Vulcan Energy Resources

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
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/

2
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(
n
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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
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/

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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
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e
.
i

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(

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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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 

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Global Warming Potential, or CO2 Emissions, of Different Lithium Chemicals

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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

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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

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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

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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

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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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LiOH • H2O 
Chemical 
Plant

Transport

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 

67  \  Vulcan Energy Resources Limited

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2021 Annual Report / 68

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. 

67  \  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 

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. 

69  \  Vulcan Energy Resources Limited

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Directors' Report
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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2021 Annual Report / 72

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 

71 \ Vulcan Energy Resources Limited

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2021 Annual Report / 72

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), 

73  \  Vulcan Energy Resources Limited

10 | P a g e

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2021 Annual Report / 74

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

10 | P a g e

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2021 Annual Report / 74

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.

13 | P a g e

2021 Annual Report / 76

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.

12 | P a g e

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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

14 | P a g e

15 | P a g e

2021 Annual Report / 78

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 

14 | P a g e

15 | P a g e
2021 Annual Report / 78

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

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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.

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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 

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.

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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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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

25 | P a g e

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

89  \  Vulcan Energy Resources Limited

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

91  \  Vulcan Energy Resources Limited

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

2021 Annual Report / 94

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

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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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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) 

97  \  Vulcan Energy Resources Limited

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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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. 

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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 
-  

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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

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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

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60 | P a g e

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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

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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

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121  \  Vulcan Energy Resources Limited

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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

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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

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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. 

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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. 

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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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2021 Annual Report / 126

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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2021 Annual Report / 126

  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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2021 Annual Report / 128

      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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     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 

125  \  Vulcan Energy Resources Limited

71 | P a g e

2021 Annual Report / 126
2021 Annual Report / 130

      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



LHO LA PTY LTD



BNP PARIBAS NOMINEES PTY LTD



MAGNI ASSOCIATES PTY LTD

ALDOVALE PTY LIMITED



RHODIUM CAPITAL PTY LTD



BNP PARIBAS NOMS PTY LTD

DR HORST DIETER KREUTER

S3 CONSORTIUM HOLDINGS PTY LTD



PULA HOLDINGS PTY LTD



M & E EARTHMOVING PTY LTD

BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD

7.54% 

7.22% 

5.58%

4.82% 

2.99% 

2.11% 

1.47% 

1.00%

0.92%

0.79%

0.75%

0.74%

0.70% 

0.69%

0.65%

0.62%

0.60%

0.57%

0.57%

51.53%

6,068,668

5,248,997

3,252,907

2,300,000

1,600,476

1,084,693

1,004,059

862,317

812,500

810,000

764,292 

750,000

709,974

679,031

655,770

620,000

617,700

56,091,399

There are no listed or unlisted options on issue as at 27 August 2021. The Company has 521,304 warrants on

Total

8.

Options

issue as at 27 August 2021.

9.

Tax Status

The Company is treated as a public company for taxation purposes.

10.

Franking Credits

The Company has no franking credits.

131  \  Vulcan Energy Resources Limited
127 \ Vulcan Energy Resources Limited

73 | P a g e

74 | P a g e

2021 Annual Report / 128

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 

Number of shares  % of Issued Capital 

17,353 

4,703 

833 

681 

76 

23,646 

5,801,202 

10,960,163 

6,313,561 

19,011,667 

66,704,771 

108,791,364 

5.33 

10.07 

5.80 

17.48 

61.31 

100.00 

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: 

Mrs Georgina Hope Rinehart and Hancock Prospecting Pty Ltd (HPPL) 

7,241,200 

Holding Balance 

% of Issued 

Capital 

13,005,834 

11.95 

6.66 

5.58 

6,068,668 

Mr Francis Edward Barnabas Wedin 

and subsidiaries of HPPL  

Vivien Enterprises Pte Ltd  

5.

Share buy-backs 

6.

Voting rights of Shareholders 

their voting rights are on: 

-

-

Show of hands – one vote per shareholders; and 

Poll – one vote per fully paid ordinary share.

