Empowering the
European Energy and
Mobility Transition
Annual Report
2024
Vulcan’s annual reporting suite
Currency references
Currency is expressed in Euros (€) unless otherwise stated.
An average AUD/EUR exchange rate of 0.61 has been used
in the Annual Reporting Suite for the financial year ended
31 December 2024.
Forward looking statement
This Report contains certain forward-looking statements.
Often, but not always, forward-looking statements may
be identified by the use of forward-looking words such as
"may", "will", "expect", "intend", "plan", "estimate", "target",
"propose", "anticipate", "continue", "outlook" and "guidance",
or other similar words.
By their nature, forward-looking statements inherently
involve known and unknown risks, uncertainties and
other factors that may cause actual results, performance
and achievements to be materially greater or less than
estimated, including those generally associated with the
lithium industry and/or resources exploration companies.
Any such forward-looking statements, opinions and
estimates in this Report (including any statements about
market and industry trends) are based on assumptions and
contingencies, all of which are subject to change without
notice, and may ultimately prove to be materially incorrect.
Forward-looking statements are provided as a general
guide only and should not be relied upon as, and are not, an
indication or guarantee of future performance.
Neither Vulcan nor any of its directors, officers, agents,
consultants, employees or advisors give any representation
or warranty, express or implied, as to the fairness, accuracy,
completeness or correctness of the information, opinions,
forward-looking statements and conclusions contained in
this Report.
Approval
This Report has been approved for release by the Board of
Directors.
Overview
This Annual Report (Report) forms part of the Company’s
Annual Reporting Suite for the period 1 January 2024 to 31
December 2024. The Annual Reporting Suite includes the
Annual Report, Sustainability Report, Group Management
Report (Konzernlagebericht) and Corporate Governance
Statement. The Annual Report covers Vulcan’s operations,
including those under exploration and development and
those operated through subsidiaries, as well as our strategic
approach to sustainability.
The Annual Reporting Suite includes our Sustainability
Report for 1 January 2024 to 31 December 2024, developed
with reference to industry standards. The Double Materiality
Assessment has been conducted with the assistance
of global consultancy firm, ERM. The sustainability data
provided in this Report has not been externally assured.
Vulcan is dual listed on the Australian Securities Exchange
(ASX), and the regulated market of the Frankfurt Stock
Exchange (FSE), in the Prime Standard market segment.
Consistent with the regulatory and reporting obligations
of the FSE, Vulcan’s Annual Reporting Suite also includes
the Group Management Report (Konzernlagebericht). The
Konzernlagebericht has been prepared in accordance with
the Deutscher Rechnungslegungs Standard Nr. 20 (DRS 20).
All references to Vulcan Energy Resources, Vulcan, the
Company, Vulcan Group, or the Group are in reference to
Vulcan Energy Resources Ltd (ABN 38 624 223 132) and its
subsidiaries.
All information and references in this Report are related
to the full financial year, 1 January 2024 to 31 December
2024, unless otherwise stated. For any questions about
Vulcan’s approach, please contact info@v-er.eu or visit
https://v-er.eu
VULCAN ENERGY ANNUAL REPORT | 2024
2
Contents
Vulcan's Phase One Lionheart Project
Vulcan's 100% owned Insheim
Geothermal Power Plant and
wells (operating)
Geox well site and
Lithium Extraction
Optimisation Plant
G-LEP - Option
agreement signed
to secure site
Schleidberg - Vulcan's
next production well
site
1
1
2
2
3
3
4
4
Aerial shot of part of Vulcan's upstream Phase One Project area in the Landau region, including the Natürlich Insheim
geothermal renewable energy wells and plant, location of the Lithium Extraction Optimisation Plant (LEOP), commercial
Geothermal and Lithium Extraction Plant (G-LEP) and the Schleidberg well site.
About Vulcan ���������������������������������������������������������������4
Our location������������������������������������������������������������������6
Chair's message�����������������������������������������������������������9
CEO's message������������������������������������������������������������10
2024 key milestones���������������������������������������������������12
Operating review���������������������������������������������������������14
Corporate overview����������������������������������������������������18
Our approach to sustainability����������������������������������20
2024 sustainability snapshot�������������������������������������21
We acknowledge the traditional custodians of the land on which Vulcan’s Australian office is situated, the Whadjuk-
Noongar people. Vulcan recognises their continuing connection to this country and pays respect to elders, past and
present. Vulcan operates principally in the Upper Rhine Valley of Germany and France, an area of rich cultural heritage and
local peoples. Vulcan cherishes this cultural inheritance and takes all steps necessary to preserve and protect cultural
heritage in its operations.
Directors' report���������������������������������������������������������23
Remuneration report�������������������������������������������������36
Auditors independence declaration��������������������������59
Financial statements�������������������������������������������������60
Independent auditors report������������������������������������134
ASX additional information���������������������������������������138
Corporate directory��������������������������������������������������143
Appendix�������������������������������������������������������������������144
VULCAN ENERGY ANNUAL REPORT | 2024
3
About Vulcan
Vulcan is building the world’s first carbon
neutral, integrated lithium and renewable
energy business to decarbonise battery
production. Vulcan’s Lionheart Project
(Project)1, located in the Upper Rhine Valley
Brine Field bordering Germany and France, is
the largest lithium resource in Europe2 and a
tier-one lithium project globally.
Harnessing natural heat to produce lithium
from sub-surface brines and to power
conversion to battery-quality material and
using its in-house industry-leading technology
VULSORB®, Vulcan is building a local, low-cost
source of sustainable lithium for European
electric vehicle batteries.
1 A reference to Project is a reference to Vulcan’s Lionheart Project.
2 On a lithium carbonate equivalent (LCE) basis, according to public information, as estimated and reported in accordance with the JORC
Code 2012. See Appendix 4 of Vulcan's Equity Raise Presentation dated 11 December 2024 for comparison information.
