be
read in conjunction with the notes to the financial statements.
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Exploration and evaluation
expenditure
Plant and equipment
Right-of-use asset
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Total current liabilities
Non Current liabilities
Lease liabilities
Total Non current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity
Note
2021
$
2020
$
8
9
10
11
12
13
12
14
12
15
16
24
114,705,865
1,197,500
115,903,365
6,421,557
116,071
6,537,628
13,793,798
2,556,980
1,480,672
566,246
13,353
-
15,840,716
2,570,333
131,744,081
9,107,961
2,113,014
208,222
62,389
87,584
2,262,987
-
13,700
221,922
496,547
496,547
-
-
2,759,534
221,922
128,984,547
8,886,039
136,500,372
7,899,461
11,836,741
1,719,970
(15,415,286)
(4,670,672)
128,984,547
8,886,039
The Consolidated Statement of Financial Position should be
read in conjunction with the notes to the financial statements.
125 \ Vulcan Energy Resources Limited
71 | P a g e
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2021 Annual Report / 126
89 \ Vulcan Energy Resources Limited
28 | P a g e
2021 Annual Report / 90
29 | P a g e
AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the financial report of Vulcan Energy Resources Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i)the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and(ii)any applicable code of professional conduct in relation to the audit.RSM AUSTRALIA PARTNERS Perth, WA TUTU PHONG Dated: 2 September 2021 Partner Consolidated Statement of Profit
or Loss and Other Comprehensive Income
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Vulcan Energy Resources Limited – Annual Report 2021
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
As at 30 June 2021
For the Financial Year Ended 30 June 2021
Vulcan Energy Resources Limited – Annual Report 2021
Note
2021
$
2020
$
Revenue from continuing operations
Other income
Expenses
Administrative expenses
Compliance and regulatory expenses
Consulting and legal fees
Depreciation
Employee benefit expenses
Investor relations
Introducer fee
Occupancy costs
Impairment expense
Share-based payments expense
Other expenses
Foreign currency gain/(losses)
Loss from continuing operations before income
tax
Income tax expense
Loss from continuing operations after income tax
Other comprehensive income
Other comprehensive income for the year, net of
tax
Total comprehensive loss attributable to the
members of Vulcan Energy Resources Limited
Loss per share for the year attributable to the
members Vulcan Energy Resources Limited:
Basic loss per share (cents)
Diluted loss per share (cents)
Note
4
5(a)
5(b)
10
19
6
7
7
2021
$
2020
$
631,542
95,342
(888,145)
(551,639)
(1,922,771)
(131,522)
(624,829)
(410,338)
-
(55,930)
(228,663)
(6,517,484)
(120,877)
76,042
(320,920)
(98,906)
(424,603)
-
(234,551)
(314,510)
(150,000)
(18,148)
(286,017)
(1,690,473)
(103,406)
(7,167)
(10,744,614)
(3,553,359)
-
(10,744,614)
-
(3,553,359)
(99,993)
(99,993)
(22,016)
(22,016)
(10,844,607)
(3,575,375)
(12.32)
(12.32)
(7.37)
(7.37)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be
read in conjunction with the notes to the financial statements.
89 \ Vulcan Energy Resources Limited
2021 Annual Report / 90
28 | P a g e
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Exploration and evaluation
expenditure
Plant and equipment
Right-of-use asset
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Total current liabilities
Non Current liabilities
Lease liabilities
Total Non current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity
8
9
10
11
12
13
12
14
12
15
16
24
114,705,865
1,197,500
115,903,365
6,421,557
116,071
6,537,628
13,793,798
2,556,980
1,480,672
566,246
13,353
-
15,840,716
2,570,333
131,744,081
9,107,961
2,113,014
208,222
62,389
87,584
2,262,987
-
13,700
221,922
496,547
496,547
-
-
2,759,534
221,922
128,984,547
8,886,039
136,500,372
7,899,461
11,836,741
1,719,970
(15,415,286)
(4,670,672)
128,984,547
8,886,039
2021 Annual Report / 90
29 | P a g e
The Consolidated Statement of Financial Position should be
read in conjunction with the notes to the financial statements.
Consolidated Statement of Profit
Vulcan Energy Resources Limited – Annual Report 2021
or Loss and Other Comprehensive Income
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
As at 30 June 2021
For the Financial Year Ended 30 June 2021
Vulcan Energy Resources Limited – Annual Report 2021
Revenue from continuing operations
Other income
Expenses
Administrative expenses
Compliance and regulatory expenses
Consulting and legal fees
Depreciation
Employee benefit expenses
Investor relations
Introducer fee
Occupancy costs
Impairment expense
Share-based payments expense
Other expenses
Foreign currency gain/(losses)
Loss from continuing operations before income
tax
Income tax expense
Loss from continuing operations after income tax
Other comprehensive income
Other comprehensive income for the year, net of
tax
Total comprehensive loss attributable to the
members of Vulcan Energy Resources Limited
Loss per share for the year attributable to the
members Vulcan Energy Resources Limited:
Basic loss per share (cents)
Diluted loss per share (cents)
Note
4
5(a)
5(b)
10
19
6
7
7
2021
$
2020
$
631,542
95,342
(888,145)
(551,639)
(1,922,771)
(131,522)
(624,829)
(410,338)
-
(55,930)
(228,663)
(6,517,484)
(120,877)
76,042
(320,920)
(98,906)
(424,603)
-
(234,551)
(314,510)
(150,000)
(18,148)
(286,017)
(1,690,473)
(103,406)
(7,167)
(10,744,614)
(3,553,359)
-
-
(10,744,614)
(3,553,359)
(99,993)
(99,993)
(22,016)
(22,016)
(10,844,607)
(3,575,375)
(12.32)
(12.32)
(7.37)
(7.37)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be
read in conjunction with the notes to the financial statements.
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Exploration and evaluation
expenditure
Plant and equipment
Right-of-use asset
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Total current liabilities
Non Current liabilities
Lease liabilities
Total Non current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity
Note
2021
$
2020
$
8
9
10
11
12
13
12
14
12
15
16
24
114,705,865
1,197,500
115,903,365
6,421,557
116,071
6,537,628
13,793,798
2,556,980
1,480,672
566,246
15,840,716
13,353
-
2,570,333
131,744,081
9,107,961
2,113,014
62,389
87,584
2,262,987
208,222
-
13,700
221,922
496,547
496,547
-
-
2,759,534
221,922
128,984,547
8,886,039
136,500,372
7,899,461
(15,415,286)
128,984,547
11,836,741
1,719,970
(4,670,672)
8,886,039
The Consolidated Statement of Financial Position should be
read in conjunction with the notes to the financial statements.
89 \ Vulcan Energy Resources Limited
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2021 Annual Report / 90
29 | P a g e
28 | P a g e
activities
costs
subsidiary
Payments for exploration and evaluation
Net cash acquired from acquisition of
17
Cash flows from operating
activities
Payments to suppliers and
employees
Interest received
Other income
Interest paid
Net cash used in operating
activities
Cash flows from investing
Payments for software
Payment for plant and
equipment
Net cash used in investing
activities
Cash flows from financing
activities
Proceeds from exercise of
listed and unlisted options
Proceeds from issued
shares
Share issue costs
Lease repayments
Net cash from financing
activities
Net increase in cash and
cash equivalents
Note
2021
$
2020
$
(3,446,209)
(1,427,391)
100,937
510,879
(6,752)
45,342
50,000
-
8(a)
(2,841,145)
(1,332,049)
(5,832,409)
(1,205,783)
-
-
404
(13,353)
(1,312,818)
-
(7,145,227)
(1,218,732)
4,430,809
120,000,000
5,976,310
(6,139,997)
(330,545)
(22,888)
118,267,924
5,645,765
-
-
108,281,552
3,094,984
6,421,557
3,348,996
2,756
(22,423)
Cash and cash equivalents at the
beginning of the year
Effect of exchange rate fluctuations on
cash held
the year
Cash and cash equivalents at the end of
8
114,705,865
6,421,557
The Consolidated Statement of Cash Flows should be
read in conjunction with the notes to the financial statements.
Revenue from continuing operations
Other income
Expenses
Administrative expenses
Compliance and regulatory expenses
Consulting and legal fees
Depreciation
Employee benefit expenses
Investor relations
Introducer fee
Occupancy costs
Impairment expense
Share-based payments expense
Other expenses
Foreign currency gain/(losses)
Loss from continuing operations before income
tax
Income tax expense
Loss from continuing operations after income tax
Other comprehensive income
Other comprehensive income for the year, net of
tax
Total comprehensive loss attributable to the
members of Vulcan Energy Resources Limited
Loss per share for the year attributable to the
members Vulcan Energy Resources Limited:
Basic loss per share (cents)
Diluted loss per share (cents)
Note
4
5(a)
5(b)
10
19
6
7
7
2021
$
2020
$
631,542
95,342
(888,145)
(551,639)
(1,922,771)
(131,522)
(624,829)
(410,338)
-
(55,930)
(228,663)
(6,517,484)
(120,877)
76,042
(320,920)
(98,906)
(424,603)
-
(234,551)
(314,510)
(150,000)
(18,148)
(286,017)
(1,690,473)
(103,406)
(7,167)
(10,744,614)
(3,553,359)
-
-
(10,744,614)
(3,553,359)
(99,993)
(99,993)
(22,016)
(22,016)
(10,844,607)
(3,575,375)
(12.32)
(12.32)
(7.37)
(7.37)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be
read in conjunction with the notes to the financial statements.
89 \ Vulcan Energy Resources Limited
28 | P a g e
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Exploration and evaluation
expenditure
Plant and equipment
Right-of-use asset
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Total current liabilities
Non Current liabilities
Lease liabilities
Total Non current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Total equity
Note
2021
$
2020
$
8
9
10
11
12
13
12
14
12
15
16
24
114,705,865
1,197,500
115,903,365
6,421,557
116,071
6,537,628
13,793,798
2,556,980
1,480,672
566,246
13,353
-
15,840,716
2,570,333
131,744,081
9,107,961
2,113,014
208,222
62,389
87,584
2,262,987
-
13,700
221,922
496,547
496,547
-
-
2,759,534
221,922
128,984,547
8,886,039
136,500,372
7,899,461
11,836,741
1,719,970
(15,415,286)
(4,670,672)
128,984,547
8,886,039
The Consolidated Statement of Financial Position should be
read in conjunction with the notes to the financial statements.
Consolidated Statement of Profit
Vulcan Energy Resources Limited – Annual Report 2021
or Loss and Other Comprehensive Income
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
As at 30 June 2021
For the Financial Year Ended 30 June 2021
Vulcan Energy Resources Limited – Annual Report 2021
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
For the Financial Year Ended 30 June 2021
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
For the Financial Year Ended 30 June 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Issued
Capital
$
11,836,741
Reserves
$
1,719,970
Accumulated
Losses
$
(4,670,672)
Total
$
8,886,039
-
-
-
-
(10,744,614)
(10,744,614)
(99,993)
-
(99,993)
(99,993)
(10,744,614)
(10,844,607)
130,803,628
(6,139,997)
-
-
-
6,279,484
-
-
-
130,803,628
(6,139,997)
6,279,484
136,500,372
7,899,461
(15,415,286)
128,984,547
At 1 July 2020
Loss for the year
Other
comprehensive loss
for the year
Total
comprehensive
loss for the year
after tax
Transactions with
owners in their
capacity as owners:
Issue of share
capital
Share issue costs
Share-based
payments
Balance at 30 June
2021
At 1 July 2019
Loss for the year
Other comprehensive loss for the year
Total comprehensive loss for the
year after tax
Transactions with owners in their
capacity as owners:
Issue of share capital
Share issue costs
Share-based payments
Balance at 30 June
2020
Issued
Capital
Reserves
Accumulated
Losses
Total
$
4,746,416
$
164,013
$
$
(1,117,313)
3,793,116
-
-
-
-
(3,553,359)
(3,553,359)
(22,016)
(22,016)
-
(3,553,359)
(22,016)
(3,575,375)
7,438,810
(348,485)
-
11,836,741
-
-
1,577,973
1,719,970
-
7,438,810
(348,485)
1,577,973
Vulcan Energy Resources Limited – Annual Report 2021
8,886,039
-
(4,670,672)
2021 Annual Report / 90
29 | P a g e
91 \ Vulcan Energy Resources Limited
31 | P a g e
2021 Annual Report / 92
2021 Annual Report / 92
33 | P a g e
The Consolidated Statement of Changes in Equity should be read
in conjunction with the notes to the financial statements.
32 | P a g e
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
For the Financial Year Ended 30 June 2021
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
For the Financial Year Ended 30 June 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2020
Vulcan Energy Resources Limited – Annual Report 2021
Cash flows from operating
activities
Payments to suppliers and
employees
Interest received
Other income
Interest paid
Net cash used in operating
activities
Note
2021
$
2020
$
(3,446,209)
(1,427,391)
100,937
510,879
(6,752)
45,342
50,000
-
8(a)
(2,841,145)
(1,332,049)
Cash flows from investing
activities
Payments for exploration and evaluation
costs
Net cash acquired from acquisition of
subsidiary
Payments for software
Payment for plant and
equipment
Net cash used in investing
activities
17
Cash flows from financing
activities
Proceeds from exercise of
listed and unlisted options
Proceeds from issued
shares
Share issue costs
Lease repayments
Net cash from financing
activities
Net increase in cash and
cash equivalents
Cash and cash equivalents at the
beginning of the year
Effect of exchange rate fluctuations on
cash held
Cash and cash equivalents at the end of
the year
(5,832,409)
(1,205,783)
-
-
404
(13,353)
(1,312,818)
-
(7,145,227)
(1,218,732)
4,430,809
-
120,000,000
5,976,310
(6,139,997)
(22,888)
(330,545)
-
118,267,924
5,645,765
108,281,552
3,094,984
6,421,557
3,348,996
2,756
(22,423)
8
114,705,865
6,421,557
91 \ Vulcan Energy Resources Limited
31 | P a g e
93 \ Vulcan Energy Resources Limited
33 | P a g e
2021 Annual Report / 92
93 \ Vulcan Energy Resources Limited
34 | P a g e
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35 | P a g e
The Consolidated Statement of Cash Flows should be
read in conjunction with the notes to the financial statements.
The consolidated financial statements have been prepared on a going concern basis in accordance with the
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected
to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Reporting Entity
Vulcan Energy Resources Limited (referred to as “Vulcan” or the “Company”) is a company domiciled in Australia.
The address of the Company’s registered office and principal place of business is disclosed in the Corporate
Directory of the Annual Report. The consolidated financial statements of the Company as at and for the year
ended 30 June 2021 comprise the Company and its subsidiaries (together referred to as the “consolidated entity”
or the “Group”).
(b) Basis of Preparation
Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board (“AASB”) and the Corporations Act 2001. The consolidated financial statements comply with
International Financial Reporting Standards (“IFRS”) adopted by the International Accounting Standards Board
(“IASB”). Vulcan Energy Resources Limited is a for-profit entity for the purpose of preparing the financial
statements.
Basis of measurement
The annual report was authorised for issue by the Board of Directors on 2 September 2021.
historical cost convention, unless otherwise stated.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated
entity only. Supplementary information about the parent entity is disclosed in Note 26.
New, revised or amended standards and interpretations adopted by the Group
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board (“AASB”) that are mandatory for the current reporting period.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual
Framework contains new definition and recognition criteria as well as new guidance on measurement that
affects several Accounting Standards, but it has not had a material impact on the consolidated entity's financial
Current and non-current classification
statements.
classification.
Assets and liabilities are presented in the statement of financial position based on current and non-current
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in
the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to
be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted
from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets
are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal
operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the
reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months
after the reporting period. All other liabilities are classified as non-current.
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Equity Instruments
Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI,
there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition
of the investment. Dividends from such investments continue to be recognised in the profit or loss as other
income when the Group’s right to receive payments is established.
Assets - Impairment
From 1 July 2019, the Group assesses on a forward-looking basis the expected credit losses (ECLs) associated
with its debt instruments carried at amortised cost and FVOCI. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to
receive. The shortfall is then discounted at an approximation to the asset’s original effective interest rate.
The Group assesses at each balance date whether there is objective evidence that a financial asset or group of
financial assets is impaired. For trade and other receivables, the Group applies the simplified approach permitted
by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s
historical credit loss experience.
Employee benefits
Short-term employee benefits
the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting
date are measured at the present value of expected future payments to be made in respect of services provided
by employees up to the reporting date using the projected unit credit method. Consideration is given to expected
future wage and salary levels, experience of employee departures and periods of service. Expected future
payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity
and currency that match, as closely as possible, the estimated future cash outflows.
Share-based payments
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in
exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of
services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise
price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of
the underlying share, the expected dividend yield and the risk free interest rate for the term of the option,
together with non-vesting conditions that do not determine whether the consolidated entity receives the
services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity
over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of
the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting
period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each
reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying
either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on
which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated
as follows:
•
•
during the vesting period, the liability at each reporting date is the fair value of the award at that date
multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the
liability at the reporting date.
Conceptual Framework for Financial Reporting (Conceptual Framework)
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
$
-
-
-
-
Loss for the year
Other
comprehensive loss
for the year
Total
comprehensive
loss for the year
after tax
Transactions with
owners in their
capacity as owners:
Issue of share
capital
Share-based
payments
Balance at 30 June
2021
Issued
Capital
Reserves
Accumulated
Losses
At 1 July 2020
11,836,741
1,719,970
(4,670,672)
Total
$
8,886,039
$
-
-
-
(10,744,614)
(10,744,614)
(99,993)
(99,993)
(99,993)
(10,744,614)
(10,844,607)
130,803,628
Share issue costs
(6,139,997)
-
6,279,484
130,803,628
(6,139,997)
6,279,484
136,500,372
7,899,461
(15,415,286)
128,984,547
At 1 July 2019
Loss for the year
Other comprehensive loss for the year
Total comprehensive loss for the
year after tax
Transactions with owners in their
capacity as owners:
Issue of share capital
Share issue costs
Share-based payments
Balance at 30 June
2020
Issued
Capital
Reserves
Accumulated
Total
Losses
$
$
$
$
4,746,416
164,013
(1,117,313)
3,793,116
-
(3,553,359)
(3,553,359)
(22,016)
(22,016)
(3,553,359)
(3,575,375)
(22,016)
7,438,810
(348,485)
11,836,741
-
-
1,577,973
1,719,970
Vulcan Energy Resources Limited – Annual Report 2021
(4,670,672)
8,886,039
7,438,810
(348,485)
1,577,973
-
-
-
The Consolidated Statement of Changes in Equity should be read
in conjunction with the notes to the financial statements.
$
-
-
-
-
-
-
-
32 | P a g e
Vulcan Energy Resources Limited – Annual Report 2020
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Reporting Entity
Vulcan Energy Resources Limited (referred to as “Vulcan” or the “Company”) is a company domiciled in Australia.
The address of the Company’s registered office and principal place of business is disclosed in the Corporate
Directory of the Annual Report. The consolidated financial statements of the Company as at and for the year
ended 30 June 2021 comprise the Company and its subsidiaries (together referred to as the “consolidated entity”
or the “Group”).
(b) Basis of Preparation
Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board (“AASB”) and the Corporations Act 2001. The consolidated financial statements comply with
International Financial Reporting Standards (“IFRS”) adopted by the International Accounting Standards Board
(“IASB”). Vulcan Energy Resources Limited is a for-profit entity for the purpose of preparing the financial
statements.
The annual report was authorised for issue by the Board of Directors on 2 September 2021.
Basis of measurement
The consolidated financial statements have been prepared on a going concern basis in accordance with the
historical cost convention, unless otherwise stated.
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected
to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated
entity only. Supplementary information about the parent entity is disclosed in Note 26.
New, revised or amended standards and interpretations adopted by the Group
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board (“AASB”) that are mandatory for the current reporting period.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
Conceptual Framework for Financial Reporting (Conceptual Framework)
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual
Framework contains new definition and recognition criteria as well as new guidance on measurement that
affects several Accounting Standards, but it has not had a material impact on the consolidated entity's financial
statements.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in
the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to
be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted
from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets
are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal
operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the
reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months
after the reporting period. All other liabilities are classified as non-current.
93 \ Vulcan Energy Resources Limited
2021 Annual Report / 94
34 | P a g e
2021 Annual Report / 94
35 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Equity Instruments
Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI,
there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition
of the investment. Dividends from such investments continue to be recognised in the profit or loss as other
income when the Group’s right to receive payments is established.
Assets - Impairment
From 1 July 2019, the Group assesses on a forward-looking basis the expected credit losses (ECLs) associated
with its debt instruments carried at amortised cost and FVOCI. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to
receive. The shortfall is then discounted at an approximation to the asset’s original effective interest rate.
The Group assesses at each balance date whether there is objective evidence that a financial asset or group of
financial assets is impaired. For trade and other receivables, the Group applies the simplified approach permitted
by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s
historical credit loss experience.
Employee benefits
Short-term employee benefits
the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting
date are measured at the present value of expected future payments to be made in respect of services provided
by employees up to the reporting date using the projected unit credit method. Consideration is given to expected
future wage and salary levels, experience of employee departures and periods of service. Expected future
payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity
and currency that match, as closely as possible, the estimated future cash outflows.
Share-based payments
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in
exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of
services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise
price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of
the underlying share, the expected dividend yield and the risk free interest rate for the term of the option,
together with non-vesting conditions that do not determine whether the consolidated entity receives the
services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity
over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of
the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting
period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each
reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying
either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on
which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated
as follows:
•
•
during the vesting period, the liability at each reporting date is the fair value of the award at that date
multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the
liability at the reporting date.
Vulcan Energy Resources Limited – Annual Report 2020
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Equity Instruments
Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI,
there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition
of the investment. Dividends from such investments continue to be recognised in the profit or loss as other
income when the Group’s right to receive payments is established.
Assets - Impairment
From 1 July 2019, the Group assesses on a forward-looking basis the expected credit losses (ECLs) associated
with its debt instruments carried at amortised cost and FVOCI. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to
receive. The shortfall is then discounted at an approximation to the asset’s original effective interest rate.
The Group assesses at each balance date whether there is objective evidence that a financial asset or group of
financial assets is impaired. For trade and other receivables, the Group applies the simplified approach permitted
by AASB 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s
historical credit loss experience.
The annual report was authorised for issue by the Board of Directors on 2 September 2021.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected
to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when
the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting
date are measured at the present value of expected future payments to be made in respect of services provided
by employees up to the reporting date using the projected unit credit method. Consideration is given to expected
future wage and salary levels, experience of employee departures and periods of service. Expected future
payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity
and currency that match, as closely as possible, the estimated future cash outflows.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in
exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of
services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise
price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of
the underlying share, the expected dividend yield and the risk free interest rate for the term of the option,
together with non-vesting conditions that do not determine whether the consolidated entity receives the
services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity
over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of
the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting
period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each
reporting date less amounts already recognised in previous periods.
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Reporting Entity
Vulcan Energy Resources Limited (referred to as “Vulcan” or the “Company”) is a company domiciled in Australia.
The address of the Company’s registered office and principal place of business is disclosed in the Corporate
Directory of the Annual Report. The consolidated financial statements of the Company as at and for the year
ended 30 June 2021 comprise the Company and its subsidiaries (together referred to as the “consolidated entity”
or the “Group”).
(b) Basis of Preparation
Statement of compliance
statements.
Basis of measurement
The consolidated financial statements are general purpose financial statements which have been prepared in
accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board (“AASB”) and the Corporations Act 2001. The consolidated financial statements comply with
International Financial Reporting Standards (“IFRS”) adopted by the International Accounting Standards Board
(“IASB”). Vulcan Energy Resources Limited is a for-profit entity for the purpose of preparing the financial
The consolidated financial statements have been prepared on a going concern basis in accordance with the
historical cost convention, unless otherwise stated.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated
entity only. Supplementary information about the parent entity is disclosed in Note 26.
New, revised or amended standards and interpretations adopted by the Group
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board (“AASB”) that are mandatory for the current reporting period.
The following Accounting Standards and Interpretations are most relevant to the consolidated entity:
Conceptual Framework for Financial Reporting (Conceptual Framework)
The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual
Framework contains new definition and recognition criteria as well as new guidance on measurement that
affects several Accounting Standards, but it has not had a material impact on the consolidated entity's financial
Current and non-current classification
statements.
classification.