Vulcan Energy Resources Limited – Annual Report 2019 

Vulcan Energy Resources Limited – Annual Report 2020 

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 

VIVIEN ENTERPRISES PTE LTD 

MR JOHN LANGLEY HANCOCK 

CITICORP NOMINEES PTY LIMITED 

TORRESAN GROUP 

J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 

BNP PARIBAS NOMS PTY LTD 
 
LHO LA PTY LTD 
 
BNP PARIBAS NOMINEES PTY LTD 
 
MAGNI ASSOCIATES PTY LTD 

ALDOVALE PTY LIMITED 

BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD 
 
RHODIUM CAPITAL PTY LTD 
 
BNP PARIBAS NOMS PTY LTD 

DR HORST DIETER KREUTER 

S3 CONSORTIUM HOLDINGS PTY LTD 
 
PULA HOLDINGS PTY LTD 
 
M & E EARTHMOVING PTY LTD 

7.54% 

7.22% 

5.58% 

4.82% 

2.99% 

2.11% 

1.47% 

1.00% 

0.92% 

0.79% 

0.75% 

0.74% 

0.70% 

0.69% 

0.65% 

0.62% 

0.60% 

0.57% 

0.57% 

51.53% 

6,068,668 

5,248,997 

3,252,907 

2,300,000 

1,600,476 

1,084,693 

1,004,059 

862,317 

812,500 

810,000 

764,292 

750,000 

709,974 

679,031 

655,770 

620,000 

617,700 

56,091,399 

There is currently no on-market buyback program for any of Vulcan Energy Resources’ listed securities. 

Total 

8.

Options 

All fully paid ordinary shareholders are entitled to vote at any meeting of the members of the Company and 

9.

Tax Status 

There are no listed or unlisted options on issue as at 27 August 2021. The Company has 521,304 warrants on 
issue as at 27 August 2021. 

The Company is treated as a public company for taxation purposes. 

10.

Franking Credits 

The Company has no franking credits. 

127  \  Vulcan Energy Resources Limited

73 | P a g e

74 | P a g e

2021 Annual Report / 128
2021 Annual Report / 132

ASX Additional Information

ASX Additional Information 

Appendix Two: Norwegian Projects License Summary – spin-out into Kuniko Limited IPO 24 August 2021 

TENEMENTS 

HOLDER 

REG 

STATUS 

DATE 

AREA (KM2) 