Battery-Quality Lithium
Geothermal Energy
Technology
Empowering
a carbon
neutral future
ARTIS-Photographie I Uli Deck - Inside the Central Lithium Electrolysis Optimisation Plant (CLEOP) located in the Höchst Chemical Park, Frankfurt, Germany
Electric vehicle charging at Natürlich Insheim
VULCAN ENERGY ANNUAL REPORT | 2024
4
We will empower a
carbon neutral future
Becoming Europe’s leading sustainable lithium business and enabling
energy security through geothermal energy.
OUR PURPOSE
OUR MISSION
Vulcan’s Sustainability and ESG Framework
TEAM
A world-leading scientific
and commercial team
in the fields of lithium
and geothermal energy.
INNOVATION
Adapting existing
technologies to efficiently
produce lithium from
geothermal brine.
TECHNOLOGY
SUPPLY CHAIN
Strategically placed in the
heart of the European EV
market to decarbonise the
supply chain.
BATTERY-QUALITY
LITHIUM
RENEWABLE
HEAT
RENEWABLE
POWER
VULCAN ENERGY ANNUAL REPORT | 2024
OUR VALUES
CLIMATE CHAMPION
We will pioneer a carbon neutral future.
We stand up for what truly matters.
DETERMINED
We are eager to succeed and determined to shape tomorrow.
We tackle any challenge in front of us.
INSPIRING
We are united in our passion for a better world.
We rise and inspire ourselves and others.
Our location
The Upper Rhine Valley Brine Field (URVBF)
is a brine producing geothermal field which
contains Europe’s largest lithium resource
(according to public, JORC-compliant data)3.
It includes an estimate of 27.7 million tonnes
(Mt) of contained lithium carbonate
equivalent (LCE)4.
The URVBF is a large, 300 km-long graben system with
consistent geothermal lithium reservoirs in sedimentary
rock. It is a well-known mature field with multiple chemical
parks and more than 1,000 existing wells.
Vulcan’s Phase One Lionheart Project is located within
the centre of the URVBF, where Vulcan already has some
existing operational geothermal wells, and is adding more to
increase production as part of the Phase One development.
3 On a lithium carbonate equivalent (LCE) basis, according to public information, as estimated and reported in accordance with the JORC
Code 2012. See Appendix 4 of Vulcan's Equity Raise Presentation dated 11 December 2024 for comparison information.
4 Comprising 11.2Mt lithium carbonate equivalent (LCE) of Measured and Indicated Resource and 16.5Mt LCE of Inferred, at a grade of
175mg/I Li.
In addition to high lithium grades, the URVBF’s geothermal
brine reservoir is capable of generating renewable heat. The
process of pumping brine to the surface at a geothermal
plant generates renewable heat which can be used or sold
directly or used to produce electricity. Because of its natural
conditions, the URVBF is a particularly well-suited location
for the operation of geothermal plants.
The location of the Company’s dual-purpose geothermal
lithium project, in the heart of Europe’s automotive and
emerging battery industry, gives the Project the potential
advantage of a very short product transport distance, as
well as the ability to electrify product transportation.
Vulcan holds 17 granted licences in the URVBF, for a total
secured licence area of 2,234km². This allows Vulcan to
grow production in a phased manner.
For more information, please go to https://v-er.eu
Phase One Project area in the Landau region, Germany
VULCAN ENERGY ANNUAL REPORT | 2024
6
Licence areas for
Vulcan’s Phase One
Lionheart Project
and beyond
LEGEND
Lithium and
geothermal licence
Production licence
Primary producing
Buntsandstein reservoir
Secondary Rotliegend reservoir
Höchst Industrial Park
Kaiserslautern ACC/Stellantis
Gigafactory development
Renewable heat offtake
agreement
GERMANY
FRANCE
Rhine River
Rhine River
Mannheim
Ludwigshafen
Frankfurt
Industrie-Park Höchst
Downstream LHM production
Ability to expand to 3 phases
Strasbourg
Karlsruhe
Vulcan
Germany head
office and
Vulcan Labs
Upstream Phase One
20km
Overview map of Vulcan’s licence areas in the Upper Rhine Valley Brine Field.
5 Refer to the Competent Person Statement within the Appendix of this Report. Please also refer to the risk factors contained in the Prospectus dated
18 December 2024, including those risks associated with resource exploration and development projects.
24,000 tpa LHM,
560 GWh heat,
275 GWh power
production capacity
planned p.a.5
VULCAN ENERGY ANNUAL REPORT | 2024
7
The Company is aiming to build an integrated
renewable energy and lithium production
business using sustainably heated lithium
brine and converting it into sustainable lithium
chemicals – the end product of which is
V-LiON™, Vulcan’s sustainable lithium product,
and a core component in electric vehicle
(EV) batteries.
Lithium production is currently CO2 intensive. V-LiONTM
has been designed as a solution to this problem. Vulcan’s
proprietary,
high-performance
lithium
adsorbent
technology, VULSORB®, combined with a renewable heat
source, allows for highly efficient, low cost and carbon
neutral lithium production.
The V-LiONTM product is targeted to have the lowest carbon
footprint of any lithium production globally, producing high
purity lithium hydroxide monohydrate (LHM) that is suitable
for use in EV batteries.
Phase One of the Lionheart Project aims to supply
approximately 24,000 tonnes per annum of V-LiONTM
-branded LHM from its first phase of production for Europe’s
EV supply chain, enough for production of 500,000 EVs
per annum, and supply approximately up to 560 GWh of
renewable heat and up to 275 GWh of electricity annually
(refer to the Competent Person Statement in this Report).