Assets and liabilities are presented in the statement of financial position based on current and non-current
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in
the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to
be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted
from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets
are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal
operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the
reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months
after the reporting period. All other liabilities are classified as non-current.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying
either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on
which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated
as follows:
•
during the vesting period, the liability at each reporting date is the fair value of the award at that date
multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the
liability at the reporting date.
•
93 \ Vulcan Energy Resources Limited
34 | P a g e
95 \ Vulcan Energy Resources Limited
35 | P a g e
2021 Annual Report / 94
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the
cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all
other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been
made. An additional expense is recognised, over the remaining vesting period, for any modification that increases
the total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the consolidated entity or
employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over
the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award,
the cancelled and new award is treated as if they were a modification.
New standards and interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations relevant to the Group that have recently been issued or
amended but are not yet effective, have not been adopted by the Group for the period ended 30 June 2021 and
are outlined in the table below:
Applicati
on date
of the
standard
1 January
2021
Applies to
financial
year ended
30 June
2022
1 January
2022
30 June
2023
Reference
Summary
AASB
2020-8
AASB
2020-3
Amendments to Australian Accounting Standards – Interest Rate Benchmark
Reform – Phase 2 Requires that for-profit private sector entities:
This Standard amends the Standards to help entities to provide financial statement
users with useful information about the effects of the interest rate benchmark
reform on those entities’ financial statements.
As a result of these amendments, an entity:
a) will not have to derecognise or adjust the carrying amount of financial
instruments for changes required by the reform, but will instead update the effective
interest rate to reflect the change to the alternative benchmark rate;
b) will not have to discontinue its hedge accounting solely because it makes
changes required by the reform, if the hedge meets other hedge accounting criteria;
and
c) will be required to disclose information about new risks arising from the reform
and how it manages the transition to alternative benchmark rates.
Annual Improvements to IFRS Standards 2018–2020 and Other Amendments
This Standard amends:
a) the application of AASB 1 by a subsidiary that becomes a first-time adopter
after its parent in relation to the measurement of cumulative translation differences;
b) AASB 3 to update references to the Conceptual Framework for Financial
Reporting;
c) AASB 9 to clarify when the terms of a new or modified financial liability are
substantially different from the terms of the original financial liability;
d) AASB 116 to require an entity to recognise the sales proceeds from selling
items produced while preparing property, plant and equipment for its intended use
and the related cost in profit or loss, instead of deducting the amounts received from
the cost of the asset;
e) AASB 137 to specify the costs that an entity includes when assessing whether
a contract will be loss-making; and
f) AASB 141 to align the fair value measurement requirements in AASB 141 with
those in other Australian Accounting Standards.
95 \ Vulcan Energy Resources Limited
36 | P a g e
2021 Annual Report / 96
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
AASB
2020-1
as Current or Non-Current
Amendments to Australian Accounting Standards – Classification of Liabilities
1 January
2023
30 June
2024
Amends AASB 101 to clarify that liabilities are classified as either current or non-
current, depending on the rights that exist at the end of the reporting period.
Classification is unaffected by the expectations of the entity or events after the
reporting date (for example, the receipt of a waiver, a breach of covenant, or settlement
of the liability). The mandatory application date of the amendment has been deferred
by 12 months to 1 January 2023 by AASB 2020-6.
Amendments to Australian Accounting Standards – Disclosure of Accounting
1 January
AASB
2021-2
Policies and Definition of Accounting Estimates
This Standard amends:
2023
30 June
2024
a) AASB 7, to clarify that information about measurement bases for financial
instruments is expected to be material to an entity’s financial statements;
b) AASB 101, to require entities to disclose their material accounting policy
information rather than their significant accounting policies;
c) AASB 108, to clarify how entities should distinguish changes in accounting
policies and changes in accounting estimates;
d) AASB 134, to identify material accounting policy information as a
component of a complete set of financial statements; and
AASB Practice Statement 2, to provide guidance on how to apply the concept of
materiality to accounting policy disclosures.
New standards and interpretations not yet mandatory or early adopted (cont.)
The Group has not yet assessed the impact of these new or amended Accounting Standards and Interpretations
but does not expect it to have a significant impact on the Group’s results.
Significant Judgements and Estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity’s accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements are disclosed in Note 2.
(c)
Comparatives
The comparative period is 1 July 2019 to 30 June 2020.
(d)
Principles of Consolidation
Subsidiaries
then ended.
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Vulcan Energy
Resources Limited (‘Company’ or ‘parent entity’) as at 30 June 2021 and the results of all subsidiaries for the year
Subsidiaries are all entities (including special purpose entities) over which the consolidated entity has the power
to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of
the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible
are considered when assessing whether the consolidated entity controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They
are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between consolidated entity
companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the consolidated entity.
The acquisition method of accounting is used to account for business combinations by the consolidated entity.
A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the
difference between the consideration transferred and the book value of the share of the non-controlling interest
acquired is recognised directly in equity attributable to the parent.
38 | P a g e
2021 Annual Report / 96
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the
cash paid to settle the liability.
other conditions are satisfied.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been
made. An additional expense is recognised, over the remaining vesting period, for any modification that increases
the total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the consolidated entity or
employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over
the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award,
the cancelled and new award is treated as if they were a modification.
New standards and interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations relevant to the Group that have recently been issued or
amended but are not yet effective, have not been adopted by the Group for the period ended 30 June 2021 and
are outlined in the table below:
Reference
Summary
AASB
2020-8
Amendments to Australian Accounting Standards – Interest Rate Benchmark
Reform – Phase 2 Requires that for-profit private sector entities:
This Standard amends the Standards to help entities to provide financial statement
users with useful information about the effects of the interest rate benchmark
reform on those entities’ financial statements.
As a result of these amendments, an entity:
a) will not have to derecognise or adjust the carrying amount of financial
instruments for changes required by the reform, but will instead update the effective
interest rate to reflect the change to the alternative benchmark rate;
b) will not have to discontinue its hedge accounting solely because it makes
changes required by the reform, if the hedge meets other hedge accounting criteria;
and
c) will be required to disclose information about new risks arising from the reform
and how it manages the transition to alternative benchmark rates.
Annual Improvements to IFRS Standards 2018–2020 and Other Amendments
1 January
AASB
2020-3
This Standard amends:
2022
30 June
2023
a) the application of AASB 1 by a subsidiary that becomes a first-time adopter
after its parent in relation to the measurement of cumulative translation differences;
b) AASB 3 to update references to the Conceptual Framework for Financial
Reporting;
c) AASB 9 to clarify when the terms of a new or modified financial liability are
substantially different from the terms of the original financial liability;
d) AASB 116 to require an entity to recognise the sales proceeds from selling
items produced while preparing property, plant and equipment for its intended use
and the related cost in profit or loss, instead of deducting the amounts received from
the cost of the asset;
e) AASB 137 to specify the costs that an entity includes when assessing whether
a contract will be loss-making; and
f) AASB 141 to align the fair value measurement requirements in AASB 141 with
those in other Australian Accounting Standards.
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
AASB
2020-1
AASB
2021-2
Amendments to Australian Accounting Standards – Classification of Liabilities
as Current or Non-Current
Amends AASB 101 to clarify that liabilities are classified as either current or non-
current, depending on the rights that exist at the end of the reporting period.
Classification is unaffected by the expectations of the entity or events after the
reporting date (for example, the receipt of a waiver, a breach of covenant, or settlement
of the liability). The mandatory application date of the amendment has been deferred
by 12 months to 1 January 2023 by AASB 2020-6.
Amendments to Australian Accounting Standards – Disclosure of Accounting
Policies and Definition of Accounting Estimates
This Standard amends:
a) AASB 7, to clarify that information about measurement bases for financial
instruments is expected to be material to an entity’s financial statements;
b) AASB 101, to require entities to disclose their material accounting policy
information rather than their significant accounting policies;
c) AASB 108, to clarify how entities should distinguish changes in accounting
policies and changes in accounting estimates;
d) AASB 134, to identify material accounting policy information as a
component of a complete set of financial statements; and
AASB Practice Statement 2, to provide guidance on how to apply the concept of
materiality to accounting policy disclosures.
1 January
2023
30 June
2024
1 January
2023
30 June
2024
Applicati
Applies to
on date
of the
standard
1 January
2021
financial
year ended
30 June
2022
New standards and interpretations not yet mandatory or early adopted (cont.)
The Group has not yet assessed the impact of these new or amended Accounting Standards and Interpretations
but does not expect it to have a significant impact on the Group’s results.
Significant Judgements and Estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity’s accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the financial statements are disclosed in Note 2.
(g)
Dividends
Company.
Dividends are recognised when declared during the financial period and no longer at the discretion of the
within the Group.
(c)
Comparatives
The comparative period is 1 July 2019 to 30 June 2020.
(d)
Principles of Consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Vulcan Energy
Resources Limited (‘Company’ or ‘parent entity’) as at 30 June 2021 and the results of all subsidiaries for the year
then ended.
Subsidiaries are all entities (including special purpose entities) over which the consolidated entity has the power
to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of
the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible
are considered when assessing whether the consolidated entity controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They
are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between consolidated entity
companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the consolidated entity.
The acquisition method of accounting is used to account for business combinations by the consolidated entity.
A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the
difference between the consideration transferred and the book value of the share of the non-controlling interest
acquired is recognised directly in equity attributable to the parent.
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
NOTE 2
CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS (CONT.)
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated
statement of profit or loss and other comprehensive income, statement of changes in equity and statement of
Share-based payments
financial position respectively.
(e)
Foreign Currency Translation
Functional and presentation currency
Items included in the financial statements of each of the consolidated entity’s entities are measured using the
currency of the primary economic environment in which the entity operates (“functional currency”). The
consolidated financial statements are presented in Australian dollars, which is Vulcan Energy Resources
Limited’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at period end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss.
(f)
Asset Acquisition not constituting a Business
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a
carrying amount based on their relative fair values in an asset purchase transaction and no deferred tax will arise
in relation to the acquired assets and assumed liabilities as the initial recognition exemption for deferred tax
under AASB 112 applies. No goodwill will arise on the acquisition and transaction costs of the acquisition will be
included in the capitalised cost of the asset.
NOTE 2
CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually evaluates its
judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other various
factors, including expectations of future events, management believes to be reasonable under the
circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results.
The judgements, estimates and assumptions in these financial statements that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within the next financial period are
disclosed below.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or
may have, on the consolidated entity based on known information. This consideration extends to the nature of
the products and services offered, customers, supply chain, staffing and geographic regions in which the
consolidated entity operates. Other than as addressed in specific notes, there does not currently appear to be
either any significant impact upon the financial statements or any significant uncertainties with respect to events
or conditions which may impact the consolidated entity unfavourably as at the reporting date or subsequently as
a result of the Coronavirus (COVID-19) pandemic.
Exploration and evaluation expenditure
Exploration and evaluation costs have been capitalised on the basis that activities in the area have not yet
reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. Key
judgements are applied in considering costs to be capitalised which includes determining expenditures directly
related to these activities and allocating overheads between those that are expensed and capitalised.
The Group measures the cost of equity settled transactions with Directors, employees and consultants, where
applicable, by reference to the fair value of equity instruments at the date at which they are granted. The fair
value is determined using an appropriate valuation model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled
shared-based payments would have no impact on the carrying amounts of assets and liabilities within the next
annual reporting period but may impact profit or loss and equity.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges
for its plant and equipment. The useful lives could change significantly as a result of technical innovations or
some other event. The depreciation and amortisation charge will increase where the useful lives are less than
previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will
be written off or written down.
NOTE 3
SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision makers. The chief operating decision makers, who are responsible for allocating resources
and assessing performance of the operating segments, have been identified as the Board of Directors.
For the financial years ended 30 June 2020 and 30 June 2021 and following the acquisition of a 100% interest in
the Vulcan Lithium Project in the Upper Rhine Valley of Germany on 4 September 2019, it was determined that the
Group operates in three operating segments being, energy metals exploration in Germany, copper and zinc
mineral exploration in Norway and resources allocated to administration. This is the basis in which internal
reports are provided to the Directors for assessing performance and determining the allocation of resources
For the year ended 30 June 2021
Segment performance
Exploration
Exploration
30 June 2021
Revenue
Interest income
Other income
Total segment revenue
Germany
Norway
Administration
Total
$
$
$
$
-
327,380
327,380
-
-
-
120,678
183,484
120,663
510,879
304,162
631,542
Reconciliation of segment results to net loss before tax
Amounts not included in segment results but reviewed by the Board
- Administration, consulting and other expenses
Net loss before tax from continuing
operations
(11,376,156)
(10,744,614)
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36 | P a g e
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38 | P a g e
2021 Annual Report / 96
97 \ Vulcan Energy Resources Limited
40 | P a g e
2021 Annual Report / 98
41 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
NOTE 2
CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS (CONT.)
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated
statement of profit or loss and other comprehensive income, statement of changes in equity and statement of
financial position respectively.
(e)
Foreign Currency Translation
Functional and presentation currency
Items included in the financial statements of each of the consolidated entity’s entities are measured using the
currency of the primary economic environment in which the entity operates (“functional currency”). The
consolidated financial statements are presented in Australian dollars, which is Vulcan Energy Resources
Limited’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at period end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss.
(f)
Asset Acquisition not constituting a Business
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a
carrying amount based on their relative fair values in an asset purchase transaction and no deferred tax will arise
in relation to the acquired assets and assumed liabilities as the initial recognition exemption for deferred tax
under AASB 112 applies. No goodwill will arise on the acquisition and transaction costs of the acquisition will be
included in the capitalised cost of the asset.
(g)
Dividends
Dividends are recognised when declared during the financial period and no longer at the discretion of the
Company.
NOTE 2
CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually evaluates its
judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other various
factors, including expectations of future events, management believes to be reasonable under the
circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results.
The judgements, estimates and assumptions in these financial statements that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within the next financial period are
disclosed below.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or
may have, on the consolidated entity based on known information. This consideration extends to the nature of
the products and services offered, customers, supply chain, staffing and geographic regions in which the
consolidated entity operates. Other than as addressed in specific notes, there does not currently appear to be
either any significant impact upon the financial statements or any significant uncertainties with respect to events
or conditions which may impact the consolidated entity unfavourably as at the reporting date or subsequently as
a result of the Coronavirus (COVID-19) pandemic.
Exploration and evaluation expenditure
Exploration and evaluation costs have been capitalised on the basis that activities in the area have not yet
reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. Key
judgements are applied in considering costs to be capitalised which includes determining expenditures directly
related to these activities and allocating overheads between those that are expensed and capitalised.
Share-based payments
The Group measures the cost of equity settled transactions with Directors, employees and consultants, where
applicable, by reference to the fair value of equity instruments at the date at which they are granted. The fair
value is determined using an appropriate valuation model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled
shared-based payments would have no impact on the carrying amounts of assets and liabilities within the next
annual reporting period but may impact profit or loss and equity.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges
for its plant and equipment. The useful lives could change significantly as a result of technical innovations or
some other event. The depreciation and amortisation charge will increase where the useful lives are less than
previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will
be written off or written down.
NOTE 3
SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision makers. The chief operating decision makers, who are responsible for allocating resources
and assessing performance of the operating segments, have been identified as the Board of Directors.
For the financial years ended 30 June 2020 and 30 June 2021 and following the acquisition of a 100% interest in
the Vulcan Lithium Project in the Upper Rhine Valley of Germany on 4 September 2019, it was determined that the
Group operates in three operating segments being, energy metals exploration in Germany, copper and zinc
mineral exploration in Norway and resources allocated to administration. This is the basis in which internal
reports are provided to the Directors for assessing performance and determining the allocation of resources
within the Group.
For the year ended 30 June 2021
Segment performance
Exploration
Exploration
30 June 2021
Revenue
Interest income
Other income
Total segment revenue
Germany
Norway
Administration
Total
$
$
$
$
-
327,380
327,380
-
-
-
120,678
183,484
120,663
510,879
304,162
631,542
Reconciliation of segment results to net loss before tax
Amounts not included in segment results but reviewed by the Board
- Administration, consulting and other expenses
Net loss before tax from continuing
operations
(11,376,156)
(10,744,614)
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40 | P a g e
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2021 Annual Report / 98
41 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
NOTE 2
CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS (CONT.)
NOTE 3
SEGMENT INFORMATION (CONT.)
NOTE 4
REVENUE
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated
statement of profit or loss and other comprehensive income, statement of changes in equity and statement of
financial position respectively.
(e)
Foreign Currency Translation
Functional and presentation currency
Items included in the financial statements of each of the consolidated entity’s entities are measured using the
currency of the primary economic environment in which the entity operates (“functional currency”). The
consolidated financial statements are presented in Australian dollars, which is Vulcan Energy Resources
Limited’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at period end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss.
(f)
Asset Acquisition not constituting a Business
When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a
carrying amount based on their relative fair values in an asset purchase transaction and no deferred tax will arise
in relation to the acquired assets and assumed liabilities as the initial recognition exemption for deferred tax
under AASB 112 applies. No goodwill will arise on the acquisition and transaction costs of the acquisition will be
included in the capitalised cost of the asset.
(g)
Dividends
Company.
Dividends are recognised when declared during the financial period and no longer at the discretion of the
NOTE 2
CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually evaluates its
judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses.
Management bases its judgements, estimates and assumptions on historical experience and on other various
factors, including expectations of future events, management believes to be reasonable under the
circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results.
The judgements, estimates and assumptions in these financial statements that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within the next financial period are
disclosed below.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or
may have, on the consolidated entity based on known information. This consideration extends to the nature of
the products and services offered, customers, supply chain, staffing and geographic regions in which the
consolidated entity operates. Other than as addressed in specific notes, there does not currently appear to be
either any significant impact upon the financial statements or any significant uncertainties with respect to events
or conditions which may impact the consolidated entity unfavourably as at the reporting date or subsequently as
a result of the Coronavirus (COVID-19) pandemic.
Exploration and evaluation expenditure
Exploration and evaluation costs have been capitalised on the basis that activities in the area have not yet
reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. Key
judgements are applied in considering costs to be capitalised which includes determining expenditures directly
related to these activities and allocating overheads between those that are expensed and capitalised.
Share-based payments
The Group measures the cost of equity settled transactions with Directors, employees and consultants, where
applicable, by reference to the fair value of equity instruments at the date at which they are granted. The fair
value is determined using an appropriate valuation model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled
shared-based payments would have no impact on the carrying amounts of assets and liabilities within the next
annual reporting period but may impact profit or loss and equity.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges
for its plant and equipment. The useful lives could change significantly as a result of technical innovations or
some other event. The depreciation and amortisation charge will increase where the useful lives are less than
previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will
be written off or written down.
NOTE 3
SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision makers. The chief operating decision makers, who are responsible for allocating resources
and assessing performance of the operating segments, have been identified as the Board of Directors.
For the financial years ended 30 June 2020 and 30 June 2021 and following the acquisition of a 100% interest in
the Vulcan Lithium Project in the Upper Rhine Valley of Germany on 4 September 2019, it was determined that the
Group operates in three operating segments being, energy metals exploration in Germany, copper and zinc
mineral exploration in Norway and resources allocated to administration. This is the basis in which internal
reports are provided to the Directors for assessing performance and determining the allocation of resources
within the Group.
For the year ended 30 June 2021
Segment performance
30 June 2021
Revenue
Interest income
Other income
Total segment revenue
Exploration
Germany
Exploration
Norway
Administration
Total
$
$
$
$
- Administration, consulting and other expenses
Reconciliation of segment results to net loss before tax
Amounts not included in segment results but reviewed by the Board
-
327,380
327,380
-
-
-
120,678
183,484
120,663
510,879
304,162
631,542
Net loss before tax from continuing
operations
Reconciliation of segment results to net loss before tax
Amounts not included in segment results but reviewed by the Board
- Administration, consulting and other expenses
Net loss before tax from continuing
operations
(11,376,156)
(10,744,614)
Segment liabilities
Exploration
Exploration
30 June 2020
Total segment liabilities
$
30,984
668
190,270
221,922
Germany
Norway
Administration
Total
Accounting Policy
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board. Management has
determined that based on the report reviewed by the Board and used to make strategic decisions, that the
consolidated entity has one reportable segment.
Segment assets
Exploration
Exploration
(a)
The components of tax expense comprise:
30 June 2020
Total segment asset
Germany
Norway
Administration
Total
2,279,731
290,602
6,537,628
9,107,961
Current tax
Deferred tax
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40 | P a g e
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2021 Annual Report / 98
99 \ Vulcan Energy Resources Limited
42 | P a g e
Segment assets
Exploration
Exploration
30 June 2021
Total segment asset
Germany
Norway
Administration
Total
16,504,072
388,045
114,851,964
131,744,081
Segment liabilities
Exploration
Exploration
Germany
Norway
Administration
Total
1,796,085
360,341
603,108
2,759,534
30 June 2021
Total segment liabilities
For the year ended 30 June 2020
Segment performance
Exploration
Exploration
30 June 2020
Revenue
Interest income
Other income
Total segment revenue
Germany
Norway
Administration
Total
$
$
$
$
-
-
-
-
-
-
45,342
50,000
95,342
45,342
50,000
95,342
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(3,648,701)
(3,553,359)
Other income
Interest income
Cash Boost
R&D tax incentive
InnoEnergy Funding
NOTE 5
EXPENSES
(a) Administration expenses
Accounting, audit and company secretarial fees
Travel expenses
General expenses
(b) Consultancy and legal expenses
Corporate advisory fees
Consulting fees
Legal fees
NOTE 6
INCOME TAX
Income tax expense reported in the of profit or loss and other
comprehensive income
(b)
The prima facie tax on loss from ordinary activities
before income tax is reconciled to the income tax as
follows:
Loss before income tax expense
Prima facie tax benefit on loss before income tax at 30%
Tax effect of amounts that are not deductible/taxable in
(2020: 30%)
calculating taxable income
Non-deductible expense
Tax losses and temporary differences not brought to account
Foreign corporate rate differential
Income tax expense
2021
$
2020
$
120,678
50,000
133,484
327,380
631,542
2021
$
103,559
51,926
732,660
888,145
87,456
1,054,926
780,390
1,922,771
45,342
50,000
-
-
95,342
2020
$
151,336
107,183
62,401
320,920
105,000
314,961
4,642
424,603
2021
$
2020
$
-
-
-
-
-
-
(10,744,614)
(3,223,384)
(3,553,359)
(1,066,008)
2,271,803
797,865
153,716
-
603,944
451,694
10,370
-
2021 Annual Report / 100
43 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 3
SEGMENT INFORMATION (CONT.)
NOTE 4
REVENUE
Segment assets
30 June 2021
Total segment asset
Exploration
Germany
$
Exploration
Norway
$
Administration
$
Total
$
16,504,072
388,045
114,851,964
131,744,081
Segment liabilities
Exploration
Exploration
30 June 2021
Total segment liabilities
For the year ended 30 June 2020
Germany
$
Norway
$
Administration
$
Total
$
1,796,085
360,341
603,108
2,759,534
Segment performance
Exploration
Exploration
30 June 2020
Revenue
Interest income
Other income
Total segment revenue
Germany
$
Norway
$
Administration
$
Total
$
-
-
-
-
-
-
45,342
50,000
95,342
45,342
50,000
95,342
Reconciliation of segment results to net loss before tax
Amounts not included in segment results but reviewed by the Board
- Administration, consulting and other expenses
Net loss before tax from continuing
operations
(3,648,701)
(3,553,359)
Other income
Interest income
Cash Boost
R&D tax incentive
InnoEnergy Funding
NOTE 5
EXPENSES
(a) Administration expenses
Accounting, audit and company secretarial fees
Travel expenses
General expenses
(b) Consultancy and legal expenses
Corporate advisory fees
Consulting fees
Legal fees
NOTE 6
INCOME TAX
Segment assets
Exploration
Exploration
(a)
The components of tax expense comprise:
30 June 2020
Total segment asset
Segment liabilities
30 June 2020
Total segment liabilities
Accounting Policy
Segment Reporting
Germany
$
Norway
$
Administration
$
Total
$
2,279,731
290,602
6,537,628
9,107,961
Current tax
Deferred tax
Exploration
Germany
$
Exploration
Norway
$
Administration
$
Total
$
30,984
668
190,270
221,922
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board. Management has
determined that based on the report reviewed by the Board and used to make strategic decisions, that the
consolidated entity has one reportable segment.