INTEREST 

Undal 101 

Undal 102  

Nyberget 101 

Nyberget 102  

Vangrofta 102 

Skuterud 101 

Skuterud 102 

Skuterud 103 

Skuterud 104 

Skuterud 105 

Skuterud 106 

Skuterud 107 

Skuterud 108 

Skuterud 109 

Skuterud 110 

Romsås 101 

Romsås 102 

Romsås 103 

Romsås 104 

Romsås 105 

Romsås 106 

Romsås 107 

Romsås 108 

Romsås 109 

Feøy 101 

Feøy 102 

Feøy 103 

Feøy 104 

Feøy 105 

Feøy 106 

Feøy 107 

Feøy 108 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

NUMBER 

1059/2018 

1058/2018 

1056/2018 

1057/2018 

1161/2018 

0285/2020 

0286/2020 

0287/2020 

0288/2020 

0289/2020 

0290/2020 

0291/2020 

0292/2020 

0293/2020 

0294/2020 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

GRANTED 

05/07/2018 

05/07/2018 

05/07/2018 

05/07/2018 

27/08/2018 

19/10/2020 

19/10/2020 

19/10/2020 

19/10/2020 

19/10/2020 

19/10/2020 

19/10/2020 

19/10/2020 

19/10/2020 

19/10/2020 

10.00 

10.00 

10.00 

10.00 

10.00 

4.01 

4.01 

4.01 

7.01 

4.01 

8.02 

5.01 

8.02 

5.01 

3.01 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

0298/2020 

0299/2020 

0300/2020 

0301/2020 

Granted 

Granted 

Granted 

Granted 

26/10/2020 

26/10/2020 

26/10/2020 

26/10/2020 

10.00 

10.00 

10.00 

10.00 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

Kuniko Ltd 

0302/2020 

0303/2020 

0304/2020 

0305/2020 

0306/2020 

0307/2020 

0308/2020 

0309/2020 

0310/2020 

0311/2020 

0312/2020 

0313/2020 

0314/2020 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

Granted 

26/10/2020 

26/10/2020 

26/10/2020 

26/10/2020 

26/10/2020 

27/10/2020 

27/10/2020 

27/10/2020 

27/10/2020 

27/10/2020 

27/10/2020 

27/10/2020 

27/10/2020 

Total 

10.00 

10.00 

10.00 

10.00 

10.00 

9.00 

9.00 

10.00 

9.00 

10.00 

10.00 

6.25 

7.50 

262.87 

100% 

100% 

100% 

100% 

100% 

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100% 

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100%  

100% (license 

applied for & 

granted) 

100% (license 

applied for & 

granted) 

Vulcan Energy Resources Limited – Annual Report 2020 

Vulcan Energy Resources Limited – Annual Report 2020 

ASX Additional Information
ASX Additional Information 

11.

Business Objectives 

Vulcan Energy Resources Limited has used its cash and cash equivalents held at the time of listing in a way 
consistent with its stated business objectives. 

12.

Tenement Schedule 

The following table sets out the tenement information as required by ASX Listing Rule 5.3.3. 

Appendix One: Vulcan Zero Carbon Lithium™ Project License Summary 

Name 

Ortenau 

Mannheim 

Taro 

Ludwig 

Heßbach  

Rheinland-Pfalz 
MoU Area2 

Lampertheim* 

Vulcan Energy 
Resources 
Europe Pty Ltd 
Vulcan Energy 
Resources 
Europe Pty Ltd 
Global 
Geothermal 
Holding GmbH 
Global 
Geothermal 
Holding GmbH 
Global 
Geothermal 
Holding GmbH 
Global 
Geothermal 
Holding GmbH 

Vulcan Energy 
Resources 
Europe Pty Ltd 

Holder 

Area (ha)  Status 

Expiry date 

37,360 

Granted 

06/2023 (extended 
by 2 years)  

Interest 

100% 

14,427 

Granted 

09/2021 (extension 
ongoing) 

100% 

3,268 

Granted 

04/2022 

100% 

17,716 

Application 

N/A 

5,848 

Application 

N/A 

100% 

100% 

1,900 

Granted  

10,803 

Granted 

07/2024 

MoU to earn in to 
80% after 
formation of 
formal JV 
100% 

*Granted subsequent to end of Quarter, 1/07/2021 

2 Refer ASX announcement 19/11/2019 

129  \  Vulcan Energy Resources Limited
133  \  Vulcan Energy Resources Limited

75 | P a g e

76 | P a g e

2021 Annual Report / 130

ASX Additional Information

ASX Additional Information 

11.

Business Objectives 

consistent with its stated business objectives. 

12.

Tenement Schedule 

The following table sets out the tenement information as required by ASX Listing Rule 5.3.3. 

Appendix One: Vulcan Zero Carbon Lithium™ Project License Summary 

Holder 

Area (ha)  Status 

Expiry date 

Interest 

Vulcan Energy 

37,360 

Granted 

06/2023 (extended 

100% 

Mannheim 

Vulcan Energy 

14,427 

Granted 

09/2021 (extension 

100% 

by 2 years)  

ongoing) 

3,268 

Granted 

04/2022 

100% 

17,716 

Application 

N/A 

Name 

Ortenau 

Taro 

Ludwig 

Heßbach  

Global 

5,848 

Application 

N/A 

Rheinland-Pfalz 

Global 

1,900 

Granted  

MoU Area2 

Lampertheim* 

Vulcan Energy 

10,803 

Granted 

07/2024 

*Granted subsequent to end of Quarter, 1/07/2021 

Resources 

Europe Pty Ltd 

Resources 

Europe Pty Ltd 

Global 

Geothermal 

Holding GmbH 

Global 

Geothermal 

Holding GmbH 

Geothermal 

Holding GmbH 

Geothermal 

Holding GmbH 

Resources 

Europe Pty Ltd 

100% 

100% 

MoU to earn in to 

80% after 

formation of 

formal JV 

100% 

Vulcan Energy Resources Limited – Annual Report 2020 

Vulcan Energy Resources Limited – Annual Report 2020 

ASX Additional Information
ASX Additional Information 

Appendix Two: Norwegian Projects License Summary – spin-out into Kuniko Limited IPO 24 August 2021 