Our value chain
Wells are drilled into the deep,
hot, lithium-rich brine resource,
which is pumped to the surface
Re-injection of
brine. A closed loop,
circular system
1. Reservoir: 3 to 5km deep
Renewable heat & power
Lithium hydroxide
(LHM) distributed
to the EU market
Lithium
chloride
(LiCl)
transported
to CLP
Phase One
275 GWh power p.a.
Up to 560 GWh heat p.a.5
24,000tpa
LHM (capacity)
LiCl concentrate for
24,000tpa LHM equivalent
3. Geothermal
plant
4. Lithium Extraction Plant
(LEP)
5. Central Lithium Plant
(CLP)
2. Well
sites
Electric
mobility
Geothermal and lithium
brine field resource
MAIN PIPELINE
ICPP
PIPELINE
Hot Li-rich
brine
Landau
Cold Li-poor brine
Renewable heat and brine
transferred to the LEP
Frankfurt
5 Refer to the Competent Person Statement within the Appendix of this Report. Please also refer to the risk factors contained in the Prospectus dated
18 December 2024, including those risks associated with resource exploration and development projects.
VULCAN ENERGY ANNUAL REPORT | 2024
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Chair's message
Dear Vulcan Shareholders,
Throughout the 2024 reporting period, the Company
made substantial progress on both project execution and
the financing of our Phase One Lionheart Project. Led
by Managing Director and CEO, Cris Moreno, and Vulcan’s
highly experienced leadership team, the Company has been
a standout performer during a challenging year in global
lithium markets.
As 2025 unfolds, Vulcan is well positioned for the future
with its inherent low-cost advantages, fuelled by renewable
energy co-production and technological edge in the ability
to produce lithium from brines.
As the Company continues its planned transition towards
the construction and production phase of the Project,
I would like to thank outgoing Directors, Mr Gavin Rezos,
Ms Ranya Alkadamani, Ms Annie Liu and Mr Mark Skelton,
for their invaluable contributions to the Vulcan Board over
several years, and extend a warm welcome to incoming
Directors, Mr Angus Barker and Ms Felicity Gooding. The
Vulcan Board will always continue to evolve to meet the
needs of our rapidly growing business and is well positioned
for the next phase ahead of us.
Vulcan’s overarching strategy is to produce sustainable,
premium lithium chemicals for the lithium-ion battery
industry, with co-production of geothermal renewable
heat and power, from naturally heated sub-surface brines
containing lithium. Vulcan leverages renewable heat in the
brine, both to drive down its cost of lithium production, but
also to provide to local businesses and communities as a co-
product, and as an additional source of revenue. We see our
lithium product, branded V-LiONTM, as a premium product
for the European electric automotive industry.
Vulcan’s strategy has also been to develop in-house
the Adsorption-type Direct Lithium Extraction (A-DLE)
technology it requires for its Project. A-DLE sorbents can
be bought off-the-shelf and have been used in the industry
for 28 years. However, as A-DLE technology is increasingly
being favoured by larger companies seeking to build
low-cost production, we have recently seen geopolitical
moves to restrict access for Western companies to use
this technology.
This validates Vulcan’s early investment in creating an
in-house A-DLE technology division, VULSORB®, with its
Western sorbent supply chain providing an important de-
risking effect. VULSORB® is also a strategic asset beyond
our project area, as one of the few Western companies to
have this capability.
Under the leadership and expertise of Cris Moreno and
Felicity Gooding, Vulcan made significant strides during
2024 towards the goal of completing financing for the Phase
One Project and starting construction. The Company raised
€40m in equity from strategic investors including Hancock
Prospecting Pty Ltd (HPPL) and CIMIC Group (CIMIC), and I
thank both of these investors for their ongoing support. In
December, we received conditional Board approval from the
European Investment Bank (EIB) and substantial conditional
commitments from Export Finance Australia (EFA) and
a number of commercial banks. This was in addition to
significant public funding support awarded by the German
Federal Government of €100m, which was very welcome.
Further, we announced the successful completion of a fully
underwritten institutional placement which raised €100m
from the issue of ~28 million new, fully paid ordinary shares,
while also announcing a Share Purchase Plan to eligible
retail shareholders. Maintaining forward momentum has
always been a key differentiator for Vulcan.
On behalf of the Board, I would like to thank all our
shareholders once again for their steadfast support on
this exciting and rewarding journey. I look forward to the
OneVulcan team continuing to deliver shareholder value,
while growing a world-leading lithium chemicals and
renewable energy business.
Dr Francis Wedin
Executive Chair
ARTIS-Photographie I Uli Deck - L to R: Vulcan’s Group CFO and Executive Director,
Felicity Gooding; Australian Ambassador to Germany, Natasha Smith; Managing
Director and CEO, Cris Moreno; and Executive Chair, Dr Francis Wedin, at the official
opening of the CLEOP on 8 November 2024.
VULCAN ENERGY ANNUAL REPORT | 2024
9
CEO's message
Dear Vulcan Shareholders,
I look back on 2024 with great pride, recognising both the
challenges we have faced and the outstanding milestones
we have achieved. These achievements are testament to
the dedication, effort and commitment of our OneVulcan
team, shareholders, partners and government stakeholders,
whose commitment has been instrumental in progressing
the Lionheart Project.
The safety and well-being of our team, contractors and
visitors to site is of utmost importance. During the reporting
period, the Company recorded one lost time incident (LTI)
a significant reduction from the previous year which
reflects the ongoing improvement to our safety policies and
procedures.
Our OneVulcan team fundamentally drives the developments
and milestones achieved and we are united in our mission
to become Europe’s leading sustainable lithium business
and enabling energy security through geothermal energy.
Throughout the reporting period, we have attracted a
number of skilled professionals from operational and
commercial backgrounds to ensure the appropriate mix of
expertise as we move forward with the Project. Pleasingly,
Vulcan achieved strong levels of diversity in terms of
nationality in 2024, with the Company’s workforce spanning
38 nationalities.
2024 was the year we proved the technical feasibility
of Europe’s first fully domestic lithium supply chain
from brine to battery-quality material. In April 2024 we
produced our first lithium chloride at our upstream Lithium
Extraction Optimisation Plant (LEOP) in Landau. Then in
November 2024, we celebrated the production of the first
fully sustainable lithium hydroxide at the Central Lithium
Electrolysis Optimisation Plant (CLEOP) in Frankfurt-
Höchst, which co-incided with the plant’s official opening.
We also continued to progress our Phase One financing.
In June we secured €40m from strategic investors
including Hancock Prospecting Pty Ltd and CIMIC Group
and in December 2024, we announced the successful
completion of a fully underwritten institutional placement
which raised €100m from existing and new institutional
investors.