99 \ Vulcan Energy Resources Limited
42 | P a g e
2021 Annual Report / 100
Income tax expense reported in the of profit or loss and other
comprehensive income
(b)
The prima facie tax on loss from ordinary activities
before income tax is reconciled to the income tax as
follows:
Loss before income tax expense
Prima facie tax benefit on loss before income tax at 30%
Tax effect of amounts that are not deductible/taxable in
(2020: 30%)
calculating taxable income
Non-deductible expense
Tax losses and temporary differences not brought to account
Foreign corporate rate differential
Income tax expense
2021
$
2020
$
120,678
50,000
133,484
327,380
631,542
2021
$
103,559
51,926
732,660
888,145
87,456
1,054,926
780,390
1,922,771
45,342
50,000
-
-
95,342
2020
$
151,336
107,183
62,401
320,920
105,000
314,961
4,642
424,603
2021
$
2020
$
-
-
-
-
-
-
(10,744,614)
(3,223,384)
(3,553,359)
(1,066,008)
2,271,803
797,865
153,716
-
603,944
451,694
10,370
-
2021 Annual Report / 100
43 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 3
SEGMENT INFORMATION (CONT.)
NOTE 4
REVENUE
$
$
$
$
$
$
$
Segment assets
Exploration
Exploration
30 June 2021
Total segment asset
Germany
Norway
Administration
Total
16,504,072
388,045
114,851,964
131,744,081
Segment liabilities
Exploration
Exploration
Germany
Norway
Administration
Total
1,796,085
360,341
603,108
2,759,534
30 June 2021
Total segment liabilities
For the year ended 30 June 2020
Segment performance
Exploration
Exploration
30 June 2020
Revenue
Interest income
Other income
Total segment revenue
Germany
Norway
Administration
Total
$
$
$
$
-
-
-
-
-
-
45,342
50,000
95,342
45,342
50,000
95,342
Reconciliation of segment results to net loss before tax
Amounts not included in segment results but reviewed by the Board
- Administration, consulting and other expenses
Net loss before tax from continuing
operations
(3,648,701)
(3,553,359)
Segment assets
Exploration
Exploration
30 June 2020
Total segment asset
Germany
Norway
Administration
Total
2,279,731
290,602
6,537,628
9,107,961
Segment liabilities
Exploration
Exploration
30 June 2020
Total segment liabilities
$
30,984
668
190,270
221,922
Germany
Norway
Administration
Total
Accounting Policy
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board. Management has
determined that based on the report reviewed by the Board and used to make strategic decisions, that the
consolidated entity has one reportable segment.
$
$
$
$
$
$
$
$
Other income
Interest income
Cash Boost
R&D tax incentive
InnoEnergy Funding
NOTE 5
EXPENSES
(a) Administration expenses
Accounting, audit and company secretarial fees
Travel expenses
General expenses
(b) Consultancy and legal expenses
Corporate advisory fees
Consulting fees
Legal fees
NOTE 6
INCOME TAX
The components of tax expense comprise:
(a)
Current tax
Deferred tax
Income tax expense reported in the of profit or loss and other
comprehensive income
The prima facie tax on loss from ordinary activities
(b)
before income tax is reconciled to the income tax as
follows:
Loss before income tax expense
Prima facie tax benefit on loss before income tax at 30%
(2020: 30%)
Tax effect of amounts that are not deductible/taxable in
calculating taxable income
Non-deductible expense
Tax losses and temporary differences not brought to account
Foreign corporate rate differential
Income tax expense
2021
$
2020
$
120,678
50,000
133,484
327,380
631,542
2021
$
103,559
51,926
732,660
888,145
87,456
1,054,926
780,390
1,922,771
45,342
50,000
-
-
95,342
2020
$
151,336
107,183
62,401
320,920
105,000
314,961
4,642
424,603
2021
$
2020
$
-
-
-
-
-
-
(10,744,614)
(3,223,384)
(3,553,359)
(1,066,008)
2,271,803
797,865
153,716
-
603,944
451,694
10,370
-
99 \ Vulcan Energy Resources Limited
42 | P a g e
101 \ Vulcan Energy Resources Limited
43 | P a g e
2021 Annual Report / 100
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 6
INCOME TAX (CONT.)
NOTE 6
INCOME TAX (CONT.)
Deferred tax assets/(liabilities) not brought to
(c)
accounts are:
Accruals
Prepayments
Other
Tax losses
Total deferred tax balances not brought to account
93,062
(21,970)
65,140
1,050,391
1,186,623
26,411
(5,743)
20,042
606,194
646,904
Potential deferred tax assets attributable to tax losses and other temporary differences have not been brought
to account at 30 June 2021 because the directors do not believe it is appropriate to regard realisation of the
deferred tax assets as probable at this point in time. These benefits will only be obtained if:
•
•
the Company derives future assessable income of a nature and of an amount sufficient to enable the
benefit from the deductions for the expenditure to be realised; and
no changes in tax legislation adversely affect the Company in realising the benefit from the deductions
for the expenditure.
Accounting Policy
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax
expense (income).
Current Tax
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax
liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant
taxation authority.
Deferred Tax
Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year
as well as unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit
or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result
where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be
recognised from the initial recognition of an asset or liability, excluding a business combination, where there is
no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the
reporting period. Their measurement also reflects the manner in which management expects to recover or settle
the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent
that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset
can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint
ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary
difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended
that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur.
Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax
assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity
or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement
of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets
or liabilities are expected to be recovered or settled.
NOTE 7
LOSS PER SHARE
2021
$
2020
$
Net loss for the year
(10,744,614)
(3,553,359)
Weighted average number of ordinary shares for
basic and diluted loss per share.
87,204,203
48,226,596
Basic and diluted loss per share (cents)
(12.32)
(7.37)
Basic loss per share is determined by dividing net profit or loss after income tax attributable to members of the
Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued
Diluted loss per share adjusts the figures used in the determination of basic earnings per share to take into
account the after-income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no consideration
in relation to dilutive potential ordinary shares.
NOTE 8
CASH AND CASH EQUIVALENTS
Accounting Policy
Basic Loss Per Share
during the year.
Diluted Loss Per Share
Cash at bank and in hand
Short-term deposits
2021
$
6,156,871
108,548,994
114,705,865
2020
$
4,621,557
1,800,000
6,421,557
Cash
TD
101 \ Vulcan Energy Resources Limited
45 | P a g e
2021 Annual Report / 102
2021 Annual Report / 102
46 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 6
INCOME TAX (CONT.)
NOTE 6
INCOME TAX (CONT.)
(c)
Deferred tax assets/(liabilities) not brought to
accounts are:
Accruals
Prepayments
Other
Tax losses
Total deferred tax balances not brought to account
93,062
(21,970)
65,140
1,050,391
1,186,623
26,411
(5,743)
20,042
606,194
646,904
Potential deferred tax assets attributable to tax losses and other temporary differences have not been brought
to account at 30 June 2021 because the directors do not believe it is appropriate to regard realisation of the
deferred tax assets as probable at this point in time. These benefits will only be obtained if:
•
•
the Company derives future assessable income of a nature and of an amount sufficient to enable the
benefit from the deductions for the expenditure to be realised; and
no changes in tax legislation adversely affect the Company in realising the benefit from the deductions
for the expenditure.
Accounting Policy
expense (income).
Current Tax
taxation authority.
Deferred Tax
as well as unused tax losses.
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax
liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant
Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit
or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result
where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be
recognised from the initial recognition of an asset or liability, excluding a business combination, where there is
no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the
reporting period. Their measurement also reflects the manner in which management expects to recover or settle
the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent
that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset
can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint
ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary
difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended
that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur.
Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax
assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity
or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement
of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets
or liabilities are expected to be recovered or settled.
NOTE 7
LOSS PER SHARE
2021
$
2020
$
Net loss for the year
(10,744,614)
(3,553,359)
Weighted average number of ordinary shares for
basic and diluted loss per share.
87,204,203
48,226,596
Basic and diluted loss per share (cents)
(12.32)
(7.37)
Accounting Policy
Basic Loss Per Share
Basic loss per share is determined by dividing net profit or loss after income tax attributable to members of the
Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued
during the year.
Diluted Loss Per Share
Diluted loss per share adjusts the figures used in the determination of basic earnings per share to take into
account the after-income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no consideration
in relation to dilutive potential ordinary shares.
NOTE 8
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Short-term deposits
2021
$
6,156,871
108,548,994
114,705,865
2020
$
4,621,557
1,800,000
6,421,557
Cash
TD
101 \ Vulcan Energy Resources Limited
45 | P a g e
103 \ Vulcan Energy Resources Limited
46 | P a g e
2021 Annual Report / 102
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 6
INCOME TAX (CONT.)
NOTE 6
INCOME TAX (CONT.)
(c)
Deferred tax assets/(liabilities) not brought to
accounts are:
Accruals
Prepayments
Other
Tax losses
Total deferred tax balances not brought to account
93,062
(21,970)
65,140
1,050,391
1,186,623
26,411
(5,743)
20,042
606,194
646,904
Potential deferred tax assets attributable to tax losses and other temporary differences have not been brought
to account at 30 June 2021 because the directors do not believe it is appropriate to regard realisation of the
deferred tax assets as probable at this point in time. These benefits will only be obtained if:
•
•
the Company derives future assessable income of a nature and of an amount sufficient to enable the
benefit from the deductions for the expenditure to be realised; and
no changes in tax legislation adversely affect the Company in realising the benefit from the deductions
for the expenditure.
Accounting Policy
expense (income).
Current Tax
taxation authority.
Deferred Tax
as well as unused tax losses.
The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax
liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant
Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit
or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result
where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be
recognised from the initial recognition of an asset or liability, excluding a business combination, where there is
no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the
reporting period. Their measurement also reflects the manner in which management expects to recover or settle
the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent
that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset
can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint
ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary
difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended
that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur.
Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax
assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity
or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement
of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets
or liabilities are expected to be recovered or settled.
NOTE 7
LOSS PER SHARE
2021
$
2020
$
Net loss for the year
(10,744,614)
(3,553,359)
Weighted average number of ordinary shares for
basic and diluted loss per share.
87,204,203
48,226,596
Basic and diluted loss per share (cents)
(12.32)
(7.37)
Basic loss per share is determined by dividing net profit or loss after income tax attributable to members of the
Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued
Diluted loss per share adjusts the figures used in the determination of basic earnings per share to take into
account the after-income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no consideration
in relation to dilutive potential ordinary shares.
NOTE 8
CASH AND CASH EQUIVALENTS
Accounting Policy
Basic Loss Per Share
during the year.
Diluted Loss Per Share
Cash at bank and in hand
Short-term deposits
2021
$
6,156,871
108,548,994
114,705,865
2020
$
4,621,557
1,800,000
6,421,557
Cash
TD
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 8
CASH AND CASH EQUIVALENTS (CONT.)
(a)
Reconciliation of net loss after tax to net cash flows from operations
Loss for the financial year
Adjustments for:
Share-based payments expense
Impairment expense
Depreciation
Changes in assets and liabilities
Trade and other receivables
Trade and other payables
Provisions
Net cash used in operating activities
Accounting Policy
(10,744,614)
(3,553,359)
Other Receivables
6,857,484
228,663
131,522
2,040,473
286,017
-
balances will be received when due.
Value Added Tax (“VAT”)
(113,153)
725,069
73,884
(2,841,145)
(81,008)
(24,172)
-
(1,332,049)
Cash at bank earns interest at floating rates based on daily deposit rates. Short-term deposits are made in varying
periods between one day and three months, depending on the immediate cash requirements of the Group and
earn interest at the respective short-term deposit rates.
NOTE 9 TRADE AND OTHER RECEIVABLES
GST receivable
Other receivables
VAT receivable
Other deposits
2021
$
23,479
182,124
573,384
418,513
1,197,500
2020
$
47,049
17,592
51,430
-
116,071
At the beginning of the year
Exploration expenditure incurred
Vulcan Energy Europe acquisition (1)
Impairment expense
At the end of the year
2021
$
2020
$
2,556,980
5,670,681
5,794,800
(228,663)
13,793,798
526,001
1,195,871
1,121,125
(286,017)
2,556,980
Carrying amount of exploration and evaluation expenditure
13,793,798
2,556,980
Allowance for impairment loss
Other receivables are non-interesting bearing and are generally on terms of 30 days.
Trade Receivables
Trade and other receivables include amounts due from customers for goods sold and services performed in the
ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting
period are classified as current assets. All other receivables are classified as non-current assets. Refer to Note
1 for expected credit loss allowance assessment.
Goods and Services Tax (‘GST’)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as
part of the cost of acquisition of the asset of the assets or part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included as a current asset or liability in the Consolidated
statement of financial position.
(1) – - During the 2020/2021 period, the Company issued 1,320,000 shares to various parties involved in introducing
the Zero Carbon Lithium Project™ (‘Project’) in Germany, through the acquisition of Vulcan Energy Resources
Europe Pty Ltd, as initially announced on 10 July 2019. The issue of these shares remained subject to shareholder
approval and meeting certain milestones. On 21 February 2020, the Company reached Milestone 1 by announcing
a positive scoping study in relation to the Project. On 15 January 2021, the Company also reached Milestone 2 by
announcing a positive pre-feasibility study in relation to the Project. The Company obtained shareholder approval
for the issue of the Milestone 1 shares (being 660,000 shares) and Milestone 2 shares (being 660,000 shares) on
10 September 2020 and 24 June 2021 respectively. The issue of these shares were valued at $587,400 and
$5,207,400 respectively (refer to Note 15).
Acquisition, exploration and evaluation costs associated with mining tenements are accumulated in respect of
each identifiable area of interest. These costs are only carried forward to the extent that the rights of tenure to
that area of interest are current and that the costs are expected to be recouped through the successful
commercial development or sale of the area or where activities in the area have not yet reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves.
Costs in relation to an abandoned area are written off in full against profit in the period in which the decision to
abandon the area is made.
be recoverable in the future.
Each area of interest is also reviewed annually, and acquisition costs written off to the extent that they will not
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 9
TRADE AND OTHER RECEIVABLES (CONT.)
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST on investing and
financial activities, which are disclosed as operating cash flows.
Other receivables are recognised at amortised cost, less any provision for expected credit loss. Other receivables
do not contain impaired assets and are not past due. Based on the credit history, it is expected that these other
Revenues expenses and assets are recognised net of VAT, except where the amount of VAT incurred is not
recoverable from the German tax authority. In these circumstances the VAT is recognised as part of the cost of
acquisition or parts of the expense. Receivables and payables are stated inclusive of the amount of VAT
receivable or payable. The net amount of VAT recoverable from, or payable to, the taxation authority is included
as a current asset or liability in the Consolidated statement of financial position. Cash flows are presented in the
statement of cash flows on a gross basis, except for the VAT on investing and financial activities, which are
disclosed as operating cash flows.
Other Deposits
Other deposits represent an unconditional performance bond.
NOTE 10
EXPLORATION AND EVALUATION EXPENDITURE
101 \ Vulcan Energy Resources Limited
45 | P a g e
2021 Annual Report / 102
46 | P a g e
103 \ Vulcan Energy Resources Limited
47 | P a g e
2021 Annual Report / 104
48 | P a g e
2021 Annual Report / 104
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 8
CASH AND CASH EQUIVALENTS (CONT.)
(a)
Reconciliation of net loss after tax to net cash flows from operations
Vulcan Energy Resources Limited – Annual Report 2021
Loss for the financial year
(10,744,614)
(3,553,359)
Adjustments for:
Share-based payments expense
Impairment expense
Depreciation
Changes in assets and liabilities
Trade and other receivables
Trade and other payables
Provisions
Accounting Policy
GST receivable
Other receivables
VAT receivable
Other deposits
6,857,484
228,663
131,522
2,040,473
286,017
-
(113,153)
725,069
73,884
(81,008)
(24,172)
-
2021
$
23,479
182,124
573,384
418,513
1,197,500
2020
$
47,049
17,592
51,430
-
116,071
Net cash used in operating activities
(2,841,145)
(1,332,049)
Cash at bank earns interest at floating rates based on daily deposit rates. Short-term deposits are made in varying
periods between one day and three months, depending on the immediate cash requirements of the Group and
earn interest at the respective short-term deposit rates.
NOTE 9 TRADE AND OTHER RECEIVABLES
Allowance for impairment loss
Other receivables are non-interesting bearing and are generally on terms of 30 days.
Trade Receivables
Trade and other receivables include amounts due from customers for goods sold and services performed in the
ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting
period are classified as current assets. All other receivables are classified as non-current assets. Refer to Note
1 for expected credit loss allowance assessment.
Goods and Services Tax (‘GST’)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as
part of the cost of acquisition of the asset of the assets or part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included as a current asset or liability in the Consolidated
statement of financial position.
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 9
TRADE AND OTHER RECEIVABLES (CONT.)
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST on investing and
financial activities, which are disclosed as operating cash flows.
Other Receivables
Other receivables are recognised at amortised cost, less any provision for expected credit loss. Other receivables
do not contain impaired assets and are not past due. Based on the credit history, it is expected that these other
balances will be received when due.
Value Added Tax (“VAT”)
Revenues expenses and assets are recognised net of VAT, except where the amount of VAT incurred is not
recoverable from the German tax authority. In these circumstances the VAT is recognised as part of the cost of
acquisition or parts of the expense. Receivables and payables are stated inclusive of the amount of VAT
receivable or payable. The net amount of VAT recoverable from, or payable to, the taxation authority is included
as a current asset or liability in the Consolidated statement of financial position. Cash flows are presented in the
statement of cash flows on a gross basis, except for the VAT on investing and financial activities, which are
disclosed as operating cash flows.
Other Deposits
Other deposits represent an unconditional performance bond.
NOTE 10
EXPLORATION AND EVALUATION EXPENDITURE
2021
$
2020
$
Carrying amount of exploration and evaluation expenditure
13,793,798
2,556,980
At the beginning of the year
Exploration expenditure incurred
Vulcan Energy Europe acquisition (1)
Impairment expense
At the end of the year
2,556,980
5,670,681
5,794,800
(228,663)
13,793,798
526,001
1,195,871
1,121,125
(286,017)
2,556,980
(1) – - During the 2020/2021 period, the Company issued 1,320,000 shares to various parties involved in introducing
the Zero Carbon Lithium Project™ (‘Project’) in Germany, through the acquisition of Vulcan Energy Resources
Europe Pty Ltd, as initially announced on 10 July 2019. The issue of these shares remained subject to shareholder
approval and meeting certain milestones. On 21 February 2020, the Company reached Milestone 1 by announcing
a positive scoping study in relation to the Project. On 15 January 2021, the Company also reached Milestone 2 by
announcing a positive pre-feasibility study in relation to the Project. The Company obtained shareholder approval
for the issue of the Milestone 1 shares (being 660,000 shares) and Milestone 2 shares (being 660,000 shares) on
10 September 2020 and 24 June 2021 respectively. The issue of these shares were valued at $587,400 and
$5,207,400 respectively (refer to Note 15).
Acquisition, exploration and evaluation costs associated with mining tenements are accumulated in respect of
each identifiable area of interest. These costs are only carried forward to the extent that the rights of tenure to
that area of interest are current and that the costs are expected to be recouped through the successful
commercial development or sale of the area or where activities in the area have not yet reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves.
Costs in relation to an abandoned area are written off in full against profit in the period in which the decision to
abandon the area is made.
Each area of interest is also reviewed annually, and acquisition costs written off to the extent that they will not
be recoverable in the future.
103 \ Vulcan Energy Resources Limited
47 | P a g e
105 \ Vulcan Energy Resources Limited
48 | P a g e
2021 Annual Report / 104
greater than its estimated recoverable amount.
105 \ Vulcan Energy Resources Limited
2021 Annual Report / 106
51 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 11
PLANT AND EQUIPMENT
Software
Plant & Equipment
Assets under Construction
2021
$
173,188
564,447
743,037
1,480,672
2020
$
13,353
-
-
13,353
Movement in carrying amounts of plant and equipment for year ended 30 June 2021
Software
Plant & Equipment
Assets under
construction
Total
$
$
$
$
13,353
164,136
(4,301)
-
-
13,353
662,135
(97,688)
-
743,037
1,569,308
-
(101,989)
173,188
564,447
743,037
1,480,672
Software
Plant & Equipment
Assets under
construction
Total
$
$
$
-
-
13,353
13,353
-
-
-
-
$
-
-
13,353
13,353
-
-
-
-
Balance at 1 July
2020
Additions
Depreciation
Balance at 30 June
2021
Balance at 1 July 2019
Additions
Depreciation
Balance at 30 June
2021
Accounting Policy
Movement in carrying amounts of plant and equipment for year ended 30 June 2020
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items
Once assets are available for use, depreciation is calculated using the straight-line method to allocate asset
costs over their estimated useful lives, as follows:
Software
Plant & Equipment
3 -5 years
2-15 years
Vulcan Energy Resources Limited – Annual Report 2021
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date. An
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
49 | P a g e
NOTE 12
LEASES
Right-of-use asset
Cost
At 1 July 2020
Additions
At 30 June 2021
Accumulated Depreciation
At 1 July 2020
Depreciation for the year
Carrying amount
At 1 July 2020
At 30 June 2021
Lease Liabilities
At 1 July 2020
Add: Interest
Less: Payment
Closing Balance
Represented by:
Current lease liabilities
Non-current lease liabilities
Accounting Policy
Right-of-use assets:
New lease liabilities entered during the period
Office space
Vehicles
Total
-
528,584
528,584
-
16,348
16,348
-
512,236
-
528,584
5,242
(18,513)
515,313
54,429
460,884
515,313
-
60,011
60,011
-
6,001
6,001
-
54,010
-
60,011
1,510
(17,898)
43,623
7,960
35,663
43,623
-
588,595
588,595
-
22,349
22,349
-
566,246
-
588,595
6,752
(36,411)
558,936
62,389
496,547
558,936
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an estimate of costs expected to be incurred for
dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-
of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
50 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 11
PLANT AND EQUIPMENT
Software
Plant & Equipment
Assets under Construction
2021
$
173,188
564,447
743,037
1,480,672
2020
$
13,353
-
-
13,353
Movement in carrying amounts of plant and equipment for year ended 30 June 2021
Software
Plant & Equipment
Assets under
construction
Total
$
$
$
$
13,353
164,136
(4,301)
-
-
13,353
662,135
(97,688)
743,037
-
-
1,569,308
(101,989)
173,188
564,447
743,037
1,480,672
Balance at 1 July
2020
Additions
Depreciation
Balance at 30 June
2021
Movement in carrying amounts of plant and equipment for year ended 30 June 2020
Software
Plant & Equipment
Assets under
construction
Total
$
$
$
-
13,353
-
13,353
-
-
-
-
$
-
13,353
-
13,353
-
-
-
-
Balance at 1 July 2019
Additions
Depreciation
Balance at 30 June
2021
Accounting Policy
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items
Once assets are available for use, depreciation is calculated using the straight-line method to allocate asset
costs over their estimated useful lives, as follows:
Software
Plant & Equipment
3 -5 years
2-15 years
Vulcan Energy Resources Limited – Annual Report 2021
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date. An
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
49 | P a g e
105 \ Vulcan Energy Resources Limited
2021 Annual Report / 106
NOTE 12
LEASES
Right-of-use asset
Cost
At 1 July 2020
Additions
At 30 June 2021
Accumulated Depreciation
At 1 July 2020
Depreciation for the year
Carrying amount
At 1 July 2020
At 30 June 2021
Lease Liabilities
At 1 July 2020
Add: Interest
Less: Payment
Closing Balance
Represented by:
Current lease liabilities
Non-current lease liabilities
Accounting Policy
Right-of-use assets:
New lease liabilities entered during the period
Office space
Vehicles
Total
-
528,584
528,584
-
16,348
16,348
-
512,236
-
528,584
5,242
(18,513)
515,313
54,429
460,884
515,313
-
60,011
60,011
-
6,001
6,001
-
54,010
-
60,011
1,510
(17,898)
43,623
7,960
35,663
43,623
-
588,595
588,595
-
22,349
22,349
-
566,246
-
588,595
6,752
(36,411)
558,936
62,389
496,547
558,936
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an estimate of costs expected to be incurred for
dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-
of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
2021 Annual Report / 106
51 | P a g e
50 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 12
LEASES
Right-of-use asset
Cost
At 1 July 2020
Additions
At 30 June 2021
Accumulated Depreciation
At 1 July 2020
Depreciation for the year
Carrying amount
At 1 July 2020
At 30 June 2021
Lease Liabilities
At 1 July 2020
New lease liabilities entered during the period
Add: Interest
Less: Payment
Closing Balance
Represented by:
Current lease liabilities
Non-current lease liabilities
Accounting Policy
Office space
Vehicles
Total
Lease liabilities
NOTE 12
LEASES (CONT.)