Vulcan Energy Resources Limited has used its cash and cash equivalents held at the time of listing in a way 

TENEMENTS 

HOLDER 

AREA (KM2) 

INTEREST 

Undal 101 
Undal 102  
Nyberget 101 
Nyberget 102  
Vangrofta 102 
Skuterud 101 
Skuterud 102 
Skuterud 103 
Skuterud 104 
Skuterud 105 
Skuterud 106 
Skuterud 107 
Skuterud 108 
Skuterud 109 
Skuterud 110 

Romsås 101 
Romsås 102 
Romsås 103 
Romsås 104 

Romsås 105 
Romsås 106 
Romsås 107 
Romsås 108 
Romsås 109 
Feøy 101 
Feøy 102 
Feøy 103 
Feøy 104 
Feøy 105 
Feøy 106 
Feøy 107 
Feøy 108 

REG 
NUMBER 
1059/2018 
1058/2018 
1056/2018 
1057/2018 
1161/2018 
0285/2020 
0286/2020 
0287/2020 
0288/2020 
0289/2020 
0290/2020 
0291/2020 
0292/2020 
0293/2020 
0294/2020 

STATUS 

Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 

DATE 
GRANTED 
05/07/2018 
05/07/2018 
05/07/2018 
05/07/2018 
27/08/2018 
19/10/2020 
19/10/2020 
19/10/2020 
19/10/2020 
19/10/2020 
19/10/2020 
19/10/2020 
19/10/2020 
19/10/2020 
19/10/2020 

10.00 
10.00 
10.00 
10.00 
10.00 
4.01 
4.01 
4.01 
7.01 
4.01 
8.02 
5.01 
8.02 
5.01 
3.01 

Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 

Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 

0298/2020 
0299/2020 
0300/2020 
0301/2020 

Granted 
Granted 
Granted 
Granted 

26/10/2020 
26/10/2020 
26/10/2020 
26/10/2020 

10.00 
10.00 
10.00 
10.00 

Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 
Kuniko Ltd 

0302/2020 
0303/2020 
0304/2020 
0305/2020 
0306/2020 
0307/2020 
0308/2020 
0309/2020 
0310/2020 
0311/2020 
0312/2020 
0313/2020 
0314/2020 

Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 
Granted 

26/10/2020 
26/10/2020 
26/10/2020 
26/10/2020 
26/10/2020 
27/10/2020 
27/10/2020 
27/10/2020 
27/10/2020 
27/10/2020 
27/10/2020 
27/10/2020 
27/10/2020 
Total 

10.00 
10.00 
10.00 
10.00 
10.00 
9.00 
9.00 
10.00 
9.00 
10.00 
10.00 
6.25 
7.50 
262.87 

100% 
100% 
100% 
100% 
100% 
100%  
100%  
100%  
100%  
100%  
100%  
100%  
100% 
100%  
100% (license 
applied for & 
granted) 
100%  
100%  
100%  
100% (license 
applied for & 
granted) 
100%  
100%  
100%  
100%  
100%  
100%  
100%  
100%  
100%  
100%  
100%  
100%  
100%  

2 Refer ASX announcement 19/11/2019 

129  \  Vulcan Energy Resources Limited

75 | P a g e

76 | P a g e

2021 Annual Report / 130
2021 Annual Report / 134

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.

ASX Additional Information

ASX Additional Information

Appendix Three: Indicated and Inferred Mineral Resource Estimates

Appendix Four: Ore Reserves

Current Indicated and Inferred Mineral Resource Estimate Table

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

There has been an increase in the Mineral Resources and Reserves of the Company during the Year, 
following the acquisition, processing and analysis of exploration data in the Ortenau and Taro licenses, 
and the undertaking of a Pre-Feasibility Study on these license areas. Please refer below for the 
Mineral Resources in the previous year for comparison.