Vulcan also secured an €879m conditional debt commitment
with Export Finance Australia and seven commercial banks
to finance Phase One of the Project and the Board of the
European Investment Bank conditionally approved up
to €500m in financing. Vulcan’s green credentials were
recognised with our Green Financing Framework receiving a
Dark Green rating — the highest ever for a metals and mining
company globally, following an independent assessment by
S&P Global Ratings.
ARTIS-Photographie I Uli Deck - Vulcan’s Co-Founder, Dr Horst Kreuter; Co-Founder and Executive Chair, Dr Francis Wedin; Mike Josef, Lord Mayor of Frankfurt; Vulcan’s Managing
Director and CEO, Cris Moreno; and Deputy Prime Minister of Hessen Kaweh Mansoori during the CLEOP opening on 8 November 2024
VULCAN ENERGY ANNUAL REPORT | 2024
10
Also, the strategic importance of our Project was recognised
through the German Federal Ministry of Economics
and Climate Protection approving up to €100m for the
HEAT4LANDAU Project6. These developments highlight
Vulcan’s leadership in sustainable financing and are a major
endorsement of our vision and impact.
Strategically, we formed several key partnerships this year,
including completion of Engineering, Procurement and
Construction Management (EPCM) validation with Sedgman
and HOCHTIEF and signing memoranda of understanding
with both ABB and JordProxa, for Phase One. In November,
we also announced an exciting collaboration with BASF to
explore geothermal energy as a solution for base load power
at their Ludwigshafen site, while also looking to grow a
future phase of lithium production.
While 2024 was a transformative period in the history
of the Company, we remain steadfast in our focus and
determination to deliver on the following objectives in 2025:
• Continue our safety-first culture with lagging and leading
health, safety, environment and quality (HSEQ) targets
• Commence drilling of new production wells
• Close Phase One financing
• Start construction of our Geothermal and Lithium
Extraction Plant (G-LEP) and Central Lithium Plant (CLP)
• Commence product qualification of V-LiONTM with
offtake partners
• Secure asset-level funding for future phases of project
development and technology division.
I would like to thank the entire Vulcan community – my
fellow Directors, OneVulcan team, partners and you, our
shareholders - for your support throughout 2024. As we
enter a new phase of growth and development, I look
forward to sharing many more milestones with you over the
course of the year.
Cris Moreno
Managing Director and CEO
CLEOP Topping Out Ceremony
Preparing for the opening of the new office in Karlsruhe, Germany
Cris Moreno with JordProxa Director, Angus Holden
6 Funded by the European Union - NextGenerationEU. The
expressed Views and opinions expressed are solely those of the
author(s) and do not necessarily reflect the views of the European
Union or the European Commission. Neither the European Union
nor the European Commission can be held responsible for them.
VULCAN ENERGY ANNUAL REPORT | 2024
11
2024 key milestones
First lithium chemicals domestically produced from a local source in Europe, for Europe:
Start of production (SOP) of lithium chloride (LiCl) at Vulcan’s Lithium Extraction Optimisation Plant
(LEOP) on 11 April 2024. The SOP followed three years and more than 10,000 hours of successful
in-house A-DLE piloting.
Start of lithium hydroxide production at downstream optimisation plant, CLEOP:
The first lithium hydroxide produced from the processing of high purity lithium chloride concentrate
extracted from brines at Vulcan’s upstream optimisation plant, representing the first sustainable
lithium hydroxide fully domestically produced in Europe, in one integrated supply chain.
Official opening of CLEOP:
The Company opened the plant on 8 November 2024 in a ceremony attended by several local,
national and international guests from politics and industry, including Deputy Prime Minister of
Hessen, Mr Kaweh Mansoori, and Australian Ambassador to Germany, Ms Natasha Smith.
European Investment Bank Board approval:
The Board of the EIB approved its participation in the Phase One debt financing process, with
the financing potentially amounting to up to €500m (~A$819m), pending completion of final due
diligence, signing of legal documentation and final internal approval.
Conditional debt commitment letter for €879m (~A$1.45bn):
Export Finance Australia (EFA) and seven commercial banks executed a conditional commitment
letter, together with a credit pre-approved term sheet setting out the key terms and conditions of
the proposed debt financing.
Fully underwritten institutional Placement of €100m (A$164m):
The Company successfully completed a Placement which raised €100m. Proceeds from the
Placement, along with the €4.8m raised from existing shareholders via the Share Purchase Plan,
provides sufficient working capital for the Company to finalise its full strategic equity and debt
project financing package.
Strategic investments of €40m (A$65m):
Investments totaling €40m received from strategic investors including Hancock Prospecting
Pty Ltd (HPPL) and CIMIC Group (CIMIC), demonstrating strong support for the lithium value chain
globally and for the execution of Phase One of the Project.
Completion of Engineering, Procurement and Construction Management (EPCM) validation by
Sedgman and HOCHTIEF:
The validation work for the EPCM contract for Phase One was completed by CIMIC company
Sedgman and HOCHTIEF during the reporting period, including a review of scope, cost and
schedule.
VULCAN ENERGY ANNUAL REPORT | 2024
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€100m (A$164m) of funding secured from the Federal Ministry of Economics and Climate
Protection of Germany:
The Company was awarded €100m from the German Federal Ministry of
Economics and Climate Protection (BMWK) and the European Recovery
and Resilience Facility via the German Recovery and Resilience Plan (the
BEW Funding) for its HEAT4LANDAU Project7.
Conditional 100% acquisition of Geox GmbH (Geox):
Geox is the owner and operator of geothermal wells and renewable energy generation assets in
Landau, Germany, with the acquisition by Vulcan to consolidate and simplify ownership of the
Phase One Lionheart Project’s upstream renewable energy and lithium assets.
BASF SE (BASF) partnership:
The Company signed a partnership agreement in November 2024 with BASF - one of the world’s
largest chemical producers - to collaborate on the development of a renewable heat project to
supply BASF with baseload heat from a future phase of production.
Memoranda of Understanding (MoU) with ABB and JordProxa:
The signing of the MoU with ABB focuses on the electrical and automation delivery requirements
of Vulcan’s Phase One Project, while the MoU with JordProxa is for the technology and process
components for the lithium extraction plant and central lithium plant of the Project.