NOTE 15
CONTRIBUTED EQUITY
-
528,584
528,584
-
16,348
16,348
-
512,236
-
528,584
5,242
(18,513)
515,313
54,429
460,884
515,313
-
60,011
60,011
-
6,001
6,001
-
54,010
-
60,011
1,510
(17,898)
43,623
7,960
35,663
43,623
-
588,595
588,595
-
22,349
22,349
-
566,246
-
588,595
6,752
(36,411)
558,936
62,389
496,547
558,936
Right-of-use assets:
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments
made at or before the commencement date net of any lease incentives received, any initial direct costs incurred,
and, except where included in the cost of inventories, an estimate of costs expected to be incurred for
dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-
of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these
assets are expensed to profit or loss as incurred.
107 \ Vulcan Energy Resources Limited
51 | P a g e
2021 Annual Report / 106
107 \ Vulcan Energy Resources Limited
52 | P a g e
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at
the present value of the lease payments to be made over the term of the lease, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's incremental borrowing
rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price
of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the
period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease
liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the
carrying amount of the right-of-use asset is fully written down.
The Group leases office space and vehicles through its German subsidiary Vulcan Energie Ressourcen GmbH .
NOTE 13
TRADE AND OTHER PAYABLES
2021
$
1,442,980
129,405
167,765
372,864
2,113,014
2020
$
72,203
74,335
61,684
-
208,222
(i)
Trade payables are non-interest bearing and are normally settled on 30-day terms.
Due to the short-term nature of these payables, their carrying value is assumed to be the same as their fair value.
Trade payables and other payables represent liabilities for goods and services provided to the Group prior to the
end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of
Trade payables (i)
Accrued expenses
Other payables
VAT Payable
Accounting Policy
recognition.
NOTE 14
PROVISION
Annual leave provision
Accounting Policy
Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result
of a past event, it is probable the consolidated entity will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation at the reporting date, taking into account the risks
and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted
using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of
time is recognised as a finance cost.
(a) Issued and fully paid
No.
2021
$
No.
2020
$
Ordinary shares
108,422,717
136,500,372
67,217,555
11,836,741
Ordinary shares entitle the holder to participate in the dividends and the proceeds on winding up in proportion to
At shareholders meetings, each ordinary share is entitled to one vote when a poll is called, otherwise each
the number of and amounts paid on the shares held.
shareholder has one vote on a show of hands.
(b) Movement reconciliation
Date
Number
$
Issue
Price
At 1 July 2019
31,750,001
4,746,416
Placement to sophisticated investors
Placement to sophisticated investors
Shares issued for services rendered
Shares to Vendors and Introducers as part of
consideration for the Acquisition
10/07/2019
19/07/2019
5/08/2019
4/09/2019
2,820,000
3,513,334
1,000,000
7,666,667
0.15
0.15
0.20
0.15
423,000
527,000
200,000
1,150,000
Shares issued to Director to incentive performance
4/09/2019
750,000
0.15
112,500
Share issue to Director for participation in
4/09/2019
1,000,000
0.15
150,000
Conversion of Class A performance shares and Class
28/02/2020
5,170,000
and retain services
Placement
Less Capital raising costs
D performance rights
Conversion of Class A performance rights
Conversion of Class A performance shares
Conversion of listed options
Placement to sophisticated investors
Less Capital raising costs
At 30 June 2020
At 1 July 2020
rendered
Conversion of Listed Options
Conversion of Class B Performance Rights
Introducer shares
Shares issued to Director
Conversion of Class B Performance Shares
Conversion of Class E & K Performance Rights
Conversion of Listed Options
Placement
Conversion of Class H Performance shares
Less capital raising costs
Placement to Director
Introducer shares
At 30 June 2021
30/06/2020
30/06/2020
30/06/2020
30/06/2020
30/06/2020
2/7/2020 -
17/12/2020
15/10/2020-
26/11/2020
16/09/2020
16/09/2020
27/11/2020
15/01/2021
15/01/2021
20/12/2020-
20/01/2021
6/02/2021
11/05/2021
30/06/2021
30/06/2021
-
-
-
-
-
0.29
0.40
-
-
800,000
480,000
267,753
12,000,000
67,217,755
67,217,755
(58,425)
76,310
4,800,000
(290,060)
11,836,741
11,836,741
340,000
587,400
238,000
-
-
-
-
-
-
-
8,930,765
0.29
2,545,268
500,000
660,000
100,000
4,400,000
2,250,000
-
0.89
2.38
-
-
3,457,409
0.29
985,362
18,423,077
6.50
119,750,001
260,000
-
-
-
38,461
660,000
6.50
7.89
108,422,717
(6,139,997)
249,997
5,207,400
136,500,372
2021 Annual Report / 108
53 | P a g e
2021
$
2020
$
87,584
13,700
Conversion of Unlisted Options
1,125,250
0.80
900,200
Shares issued in lieu of cash fees for services
6/10/2020
400,000
0.85
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 11
PLANT AND EQUIPMENT
2021
$
173,188
564,447
743,037
1,480,672
2020
$
13,353
-
-
13,353
Software
Plant & Equipment
Assets under Construction
Balance at 1 July
2020
Additions
Depreciation
Balance at 30 June
2021
Balance at 1 July 2019
Additions
Depreciation
Balance at 30 June
2021
Accounting Policy
Movement in carrying amounts of plant and equipment for year ended 30 June 2021
Movement in carrying amounts of plant and equipment for year ended 30 June 2020
Software
Plant & Equipment
Assets under
construction
Total
$
$
$
$
13,353
164,136
(4,301)
-
-
13,353
662,135
(97,688)
-
743,037
1,569,308
-
(101,989)
173,188
564,447
743,037
1,480,672
Software
Plant & Equipment
Assets under
construction
Total
$
$
$
-
-
13,353
13,353
-
-
-
-
$
-
-
13,353
13,353
-
-
-
-
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items
Once assets are available for use, depreciation is calculated using the straight-line method to allocate asset
costs over their estimated useful lives, as follows:
Software
Plant & Equipment
3 -5 years
2-15 years
Vulcan Energy Resources Limited – Annual Report 2021
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date. An
asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
49 | P a g e
greater than its estimated recoverable amount.
105 \ Vulcan Energy Resources Limited
50 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 12
LEASES (CONT.)
NOTE 15
CONTRIBUTED EQUITY
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at
the present value of the lease payments to be made over the term of the lease, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's incremental borrowing
rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price
of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the
period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease
liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the
carrying amount of the right-of-use asset is fully written down.
The Group leases office space and vehicles through its German subsidiary Vulcan Energie Ressourcen GmbH .
NOTE 13
TRADE AND OTHER PAYABLES
Trade payables (i)
Accrued expenses
Other payables
VAT Payable
2021
$
1,442,980
129,405
167,765
372,864
2,113,014
2020
$
72,203
74,335
61,684
-
208,222
(i)
Trade payables are non-interest bearing and are normally settled on 30-day terms.
Due to the short-term nature of these payables, their carrying value is assumed to be the same as their fair value.
Accounting Policy
Trade payables and other payables represent liabilities for goods and services provided to the Group prior to the
end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition.
NOTE 14
PROVISION
Annual leave provision
Accounting Policy
2021
$
87,584
2020
$
13,700
Conversion of Unlisted Options
1,125,250
0.80
900,200
Shares issued in lieu of cash fees for services
6/10/2020
400,000
0.85
Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result
of a past event, it is probable the consolidated entity will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation at the reporting date, taking into account the risks
and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted
using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of
time is recognised as a finance cost.
107 \ Vulcan Energy Resources Limited
52 | P a g e
2021 Annual Report / 108
2021 Annual Report / 108
53 | P a g e
(a)
Issued and fully paid
No.
2021
$
No.
2020
$
Ordinary shares
108,422,717
136,500,372
67,217,555
11,836,741
Ordinary shares entitle the holder to participate in the dividends and the proceeds on winding up in proportion to
the number of and amounts paid on the shares held.
shareholder has one vote on a show of hands.
At shareholders meetings, each ordinary share is entitled to one vote when a poll is called, otherwise each
(b) Movement reconciliation
Date
Number
$
Issue
Price
At 1 July 2019
31,750,001
4,746,416
Placement to sophisticated investors
Placement to sophisticated investors
Shares issued for services rendered
Shares to Vendors and Introducers as part of
consideration for the Acquisition
10/07/2019
19/07/2019
5/08/2019
4/09/2019
2,820,000
3,513,334
1,000,000
7,666,667
0.15
0.15
0.20
0.15
423,000
527,000
200,000
1,150,000
Shares issued to Director to incentive performance
4/09/2019
750,000
0.15
112,500
Share issue to Director for participation in
4/09/2019
1,000,000
0.15
150,000
Conversion of Class A performance shares and Class
28/02/2020
5,170,000
and retain services
Placement
Less Capital raising costs
D performance rights
Conversion of Class A performance rights
Conversion of Class A performance shares
Conversion of listed options
Placement to sophisticated investors
Less Capital raising costs
At 30 June 2020
At 1 July 2020
rendered
Conversion of Listed Options
Conversion of Class B Performance Rights
Introducer shares
Shares issued to Director
Conversion of Class B Performance Shares
Conversion of Class E & K Performance Rights
Conversion of Listed Options
Placement
Conversion of Class H Performance shares
Less capital raising costs
Placement to Director
Introducer shares
At 30 June 2021
30/06/2020
30/06/2020
30/06/2020
30/06/2020
30/06/2020
2/7/2020 -
17/12/2020
15/10/2020-
26/11/2020
16/09/2020
16/09/2020
27/11/2020
15/01/2021
15/01/2021
20/12/2020-
20/01/2021
6/02/2021
11/05/2021
-
-
800,000
480,000
267,753
12,000,000
67,217,755
67,217,755
0.29
0.40
(58,425)
76,310
4,800,000
(290,060)
11,836,741
11,836,741
340,000
8,930,765
0.29
2,545,268
0.89
2.38
587,400
238,000
3,457,409
0.29
985,362
18,423,077
6.50
119,750,001
500,000
660,000
100,000
4,400,000
2,250,000
260,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30/06/2021
30/06/2021
38,461
660,000
6.50
7.89
108,422,717
(6,139,997)
249,997
5,207,400
136,500,372
NOTE 12
LEASES (CONT.)
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at
the present value of the lease payments to be made over the term of the lease, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's incremental borrowing
rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price
of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the
period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease
liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the
carrying amount of the right-of-use asset is fully written down.
The Group leases office space and vehicles through its German subsidiary Vulcan Energie Ressourcen GmbH .
NOTE 13
TRADE AND OTHER PAYABLES
(i)
Trade payables are non-interest bearing and are normally settled on 30-day terms.
Due to the short-term nature of these payables, their carrying value is assumed to be the same as their fair value.
Trade payables and other payables represent liabilities for goods and services provided to the Group prior to the
end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of
2021
$
1,442,980
129,405
167,765
372,864
2,113,014
2020
$
72,203
74,335
61,684
-
208,222
2021
$
2020
$
87,584
13,700
Trade payables (i)
Accrued expenses
Other payables
VAT Payable
Accounting Policy
recognition.
NOTE 14
PROVISION
Annual leave provision
Accounting Policy
Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result
of a past event, it is probable the consolidated entity will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate
of the consideration required to settle the present obligation at the reporting date, taking into account the risks
and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted
using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of
time is recognised as a finance cost.
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 15
CONTRIBUTED EQUITY
NOTE 16
RESERVES (CONT.)
(a) Issued and fully paid
No.
2021
$
No.
2020
$
Ordinary shares
108,422,717
136,500,372
67,217,555
11,836,741
Ordinary shares entitle the holder to participate in the dividends and the proceeds on winding up in proportion to
the number of and amounts paid on the shares held.
At shareholders meetings, each ordinary share is entitled to one vote when a poll is called, otherwise each
shareholder has one vote on a show of hands.
(b) Movement reconciliation
Date
Number
Issue
Price
$
At 1 July 2019
31,750,001
4,746,416
Placement to sophisticated investors
Placement to sophisticated investors
Shares issued for services rendered
Shares to Vendors and Introducers as part of
consideration for the Acquisition
Shares issued to Director to incentive performance
and retain services
Share issue to Director for participation in
Placement
Less Capital raising costs
Conversion of Class A performance shares and Class
D performance rights
Conversion of Class A performance rights
Conversion of Class A performance shares
Conversion of listed options
Placement to sophisticated investors
Less Capital raising costs
At 30 June 2020
At 1 July 2020
Shares issued in lieu of cash fees for services
rendered
Conversion of Listed Options
Conversion of Unlisted Options
Conversion of Class B Performance Rights
Introducer shares
Shares issued to Director
Conversion of Class B Performance Shares
Conversion of Class E & K Performance Rights
Conversion of Listed Options
Placement
Conversion of Class H Performance shares
Less capital raising costs
Placement to Director
Introducer shares
At 30 June 2021
10/07/2019
19/07/2019
5/08/2019
4/09/2019
2,820,000
3,513,334
1,000,000
7,666,667
0.15
0.15
0.20
0.15
423,000
527,000
200,000
1,150,000
4/09/2019
750,000
0.15
112,500
4/09/2019
1,000,000
0.15
150,000
28/02/2020
30/06/2020
30/06/2020
30/06/2020
30/06/2020
30/06/2020
6/10/2020
2/7/2020 -
17/12/2020
15/10/2020-
26/11/2020
16/09/2020
16/09/2020
27/11/2020
15/01/2021
15/01/2021
20/12/2020-
20/01/2021
6/02/2021
11/05/2021
30/06/2021
30/06/2021
-
5,170,000
800,000
480,000
267,753
12,000,000
-
67,217,755
67,217,755
400,000
-
-
-
-
0.29
0.40
-
0.85
(58,425)
-
-
-
76,310
4,800,000
(290,060)
11,836,741
11,836,741
340,000
8,930,765
0.29
2,545,268
1,125,250
0.80
900,200
500,000
660,000
100,000
4,400,000
2,250,000
3,457,409
18,423,077
260,000
-
38,461
660,000
108,422,717
-
0.89
2.38
-
-
0.29
6.50
-
-
6.50
7.89
-
587,400
238,000
-
-
985,362
119,750,001
-
(6,139,997)
249,997
5,207,400
136,500,372
107 \ Vulcan Energy Resources Limited
52 | P a g e
109 \ Vulcan Energy Resources Limited
53 | P a g e
2021 Annual Report / 108
109 \ Vulcan Energy Resources Limited
55 | P a g e
2021 Annual Report / 110
56 | P a g e
NOTE 15
CONTRIBUTED EQUITY (CONT.)
Accounting Policy
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or
options for the acquisition of a business are not included in the cost of the acquisition as part of the purchase
consideration.
If the entity reacquires its own equity instruments, for example, as a result of a share buy-back, those
instruments are deducted from equity and the associated shares are cancelled. No gain or loss is recognised
in the profit or loss and the consideration paid including any directly attributable incremental costs (net of
income taxes) is recognised directly in equity.
NOTE 16
RESERVES
Share-based payment reserve
Foreign currency translation reserve
Total
2021
$
8,021,470
(122,009)
7,899,461
2020
$
1,741,986
(22,016)
1,719,970
Movement reconciliation
On issue at 1 July 2019
Issue of performance rights
during the year
Recognition of share -
based payment expense for
performance rights issued
to Directors and staff (Note
19)
Performance share issued
during the year
Recognition of share -
based payment expense for
performance shares issued
to Vendors on Acquisition
(Note 19)
Performance rights
cancelled during the year
Exercise of performance
rights during the year
Exercise of performance
shares during the year
Exercise of listed options
during the year
On issue at 30 June 2020
Number of
Number of
Number of
Number of
Number of
$
Warrants
Listed
options
Unlisted
Options
Performance
Performance
Shares
Rights
-
12,687,512
3,900,000
164,013
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,200,000
(2,600,000)
(2,050,000)
(4,400,000)
-
-
-
-
888,348
-
-
-
-
-
(267,753)
12,419,759
8,800,000
4,250,000
1,741,986
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Movement reconciliation
On issue at 1 July 2020
Issue of performance rights during
the year
Recognition of share - based
payment expense for performance
rights issued to Directors, staff &
consultants (Note 19)
Performance rights cancelled
during the year
Recognition of share - based
payment expense for performance
rights issued to Vendors on
Acquisition (Note 19)
Issue of unlisted options during the
Exercise of unlisted options during
year
the year
the year
year
Recognition of share-based
payment expense for unlisted
options issued (Note 19)
Exercise of listed options during
Listed options expired during the
Exercise of Performance rights
during the year
Recognition of shared based
payment expense for warrants
issued during the year
Exercise of Performance Shares
during the year
Recognition of shared based
payment expense for performance
rights issued to Directors & staff in
prior periods (Note 19)
On issue at 30 June 2021
Number of
Warrants
Number of
Number of
Number of
Number of
Listed
options
Unlisted
Options
Performanc
Performanc
e Shares
e Rights
$
12,419,759
8,800,000
4,250,000
1,741,986
-
10,248,688
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,112,250
-
(1,112,250)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,419,668
(250,000)
-
-
-
-
-
-
-
-
-
-
-
752,017
369,757
-
-
-
-
-
-
-
373,836
364,206
(3,010,000)
-
(4,400,000)
-
-
-
-
-
-
-
-
-
-
-
(12,388,174)
(31,585)
512,447
-
4,400,000
11,238,688
8,021,470
The option reserve is used to record the value of share-based payments provided to outside parties, and share-
based remuneration provided to employees and directors.
Foreign Currency Translation Reserve
Balance at the beginning of the year
Movement during the year
Balance at the end of the year
NOTE 17
ACQUISITION OF SUBSIDIARY
2021
$
(22,016)
(99,993)
(122,009)
2020
$
-
(22,016)
(22,016)
On 4 September 2019, the Company successfully completed its acquisition of 100% of the issued capital of Vulcan
Energy Resources Europe Pty Ltd (“the Vulcan Lithium Project”). The acquisition was assessed as an asset
acquisition rather than a business combination. The Company issued 6,666,667 fully paid ordinary shares in the
Company to the Vendors, Dr Wedin and Dr Horst Kreuter to acquire the asset.
5,000,000
-
-
689,625
Warrants issued during the year
512,447
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 15
CONTRIBUTED EQUITY (CONT.)
Accounting Policy
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or
options for the acquisition of a business are not included in the cost of the acquisition as part of the purchase
consideration.
If the entity reacquires its own equity instruments, for example, as a result of a share buy-back, those
instruments are deducted from equity and the associated shares are cancelled. No gain or loss is recognised
in the profit or loss and the consideration paid including any directly attributable incremental costs (net of
income taxes) is recognised directly in equity.
NOTE 16
RESERVES
Share-based payment reserve
Foreign currency translation reserve
Total
2021
$
8,021,470
(122,009)
7,899,461
Number of
Warrants
Number of
Listed
options
Number of
Unlisted
Options
Number of
Performance
Shares
Number of
Performance
Rights
2020
$
1,741,986
(22,016)
1,719,970
$
Movement reconciliation
On issue at 1 July 2019
Issue of performance rights
during the year
Recognition of share -
based payment expense for
performance rights issued
to Directors and staff (Note
19)
Performance share issued
during the year
Recognition of share -
based payment expense for
performance shares issued
to Vendors on Acquisition
(Note 19)
Performance rights
cancelled during the year
Exercise of performance
rights during the year
Exercise of performance
shares during the year
Exercise of listed options
during the year
On issue at 30 June 2020
-
12,687,512
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(267,753)
12,419,759
-
-
-
-
-
-
-
-
-
-
-
-
-
3,900,000
164,013
5,000,000
-
-
689,625
13,200,000
-
-
-
(4,400,000)
-
-
-
-
888,348
(2,600,000)
(2,050,000)
-
-
-
-
-
-
8,800,000
4,250,000
1,741,986
NOTE 16
RESERVES (CONT.)
Movement reconciliation
On issue at 1 July 2020
Issue of performance rights during
the year
Recognition of share - based
payment expense for performance
rights issued to Directors, staff &
consultants (Note 19)
Performance rights cancelled
during the year
Recognition of share - based
payment expense for performance
rights issued to Vendors on
Acquisition (Note 19)
Issue of unlisted options during the
Exercise of unlisted options during
year
the year
the year
year
Recognition of share-based
payment expense for unlisted
options issued (Note 19)
Exercise of listed options during
Listed options expired during the
Exercise of Performance rights
during the year
Recognition of shared based
payment expense for warrants
issued during the year
Exercise of Performance Shares
during the year
Recognition of shared based
payment expense for performance
rights issued to Directors & staff in
prior periods (Note 19)
On issue at 30 June 2021
Number of
Warrants
Number of
Number of
Number of
Number of
Listed
options
Unlisted
Options
Performanc
Performanc
e Shares
e Rights
$
12,419,759
8,800,000
4,250,000
1,741,986
-
10,248,688
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,112,250
-
(1,112,250)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,419,668
(250,000)
-
-
-
-
-
-
-
-
-
-
-
752,017
369,757
-
-
-
-
-
-
-
373,836
364,206
(3,010,000)
-
(4,400,000)
-
-
-
-
-
-
-
-
-
-
-
(12,388,174)
(31,585)
512,447
-
4,400,000
11,238,688
8,021,470
The option reserve is used to record the value of share-based payments provided to outside parties, and share-
based remuneration provided to employees and directors.
Warrants issued during the year
512,447
Foreign Currency Translation Reserve
Balance at the beginning of the year
Movement during the year
Balance at the end of the year
NOTE 17
ACQUISITION OF SUBSIDIARY
2021
$
(22,016)
(99,993)
(122,009)
2020
$
-
(22,016)
(22,016)
On 4 September 2019, the Company successfully completed its acquisition of 100% of the issued capital of Vulcan
Energy Resources Europe Pty Ltd (“the Vulcan Lithium Project”). The acquisition was assessed as an asset
acquisition rather than a business combination. The Company issued 6,666,667 fully paid ordinary shares in the
Company to the Vendors, Dr Wedin and Dr Horst Kreuter to acquire the asset.
109 \ Vulcan Energy Resources Limited
55 | P a g e
2021 Annual Report / 110
2021 Annual Report / 110
56 | P a g e
NOTE 15
CONTRIBUTED EQUITY (CONT.)
Accounting Policy
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or
options for the acquisition of a business are not included in the cost of the acquisition as part of the purchase
consideration.
If the entity reacquires its own equity instruments, for example, as a result of a share buy-back, those
instruments are deducted from equity and the associated shares are cancelled. No gain or loss is recognised
in the profit or loss and the consideration paid including any directly attributable incremental costs (net of
income taxes) is recognised directly in equity.
NOTE 16
RESERVES
Share-based payment reserve
Foreign currency translation reserve
Total
2021
$
8,021,470
(122,009)
7,899,461
2020
$
1,741,986
(22,016)
1,719,970
Movement reconciliation
On issue at 1 July 2019
Issue of performance rights
during the year
Recognition of share -
based payment expense for
performance rights issued
to Directors and staff (Note
19)
Performance share issued
during the year
Recognition of share -
based payment expense for
performance shares issued
to Vendors on Acquisition
(Note 19)
Performance rights
cancelled during the year
Exercise of performance
rights during the year
Exercise of performance
shares during the year
Exercise of listed options
during the year
On issue at 30 June 2020
Number of
Warrants
Number of
Number of
Number of
Number of
$
Listed
options
Unlisted
Options
Performance
Performance
Shares
Rights
12,687,512
3,900,000
164,013
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,000,000
689,625
888,348
-
-
-
-
-
-
-
-
-
-
-
13,200,000
(2,600,000)
(2,050,000)
(4,400,000)
-
-
-
-
-
-
-
-
-
-
(267,753)
12,419,759
8,800,000
4,250,000
1,741,986
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 16
RESERVES (CONT.)