Prior Year Comparison Table

URVP Resources 

Taro Inferred Resource 
estimate

Ortenau Indicated 
Resource estimation

Taro Inferred Resource 
estimation

Taro Indicated Resource 
estimation

Aquifer 
Volume 
(km3)

Brine 
Volume 
(km3)

Avg. Li 
Conc. 
(mg/l Li)

Avg. 
Porosity 
(%)

Contained 
Elemental 
Li Resource 
Tonnes

Contained 
LCE Million 
Tonnes

15.529

1.475

144.489

13.726

8.322

0.749

181

181

181

9.50

9.50

9.00

267,000

1.42

2,484,000

13.26

136,000

0.72

168.34

15.95

181

9.48

2,887,000

15.37

131  \  Vulcan Energy Resources Limited
135  \  Vulcan Energy Resources Limited

2021 Annual Report / 132

ASX Additional Information

ASX Additional Information

Appendix Three: Indicated and Inferred Mineral Resource Estimates

Appendix Four: Ore Reserves

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.

2021 Annual Report / 132
2021 Annual Report / 136

Current Indicated and Inferred Mineral Resource Estimate Table

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

9 .5 (Bunt) 

9.0 (Rot)

12.6 (BFZ) 

9.5 (BHRE) 

12.1 (RFZ) 

9.0 (RHRE)

/

/

25.42

3.003

544,000

2.89

Total URVP Indicated and 

Inferred Resource

167.64

16.457

2,980,000

15.85

There has been an increase in the Mineral Resources and Reserves of the Company during the Year, 

following the acquisition, processing and analysis of exploration data in the Ortenau and Taro licenses, 

and the undertaking of a Pre-Feasibility Study on these license areas. Please refer below for the 

Mineral Resources in the previous year for comparison.

Aquifer 

Volume 

(km3)

Brine 

Volume 

(km3)

Avg. Li 

Conc. 

Avg. 

Porosity 

(mg/l Li)

(%)

Contained 

Elemental 

Li Resource 

Tonnes

Contained 

LCE Million 

Tonnes

15.529

1.475

267,000

1.42

144.489

13.726

2,484,000

13.26

8.322

0.749

136,000

0.72

9.50

9.50

9.00

168.34

15.95

181

9.48

2,887,000

15.37

Prior Year Comparison Table

URVP Resources 

Taro Inferred Resource 

estimate

Ortenau Indicated 

Resource estimation

Taro Inferred Resource 

estimation

Taro Indicated Resource 

estimation

131  \  Vulcan Energy Resources Limited

181

181

181

181

181

181

181

181

181

Corporate Governance Statement
Corporate Governance Statement 

Vulcan Energy Resources Limited – Annual Report 2020 

The  Company’s Directors are  committed   to conducting  the  Company’s business in   an ethical  manner and   in 
accordance with the highest standards of  corporate governance. The Company has adopted  and substantially 
complies with the ASX Corporate Governance Principles and Recommendations (3rd Edition) (Recommendations) 
to the extent appropriate to the size and nature of the Company’s operations. 

The  Company  has p repared a  Corporate Governance Statement which sets out the corporate governance 
practices that were in operation throughout the financial year for the Company, identifies any Recommendations 
that have not been followed, and provides reasons for not following such Recommendations. 

The Company’s Corporate Governance Statement and policies can be found on its website:
https://www.v-er.eu/#section-governance

137  \  Vulcan Energy Resources Limited
133 \ Vulcan Energy Resources Limited

77 | P a g e

Corporate Governance Statement

Corporate Governance Statement 

Vulcan Energy Resources Limited – Annual Report 2020

The Company’s Directors are committed to conducting the Company’s business in an ethical manner and in

accordance with the highest standards of corporate governance. The Company has adopted and substantially

complies with the ASX Corporate Governance Principles and Recommendations (3rd Edition) (Recommendations)

to the extent appropriate to the size and nature of the Company’s operations.

The Company has prepared a Corporate Governance Statement which sets out the corporate governance 

practices that were in operation throughout the financial year for the Company, identifies any Recommendations

that have not been followed, and provides reasons for not following such Recommendations. 

The Company’s Corporate Governance Statement and policies can be found on its website:

https://www.v-er.eu/corporate-governance

133 \ Vulcan Energy Resources Limited

77 | P a g e

ABN 38 624 223 132    |    WWW.V-ER.EU