Positive support from Landau City Council:
The Council voted with a substantial majority in favour of the land development plan for the industrial
estate containing Vulcan's planned Phase One Geothermal and Lithium Extraction Plant (G-LEP)
location. Furthermore, the Company signed an option agreement with the Council in November
2024 to secure the property for the upstream geothermal and lithium plant for Phase One.
Completion and subsequent rating of Green Financing Framework:
In conjunction with the Company’s environmental, social and governance co-ordinator, Natixis
CIB, the Green Financing Framework was completed and assessed by leading international ratings
agency, S&P Global. The Framework was awarded Dark Green status, the highest ever received by
a metals and mining company globally.
Key personnel appointments:
The Company made several appointments at the executive and Board level during the reporting
period. Ms Felicity Gooding was appointed to the role of Group Chief Financial Officer (CFO) in
January 2024 and Executive Director on 1 January 2025, and Mr Angus Barker was appointed
Non-Executive Director in September 2024. Both Ms Gooding and Mr Barker bring substantial
commercial experience, including large-scale project financing, and mergers and acquisitions,
capital markets, and strategic advisory, respectively.
2024 key milestones
7 Funded by the European Union - NextGenerationEU. The expressed Views and opinions expressed are solely those of the author(s) and
do not necessarily reflect the views of the European Union or the European Commission. Neither the European Union nor the European
Commission can be held responsible for them.
VULCAN ENERGY ANNUAL REPORT | 2024
13
Operating review
Health, safety, environment
and quality (HSEQ)
During the reporting period, the Company recorded one lost
time incident (LTI) and maintained a zero-fatality record.
Committed to a zero-harm culture, Vulcan continues
to prioritise the safety and well-being of its employees,
contractors, stakeholders and communities.
Vulcan’s German subsidiary, Vulcan Energie Ressourcen
GmbH, also maintained the ISO 45001 (occupational health
and safety), ISO 14001 (environmental management) and ISO
9001 (quality management) certifications.
Throughout 2024, Vulcan focused on core initiatives to drive
Vulcan’s safety culture, including:
·
Score card reporting, including key performance
indicators (KPIs), leading and lagging indicators
·
Continuing implementation of safety leadership rounds
and HSEQ tours were conducted by HSEQ professionals
·
Care Moments communication program and a site-wide
last-minute risk analysis process for all operational
onsite attendees to complete before the start of any
activity onsite
·
International Association of Oil and Gas producers (IOGP)
life-saving rules implemented company-wide, aligned
with industry best-practice.
Operations
Resources and Reserves
The total licence area increased following the granting of
lithium and geothermal energy licences in the Alsace region
of France. This licence area of 463 km2 expands Vulcan’s
licence area from 1,771 km2 to 2,234 km2 in the URVBF
between Germany and France8.
The Company reports on its estimates of Mineral Resources
and Ore Reserves in compliance with the JORC Code, the
ASX Listing Rules, German Securities Trading Act, European
Regulation No. 596/2014, and other applicable regulations.
The Company's Resource and Reserve estimates are
estimated, reviewed and signed off by external consultants
and Competent Persons GLJ Ltd9.
Geothermal and renewable energy
operations
During the reporting period, Vulcan’s operating Natürlich
Insheim geothermal plant and wells generated approximately
18,500 MWh of renewable electrical energy, avoiding 7,284
tonnes of C02 equivalent emissions (location based) or 5,990
tonnes of C02 equivalent emissions (market based) on the
grid. These avoided emissions are not included in Vulcan’s
current carbon neutral certificates.
The Natürlich Insheim plant has the capacity to produce
up to 4.8 MW of renewable power. There are two operating
wells located at this plant, one for production of the 165°C
hot brine and one for reinjection of cooled brine. The wells
were drilled between 2008 and 2010. The plant has been in
operation since 2012.
To underline Vulcan’s commitment to play a leading role in
the German heat transition, Natürlich Insheim is currently
being redesigned to be able to produce district heating in
the future as well. This will allow the supply of carbon neutral
district heating to nearby municipalities.
8 The Tenement Schedule is contained in the ASX Additional Information section of this Report
9 The Resource and Reserve information should be read in conjunction with the Competent Person Statement and the Ore Reserve and
Mineral Resource Statement in the Appendix; and the Mineral Resource Estimate and Ore Reserves Estimate tables in the ASX Additional
Information section of this Report.
Reverse osmosis unit at Vulcan’s upstream LEOP
VULCAN ENERGY ANNUAL REPORT | 2024
14
Aerial shot of the Phase One Schleidberg well site (March 2024)
The GEOSMART Project also concluded during the reporting
period. Co-funded by the European Union, Vulcan Energy, and
18 other partners from across Europe, the GEOSMART Project
was established to develop and demonstrate solutions
for the geothermal energy sector. As part of the initiative,
the Company installed a thermal energy storage system
in September 2024 at the Natürlich Insheim geothermal
renewable energy plant, designed to deliver reliable, baseload
geothermal renewable heating to local communities.
Vulcan signed an agreement to finalise the consolidation of
the Company’s ownership of upstream Phase One lithium
and renewable energy assets with the conditional 100%
acquisition of Geox Gmbh. Geox is the owner and operator
of geothermal wells, renewable energy generation assets and
a geothermal and lithium licence around the City of Landau,
co-located with Vulcan’s lithium optimisation plant. Once
completed, the conditional acquisition will replace an existing
JV agreement and will allow for more efficient operation of
Phase One, alongside Vulcan’s other upstream operations.
Well delivery
Increasing brine production from deep wells to augment
Vulcan’s existing brine production is a key part of Phase
One, with the Company’s first new well site located at
Schleidberg, near Landau, Germany.
During the reporting period, the Schleidberg well site
preparation continued with the well pad and crew camp
construction preparation completed, and access roads
constructed.
In December 2024, the Special Operation Plan for drilling and
monitoring the first new wells at the Schleidberg well site
was approved, together with approval for the mobilisation of
Vulcan’s electric V20 drilling rig to the well site.