Number of
Warrants
Number of
Listed
options
Number of
Unlisted
Options
Number of
Performance
Shares
Number of
Performance
Rights
$
Movement reconciliation
On issue at 1 July 2020
Issue of performance rights during
the year
Recognition of share - based
payment expense for performance
rights issued to Directors, staff &
consultants (Note 19)
Performance rights cancelled
during the year
Recognition of share - based
payment expense for performance
rights issued to Vendors on
Acquisition (Note 19)
Issue of unlisted options during the
year
Exercise of unlisted options during
the year
Recognition of share-based
payment expense for unlisted
options issued (Note 19)
Exercise of listed options during
the year
Listed options expired during the
year
Exercise of Performance rights
during the year
Warrants issued during the year
Recognition of shared based
payment expense for warrants
issued during the year
Exercise of Performance Shares
during the year
Recognition of shared based
payment expense for performance
rights issued to Directors & staff in
prior periods (Note 19)
On issue at 30 June 2021
-
-
-
-
-
-
-
-
-
-
512,447
-
-
-
512,447
12,419,759
-
-
-
-
-
-
(12,388,174)
(31,585)
-
-
-
-
-
-
-
-
-
-
1,112,250
(1,112,250)
-
-
-
-
-
-
8,800,000
4,250,000
1,741,986
-
10,248,688
-
-
-
-
-
-
-
-
-
-
-
-
-
4,419,668
(250,000)
-
-
-
-
-
-
-
(3,010,000)
-
-
-
-
752,017
-
-
369,757
-
-
-
-
373,836
-
364,206
-
(4,400,000)
-
-
-
4,400,000
11,238,688
8,021,470
The option reserve is used to record the value of share-based payments provided to outside parties, and share-
based remuneration provided to employees and directors.
Foreign Currency Translation Reserve
Balance at the beginning of the year
Movement during the year
Balance at the end of the year
NOTE 17
ACQUISITION OF SUBSIDIARY
2021
$
(22,016)
(99,993)
(122,009)
2020
$
-
(22,016)
(22,016)
On 4 September 2019, the Company successfully completed its acquisition of 100% of the issued capital of Vulcan
Energy Resources Europe Pty Ltd (“the Vulcan Lithium Project”). The acquisition was assessed as an asset
acquisition rather than a business combination. The Company issued 6,666,667 fully paid ordinary shares in the
Company to the Vendors, Dr Wedin and Dr Horst Kreuter to acquire the asset.
109 \ Vulcan Energy Resources Limited
55 | P a g e
111 \ Vulcan Energy Resources Limited
56 | P a g e
2021 Annual Report / 110
NOTE 15
CONTRIBUTED EQUITY (CONT.)
Accounting Policy
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or
options for the acquisition of a business are not included in the cost of the acquisition as part of the purchase
consideration.
If the entity reacquires its own equity instruments, for example, as a result of a share buy-back, those
instruments are deducted from equity and the associated shares are cancelled. No gain or loss is recognised
in the profit or loss and the consideration paid including any directly attributable incremental costs (net of
income taxes) is recognised directly in equity.
NOTE 16
RESERVES
Share-based payment reserve
Foreign currency translation reserve
Total
2021
$
8,021,470
(122,009)
7,899,461
2020
$
1,741,986
(22,016)
1,719,970
Movement reconciliation
On issue at 1 July 2019
Issue of performance rights
during the year
Recognition of share -
based payment expense for
performance rights issued
to Directors and staff (Note
19)
Performance share issued
during the year
Recognition of share -
based payment expense for
performance shares issued
to Vendors on Acquisition
(Note 19)
Performance rights
cancelled during the year
Exercise of performance
rights during the year
Exercise of performance
shares during the year
Exercise of listed options
during the year
On issue at 30 June 2020
Number of
Warrants
Number of
Number of
Number of
Number of
$
Listed
options
Unlisted
Options
Performance
Performance
Shares
Rights
12,687,512
3,900,000
164,013
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
689,625
888,348
-
-
-
-
-
-
-
-
-
-
-
13,200,000
(2,600,000)
(2,050,000)
(4,400,000)
-
-
-
-
-
-
-
-
-
-
(267,753)
12,419,759
8,800,000
4,250,000
1,741,986
5,000,000
512,447
Movement reconciliation
On issue at 1 July 2020
Issue of performance rights during
the year
Recognition of share - based
payment expense for performance
rights issued to Directors, staff &
consultants (Note 19)
Performance rights cancelled
during the year
Recognition of share - based
payment expense for performance
rights issued to Vendors on
Acquisition (Note 19)
Issue of unlisted options during the
Exercise of unlisted options during
year
the year
the year
year
Recognition of share-based
payment expense for unlisted
options issued (Note 19)
Exercise of listed options during
Listed options expired during the
Exercise of Performance rights
during the year
Warrants issued during the year
Recognition of shared based
payment expense for warrants
issued during the year
Exercise of Performance Shares
during the year
Recognition of shared based
payment expense for performance
rights issued to Directors & staff in
prior periods (Note 19)
On issue at 30 June 2021
-
-
-
-
-
-
-
-
-
-
-
-
-
1,112,250
(1,112,250)
(12,388,174)
(31,585)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
369,757
373,836
364,206
-
4,419,668
(250,000)
-
752,017
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,010,000)
2021
$
(22,016)
(99,993)
(122,009)
2020
$
-
(22,016)
(22,016)
512,447
4,400,000
11,238,688
8,021,470
The option reserve is used to record the value of share-based payments provided to outside parties, and share-
based remuneration provided to employees and directors.
Foreign Currency Translation Reserve
Balance at the beginning of the year
Movement during the year
Balance at the end of the year
NOTE 17
ACQUISITION OF SUBSIDIARY
On 4 September 2019, the Company successfully completed its acquisition of 100% of the issued capital of Vulcan
Energy Resources Europe Pty Ltd (“the Vulcan Lithium Project”). The acquisition was assessed as an asset
acquisition rather than a business combination. The Company issued 6,666,667 fully paid ordinary shares in the
Company to the Vendors, Dr Wedin and Dr Horst Kreuter to acquire the asset.
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 17
ACQUISITION OF SUBSIDIARY (CONT.)
NOTE 16
RESERVES (CONT.)
Number of
Warrants
Number of
Number of
Number of
Number of
Listed
options
Unlisted
Options
Performanc
Performanc
$
e Shares
e Rights
12,419,759
8,800,000
4,250,000
1,741,986
-
10,248,688
Fair value of shares issued
Purchase consideration
Fair value of net assets acquired are as follows:
Cash and cash equivalents
Exploration and evaluation expenditure
Trade and other payables
Note 10
4
September
2019
$
1,000,000
1,000,000
404
1,121,125
(121,529)
1,000,000
NOTE 18
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and
interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the
unpredictability of the financial markets and seeks to minimise potential adverse effects on the financial
performance of the Group. The Group uses different methods to measure and manage different types of risks to
which it is exposed.
These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments of
market forecasts for interest rate and foreign exchange prices. Ageing analysis and monitoring of specific credit
allowances are undertaken to manage credit risk. Liquidity risk is monitored through the development of future
cash flow forecasts.
Risk management is carried out by Management and overseen by the Board of Directors with assistance from
suitably qualified external advisors.
The main risks arising for the Group are foreign exchange risk, interest rate risk, credit risk and liquidity risk. The
Board reviews and agrees policies for managing each of these risks and they are summarised below.
-
(4,400,000)
The carrying values of the Group’s financial instruments are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Trade and other payables
Lease liabilities
(a)
Market risk
2021
$
114,705,865
1,197,500
115,903,365
2,113,014
558,936
2,671,950
2020
$
6,421,557
116,071
6,537,628
221,922
-
221,922
Foreign exchange risk
(i.)
The Group’s exposure to foreign currency risk at the end of the reporting period, expressed in Australian dollar,
was as follows:
30 June 2021
30 June 2020
109 \ Vulcan Energy Resources Limited
55 | P a g e
2021 Annual Report / 110
56 | P a g e
111 \ Vulcan Energy Resources Limited
Other Receivables
Trade Payables
Other Payables
AUD
146,096
(615,398)
(348,053)
(817,355)
EUR
1,051,404
(827,581)
(968,502)
(744,679)
AUD
66,118
(85,903)
(105,035)
(124,820)
EUR
49,953
(1,510)
(30,984)
17,459
57 | P a g e
2021 Annual Report / 112
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 18
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
The aggregate net foreign exchange gains/losses recognised in the P&L were:
Net foreign exchange gains/losses recognised in the P&L were:
2021
76,042
2020
(7,167)
Sensitivity
As shown in the table above, the group is primarily exposed to changes in EUR/AUD exchange rates. The
sensitivity of profit or loss to changes in the exchange rates is:
EUR/AUD exchange rate - increase 10% (2020 -10%)*
EUR/AUD exchange rate - decrease 10% (2020 -10%)*
*Holding all other variables constant
Impact on post-tax profit
2021
$
65,637
(80,222)
-
2020
$
6,651
(8,128)
(ii.)
Interest rate risk
The Group is exposed to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a
result of changes in the market interest rates on interest bearing financial instruments. The Group’s exposure to
this risk relates primarily to the Group’s cash and any cash on deposit. The Group does not use derivatives to
mitigate these exposures. The Group manages its exposure to interest rate risk by holding certain amounts of
cash in fixed and floating interest rate facilities. At the reporting date, the interest rate profile of the Group’s
interest-bearing financial instruments was:
2021
2020
Weighted
average
interest rate
Balance
$
Weighted
average
interest rate
Balance
$
6,421,557
Cash and cash equivalents
0.23%
114,705,865
0.08%
Sensitivity
Within the analysis, consideration is given to potential renewals of existing positions and the mix of fixed and
variable interest rates. The following sensitivity analysis is based on the interest rate risk exposures in
existence at the reporting date. The 1% increase and 1% decrease in rates is based on reasonably expected
possible changes over a financial year.
At 30 June 2021, if interest rates had moved, as illustrated in the table below, with all other variables held
constant, losses and equity would have been affected as follows:
Judgements of reasonably
possible movements:
+ 1.0% (100 basis points)
- 1.0% (100 basis points)
Profit
Profit
higher/(lower)
higher/(lower)
2021
$
1,147,059
(1,147,059)
2020
$
64,216
(64,216)
(b)
Credit risk
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents, trade and
other receivables and other financial assets. The Group’s exposure to credit risk arises from potential default of
the counterparty, with maximum exposure equal to the carrying amount of the financial assets.
2021 Annual Report / 112
58 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 17
ACQUISITION OF SUBSIDIARY (CONT.)
NOTE 18
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
The aggregate net foreign exchange gains/losses recognised in the P&L were:
Net foreign exchange gains/losses recognised in the P&L were:
2021
76,042
2020
(7,167)
Sensitivity
As shown in the table above, the group is primarily exposed to changes in EUR/AUD exchange rates. The
sensitivity of profit or loss to changes in the exchange rates is:
EUR/AUD exchange rate - increase 10% (2020 -10%)*
EUR/AUD exchange rate - decrease 10% (2020 -10%)*
*Holding all other variables constant
Impact on post-tax profit
2021
$
65,637
(80,222)
-
2020
$
6,651
(8,128)
Interest rate risk
(ii.)
The Group is exposed to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a
result of changes in the market interest rates on interest bearing financial instruments. The Group’s exposure to
this risk relates primarily to the Group’s cash and any cash on deposit. The Group does not use derivatives to
mitigate these exposures. The Group manages its exposure to interest rate risk by holding certain amounts of
cash in fixed and floating interest rate facilities. At the reporting date, the interest rate profile of the Group’s
interest-bearing financial instruments was:
Risk management is carried out by Management and overseen by the Board of Directors with assistance from
2021
2020
The main risks arising for the Group are foreign exchange risk, interest rate risk, credit risk and liquidity risk. The
Board reviews and agrees policies for managing each of these risks and they are summarised below.
The carrying values of the Group’s financial instruments are as follows:
Weighted
average
interest rate
Balance
$
Weighted
average
interest rate
Cash and cash equivalents
0.23%
114,705,865
0.08%
Balance
$
6,421,557
Sensitivity
Within the analysis, consideration is given to potential renewals of existing positions and the mix of fixed and
variable interest rates. The following sensitivity analysis is based on the interest rate risk exposures in
existence at the reporting date. The 1% increase and 1% decrease in rates is based on reasonably expected
possible changes over a financial year.
At 30 June 2021, if interest rates had moved, as illustrated in the table below, with all other variables held
constant, losses and equity would have been affected as follows:
Judgements of reasonably
possible movements:
+ 1.0% (100 basis points)
- 1.0% (100 basis points)
Profit
higher/(lower)
2021
$
1,147,059
(1,147,059)
Profit
higher/(lower)
2020
$
64,216
(64,216)
(b)
Credit risk
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents, trade and
other receivables and other financial assets. The Group’s exposure to credit risk arises from potential default of
the counterparty, with maximum exposure equal to the carrying amount of the financial assets.
113 \ Vulcan Energy Resources Limited
58 | P a g e
2021 Annual Report / 112
Fair value of shares issued
Purchase consideration
Fair value of net assets acquired are as follows:
Cash and cash equivalents
Exploration and evaluation expenditure
Trade and other payables
Note 10
September
4
2019
$
1,000,000
1,000,000
404
1,121,125
(121,529)
1,000,000
NOTE 18
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and
interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the
unpredictability of the financial markets and seeks to minimise potential adverse effects on the financial
performance of the Group. The Group uses different methods to measure and manage different types of risks to
which it is exposed.
These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments of
market forecasts for interest rate and foreign exchange prices. Ageing analysis and monitoring of specific credit
allowances are undertaken to manage credit risk. Liquidity risk is monitored through the development of future
cash flow forecasts.
suitably qualified external advisors.
2021
$
114,705,865
1,197,500
115,903,365
2,113,014
558,936
2,671,950
2020
$
6,421,557
116,071
6,537,628
221,922
-
221,922
Financial Assets
Cash and cash equivalents
Trade and other receivables
Financial Liabilities
Trade and other payables
Lease liabilities
(a)
(i.)
Market risk
Foreign exchange risk
was as follows:
Other Receivables
Trade Payables
Other Payables
111 \ Vulcan Energy Resources Limited
The Group’s exposure to foreign currency risk at the end of the reporting period, expressed in Australian dollar,
30 June 2021
30 June 2020
AUD
146,096
(615,398)
(348,053)
(817,355)
EUR
1,051,404
(827,581)
(968,502)
(744,679)
AUD
66,118
(85,903)
(105,035)
(124,820)
EUR
49,953
(1,510)
(30,984)
17,459
57 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 18
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
NOTE 19
SHARE-BASED PAYMENTS
The Group’s policy is to trade only with recognised, creditworthy third parties. It is the Group’s policy that all
customers who wish to trade on credit terms will be subject to credit verification procedures.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to
bad debts is not significant. There are no significant concentrations of credit risk within the Group except for
cash and cash equivalents.
(c)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to its reputation.
The Group manages liquidity risk by maintaining adequate cash reserves from funds raised in the market and by
continuously monitoring forecast and actual cash flows. The Group does not have any external borrowings.
The following are the contractual maturities of financial liabilities:
2021
Trade and other payables
Lease Liabilities
2020
1 year or less
$
1-5 years
$
> 5 years
$
Total
$
2,113,014
62,389
-
283,267
-
213,280
2,113,014
558,936
Trade and other payables
221,922
-
-
221,922
(d)
Capital risk management.
The Group’s objectives when managing capital are to:
Safeguard their ability to continue as a going concern, so that it can continue to provide returns for shareholders
and benefits for other stakeholders; and
Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the number of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Given the stage of the Company’s development there are no formal targets set for return on capital. The
Company is not subject to externally imposed capital requirements. The net equity of the Company is equivalent
to capital. Net capital is obtained through capital raisings on the Australian Securities Exchange (“ASX”).
Recognised share-based payment transactions
Performance rights issued to Directors, staff and consultants (i)
Performance rights issued to Directors & staff in prior periods (ii)
Performance shares issued to Vendors of Acquisition
(iii)
Shares issued for consideration of services
Shares issued to Director
Warrants (iv)
Unlisted Options (v)
Shares issued to Introducers of Acquisition (Note 10)
Represented by
Shared-based payment expense
Investor relations expense
Introducer fee
Capitalised exploration assets (Note 10)
2021
$
2020
$
4,419,668
364,206
752,017
340,000
238,000
373,836
369,757
5,794,800
12,652,284
6,517,484
340,000
-
5,794,800
12,652,284
-
689,626
888,348
462,500
-
-
-
-
2,040,473
1,690,473
200,000
150,000
-
2,040,473
(i) The Company issued the total of 10,248,688 performance rights during the year to the Directors, staff
and consultants to align their interests to that of the Company’s shareholders and assist as an
effective means of retaining staff.
Based on management assessment, a percentage of a share-based payment expense has been
recognised in the Statement of Profit or Loss and Other Comprehensive Income.
Details of Performance Rights granted during the year are:
Expec
Grant date
Price
Expiry
date
ted
volatili
ty
at
grant
date
($)
Vestin
g
hurdle
(5-day
VWAP)
Interes
t rate
Rights
Number of
Total
value of
Rights ($)
Share
based
payment
expense
($)
Class
$1.05
N/A
11/9/2020 &
1.05 &
1/12/2023
N/A
N/A 250,000 &
487,500
487,500
15/9/2020
0.90
250,000
N/A
25/11/2020
2.38
1/12/2023
N/A
N/A
250,000
595,000
595,000
Class I
$1.05
N/A
11/9/2020 &
1.05 &
1/12/2023
N/A
N/A 250,000 &
487,500
115,805
15/9/2020
0.90
250,000
Class I
N/A
25/11/2020
2.38
1/12/2023
N/A
N/A
250,000
595,000
- (1)
Class
$0.57
70%
10/09/2020
0.89
16/09/202
1.84
0.26% 2,500,000
1,422,500
264,991
Class
$0.72
70%
10/09/2020
0.89
16/09/202
1.23
0.26%
1,000,000
720,000
720,000
3
3
Fair
value
of
each
right
&
$0.90
$2.38
&
$0.90
$2.38
H
Class
H
J
K
113 \ Vulcan Energy Resources Limited
59 | P a g e
2021 Annual Report / 114
2021 Annual Report / 114
60 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 18
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
NOTE 19
SHARE-BASED PAYMENTS
The Group’s policy is to trade only with recognised, creditworthy third parties. It is the Group’s policy that all
customers who wish to trade on credit terms will be subject to credit verification procedures.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to
bad debts is not significant. There are no significant concentrations of credit risk within the Group except for
cash and cash equivalents.
(c)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to its reputation.
The Group manages liquidity risk by maintaining adequate cash reserves from funds raised in the market and by
continuously monitoring forecast and actual cash flows. The Group does not have any external borrowings.
The following are the contractual maturities of financial liabilities:
1 year or less
1-5 years
> 5 years
$
$
$
Total
$
Trade and other payables
Lease Liabilities
2,113,014
62,389
283,267
213,280
2021
2020
-
-
-
-
2,113,014
558,936
221,922
Trade and other payables
221,922
(d)
Capital risk management.
The Group’s objectives when managing capital are to:
and benefits for other stakeholders; and
Maintain an optimal capital structure to reduce the cost of capital.
Safeguard their ability to continue as a going concern, so that it can continue to provide returns for shareholders
In order to maintain or adjust the capital structure, the Group may adjust the number of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Given the stage of the Company’s development there are no formal targets set for return on capital. The
Company is not subject to externally imposed capital requirements. The net equity of the Company is equivalent
to capital. Net capital is obtained through capital raisings on the Australian Securities Exchange (“ASX”).
Recognised share-based payment transactions
Performance rights issued to Directors, staff and consultants (i)
Performance rights issued to Directors & staff in prior periods (ii)
Performance shares issued to Vendors of Acquisition
(iii)
Shares issued for consideration of services
Shares issued to Director
Warrants (iv)
Unlisted Options (v)
Shares issued to Introducers of Acquisition (Note 10)
Represented by
Shared-based payment expense
Investor relations expense
Introducer fee
Capitalised exploration assets (Note 10)
2021
$
2020
$
4,419,668
364,206
752,017
340,000
238,000
373,836
369,757
5,794,800
-
689,626
888,348
462,500
-
-
-
-
12,652,284
2,040,473
6,517,484
340,000
-
5,794,800
1,690,473
200,000
150,000
-
12,652,284
2,040,473
(i) The Company issued the total of 10,248,688 performance rights during the year to the Directors, staff
and consultants to align their interests to that of the Company’s shareholders and assist as an
effective means of retaining staff.
Based on management assessment, a percentage of a share-based payment expense has been
recognised in the Statement of Profit or Loss and Other Comprehensive Income.
Details of Performance Rights granted during the year are:
Fair
value
of
each
right
$1.05
&
$0.90
$2.38
$1.05
&
$0.90
$2.38
Grant date
Expect-
ted
volatility
Expiry
date
Price
at
grant
date
($)
Vesting
hurdle
(5-day
VWAP)
Interest
rate
Number of
Rights
Total
value of
Rights ($)
Share
based
payment
expense
($)
N/A
11/9/2020 &
15/9/2020
1.05 &
0.90
1/12/2023
N/A
N/A 250,000 &
250,000
487,500
487,500
N/A
25/11/2020
2.38
1/12/2023
N/A
N/A
250,000
595,000
595,000
N/A
11/9/2020 &
15/9/2020
1.05 &
0.90
1/12/2023
N/A
N/A 250,000 &
250,000
487,500
115,805
N/A
25/11/2020
2.38
1/12/2023
N/A
N/A
250,000
595,000
- (1)
$0.57
70%
10/09/2020
0.89
16/09/2023
1.84
0.26% 2,500,000
1,422,500
264,991
$0.72
70%
10/09/2020
0.89
16/09/2023
1.23
0.26%
1,000,000
720,000
720,000
Class
H
Class
H
Class I
Class I
Class
J
Class
K
113 \ Vulcan Energy Resources Limited
59 | P a g e
115 \ Vulcan Energy Resources Limited
60 | P a g e
2021 Annual Report / 114
The Group’s policy is to trade only with recognised, creditworthy third parties. It is the Group’s policy that all
customers who wish to trade on credit terms will be subject to credit verification procedures.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to
bad debts is not significant. There are no significant concentrations of credit risk within the Group except for
cash and cash equivalents.
(c)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to its reputation.
The Group manages liquidity risk by maintaining adequate cash reserves from funds raised in the market and by
continuously monitoring forecast and actual cash flows. The Group does not have any external borrowings.
The following are the contractual maturities of financial liabilities:
1 year or less
1-5 years
> 5 years
$
$
$
Total
$
Trade and other payables
Lease Liabilities
2,113,014
62,389
283,267
213,280
2021
2020
-
-
-
-
2,113,014
558,936
221,922
Trade and other payables
221,922
(d)
Capital risk management.
The Group’s objectives when managing capital are to:
and benefits for other stakeholders; and
Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the number of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Given the stage of the Company’s development there are no formal targets set for return on capital. The
Company is not subject to externally imposed capital requirements. The net equity of the Company is equivalent
to capital. Net capital is obtained through capital raisings on the Australian Securities Exchange (“ASX”).
Safeguard their ability to continue as a going concern, so that it can continue to provide returns for shareholders
effective means of retaining staff.
Recognised share-based payment transactions
Performance rights issued to Directors, staff and consultants (i)
Performance rights issued to Directors & staff in prior periods (ii)
Performance shares issued to Vendors of Acquisition
(iii)
Shares issued for consideration of services
Shares issued to Director
Warrants (iv)
Unlisted Options (v)
Shares issued to Introducers of Acquisition (Note 10)
Represented by
Shared-based payment expense
Investor relations expense
Introducer fee
Capitalised exploration assets (Note 10)
2021
$
2020
$
4,419,668
364,206
752,017
340,000
238,000
373,836
369,757
5,794,800
12,652,284
6,517,484
340,000
-
5,794,800
12,652,284
-
689,626
888,348
462,500
-
-
-
-
2,040,473
1,690,473
200,000
150,000
-
2,040,473
Fair
value
of
each
right
&
$0.90
$2.38
&
$0.90
$2.38
H
H
Class
J
K
N/A
N/A
N/A
1.84
3
3
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 18
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
NOTE 19
SHARE-BASED PAYMENTS
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
Class
L
Class
M
Class
N
Class
P
Class
Q
Class
R
Class
S
Class
T
Class
U
Class
V
Class
W
$0.61
70%
10/09/2020
0.89
16/09/2023
1.64
0.26%
1,000,000
614,000
130,719
- the VWAP for Shares as traded on ASX over 20 consecutive trading days is equal to or greater than 200% of the
$0.89
N/A
10/09/2020
0.89
1/12/2023
N/A
N/A
1,500,000
1,335,000
1,335,000
Reference Price.