VULCAN ENERGY ANNUAL REPORT | 2024
15
Optimisation plants
A key element of Vulcan’s integrated sustainable lithium
and renewable energy project strategy is the design and
construction of its lithium optimisation plants.
Vulcan’s optimisation plants consist of two operations: the
Lithium Extraction Optimisation Plant (LEOP), near Landau,
Germany, and the Central Lithium Electrolysis Optimisation
Plant (CLEOP), located just 130 kms north in Industrial Park
Höchst, Frankfurt, Germany.
On 10 April 2024, Vulcan started production of the first
lithium chloride product at LEOP, heralding the first lithium
chemicals domestically produced from a local source in
Europe, for Europe. The plant is showing strong results
with consistently over 90% (up to 95%) lithium extraction
efficiency from its Adsorption-type Direct Lithium
Extraction (A-DLE) unit, replicating what Vulcan has seen
in its lab and pilot plant operations, and in line with its
commercial plant expectations and financing model.
On 7 November 2024, Vulcan commenced lithium hydroxide
production towards product qualification at the Company’s
downstream CLEOP, representing the first sustainable
lithium hydroxide fully domestically produced in Europe,
including upstream raw material, in one integrated supply
chain.
The plant was officially opened on 8 November 2024
in a ceremony attended by several local, national and
international guests from politics and industry, including
Deputy Prime Minister of Hesse, Kaweh Mansoori, and
Australian Ambassador to Germany, Natasha Smith,
highlighting the significance of the occasion to Germany,
greater Europe and Australia.
Phase One Lionheart Project
development
Throughout the reporting period, progress continued on
Phase One execution, including engineering works for
remaining Phase One areas, as well as the establishing of
new partnerships.
The Company successfully completed its validation work
for the Engineering, Procurement and Construction
Management (EPCM) contract for Phase One. The EPCM
validation was carried out by CIMIC company and German
headquartered, Sedgman and HOCHTIEF, which has a
leading position in Europe and a rapidly expanding presence
in energy transition and sustainable infrastructure markets.
The validation included a review of scope, cost, and
schedule, validating the Bridging Engineering Study, with
no material increase in capital requirement and schedule
duration and allowing finalisation of preparations for EPCM
award. Importantly, there were only minor adjustments
to specific estimates, confirming accuracy of the initial
projections and timeline.
The Company and the City of Landau signed an option
agreement on 26 November 2024 to secure the property
in the D12 development plan in the City of Landau.
The reservation of the area in the Am Messegelände
Südost Industrial Park represents a step towards the
implementation of the planned integrated geothermal and
lithium plant. This plant will provide carbon neutral heat
and sustainable lithium for the region, while also making an
important contribution to the energy transition.
The Company also entered into a Memorandum of
Understanding (MoU) with JordProxa for the technology and
process components for the Lithium Extraction and Central
Lithium Plants for Phase One.
ARTIS-Photographie I Uli Deck - Electrolysis unit at Vulcan's downstream CLEOP in Frankfurt-Höchst
The LEOP and CLEOP serve as
training facilities for Vulcan’s
production
team,
ensuring
operational
readiness
for
the
start
of
commercial
production. The CLEOP will
also serve as a product testing
and qualification facility for its
offtake partners.
VULCAN ENERGY ANNUAL REPORT | 2024
16
JordProxa, an Australian headquartered international
company, is a leader in custom water processing,
crystallisation
and
evaporation
plant
and
systems,
playing a key role in meeting the challenges of high purity,
sustainability, and value to meet the increasing demand for
lithium-ion and other battery metals.
The partnership has the dual objective of delivering the
Phase One Lionheart Project on time with improved cost
performance, and optimisation for the lithium process
portion of the project development.
Vulcan also signed an MoU with multinational electrical
engineering company, ABB, on the electrical and automation
delivery requirements of the Project. ABB is to identify,
develop and propose the best solutions to the electrical and
automation portion of the Phase One Project development,
in optimising processes, shortening delivery times, and
reducing and improving cost performance.
During the reporting period, the Company also announced
a partnership with NORAM Electrolysis Systems (NESI), a
global leader in the environmentally favourable process of
producing battery grade LHM through electrolysis. Under
the agreement, NESI applies its proprietary NORSCAND®
Electrolysis Technology to Vulcan’s downstream CLEOP
facility, using electricity to force the necessary chemical
reactions to produce battery-quality lithium.
The Company also entered into an MoU with industrial
software provider, AVEVA, to establish a digital framework
for Phase One. Under the terms of the MoU, Vulcan will
leverage AVEVA’s expertise to future-proof its information
systems architecture, facilitating project execution and
engineering integration.
Future phase development
Vulcan continues to develop its licence areas in a phased
approach. After Phase One Lionheart, further phases are
planned to fully leverage the large, exclusive licence area
that Vulcan has secured in the URVBF.
Key to this strategy is the staged agreement with BASF
to collaborate on the development of a renewable heat
project to supply BASF with baseload heat (refer to Phase
One Lionheart Project development). Vulcan will seek to
replicate this model across the URVBF across all its licence
areas, building affordable renewable heating production
for local stakeholders to decarbonise European industry
and the public heating sector, and aiming to add additional
sustainable lithium production to the resulting renewable
heat infrastructure.
The Company is also planning to further expand its activities
on the French side of the URVBF, which accounts for roughly
one third of the URVBF, containing both geothermal energy
and lithium-rich brine. Historical data and sampling coming
from existing geothermal operations in the region indicate
brine composition in Alsace, France, is materially the same
as the brine composition across the border at Vulcan’s
operations in Germany.
During the reporting period, the Company was granted its
first lithium and geothermal energy licences in the Alsace
region of France. The five-year licences encompass several
large industrial areas with factories and chemical parks
in Mulhouse requiring renewable energy and sustainable
heating solutions. This includes a factory owned by
Stellantis, Vulcan’s largest customer and a major shareholder.
Vulcan is already in discussions with potential investment
partners about participation in Vulcan’s French licences.