Class M
0.89
N/A
10/09/2020
0.89
1/12/2023
N/A
N/A
1,500,000
1,335,000
506,350
- the Company announcing, on or before 21 May 2021, a positive Pre-Feasibility Study in relation to the Company’s
Zero Carbon Lithium Project™ confirming it is commercially viable.
$0.9
& $7.6
N/A
$2.38
N/A
15/09/2020
&
29/06/2021
25/11/2020
$0.9 &
$7.6
1/12/2023
N/A
N/A 250,000 &
60,000
681,000
47,032
2.38 27/11/2021
N/A
N/A
100,000
238,000
140,725
$2.38
N/A
25/11/2020
2.38
27/11/2022
N/A
N/A
100,000
238,000
70,555
$7.80
N/A 24/06/2021
$7.80
30/06/2025
N/A
N/A
38,688
301,766
3,031
$7.60
N/A 29/06/2021
$7.60
1/12/2024
N/A
N/A
250,000
1,900,000
1,139
$7.60
N/A 29/06/2021
$7.60
1/12/2024
N/A
N/A
250,000
1,900,000
1,063
$7.60
N/A 29/06/2021
$7.60
1/12/2024
N/A
N/A
100,000
760,000
$7.60
N/A 29/06/2021
$7.60
1/12/2024
N/A
N/A
100,000
760,000
456
302
(1)
Class I has no share-based payment expense for the year due to performance rights lapsed in June 2021
- one third vesting 12 months from the date of the 24 June 2021 General Meeting (EGM), one third vesting 24
(i) The Company issued the total of 10,248,688 performance rights during the year to the Directors, staff
and consultants to align their interests to that of the Company’s shareholders and assist as an
Based on management assessment, a percentage of a share-based payment expense has been
recognised in the Statement of Profit or Loss and Other Comprehensive Income.
Details of Performance Rights granted during the year are:
Expec
Grant date
Price
Vestin
Interes
Number of
Total
ted
volatili
ty
Expiry
date
at
grant
date
($)
g
hurdle
(5-day
VWAP)
t rate
Rights
value of
Rights ($)
Share
based
payment
expense
($)
Class
$1.05
N/A
11/9/2020 &
1.05 &
1/12/2023
N/A
N/A
250,000 &
487,500
487,500
15/9/2020
0.90
250,000
N/A
25/11/2020
2.38
1/12/2023
N/A
250,000
595,000
595,000
following Dr Katharina Gerber resignation from the Company.
Details of Performance Rights vesting conditions:
Class H
- the Company announcing, on or before 18 May 2022, a positive Pre-Feasibility Study in relation to the Company’s
Zero Carbon Lithium Project™ confirming it is commercially viable.
Class I
- the Company announcing, on or before 18 May 2023, that it has secured either an off-take agreement
representing a minimum of 30% of production volume over a three-year term, or a downstream lithium chemicals
joint venture partner with a minimum of $10,000,000 investment in relation to the Project.
Class J
- the Company announcing, within 36 months from the date of issue, a positive (JORC-Compliant) Definitive
Feasibility Study in relation to the Project confirming it is commercially viable; and
- the VWAP for Shares as traded on ASX over 20 consecutive trading days is equal to or greater than 225% of the
VWAP for Shares for the last 5 trading days up to but not including the date of the Meeting (the Reference Price).
Class I
$1.05
N/A
11/9/2020 &
1.05 &
1/12/2023
N/A
250,000 &
487,500
115,805
Class K
15/9/2020
0.90
250,000
Class I
N/A
25/11/2020
2.38
1/12/2023
N/A
250,000
595,000
- (1)
Class
$0.57
70% 10/09/2020
0.89
16/09/202
0.26% 2,500,000
1,422,500
264,991
- the Company announcing, within 36 months from the date of issue, a positive Pre-Feasibility Study in relation to
the Company’s Zero Carbon Lithium Project™ confirming it is commercially viable; and
- the VWAP for Shares as traded on ASX over 20 consecutive trading days is equal to or greater than 150% of the
Reference Price.
Class
$0.72
70% 10/09/2020
0.89
16/09/202
1.23
0.26% 1,000,000
720,000
720,000
Class L
Class N
Class P
Class Q
issue.
Class R
issue.
Class S
Class T
Class U
Class V
- the Company announcing, on or before 21 May 2022, that it has secured either an off-take agreement
representing a minimum of 30% of production volume over a three-year term, or a downstream lithium chemicals
joint venture partner with a minimum of $10,000,000 investment in relation to the Project.
- the Company announcing before 31 December 2022 a positive Definitive Feasibility Study in relation to the
Project confirming it is commercially viable.
- Vesting on issue, and converting to shares on a one for one basis on the date that is 12 months from the date of
- Vesting on issue, and converting to shares on a one for one basis on the date that is 24 months from the date of
months from EGM, one third vesting 36 months from EGM.
- the Company being issued a building permit for the first geothermal power plant or, in the case of a pure heating
project with no electricity production, the transfer station, on or before the Expiry Date of 1st December 2024;
– the Company being issued a building permit for the first Direct Lithium Extraction system, on or before the
Expiry Date of 1st December 2024.
- the Company being granted a permit according to BImSchG for the first lithium refinery, on or before the Expiry
Date of 1st December 2024;
Class W
Expiry Date of 1st December 2024;
- the Company announcing commissioning of the first commercial lithium extraction plant, on or before the
(ii)
In the prior year, 5,000,000 performance rights were granted and issued as follows:
On 4 September 2019, the Company issued 3,750,000 performance rights to Mr Gavin Rezos as an incentive in
connection with his appointment as Chairman.
On 18 May 2020, the Company issued 1,250,000 performance rights to staff as incentive in connection with their
3,900,000 performance rights were granted and issued to directors in prior periods. These were issued on 20
appointment.
December 2018.
Based on management assessment, percentage of a share-based payment expense has been recognised in the
113 \ Vulcan Energy Resources Limited
59 | P a g e
2021 Annual Report / 114
60 | P a g e
115 \ Vulcan Energy Resources Limited
61 | P a g e
2021 Annual Report / 116
2021 Annual Report / 116
62 | P a g e
- the Company announcing, within 36 months from the date of issue, that it has secured either an off-take
agreement representing a minimum of 30% of production volume over a three-year term, or a downstream lithium
chemicals joint venture partner with a minimum of $10,000,000 investment in relation to the Project; and
Statement of Profit or Loss and Other Comprehensive Income.
Details of Performance Rights granted in prior years are:
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
Class
$0.61
70% 10/09/2020
0.89
16/09/202
1.64
0.26% 1,000,000
614,000
130,719
- the VWAP for Shares as traded on ASX over 20 consecutive trading days is equal to or greater than 200% of the
Reference Price.
Class
$0.89
N/A
10/09/2020
0.89
1/12/2023
N/A
1,500,000
1,335,000
1,335,000
Class M
Class
0.89
N/A
10/09/2020
0.89
1/12/2023
N/A
1,500,000
1,335,000
506,350
- the Company announcing, on or before 21 May 2021, a positive Pre-Feasibility Study in relation to the Company’s
Zero Carbon Lithium Project™ confirming it is commercially viable.
N/A
15/09/2020
$0.9 &
1/12/2023
N/A
250,000 &
681,000
47,032
Class N
60,000
- the Company announcing, on or before 21 May 2022, that it has secured either an off-take agreement
representing a minimum of 30% of production volume over a three-year term, or a downstream lithium chemicals
joint venture partner with a minimum of $10,000,000 investment in relation to the Project.
$0.1463
90% 30/11/2018
0.18
30/11/2021
0.4
175,560
- (1)
of 1 December 2023.
- Will vest upon the holder completing six months continuous employment with the Company, with an expiry date
Class
$2.38
N/A
25/11/2020
2.38
27/11/202
N/A
100,000
238,000
70,555
Class P
Class
$7.80
N/A
24/06/2021
$7.80
30/06/20
N/A
38,688
301,766
- the Company announcing before 31 December 2022 a positive Definitive Feasibility Study in relation to the
Project confirming it is commercially viable.
Class
$7.60
N/A
29/06/2021
$7.60
1/12/2024
N/A
250,000
1,900,000
Class Q
Class
$7.60
N/A
29/06/2021
$7.60
1/12/2024
N/A
250,000
1,900,000
- Vesting on issue, and converting to shares on a one for one basis on the date that is 12 months from the date of
issue.
Class
$7.60
N/A
29/06/2021
$7.60
1/12/2024
N/A
100,000
760,000
Class R
- Vesting on issue, and converting to shares on a one for one basis on the date that is 24 months from the date of
issue.
Class S
- one third vesting 12 months from the date of the 24 June 2021 General Meeting (EGM), one third vesting 24
months from EGM, one third vesting 36 months from EGM.
3,031
1,139
1,063
456
302
- the Company announcing, on or before 18 May 2022, a positive Pre-Feasibility Study in relation to the Company’s
Zero Carbon Lithium Project™ confirming it is commercially viable.
Class U
Class T
Class I
$0.225
N/A
0.225
1/12/2023
N/A
N/A
500,000
112,500
31,833
- the Company being issued a building permit for the first geothermal power plant or, in the case of a pure heating
project with no electricity production, the transfer station, on or before the Expiry Date of 1st December 2024;
(1) Class A, D and G have no share-based payment expense for the year due to performance rights vested in the
– the Company being issued a building permit for the first Direct Lithium Extraction system, on or before the
Expiry Date of 1st December 2024.
Class V
- the Company being granted a permit according to BImSchG for the first lithium refinery, on or before the Expiry
Date of 1st December 2024;
Class W
- the Company announcing commissioning of the first commercial lithium extraction plant, on or before the
Expiry Date of 1st December 2024;
(ii)
In the prior year, 5,000,000 performance rights were granted and issued as follows:
On 4 September 2019, the Company issued 3,750,000 performance rights to Mr Gavin Rezos as an incentive in
connection with his appointment as Chairman.
On 18 May 2020, the Company issued 1,250,000 performance rights to staff as incentive in connection with their
appointment.
3,900,000 performance rights were granted and issued to directors in prior periods. These were issued on 20
December 2018.
- Vest immediately and convert into Shares on the Company announcing a positive scoping study in relation to
the Vulcan Lithium Project, confirming the Vulcan Lithium Project is commercially viable within 12 months of
Based on management assessment, percentage of a share-based payment expense has been recognised in the
Statement of Profit or Loss and Other Comprehensive Income.
Details of Performance Rights granted in prior years are:
completion of the Acquisition.
- Vest immediately and will convert into shares on the Company announcing a positive preliminary feasibility
study in relation to the Vulcan Lithium Project, confirming the Vulcan Lithium Project is commercially viable
within 24 months of completion of the Acquisition.
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
Details of Performance Rights vesting conditions:
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
Details of Performance Rights vesting conditions:
Vest
ing
hurd
le
(5-
day
VW
AP)
Fair
Expect
value of
ed
each
right
volatilit
y
Price
at
grant
date
($)
Grant date
Expiry
date
Intere
Number
st rate
of Rights
Total
value
of
($)
Rights
Share
based
payment
expense
($)
$0.1124
90% 30/11/2018
0.18
30/11/2021
0.75
134,880
10,683
$0.0906
90% 30/11/2018
0.18
30/11/2021
1.1
0.020
1,500,00
135,90
$0.15
N/A
4/09/2019
0.15
N/A
N/A
4/09/202
0
187,500
- (2)
- (1)
$0.15
N/A
4/09/2019
0.15
4/09/2021
N/A
N/A
187,500
141,190
0.020
1,200,00
0.020
1,200,00
6
6
6
0
0
0
0
0
0
1,250,00
1,250,00
1,250,00
0
2
4/09/202
Class F
$0.15
N/A
4/09/2019
0.15
N/A
N/A
187,500
72,451
$0.225
N/A 11/05/2020 0.225
1/12/2023
N/A
N/A
250,000
56,250
- (1)
$0.225
N/A
&
0.225
1/12/2023
N/A
N/A
500,000
112,500
108,049
11/05/2020
14/5/2020
14/05/202
0
Class F
Class G
Class H
Class I
- Vest immediately and will convert into shares on the Company announcing that it has secured either an offtake
agreement representing a minimum of 30% of production volume over a three-year term, or a downstream joint
venture partner with a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within 36
months of completion of the Acquisition.
- Will vest upon the Company announcing a positive preliminary feasibility study in relation to the Vulcan Lithium
Project, confirming the Lithium Project is commercially viable within two years of issue of the Performance
Rights, with an expiry date of 1 December 2023.
- Will vest upon the Company announcing that it has secured either an off-take agreement representing a
minimum of 30% of production volume over a three-year term, or a downstream lithium chemicals joint venture
partner with a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within three years of
issue of the Performance Rights, with an expiry date of 1 December 2023.
(iii)
On 4 September 2019, the Company issued 13,200,000 Performance Shares (PS) issued to Vendors of the
Vulcan Lithium Project Acquisition which will each convert into a Share on a one for one basis on the
satisfaction of milestones. Based on management assessment, percentage of a share-based payment
expense has been recognised in the Statement of Profit or Loss and Other Comprehensive Income.
value of
each PS
Expected
volatility
Grant
date
Expiry date
Price
at
grant
date
Vesting
hurdle
(5-day
VWAP)
Interest
Number of
rate
PS
Total
value of
PS($)
Fair
($)
Share
based
payment
expense
($)
- (1)
(2) Class C has no share-based payment expense for the year due to performance rights cancelled in the prior
Class A
$0.15
N/A 4/09/2019
$0.15 4/09/2020
N/A
N/A 4,400,000
660,000
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $0.40.
Class C
$0.15
N/A 4/09/2019
$0.15 4/09/2022
N/A
N/A 4,400,000
660,000
255,028
Class B
$0.15
N/A 4/09/2019
$0.15 4/09/2021
N/A
N/A 4,400,000
660,000
496,989
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $0.75.
year.
(1)
Class A has no share-based payment expense for the year due to performance shares vested in the prior
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $1.10.
(iv)
On 10 September 2020, 25 November 2020, and 24 June 2021, shareholder approval was obtained to issue
total of 521,304 warrants to EIT InnoEnergy. On 16 September 2020, and on
8 January 2021, the Company issued 479,519 and 32,928 warrants respectively, with 8,857 warrants issued
on 9 August 2021, subsequent to 30 June 2021. The warrants can only be exercised after 1 September 2021
and at any time on or prior to expiry. These warrants were valued using a Black-Scholes valuation, with the
valuation model inputs used to determine the fair value at grant date as follows:
Class
Class
Class
Class
Class
A
B
C
D
E
G
H
Class
Class
Class A
Class B
Class C
Class D
Class E
prior year.
year.
Class
$0.9
& $7.6
&
$7.6
29/06/2021
Class
$2.38
N/A
25/11/2020
2.38
27/11/2021
N/A
100,000
238,000
140,725
L
M
N
P
Q
R
S
T
U
V
W
3
2
25
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Class
$7.60
N/A
29/06/2021
$7.60
1/12/2024
N/A
100,000
760,000
(1)
Class I has no share-based payment expense for the year due to performance rights lapsed in June 2021
following Dr Katherina Gerber resignation from the Company.
Details of Performance Rights vesting conditions:
Class H
Class I
Class J
Class K
Reference Price.
Class L
- the Company announcing, on or before 18 May 2023, that it has secured either an off-take agreement
representing a minimum of 30% of production volume over a three-year term, or a downstream lithium chemicals
joint venture partner with a minimum of $10,000,000 investment in relation to the Project.
- the Company announcing, within 36 months from the date of issue, a positive (JORC-Compliant) Definitive
Feasibility Study in relation to the Project confirming it is commercially viable; and
- the VWAP for Shares as traded on ASX over 20 consecutive trading days is equal to or greater than 225% of the
VWAP for Shares for the last 5 trading days up to but not including the date of the Meeting (the Reference Price).
- the Company announcing, within 36 months from the date of issue, a positive Pre-Feasibility Study in relation to
the Company’s Zero Carbon Lithium Project™ confirming it is commercially viable; and
- the VWAP for Shares as traded on ASX over 20 consecutive trading days is equal to or greater than 150% of the
- the Company announcing, within 36 months from the date of issue, that it has secured either an off-take
agreement representing a minimum of 30% of production volume over a three-year term, or a downstream lithium
chemicals joint venture partner with a minimum of $10,000,000 investment in relation to the Project; and
115 \ Vulcan Energy Resources Limited
61 | P a g e
117 \ Vulcan Energy Resources Limited
62 | P a g e
2021 Annual Report / 116
117 \ Vulcan Energy Resources Limited
63 | P a g e
2021 Annual Report / 118
64 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
Details of Performance Rights vesting conditions:
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
Details of Performance Rights vesting conditions:
Expected
volatility Grant date
Fair
value of
each
right
Price
at
grant
date
($)
Expiry
date
Vest
ing
hurd
le
(5-
day
VW
AP)
Interest
rate
Number
of Rights
Total
value
of
Rights
($)
Share
based
payment
expense
($)
- Vest immediately and will convert into shares on the Company announcing that it has secured either an offtake
agreement representing a minimum of 30% of production volume over a three-year term, or a downstream joint
venture partner with a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within 36
months of completion of the Acquisition.
- Will vest upon the holder completing six months continuous employment with the Company, with an expiry date
$0.1463
90%
30/11/2018
0.18 30/11/2021
0.4
2.06% 1,200,000 175,560
- (1)
of 1 December 2023.
$0.1124
90%
30/11/2018
0.18 30/11/2021 0.75
2.06%
1,200,000 134,880
10,683
$0.0906
90%
30/11/2018
0.18 30/11/2021
1.1
2.06%
1,500,000 135,900
$0.15
N/A
4/09/2019
0.15 4/09/2020 N/A
N/A
1,250,000 187,500
- (2)
- (1)
$0.15
N/A
4/09/2019
0.15 4/09/2021 N/A
N/A
1,250,000 187,500
141,190
Class F
Class G
Class H
Class I
Class
A
Class
B
Class
C
Class
D
Class
E
Class F
$0.15
N/A
4/09/2019
0.15
4/09/2022 N/A
N/A
1,250,000 187,500
72,451
Class
G
Class
H
$0.225
N/A
11/05/2020 0.225
1/12/2023 N/A
N/A
250,000
56,250
- (1)
$0.225
N/A
11/05/2020
&
14/5/2020
0.225
1/12/2023 N/A
N/A
500,000
112,500
108,049
Class I
$0.225
N/A
14/05/2020 0.225
1/12/2023 N/A
N/A
500,000
112,500
31,833
(1) Class A, D and G have no share-based payment expense for the year due to performance rights vested in the
prior year.
(2) Class C has no share-based payment expense for the year due to performance rights cancelled in the prior
year.
- Will vest upon the Company announcing a positive preliminary feasibility study in relation to the Vulcan Lithium
Project, confirming the Lithium Project is commercially viable within two years of issue of the Performance
Rights, with an expiry date of 1 December 2023.
- Will vest upon the Company announcing that it has secured either an off-take agreement representing a
minimum of 30% of production volume over a three-year term, or a downstream lithium chemicals joint venture
partner with a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within three years of
issue of the Performance Rights, with an expiry date of 1 December 2023.
(iii)
On 4 September 2019, the Company issued 13,200,000 Performance Shares (PS) issued to Vendors of the
Vulcan Lithium Project Acquisition which will each convert into a Share on a one for one basis on the
satisfaction of milestones. Based on management assessment, percentage of a share-based payment
expense has been recognised in the Statement of Profit or Loss and Other Comprehensive Income.
value of
each PS
Expected
volatility
Grant
date
Expiry date
Price
at
grant
date
Vesting
hurdle
(5-day
VWAP)
Interest
Number of
rate
PS
Total
value of
PS($)
Fair
($)
Class A
$0.15
N/A 4/09/2019
$0.15 4/09/2020
N/A
N/A 4,400,000
660,000
Share
based
payment
expense
($)
- (1)
Class A
Class B
$0.15
N/A 4/09/2019
$0.15 4/09/2021
N/A
N/A 4,400,000
660,000
496,989
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $0.40.
Class C
$0.15
N/A 4/09/2019
$0.15 4/09/2022
N/A
N/A 4,400,000
660,000
255,028
Class B
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $0.75.
year.
(1)
Class A has no share-based payment expense for the year due to performance shares vested in the prior
Class C
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $1.10.
Class D
- Vest immediately and convert into Shares on the Company announcing a positive scoping study in relation to
the Vulcan Lithium Project, confirming the Vulcan Lithium Project is commercially viable within 12 months of
completion of the Acquisition.
Class E
- Vest immediately and will convert into shares on the Company announcing a positive preliminary feasibility
study in relation to the Vulcan Lithium Project, confirming the Vulcan Lithium Project is commercially viable
within 24 months of completion of the Acquisition.
(iv)
On 10 September 2020, 25 November 2020, and 24 June 2021, shareholder approval was obtained to issue
total of 521,304 warrants to EIT InnoEnergy. On 16 September 2020, and on
8 January 2021, the Company issued 479,519 and 32,928 warrants respectively, with 8,857 warrants issued
on 9 August 2021, subsequent to 30 June 2021. The warrants can only be exercised after 1 September 2021
and at any time on or prior to expiry. These warrants were valued using a Black-Scholes valuation, with the
valuation model inputs used to determine the fair value at grant date as follows:
117 \ Vulcan Energy Resources Limited
63 | P a g e
2021 Annual Report / 118
2021 Annual Report / 118
64 | P a g e
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
Details of Performance Rights vesting conditions:
Vest
ing
hurd
le
(5-
day
VW
AP)
Fair
Expect
value of
ed
each
right
volatilit
y
Price
at
grant
date
($)
Grant date
Expiry
date
Intere
Number
st rate
of Rights
Total
value
of
Rights
($)
Share
based
payment
expense
($)
$0.1463
90%
30/11/2018
0.18 30/11/2021
0.4
175,560
- (1)
$0.1124
90%
30/11/2018
0.18 30/11/2021 0.75
134,880
10,683
$0.0906
90%
30/11/2018
0.18 30/11/2021
1.1
0.020
1,500,00
135,90
$0.15
N/A
4/09/2019
0.15
N/A
N/A
4/09/202
0
187,500
- (2)
- (1)
$0.15
N/A
4/09/2019
0.15 4/09/2021 N/A
N/A
187,500
141,190
0.020
1,200,00
0.020
1,200,00
6
6
6
0
0
0
0
0
0
1,250,00
1,250,00
1,250,00
0
2
4/09/202
Class F
$0.15
N/A
4/09/2019
0.15
N/A
N/A
187,500
72,451
$0.225
N/A
11/05/2020 0.225
1/12/2023 N/A
N/A
250,000
56,250
- (1)
$0.225
N/A
&
0.225
1/12/2023 N/A
N/A
500,000
112,500
108,049
11/05/2020
14/5/2020
14/05/202
0
Class
Class
Class
Class
Class
A
B
C
D
E
G
H
Class
Class
Class A
Class B
Class C
Class D
Class E
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
Details of Performance Rights vesting conditions:
Class F
- Vest immediately and will convert into shares on the Company announcing that it has secured either an offtake
agreement representing a minimum of 30% of production volume over a three-year term, or a downstream joint
venture partner with a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within 36
months of completion of the Acquisition.
Class G
- Will vest upon the holder completing six months continuous employment with the Company, with an expiry date
of 1 December 2023.
Class H
- Will vest upon the Company announcing a positive preliminary feasibility study in relation to the Vulcan Lithium
Project, confirming the Lithium Project is commercially viable within two years of issue of the Performance
Rights, with an expiry date of 1 December 2023.
Class I
- Will vest upon the Company announcing that it has secured either an off-take agreement representing a
minimum of 30% of production volume over a three-year term, or a downstream lithium chemicals joint venture
partner with a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within three years of
issue of the Performance Rights, with an expiry date of 1 December 2023.
(iii)
On 4 September 2019, the Company issued 13,200,000 Performance Shares (PS) issued to Vendors of the
Vulcan Lithium Project Acquisition which will each convert into a Share on a one for one basis on the
satisfaction of milestones. Based on management assessment, percentage of a share-based payment
expense has been recognised in the Statement of Profit or Loss and Other Comprehensive Income.