The Company also has a heat offtake agreement for 240 to
350 GWh per annum of renewable heat with MVV, the energy
provider of the City of Mannheim. Discussions continue
with the City of Mannheim in relation to the terms of its
heat offtake agreement, including the start date, following
indications it wishes to increase the heat supplied under
the terms of this agreement. Additionally, the licence was
extended for a further three years.
Discussions regarding further heat offtake agreements
were also conducted within the Ried and Taro licence areas,
including with Neustadt an der Weinstraße as part of the
latter. Sourcing a suitable land plot for a production well site
to provide geothermal brine production is intended to form
part of this agreement, pending permitting approvals.
An agreement with the mining authority of Rheinland-Pfalz
and the regional mining authority, Regierungspräsidium
Freiburg, and most of the local mayors has been reached
within the Ortenau licence area. This will allow the
commencement of a 3D seismic survey, with work
also progressing on a jointly organised subsequent
public information campaign, financing proposal and
permitting work.
Vulcan and BASF SE sign agreement in the presence of
local politicians and utility representatives in November 2024
VULCAN ENERGY ANNUAL REPORT | 2024
17
Corporate overview
Financing progress
Throughout 2024 the Company advanced its project
financing process. In June €40m was raised from strategic
investors including Hancock Prospecting Pty Ltd and
CIMIC Group and in December 2024, Vulcan announced
the successful completion of a fully underwritten
institutional placement raising €100m from existing and
new institutional investors.
In December Vulcan also secured an €879m conditional
debt commitment with Export Finance Australia and seven
commercial banks to finance Phase One of the Project and
the Board of the European Investment Bank approved up to
€500m in financing.
The Company has applied for several grant schemes which
it believes it is well positioned to receive based on its
sector-leading economic and sustainability credentials.
During 2024 the Company was awarded €100 million
from the German Federal Ministry of Economics and
Climate Protection (BMWK) and the European Recovery
and Resilience Facility via the
German Recovery and Resilience
Plan
(BEW
Funding)
for
its
HEAT4LANDAU Project10.
The Company also secured a €10 million short-term credit
facility with BNP Paribas during the reporting period to
provide interim flexibility before financing completion.
Types of products and services
• Germany: The supply of geothermal energy, exploration,
and development relating to the Phase One Lionheart
Project and future phases of integrated sustainable
lithium and renewable energy project, engineering
services, drilling personnel outsourcing and technology
development
• France and Italy: Exploration relating to geothermal
energy and lithium
• Australia: Administration.
Segment information
The consolidated entity is organised into three operating
segments based on geographical location: Germany, other
European countries, and Australia.
These operating segments are based on the internal
reports that are reviewed and used by the Key Management
Personnel (who are identified as the Chief Operating
Decision Makers, or CODM) in assessing performance and in
determining the allocation of resources.
There is no aggregation of operating segments. The CODM
reviews EBITDA (earnings before interest, tax, depreciation,
and amortisation).
The accounting policies adopted for internal reporting to
the CODM are consistent with those adopted in the financial
statements. The information reported to the CODM is
provided on a monthly basis.
ARTIS-Photographie I Uli Deck - CLEOP Opening
10 Funded by the European Union - NextGenerationEU. The expressed Views and opinions expressed are solely those of the author(s) and
do not necessarily reflect the views of the European Union or the European Commission. Neither the European Union nor the European
Commission can be held responsible for them.
VULCAN ENERGY ANNUAL REPORT | 2024
18
Corporate governance
The Company is committed to complying with the highest
standards of corporate governance to ensure all of its
business activities are conducted fairly, honestly and with
integrity in accordance with all applicable laws. To achieve
this, the Company’s Board of Directors (Board) has adopted
a number of charters and policies which aim to ensure
that value is created while accountability and controls are
commensurate with the risks involved.
As a company admitted to the official list of the ASX, the
Company is subject to the Corporate Governance Principles
and Recommendations published by the ASX Corporate
Governance Council Fourth Edition (Recommendations).
Each year the Company is required to give the ASX a
Corporate Governance Statement, which sets out the extent
to which the Company has followed the Recommendations.
The Board believes that the Company’s policies and
practices materially comply with the Recommendations
and, as Vulcan continues to grow, the Company will regularly
review its corporate governance policies, practices and
controls, so this compliance is not only maintained but
enhanced.
Vulcan continues to build its corporate documentation
pyramid which includes the following policies:
• Anti-Bribery and Anti-Corruption Policy
• Community Relations Policy
• Conflict Minerals Policy
• Diversity Policy
• Environmental Management Policy
• Privacy Policy
• Risk Management Policy
• Social Media Policy
• Sustainable Supplier Policy
• Trading Policy
• Whistleblower Protection Policy.
On the Company's website can be found a full copy of the
Company's corporate governance policies and charters:
https://v-er.eu/corporate-directory-governance/, and its
most
recent
Corporate
Governance
Statement:
https://v-er.eu/information-for-investors/
The Board of Directors considers the Company has
established corporate governance policies and procedures
that are appropriate in light of the Company's size, nature
and activities.
ARTIS-Photographie I Uli Deck - Community Open Door Insheim
VULCAN ENERGY ANNUAL REPORT | 2024
19
Our approach to sustainability
Sustainability is the cornerstone on which
Vulcan was founded and we are committed
to being a leader in Environmental, Social and
Governance (ESG) initiatives and reporting.
Vulcan’s diverse team comes from all over the
globe, and is united by a common mission to
become Europe’s leading sustainable lithium
business and enabling energy security through
geothermal energy.
Vulcan is deeply committed to achieving its objectives and
continuously enhancing its approach to sustainability over
the long term. In the 2024 year, the Company continued
to make significant strides in advancing Vulcan’s
sustainability agenda. Priority focus areas included fulfilling
key financing requirements, enhancing understanding
of climate-related risks, improving GHG accounting,
and establishing a strong foundation for developing the
Company’s long-term sustainability strategy through
detailed materiality and risk assessments.