Class I
$0.225
N/A
0.225
1/12/2023 N/A
N/A
500,000
112,500
31,833
(1) Class A, D and G have no share-based payment expense for the year due to performance rights vested in the
Fair
value of
each PS
($)
Expected
volatility
Grant
date
Price
at
grant
date
Expiry date
Vesting
hurdle
(5-day
VWAP)
Interest
rate
Number of
PS
Total
value of
PS($)
(2) Class C has no share-based payment expense for the year due to performance rights cancelled in the prior
Class A
$0.15
N/A 4/09/2019
$0.15 4/09/2020
N/A
N/A 4,400,000
660,000
prior year.
year.
Share
based
payment
expense
($)
- (1)
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $0.40.
Class C
$0.15
N/A 4/09/2019
$0.15 4/09/2022
N/A
N/A 4,400,000
660,000
255,028
Class B
$0.15
N/A 4/09/2019
$0.15 4/09/2021
N/A
N/A 4,400,000
660,000
496,989
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $0.75.
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $1.10.
- Vest immediately and convert into Shares on the Company announcing a positive scoping study in relation to
the Vulcan Lithium Project, confirming the Vulcan Lithium Project is commercially viable within 12 months of
completion of the Acquisition.
- Vest immediately and will convert into shares on the Company announcing a positive preliminary feasibility
study in relation to the Vulcan Lithium Project, confirming the Vulcan Lithium Project is commercially viable
within 24 months of completion of the Acquisition.
(1)
(iv)
Class A has no share-based payment expense for the year due to performance shares vested in the prior
year.
On 10 September 2020, 25 November 2020, and 24 June 2021, shareholder approval was obtained to issue
total of 521,304 warrants to EIT InnoEnergy. On 16 September 2020, and on
8 January 2021, the Company issued 479,519 and 32,928 warrants respectively, with 8,857 warrants issued
on 9 August 2021, subsequent to 30 June 2021. The warrants can only be exercised after 1 September 2021
and at any time on or prior to expiry. These warrants were valued using a Black-Scholes valuation, with the
valuation model inputs used to determine the fair value at grant date as follows:
117 \ Vulcan Energy Resources Limited
63 | P a g e
119 \ Vulcan Energy Resources Limited
64 | P a g e
2021 Annual Report / 118
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
Grant Date
Expiry Date
Share price at grant date
Exercise Price
Number of warrants
Fair value at grant date
Expected volatility
Risk free rate
Total value
Balance at the end of the
year (No.)
Share based payment
expense ($)
10/09/2020
16/09/2023
25/11/2020
8/01/2023
24/06/2021
9/08/2024
$0.89
$0.00
479,519
$0.88
70%
0.26%
$426,772
479,519
349,658
$2.38
$0.00
32,928
$2.38
70%
0.11%
$78,369
32,928
18,103
$7.89
$0.00
8,857
$7.89
70%
0.20%
$69,873
8,857
6,075
(v) On 16 September 2020, the Company issued 1,125,250 unlisted options exercisable at $0.80 on or before 18
months expiry following shareholder approval at a GM held on 10 September 2020. The grant of options
was agreed and finalised in June 2020 when the Company completed a capital raise for $4.8 million
however were subject to shareholder approval prior to issue. These options were valued using a Black-
Scholes valuation, with the valuation model inputs used to determine the fair value at grant date as follows:
Grant Date
Expiry Date
Share price at grant date
Exercise Price
Number of options
Fair value at grant date
Expected volatility
Risk free rate
Total value
Share based payment expense ($)
Exercised
Balance at the end of the year (No)
Accounting Policy
10/09/2020
16/03/2022
$0.89
$0.80
1,125,250
$0.33
70%
0.26%
$369,757
$369,757
1,125,250
-
Equity-settled and cash-settled share-based compensation benefits are provided to Key Management
Personnel and employees.
Equity-settled transactions are awards of shares, or options over shares, which are provided to employees in
exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of
services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using an appropriate valuation model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share,
the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting
conditions that do not determine whether the consolidated entity receives the services that entitle the
employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity
over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value
of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the
vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at
each reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying
an appropriate valuation model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
(a) During the vesting period, the liability at each reporting date is the fair value of the award at that date
multiplied by the expired portion of the vesting period.
(b) From the end of the vesting period until settlement of the award, the liability is the full fair value of the
liability at the reporting date.
cash paid to settle the liability.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to
market conditions are considered to vest irrespective of whether or not that market condition has been met,
provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been
made. An additional expense is recognised, over the remaining vesting period, for any modification that
increases the total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the consolidated entity or
employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over
the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
NOTE 20
RELATED PARTY DISCLOSURE
(a)
Key Management Personnel Compensation
The aggregate compensation made to directors and other members of key management personnel of the
consolidated entity is set out below.
2021
$
1,124,701
52,232
4,017,627
5,194,560
2020
$
471,534
20,443
384,616
876,593
Short-term benefits
Post-employment benefits
Share-based payments
(b)
Transactions with related parties
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
During the financial year, payments for corporate advisory services outside of Australia of $45,000 (2020:
$73,185) were made to Viaticus Capital, a related party of Mr Rezos. Viaticus Capital also received fees of $49,256
(2020: $18,000) for capital raising fees associated with a placement undertaken in year ending 30 June 2021. The
outstanding balance to Viaticus Capital at 30 June 2021 was $68,836 (2020: $33,000). The corporate advisory
services agreement with Viaticus Capital entered into in 2018 was amended by mutual agreement during the
reporting period to exclude any capital raising, M&A or related services.
2021 Annual Report / 118
64 | P a g e
119 \ Vulcan Energy Resources Limited
65 | P a g e
2021 Annual Report / 120
2021 Annual Report / 120
66 | P a g e
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
Details of Performance Rights vesting conditions:
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
Details of Performance Rights vesting conditions:
Fair
Expect
value of
ed
each
right
volatilit
y
Price
at
grant
date
($)
Grant date
Expiry
date
Intere
Number
st rate
of Rights
Total
value
of
Rights
($)
Share
based
payment
expense
($)
$0.1463
90%
30/11/2018
0.18 30/11/2021
0.4
175,560
- (1)
Vest
ing
hurd
le
(5-
day
VW
AP)
- Vest immediately and will convert into shares on the Company announcing that it has secured either an offtake
agreement representing a minimum of 30% of production volume over a three-year term, or a downstream joint
venture partner with a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within 36
months of completion of the Acquisition.
- Will vest upon the holder completing six months continuous employment with the Company, with an expiry date
Class F
Class G
of 1 December 2023.
Class H
$0.1124
90%
30/11/2018
0.18 30/11/2021 0.75
134,880
10,683
$0.0906
90%
30/11/2018
0.18 30/11/2021
1.1
0.020
1,500,00
135,90
$0.15
N/A
4/09/2019
0.15
N/A
N/A
4/09/202
0
187,500
- (2)
- (1)
Rights, with an expiry date of 1 December 2023.
Class I
- Will vest upon the Company announcing a positive preliminary feasibility study in relation to the Vulcan Lithium
Project, confirming the Lithium Project is commercially viable within two years of issue of the Performance
0.020
1,200,00
0.020
1,200,00
6
6
6
0
0
0
0
0
0
1,250,00
1,250,00
1,250,00
$0.15
N/A
4/09/2019
0.15 4/09/2021 N/A
N/A
187,500
141,190
Class F
$0.15
N/A
4/09/2019
0.15
N/A
N/A
187,500
72,451
$0.225
N/A
11/05/2020 0.225
1/12/2023 N/A
N/A
250,000
56,250
- (1)
0
2
4/09/202
$0.225
N/A
&
0.225
1/12/2023 N/A
N/A
500,000
112,500
108,049
Class I
$0.225
N/A
0.225
1/12/2023 N/A
N/A
500,000
112,500
31,833
(1) Class A, D and G have no share-based payment expense for the year due to performance rights vested in the
11/05/2020
14/5/2020
14/05/202
0
- Will vest upon the Company announcing that it has secured either an off-take agreement representing a
minimum of 30% of production volume over a three-year term, or a downstream lithium chemicals joint venture
partner with a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within three years of
issue of the Performance Rights, with an expiry date of 1 December 2023.
(iii)
On 4 September 2019, the Company issued 13,200,000 Performance Shares (PS) issued to Vendors of the
Vulcan Lithium Project Acquisition which will each convert into a Share on a one for one basis on the
satisfaction of milestones. Based on management assessment, percentage of a share-based payment
expense has been recognised in the Statement of Profit or Loss and Other Comprehensive Income.
value of
each PS
Expected
Grant
volatility
date
Expiry date
Price
at
grant
date
Vesting
hurdle
(5-day
VWAP)
Interest
Number of
rate
PS
Total
value of
PS($)
Fair
($)
Share
based
payment
expense
($)
- (1)
Class B
$0.15
N/A 4/09/2019
$0.15 4/09/2021
N/A
N/A 4,400,000
660,000
496,989
(2) Class C has no share-based payment expense for the year due to performance rights cancelled in the prior
Class A
$0.15
N/A 4/09/2019
$0.15 4/09/2020
N/A
N/A 4,400,000
660,000
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $0.40.
Class C
$0.15
N/A 4/09/2019
$0.15 4/09/2022
N/A
N/A 4,400,000
660,000
255,028
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $0.75.
year.
(1)
Class A has no share-based payment expense for the year due to performance shares vested in the prior
(iv)
On 10 September 2020, 25 November 2020, and 24 June 2021, shareholder approval was obtained to issue
total of 521,304 warrants to EIT InnoEnergy. On 16 September 2020, and on
8 January 2021, the Company issued 479,519 and 32,928 warrants respectively, with 8,857 warrants issued
on 9 August 2021, subsequent to 30 June 2021. The warrants can only be exercised after 1 September 2021
and at any time on or prior to expiry. These warrants were valued using a Black-Scholes valuation, with the
valuation model inputs used to determine the fair value at grant date as follows:
Class
Class
Class
Class
Class
A
B
C
D
E
G
H
Class
Class
Class A
Class B
Class C
Class D
Class E
prior year.
year.
- Will vest if, at any time within 36 months following grant date of the Rights the VWAP of the Company’s shares
traded on the ASX over five (5) consecutive trading days is equal to or greater than $1.10.
- Vest immediately and convert into Shares on the Company announcing a positive scoping study in relation to
the Vulcan Lithium Project, confirming the Vulcan Lithium Project is commercially viable within 12 months of
completion of the Acquisition.
- Vest immediately and will convert into shares on the Company announcing a positive preliminary feasibility
study in relation to the Vulcan Lithium Project, confirming the Vulcan Lithium Project is commercially viable
within 24 months of completion of the Acquisition.
117 \ Vulcan Energy Resources Limited
63 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
NOTE 19
SHARE-BASED PAYMENTS (CONT.)
NOTE 20
RELATED PARTY DISCLOSURE (CONT.)
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 24
ACCCUMULATED LOSSES
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity
over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value
of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the
vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at
each reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying
an appropriate valuation model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
(a) During the vesting period, the liability at each reporting date is the fair value of the award at that date
multiplied by the expired portion of the vesting period.
(b) From the end of the vesting period until settlement of the award, the liability is the full fair value of the
Other than the above, there were no other transactions with KMP during the year ended 30 June 2021.
liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the
cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to
market conditions are considered to vest irrespective of whether or not that market condition has been met,
provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been
made. An additional expense is recognised, over the remaining vesting period, for any modification that
increases the total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the consolidated entity or
employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over
the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
NOTE 20
RELATED PARTY DISCLOSURE
(a)
Key Management Personnel Compensation
The aggregate compensation made to directors and other members of key management personnel of the
consolidated entity is set out below.
Short-term benefits
Post-employment benefits
Share-based payments
2021
$
1,124,701
52,232
4,017,627
5,194,560
2020
$
471,534
20,443
384,616
876,593
(b)
Transactions with related parties
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
During the financial year, payments for corporate advisory services outside of Australia of $45,000 (2020:
$73,185) were made to Viaticus Capital, a related party of Mr Rezos. Viaticus Capital also received fees of $49,256
(2020: $18,000) for capital raising fees associated with a placement undertaken in year ending 30 June 2021. The
outstanding balance to Viaticus Capital at 30 June 2021 was $68,836 (2020: $33,000). The corporate advisory
services agreement with Viaticus Capital entered into in 2018 was amended by mutual agreement during the
reporting period to exclude any capital raising, M&A or related services.
Dr Kreuter was CEO of GeoThermal Engineering GmbH (GeoT). GeoThermal Engineering GmbH provides
engineering services to Vulcan Energie Ressourcen GmbH, wholly sub of the Vulcan Energy Resources Ltd.
During the financial year, GeoThermal Engineering received €736,609 or A$1,176,710 from Vulcan Energie
Ressourcen GmbH (2020: €77,035 or A$130,128). There were no amounts outstanding at 30 June 2021
(2020: Nil).
During the financial year payments for consulting fees of $43,044 (2020: Nil) were made to Alto Group Inc., a
related party of Ms Annie Liu. The outstanding balance to Alto Group Inc., at 30 June 2021 was $17,493 (2020: Nil).
There were no other related party transactions during the previous financial year.
There were no loans made to any KMP during the year ended 30 June 2021 (2020: Nil).
NOTE 21
COMMITMENTS
Below are the commitments in relation to its exploration and evaluation assets:
Within one year
One to five years
NOTE 22
CONTINGENCIES
As part of the acquisition of Vulcan Lithium Project, the Company agrees to pay the following by way of deferred
consideration of remaining 4,400,000 (13,200,000 less 8,800,000) Performance Shares to be issued to the
Vendors, which will each convert into a Share on a one for one basis on satisfaction the following milestones:
(i.)
4,400,000 Shares on the Company announcing that it has secured an off-take agreement representing a
minimum of 30% of production volume over a three-year term, or a downstream joint venture partner with
a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within 36 months of
completion of the Acquisition (Milestone 3), (together, the Deferred Consideration).
Other than the above, there are no other contingent assets or contingent liabilities as at 30 June 2021.
NOTE 23
AUDITOR’S REMUNERATION
Amounts received or due and receivable by RSM Australia
Partners for:
Audit or review of the annual financial report
59,000
31,500
2021
$
2020
$
Other services - RSM Australia Pty Ltd for:
– Corporate Finance
1,500
60,500
-
31,500
Balance at beginning of the year
Loss after income tax for the year
Balance at end of the year
2021
$
(4,670,672)
(10,744,614)
(15,415,286)
2020
$
(1,117,313)
(3,553,359)
(4,670,672)
2021
$
1,589,594
2,155,391
3,744,985
2020
$
163,639
163,639
327,278
NOTE 25
INVESTMENT IN CONTROLLED ENTITIES
Principal
Activities
Country of
Incorporatio
Ownership
Ownership
Interest
Interest
n
Kuniko Limited
Vulcan Energy Resources Europe Pty Ltd
Vulcan Energie Ressourcen GmbH
Exploration
Australia
Exploration
Exploration
Australia
Germany
2021
%
100
100
100
2020
%
100
100
100
NOTE 26
PARENT ENTITY
Statement of Financial Position
ASSETS
Current Assets
Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
TOTAL LIABILITIES
EQUITY
Issued Capital
Reserves
Accumulated losses
TOTAL EQUITY
2021
$
2020
$
114,598,014
14,989,640
129,587,654
6,330,432
2,745,876
9,076,308
603,110
603,110
190,270
190,270
136,500,372
8,021,740
(15,537,568)
128,984,544
11,836,741
1,741,986
(4,692,689)
8,886,038
Statement of Profit or Loss and other comprehensive
income
Loss for the year
Total Comprehensive Income
(10,844,879)
(10,844,879)
(3,575,376)
(3,575,376)
Grant Date
Expiry Date
Share price at grant date
Exercise Price
Number of warrants
Fair value at grant date
Expected volatility
Risk free rate
Total value
Balance at the end of the
year (No.)
Share based payment
expense ($)
10/09/2020
16/09/2023
25/11/2020
8/01/2023
24/06/2021
9/08/2024
$0.89
$0.00
479,519
$0.88
70%
0.26%
$426,772
479,519
349,658
$2.38
$0.00
32,928
$2.38
70%
0.11%
$78,369
32,928
18,103
$7.89
$0.00
8,857
$7.89
70%
0.20%
$69,873
8,857
6,075
(v) On 16 September 2020, the Company issued 1,125,250 unlisted options exercisable at $0.80 on or before 18
months expiry following shareholder approval at a GM held on 10 September 2020. The grant of options
was agreed and finalised in June 2020 when the Company completed a capital raise for $4.8 million
however were subject to shareholder approval prior to issue. These options were valued using a Black-
Scholes valuation, with the valuation model inputs used to determine the fair value at grant date as follows:
Grant Date
Expiry Date
Share price at grant date
Exercise Price
Number of options
Fair value at grant date
Expected volatility
Risk free rate
Total value
Exercised
Share based payment expense ($)
Balance at the end of the year (No)
10/09/2020
16/03/2022
$0.89
$0.80
1,125,250
$0.33
70%
0.26%
$369,757
$369,757
1,125,250
-
Accounting Policy
Personnel and employees.
Equity-settled and cash-settled share-based compensation benefits are provided to Key Management
Equity-settled transactions are awards of shares, or options over shares, which are provided to employees in
exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of
services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using an appropriate valuation model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share,
the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting
conditions that do not determine whether the consolidated entity receives the services that entitle the
employees to receive payment. No account is taken of any other vesting conditions.
119 \ Vulcan Energy Resources Limited
65 | P a g e
121 \ Vulcan Energy Resources Limited
66 | P a g e
2021 Annual Report / 120
121 \ Vulcan Energy Resources Limited
67 | P a g e
2021 Annual Report / 122
68 | P a g e
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 20
RELATED PARTY DISCLOSURE (CONT.)
Dr Kreuter was CEO of GeoThermal Engineering GmbH (GeoT). GeoThermal Engineering GmbH provides
engineering services to Vulcan Energie Ressourcen GmbH, wholly sub of the Vulcan Energy Resources Ltd.
During the financial year, GeoThermal Engineering received €736,609 or A$1,176,710 from Vulcan Energie
Ressourcen GmbH (2020: €77,035 or A$130,128). There were no amounts outstanding at 30 June 2021
(2020: Nil).
During the financial year payments for consulting fees of $43,044 (2020: Nil) were made to Alto Group Inc., a
related party of Ms Annie Liu. The outstanding balance to Alto Group Inc., at 30 June 2021 was $17,493 (2020: Nil).
There were no other related party transactions during the previous financial year.
There were no loans made to any KMP during the year ended 30 June 2021 (2020: Nil).
Other than the above, there were no other transactions with KMP during the year ended 30 June 2021.
NOTE 21
COMMITMENTS
Below are the commitments in relation to its exploration and evaluation assets:
Within one year
One to five years
2021
$
1,589,594
2,155,391
3,744,985
2020
$
163,639
163,639
327,278
NOTE 22
CONTINGENCIES
As part of the acquisition of Vulcan Lithium Project, the Company agrees to pay the following by way of deferred
consideration of remaining 4,400,000 (13,200,000 less 8,800,000) Performance Shares to be issued to the
Vendors, which will each convert into a Share on a one for one basis on satisfaction the following milestones:
(i.)
4,400,000 Shares on the Company announcing that it has secured an off-take agreement representing a
minimum of 30% of production volume over a three-year term, or a downstream joint venture partner with
a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within 36 months of
completion of the Acquisition (Milestone 3), (together, the Deferred Consideration).
Other than the above, there are no other contingent assets or contingent liabilities as at 30 June 2021.
NOTE 23
AUDITOR’S REMUNERATION
Amounts received or due and receivable by RSM Australia
Partners for:
Audit or review of the annual financial report
Other services - RSM Australia Pty Ltd for:
– Corporate Finance
2021
$
2020
$
59,000
31,500
1,500
60,500
-
31,500
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 24
ACCCUMULATED LOSSES
Balance at beginning of the year
Loss after income tax for the year
Balance at end of the year
2021
$
(4,670,672)
(10,744,614)
(15,415,286)
2020
$
(1,117,313)
(3,553,359)
(4,670,672)
NOTE 25
INVESTMENT IN CONTROLLED ENTITIES
Principal
Activities
Country of
Incorporatio
Ownership
Ownership
Interest
Interest
n
Kuniko Limited
Vulcan Energy Resources Europe Pty Ltd
Vulcan Energie Ressourcen GmbH
Exploration
Australia
Exploration
Exploration
Australia
Germany
2021
%
100
100
100
2020
%
100
100
100
NOTE 26
PARENT ENTITY
Statement of Financial Position
ASSETS
Current Assets
Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
TOTAL LIABILITIES
EQUITY
Issued Capital
Reserves
Accumulated losses
TOTAL EQUITY
2021
$
2020
$
114,598,014
14,989,640
129,587,654
6,330,432
2,745,876
9,076,308
603,110
603,110
190,270
190,270
136,500,372
8,021,740
(15,537,568)
128,984,544
11,836,741
1,741,986
(4,692,689)
8,886,038
Statement of Profit or Loss and other comprehensive
income
Loss for the year
Total Comprehensive Income
(10,844,879)
(10,844,879)
(3,575,376)
(3,575,376)
121 \ Vulcan Energy Resources Limited
67 | P a g e
2021 Annual Report / 122
2021 Annual Report / 122
68 | P a g e
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 20
RELATED PARTY DISCLOSURE (CONT.)
Dr Kreuter was CEO of GeoThermal Engineering GmbH (GeoT). GeoThermal Engineering GmbH provides
engineering services to Vulcan Energie Ressourcen GmbH, wholly sub of the Vulcan Energy Resources Ltd.
During the financial year, GeoThermal Engineering received €736,609 or A$1,176,710 from Vulcan Energie
Ressourcen GmbH (2020: €77,035 or A$130,128). There were no amounts outstanding at 30 June 2021
(2020: Nil).
During the financial year payments for consulting fees of $43,044 (2020: Nil) were made to Alto Group Inc., a
related party of Ms Annie Liu. The outstanding balance to Alto Group Inc., at 30 June 2021 was $17,493 (2020: Nil).
There were no other related party transactions during the previous financial year.
There were no loans made to any KMP during the year ended 30 June 2021 (2020: Nil).
Other than the above, there were no other transactions with KMP during the year ended 30 June 2021.
NOTE 21
COMMITMENTS
Below are the commitments in relation to its exploration and evaluation assets:
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 24
ACCCUMULATED LOSSES
Balance at beginning of the year
Loss after income tax for the year
Balance at end of the year
2021
$
(4,670,672)
(10,744,614)
(15,415,286)
2020
$
(1,117,313)
(3,553,359)
(4,670,672)
2021
$
1,589,594
2,155,391
3,744,985
2020
$
163,639
163,639
327,278
NOTE 25
INVESTMENT IN CONTROLLED ENTITIES
Principal
Activities
Country of
Incorporation
Ownership
Interest
Ownership
Interest
Kuniko Limited
Vulcan Energy Resources Europe Pty Ltd
Vulcan Energie Ressourcen GmbH
Exploration
Exploration
Exploration
Australia
Australia
Germany
2021
%
100
100
100
2020
%
100
100
100
Within one year
One to five years
NOTE 22
CONTINGENCIES
As part of the acquisition of Vulcan Lithium Project, the Company agrees to pay the following by way of deferred
consideration of remaining 4,400,000 (13,200,000 less 8,800,000) Performance Shares to be issued to the
Vendors, which will each convert into a Share on a one for one basis on satisfaction the following milestones:
(i.)
4,400,000 Shares on the Company announcing that it has secured an off-take agreement representing a
minimum of 30% of production volume over a three-year term, or a downstream joint venture partner with
a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within 36 months of
completion of the Acquisition (Milestone 3), (together, the Deferred Consideration).
Other than the above, there are no other contingent assets or contingent liabilities as at 30 June 2021.
NOTE 23
AUDITOR’S REMUNERATION
Amounts received or due and receivable by RSM Australia
Partners for:
Audit or review of the annual financial report
59,000
31,500
Other services - RSM Australia Pty Ltd for:
– Corporate Finance
2021
$
2020
$
1,500
60,500
-
31,500
NOTE 26
PARENT ENTITY
Statement of Financial Position
ASSETS
Current Assets
Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
TOTAL LIABILITIES
EQUITY
Issued Capital
Reserves
Accumulated losses
TOTAL EQUITY
2021
$
2020
$
114,598,014
14,989,640
129,587,654
6,330,432
2,745,876
9,076,308
603,110
603,110
190,270
190,270
136,500,372
8,021,740
(15,537,568)
128,984,544
11,836,741
1,741,986
(4,692,689)
8,886,038
Statement of Profit or Loss and other comprehensive
income
Loss for the year
Total Comprehensive Income
(10,844,879)
(10,844,879)
(3,575,376)
(3,575,376)
121 \ Vulcan Energy Resources Limited
67 | P a g e
123 \ Vulcan Energy Resources Limited
68 | P a g e
2021 Annual Report / 122
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 20
RELATED PARTY DISCLOSURE (CONT.)
NOTE 24
ACCCUMULATED LOSSES
NOTE 26
PARENT ENTITY (CONT.)
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Contingent liabilities
Other than disclosed at Note 22, the parent entity has no other contingent assets or contingent liabilities as at
30 June 2021 and 30 June 2020.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 and 30 June
2020.
Exploration commitments
The parent entity has no exploration commitments.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in
the financial statements, except for the following:
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
NOTE 27
EVENTS AFTER THE REPORTING DATE
On 6 July 2021, the Company issued 336,396 shares and 91,174 performance shares in the Company,
comprising:
• 11,396 shares and 91,174 performance shares, being the security consideration for the acquisition of
Global Geothermal Holding UG (a company incorporated under the laws of Germany); and
• 325,000 shares (216,667 of which are escrowed until 6 July 2022) being the share consideration for the
acquisition of Global Engineering & Consulting Company GmbH (a company incorporated under the laws
of Germany),
in both cases, as approved by shareholders at a General Meeting held on 24 June 2021. The Company also
completed the acquisition of GeoThermal Engineering GmbH on the 2 July 2021. Dr Horst Kreuter is a KMP of
Vulcan for the year ended 30 June 2021 and is a shareholder of Global Geothermal Holding UG and of
GeoThermal Engineering GmbH.
On 12 July 2021, the Company announced that new exploration license for geothermal energy, geothermal
heat, brine and lithium has been granted in the Upper Rhine Valley for a three-year period. The license covers
108km2 of area considered by the Company to be prospective for geothermal and lithium brine.
On 13 July 2021, Markus Ritzauer was appointed as CFO of Vulcan’s German operations, effective
from 1
September 2021. Mr. Ritzauer has over 20 years’ experience in finance roles within the chemicals industry. He is
currently Head of Finance at Currenta, a chemical park service provider in Germany formerly part of Bayer.
On 19 July 2021, the Company signed a binding lithium hydroxide offtake term sheet (“Agreement”) with LG
Energy Solution (“LGES”). LGES is the largest producer of lithium-ion batteries for electric veh icles in the
world and supplies its products to top global OEMs. The Agreement is for an initial five-year term which can be
extended by a further five years, with start of commercial delivery set for 2025. LGES to purchase 5,000
metric tonnes of battery grade lithium hydroxide for the first year of the supply term, ramping up to 10,000
metric tonnes per year during the second and subsequent years of the supply term. Pricing will be based on
market prices for lithium hydroxide. Conditions precedent
to start of commercial delivery include the
execution of a definitive formal offtake agreement on materially the same terms by end November 2021,
successful start of commercial operation and full product qualification.
On 27 July 2021, the Company announced, further to its announcement of 21 April 2021, the close of the $7.88
million IPO raise for the spin out of its wholly owned subsidiary Kuniko Limited.
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 27
EVENTS AFTER THE REPORTING DATE (CONT.)
On 4 August 2021, the Company announced that, after having originally commissioned the world’s first Life Cycle
Assessment (LCA) and global study on the environmental footprint of lithium hydroxide (LHM) production, it again
commissioned Minviro Ltd., to update its independent LCA based on more recent data from Vulcan’s Pre-
Feasibility Study (PFS). Results of the updated LCA estimates a negative 2.9t of CO2 emitted per tonne of LHM to
be produced from Vulcan’s Zero Carbon Lithium™ Project, including Scope 1, 2 and 3 emissions. Vulcan’s negative
CO2 emission intensity is a product of the significant impact offset generated by renewable geothermal energy
production as well as use of geothermal heat to drive lithium processing, and Vulcan’s industry-leading move to
strictly exclude fossil fuels as an energy source from its planned operations. According to public data, this result
confirms that Vulcan’s Zero Carbon Lithium™ Project has the lowest planned carbon footprint in the world
compared to any LCA results previously published in the lithium industry.
On 9 August 2021, the Company announced that it is to apply for dual listing on the regulated market of the
Frankfurt Stock Exchange (FSE), in the Prime Standard market segment, which has the very highest transparency
requirements of all segments on the FSE.
On 19 August 2021 the Company announced it had signed a partnership agreement with Mr. Nico Rosberg and the
Rosberg X Racing (RXR) electric racing team. The Partnership Agreement sees Vulcan Energy becoming an
Official Partner of RXR and RXR and Mr Rosberg becoming shareholders in Vulcan, in return for advertising and
promotional rights for the 2021 and 2022 racing seasons.
On 23 August 2021 the Company announced it had signed BNP Paribas as financial advisor towards financing the
Zero Carbon Lithium™ Project.
On 24 August 2021 Kuniko Limited successfully listed on the Australian Stock Exchange (ASX:KNI), thereby
completing the spin-off of the Norwegian assets announced in June 2021, with the Company retaining a 25.85%
shareholding.
Apart from the above, no other matter or circumstance has arisen since 30 June 2021 that has significantly
affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the
consolidated entity's state of affairs in future financial years.
Dr Kreuter was CEO of GeoThermal Engineering GmbH (GeoT). GeoThermal Engineering GmbH provides
engineering services to Vulcan Energie Ressourcen GmbH, wholly sub of the Vulcan Energy Resources Ltd.
During the financial year, GeoThermal Engineering received €736,609 or A$1,176,710 from Vulcan Energie
Ressourcen GmbH (2020: €77,035 or A$130,128). There were no amounts outstanding at 30 June 2021
(2020: Nil).
During the financial year payments for consulting fees of $43,044 (2020: Nil) were made to Alto Group Inc., a
related party of Ms Annie Liu. The outstanding balance to Alto Group Inc., at 30 June 2021 was $17,493 (2020: Nil).
There were no other related party transactions during the previous financial year.
There were no loans made to any KMP during the year ended 30 June 2021 (2020: Nil).
Other than the above, there were no other transactions with KMP during the year ended 30 June 2021.
NOTE 21
COMMITMENTS
Below are the commitments in relation to its exploration and evaluation assets:
Within one year
One to five years
NOTE 22
CONTINGENCIES
As part of the acquisition of Vulcan Lithium Project, the Company agrees to pay the following by way of deferred
consideration of remaining 4,400,000 (13,200,000 less 8,800,000) Performance Shares to be issued to the
Vendors, which will each convert into a Share on a one for one basis on satisfaction the following milestones:
(i.)
4,400,000 Shares on the Company announcing that it has secured an off-take agreement representing a
minimum of 30% of production volume over a three-year term, or a downstream joint venture partner with
a minimum $10,000,000 investment in relation to the Vulcan Lithium Project within 36 months of
completion of the Acquisition (Milestone 3), (together, the Deferred Consideration).
Other than the above, there are no other contingent assets or contingent liabilities as at 30 June 2021.
NOTE 23
AUDITOR’S REMUNERATION
Amounts received or due and receivable by RSM Australia
Partners for:
Audit or review of the annual financial report
59,000
31,500
Other services - RSM Australia Pty Ltd for:
– Corporate Finance
2021
$
2020
$
1,500
60,500
-
31,500
Balance at beginning of the year
Loss after income tax for the year
Balance at end of the year
2021
$
(4,670,672)
(10,744,614)
(15,415,286)
2020
$
(1,117,313)
(3,553,359)
(4,670,672)
2021
$
1,589,594
2,155,391
3,744,985
2020
$
163,639
163,639
327,278
NOTE 25
INVESTMENT IN CONTROLLED ENTITIES
Principal
Activities
Country of
Incorporatio
Ownership
Ownership
Interest
Interest
n
Kuniko Limited
Vulcan Energy Resources Europe Pty Ltd
Vulcan Energie Ressourcen GmbH
Exploration
Australia
Exploration
Exploration
Australia
Germany
2021
%
100
100
100
2020
%
100
100
100
NOTE 26
PARENT ENTITY
Statement of Financial Position
ASSETS
Current Assets
Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
TOTAL LIABILITIES
EQUITY
Issued Capital
Reserves
Accumulated losses
TOTAL EQUITY
2021
$
2020
$
114,598,014
14,989,640
129,587,654
6,330,432
2,745,876
9,076,308
603,110
603,110
190,270
190,270
136,500,372
8,021,740
(15,537,568)
128,984,544
11,836,741
1,741,986
(4,692,689)
8,886,038
Statement of Profit or Loss and other comprehensive
income
Loss for the year
Total Comprehensive Income
(10,844,879)
(10,844,879)
(3,575,376)
(3,575,376)
commercial delivery set for 2026. In line with
vehicles in Europe –
start of
On 2 August 2021, the Company and Renault Group, top automotive player and pioneer in the European EV
market have signed a lithium offtake term sheet. The agreement is for an initial five-year
term which
can be extended if mutually agreed, with a
Renault Group’s ambition to offer ‘made in Europe’ cars and following the launch of Renault
ElectriCity – the most competitive and efficient production unit for electric
the Group will purchase between 6,000 to 17,000 metric tonnes per year of battery grade lithium
chemicals produced in Germany by Vulcan.
121 \ Vulcan Energy Resources Limited
67 | P a g e
2021 Annual Report / 122
68 | P a g e
123 \ Vulcan Energy Resources Limited
69 | P a g e
2021 Annual Report / 124
2021 Annual Report / 124
70 | P a g e
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
NOTE 27
EVENTS AFTER THE REPORTING DATE (CONT.)
On 4 August 2021, the Company announced that, after having originally commissioned the world’s first Life Cycle
Assessment (LCA) and global study on the environmental footprint of lithium hydroxide (LHM) production, it again
commissioned Minviro Ltd., to update its independent LCA based on more recent data from Vulcan’s Pre-
Feasibility Study (PFS). Results of the updated LCA estimates a negative 2.9t of CO2 emitted per tonne of LHM to
be produced from Vulcan’s Zero Carbon Lithium™ Project, including Scope 1, 2 and 3 emissions. Vulcan’s negative
CO2 emission intensity is a product of the significant impact offset generated by renewable geothermal energy
production as well as use of geothermal heat to drive lithium processing, and Vulcan’s industry-leading move to
strictly exclude fossil fuels as an energy source from its planned operations. According to public data, this result
confirms that Vulcan’s Zero Carbon Lithium™ Project has the lowest planned carbon footprint in the world
compared to any LCA results previously published in the lithium industry.
On 9 August 2021, the Company announced that it is to apply for dual listing on the regulated market of the
Frankfurt Stock Exchange (FSE), in the Prime Standard market segment, which has the very highest transparency
requirements of all segments on the FSE.
On 19 August 2021 the Company announced it had signed a partnership agreement with Mr. Nico Rosberg and the
Rosberg X Racing (RXR) electric racing team. The Partnership Agreement sees Vulcan Energy becoming an
Official Partner of RXR and RXR and Mr Rosberg becoming shareholders in Vulcan, in return for advertising and
promotional rights for the 2021 and 2022 racing seasons.
On 23 August 2021 the Company announced it had signed BNP Paribas as financial advisor towards financing the
Zero Carbon Lithium™ Project.
On 24 August 2021 Kuniko Limited successfully listed on the Australian Stock Exchange (ASX:KNI), thereby
completing the spin-off of the Norwegian assets announced in June 2021, with the Company retaining a 25.85%
shareholding.
Apart from the above, no other matter or circumstance has arisen since 30 June 2021 that has significantly
affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the
consolidated entity's state of affairs in future financial years.
Gavin Rezos
Chairman
2 September 2021
Independent Auditor’s Report
Directors’ Declaration
Directors’ Declaration
In the Directors’ opinion:
including:
a)
The financial statements and accompanying notes are in accordance with the Corporations Act 2001,
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its
performance for the financial year ended on that date.
The financial statements and notes comply with International Financial Reporting Standards.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
b)
c)
become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section
295(5)(a) of the Corporations Act 2001 and is signed for and on behalf of the Directors by:
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
Other than disclosed at Note 22, the parent entity has no other contingent assets or contingent liabilities as at
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 and 30 June
NOTE 26
PARENT ENTITY (CONT.)
Contingent liabilities
30 June 2021 and 30 June 2020.
2020.
Exploration commitments
The parent entity has no exploration commitments.
Significant accounting policies
the financial statements, except for the following:
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
NOTE 27
EVENTS AFTER THE REPORTING DATE
On 6 July 2021, the Company issued 336,396 shares and 91,174 performance shares in the Company,
comprising:
• 11,396 shares and 91,174 performance shares, being the security consideration for the acquisition of
Global Geothermal Holding UG (a company incorporated under the laws of Germany); and
• 325,000 shares (216,667 of which are escrowed until 6 July 2022) being the share consideration for the
acquisition of Global Engineering & Consulting Company GmbH (a company incorporated under the laws
of Germany),
in both cases, as approved by shareholders at a General Meeting held on 24 June 2021. The Company also
completed the acquisition of GeoThermal Engineering GmbH on the 2 July 2021. Dr Horst Kreuter is a KMP of
Vulcan for the year ended 30 June 2021 and is a shareholder of Global Geothermal Holding UG and of
GeoThermal Engineering GmbH.
On 12 July 2021, the Company announced that new exploration license for geothermal energy, geothermal heat,
brine and lithium has been granted in the Upper Rhine Valley for a three-year period. The license covers 108km2
of area considered by the Company to be prospective for geothermal and lithium brine.
On 13 July 2021, Markus Ritzauer was appointed as CFO of Vulcan’s German operations, effective from 1
September 2021. Mr. Ritzauer has over 20 years’ experience in finance roles within the chemicals industry. He is
currently Head of Finance at Currenta, a chemical park service provider in Germany formerly part of Bayer.
On 19 July 2021, the Company signed a binding lithium hydroxide offtake term sheet (“Agreement”) with LG
Energy Solution (“LGES”). LGES is the largest producer of lithium-ion batteries for electric vehicles in the
world and supplies its products to top global OEMs. The Agreement is for an initial five-year term which can be
extended by a further five years, with start of commercial delivery set for 2025. LGES to purchase 5,000
metric tonnes of battery grade lithium hydroxide for the first year of the supply term, ramping up to 10,000
metric tonnes per year during the second and subsequent years of the supply term. Pricing will be based on
market prices for lithium hydroxide. Conditions precedent to start of commercial delivery include the
execution of a definitive formal offtake agreement on materially the same terms by end November 2021,
successful start of commercial operation and full product qualification.
On 27 July 2021, the Company announced, further to its announcement of 21 April 2021, the close of the $7.88
million IPO raise for the spin out of its wholly owned subsidiary Kuniko Limited.
On 2 August 2021, the Company and Renault Group, top automotive player and pioneer in the European EV
market have signed a lithium offtake term sheet. The agreement is for an initial five-year term which
can be extended if mutually agreed, with a start of commercial delivery set for 2026. In line with
Renault Group’s ambition to offer
‘made
in Europe’ cars and
following
the
launch of Renault
ElectriCity – the most competitive and efficient production unit for electric vehicles in Europe –
the Group will purchase between 6,000 to 17,000 metric tonnes per year of battery grade lithium
chemicals produced in Germany by Vulcan.
123 \ Vulcan Energy Resources Limited
69 | P a g e
125 \ Vulcan Energy Resources Limited
70 | P a g e
2021 Annual Report / 124
125 \ Vulcan Energy Resources Limited
71 | P a g e
2021 Annual Report / 126
Directors’ Declaration
Directors’ Declaration
In the Directors’ opinion:
Vulcan Energy Resources Limited – Annual Report 2021
Independent Auditor’s Report
a)
The financial statements and accompanying notes are in accordance with the Corporations Act 2001,
including:
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its
performance for the financial year ended on that date.
b)
c)
The financial statements and notes comply with International Financial Reporting Standards.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section
295(5)(a) of the Corporations Act 2001 and is signed for and on behalf of the Directors by:
Gavin Rezos
Chairman
2 September 2021
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Directors’ Declaration
Directors’ Declaration
In the Directors’ opinion:
including:
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors’ Declaration
Independent Auditor’s Report
Directors’ Declaration
In the Directors’ opinion:
Independent Auditor’s Report
a)
The financial statements and accompanying notes are in accordance with the Corporations Act 2001,
a)
The financial statements and accompanying notes are in accordance with the Corporations Act 2001,
including:
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
mandatory professional reporting requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its
performance for the financial year ended on that date.
performance for the financial year ended on that date.
The financial statements and notes comply with International Financial Reporting Standards.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
b)
c)
become due and payable.
b)
c)
The financial statements and notes comply with International Financial Reporting Standards.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section
295(5)(a) of the Corporations Act 2001 and is signed for and on behalf of the Directors by:
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section
295(5)(a) of the Corporations Act 2001 and is signed for and on behalf of the Directors by:
Gavin Rezos
Chairman
2 September 2021
Gavin Rezos
Chairman
2 September 2021
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125 \ Vulcan Energy Resources Limited
127 \ Vulcan Energy Resources Limited
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THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation RSM Australia Partners Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844 T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111 www.rsm.com.au INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF VULCAN ENERGY RESOURCES LIMITED Opinion We have audited the financial report of Vulcan Energy Resources Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) Giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial performance for the year then ended; and (ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Vulcan Energy Resources Limited – Annual Report 2021
Independent Auditor’s Report
Directors’ Declaration
Directors’ Declaration
In the Directors’ opinion:
including:
a)
The financial statements and accompanying notes are in accordance with the Corporations Act 2001,
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its
performance for the financial year ended on that date.
The financial statements and notes comply with International Financial Reporting Standards.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
b)
c)
become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section
295(5)(a) of the Corporations Act 2001 and is signed for and on behalf of the Directors by:
Gavin Rezos
Chairman
2 September 2021
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Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How our audit addressed this matter Exploration and Evaluation Expenditure Refer to Note 10 in the financial statements The Group has capitalised exploration and evaluation expenditure with a carrying value of $13,793,798 as at 30 June 2021. We considered this to be a key audit matter due to the significant management judgments involved in assessing the carrying value of the asset including: • Determination of whether the exploration and evaluation expenditure can be associated with finding specific mineral resources and the basis on which that expenditure is allocated to an area of interest; • Assessing whether exploration activities have reached a stage at which the existence of economically recoverable reserves may be determined; and • Assessing whether any indicators of impairment are present and if so, judgement applied to determine and quantify any impairment loss. Our audit procedures included: • Ensuring that the right to tenure of the area of interest was current; • Agreeing a sample of additions to supporting documentation and ensuring the amounts are capital in nature and relate to the area of interest; • Enquiring with management and reviewing budgets and other documentation as evidence that active and significant operations in, or relation to, the area of interest will be continued in the future; • Assessing and evaluating management’s determination that exploration activities have not yet progressed to the stage where the existence or otherwise of economically recoverable reserves may be determined; • Assessing and evaluating management’s assessment of whether indicators of impairment existed at the reporting date; and • Assessing that the impairment expense recognised for the year ended was appropriately calculated. Directors’ Declaration
Directors’ Declaration
In the Directors’ opinion:
including:
Vulcan Energy Resources Limited – Annual Report 2021
Vulcan Energy Resources Limited – Annual Report 2021
Directors’ Declaration
Independent Auditor’s Report
Directors’ Declaration
In the Directors’ opinion:
Independent Auditor’s Report
a)
The financial statements and accompanying notes are in accordance with the Corporations Act 2001,
a)
The financial statements and accompanying notes are in accordance with the Corporations Act 2001,
including:
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
mandatory professional reporting requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its
performance for the financial year ended on that date.
performance for the financial year ended on that date.
The financial statements and notes comply with International Financial Reporting Standards.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
b)
c)
become due and payable.
b)
c)
The financial statements and notes comply with International Financial Reporting Standards.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section
295(5)(a) of the Corporations Act 2001 and is signed for and on behalf of the Directors by:
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section
295(5)(a) of the Corporations Act 2001 and is signed for and on behalf of the Directors by:
Gavin Rezos
Chairman
2 September 2021
Gavin Rezos
Chairman
2 September 2021
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125 \ Vulcan Energy Resources Limited
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Key Audit Matter How our audit addressed this matter Share-based payments Refer to Note 19 in the financial statements During the year, the Group issued options, warrants and performance rights to key management personnel, employees, advisors and suppliers. Management have accounted for these instruments in accordance with AASB 2 Share-Based Payments. We have considered this to be a key audit matter because: • The complexity of the accounting required to value these instruments; • Management judgement is required to determine the probability of vesting conditions of these instruments and the inputs used in the valuation model to value these instruments; and • The recognition of the share-based payment expense is complex due to the variety of vesting conditions attached to these instruments. Our audit procedures included: • Obtaining an understanding of the terms and conditions of the instruments issued; • Reviewing the completeness of the instruments issued at reporting date; • Reviewing management’s valuation methodology; • Reviewing the key inputs used for each instrument in the valuation model; • Critically assessing management’s determination of the vesting probability of each instrument; • Recalculating the value of the share-based payment expense to be recognised in consolidated statement of profit or loss and other comprehensive income; and • Reviewing the appropriateness of disclosures in the financial statements. Other Information The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2021 but does not include the financial report and the auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Vulcan Energy Resources Limited – Annual Report 2021
Independent Auditor’s Report
Directors’ Declaration
Directors’ Declaration
In the Directors’ opinion:
including:
a)
The financial statements and accompanying notes are in accordance with the Corporations Act 2001,
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its
performance for the financial year ended on that date.
The financial statements and notes comply with International Financial Reporting Standards.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
b)
c)
become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section
295(5)(a) of the Corporations Act 2001 and is signed for and on behalf of the Directors by:
Gavin Rezos
Chairman
2 September 2021
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Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This description forms part of our auditor's report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2021. In our opinion, the Remuneration Report of Vulcan Energy Resources Limited, for the year ended 30 June 2021, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. RSM AUSTRALIA PARTNERS Perth, WA TUTU PHONG Dated: 2 September 2021 Partner Vulcan Energy Resources Limited – Annual Report 2019
Vulcan Energy Resources Limited – Annual Report 2020
ASX Additional Information
ASX Additional Information
Additional information required by the Australian Securities Exchange and not shown elsewhere in this Annual
Report is as follows. The information is current as of 27 August 2021.
1.
Fully paid ordinary shares
-
-
-
-
There is a total of 108,791,364 fully paid ordinary shares on issue which are listed on the ASX.
The number of holders of fully paid ordinary shares is 23,646.
Holders of fully paid ordinary shares are entitled to participate in dividends and the proceeds on
winding up of the Company.
There are no preference shares on issue.
2.
Distribution of fully paid ordinary shareholders is as follows:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Number of holders
17,353
4,703
833
681
76
23,646
Number of shares % of Issued Capital
5.33
10.07
5.80
17.48
61.31
100.00
5,801,202
10,960,163
6,313,561
19,011,667
66,704,771
108,791,364
3.
Holders of non-marketable parcels
Holders of non-marketable parcels are deemed to be those whose shareholding is valued at less than $500.
There are 373 shareholders who hold less than a marketable parcel of shares, amount to 0.0087% of issued
capital.
4.
Substantial shareholders of ordinary fully paid shares
The names of substantial shareholders who have notified the Company in accordance with section 671B of the
Corporations Act 2001 are:
Mr Francis Edward Barnabas Wedin
Mrs Georgina Hope Rinehart and Hancock Prospecting Pty Ltd (HPPL)
and subsidiaries of HPPL
Vivien Enterprises Pte Ltd
5.
Share buy-backs
Holding Balance
% of Issued
Capital
13,005,834
7,241,200
6,068,668
11.95
6.66
5.58
There is currently no on-market buyback program for any of Vulcan's listed securities.
6.
Voting rights of Shareholders
All fully paid ordinary shareholders are entitled to vote at any meeting of the members of the Company and
their voting rights are on:
-
-
Show of hands – one vote per shareholders; and
Poll – one vote per fully paid ordinary share.
ASX Additional Information
ASX Additional Information
7.
Major Shareholders
Twenty Largest Shareholders
Rank
Shareholders
Number Held
Percentage
MR FRANCIS EDWARD BARNABAS WEDIN
12,193,334
11.20%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
8,203,793
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
7,852,888
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
VIVIEN ENTERPRISES PTE LTD
MR JOHN LANGLEY HANCOCK
CITICORP NOMINEES PTY LIMITED
TORRESAN GROUP
BNP PARIBAS NOMS PTY LTD
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