Activities to progress Vulcan’s 2024 sustainability agenda
included:
·
Undertaking and validating its first CSRD-aligned
Double Materiality Assessment
·
Updating and publicly disclosing the Phase One
Lionheart Project Environmental and Social Impact
Assessment (ESIA)
·
Calculating Vulcan’s 2023 GHG Inventory and developing
an expanded GHG Inventory tool that includes future
GHG projections over the life of the Project
·
Commencing the Project’s physical climate change risk
assessment
·
Issuing
Vulcan’s
independently
assessed
Green
Financing Framework.
Outlook for sustainability
Vulcan was once again recognised by sustainability ratings
agency Morningstar Sustainalytics as an ESG Industry Top
Rated company in early 2025, validating the Company’s
strong ESG practices and providing important endorsement
for attracting investment.
The results of the Double Materiality Assessment will
be integrated into Vulcan’s business strategy to ensure
sustainability considerations are embedded into decision
making processes, business planning and reporting.
In 2025, Vulcan will complete its qualitative physical and
transition climate-related risk assessment, financially
quantify material risks, and identify applicable mitigation
and adaptation measures. Identified material risks will be
incorporated into Vulcan’s enterprise risk management
register.
To support its ongoing commitment to climate change
action and a low carbon future, the development of a
decarbonisation roadmap for the Phase One Lionheart
Project is under consideration to address residual
GHG emissions within Vulcan’s operational control.
To accompany this roadmap, Vulcan will work towards
setting science-based emissions targets in 2025.
VULCAN ENERGY ANNUAL REPORT | 2024
20
2024 sustainability snapshot
VULCAN ENERGY ANNUAL REPORT | 2024
* Under the GHG Protocol Methodology, there are two methods available for calculating Scope 2 emissions – emissions from
purchased electricity, steam, heating and cooling. The location-based method reflects the average emissions intensity of
grids on which energy consumption occurs.
**Funded by the European Union - NextGenerationEU. The expressed Views and opinions expressed are solely those of
the author(s) and do not necessarily reflect the views of the European Union or the European Commission. Neither the
European Union nor the European Commission can be held responsible for them.
Generated
approximately
18,500 MWh
of renewable
electricity
First fully
integrated
production
in Europe of
battery-quality
lithium chemicals,
from resource to
final product
Sustainalytics
top-rated
company
Avoided
7,284 tCO2-e
(location based)
on the German
electricity grid*
Formed partnership
with BASF
to explore the use of
geothermal heat sources
for decarbonising
BASF’s largest site,
while also benefiting
the communities
of Frankenthal and
Ludwigshafen
S&P Global
Green Financing
Framework
Dark Green
rating
No negative
feedback received
from updated publicly
disclosed ESIA
indicating broad
community support
GEOSMART
Project
completed, designed
to deliver reliable,
baseload geothermal
renewable heating to
local communities
€100m grant
for the HEAT4LANDAU**
Project towards
renewable heating supply
for communities
CLIMATE CHAMPION
DETERMINED
INSPIRING
21
Performance against 2024 targets
Targets
2024 Targets
Target achieved
Result
Complete EU CSRD-aligned
materiality assessment
Double Materiality Assessment completed giving clearer oversight of priority
sustainability topics
Carry out pre-assurance
assessment for EU CSRD
readiness
No longer applicable due to the EU Omnibus
Conduct Board member
training on climate risks
Board training conducted on CSRD, CSDDD, and the Supply Chain Act including
climate risks
20 health, safety and
environment (HSE) leadership
rounds per month
39 HSE leadership rounds11 completed. Management has acknowledged this
is an unsatisfactory result however, there has been no observable negative
impact to health and safety performance.. To increase the rounds in 2025,
Vulcan has assigned targets to individual employees, ensuring leadership
rounds are tracked per person and not per site
Score all new suppliers
according to ESG criteria
All new suppliers have been scored against ESG criteria
Targets for 2025
ESG targets will support the Company’s sustainability performance and Company purpose with progress routinely monitored
and regularly reported. We are committed to the continuous development of our sustainability strategy, ensuring its seamless
integration into our core business operations. Vulcan is actively setting future medium-term and longer-term sustainability
targets, aligned with the Company’s strategic objectives, and will be implementing robust measures to track our progress. Our
goal is to drive transformative, sustainable growth and operational excellence across all facets of our organisation. Below are
our short-term targets for 2025.
Sustainability targets
Timeframe
Zero significant environmental incidents
Annual
Achieve 100% debt financing and close out environmental action plan
2025
Commence commercial delivery of renewable heat to local communities
2025
LCA updated at each study phase and commencement of operations
As scheduled
Phase One Lionheart Project physical climate change risk assessment
2025
Zero work-related fatalities
Annual
Year-on-year improvement of lost time injury frequency rates
Annual
Zero significant community incidents
Annual
20 HSE leadership rounds
Monthly
Deliver 100% debt financing social action items to plan
2025
Sustainable supply chain assessments and process for all major suppliers
2025
Minimum 40% female board representation
Annual
Appointment of Lead Independent Non-Executive Director
2025
Ecovadis sustainability ratings assessment
Annually from 2025
Environment
Social and safety
Governance
11 HSE leadership rounds are visits by the executive leaders to Vulcan's work sites with briefings by the HSE Team.
These rounds are important to maintain engagement with executives on health and safety issues.
Directors' report
The Directors of Vulcan Energy (Vulcan or ‘the Company’)
present their report, together with the financial statements
of the consolidated entity consisting of Vulcan Energy
Resources Limited and its controlled entities for the year
ended 31 December 2024.
The names of the Company’s Directors in office during the
financial period and at the date of this Report are as follows12.
The Board considers Ranya Alkadamani, Dr Heidi Grön,
Angus Barker13, Annie Liu, Josephine Bush, Mark Skelton
and Dr Günter Hilken as independent directors during FY24.
12 Ms Felicity Gooding was appointed as an Executive Director on
1 January 2025.
13 Mr Angus Barker was appointed Non-Executive Director effective
13 September 2024; appointed Lead Independent Director, Deputy
Chair, People and Performance Committee Chair and Nominations
Committee Chair, effective 1 January 2025.
Finance and mining
Investment banking and government
Ms Felicity Gooding12
Executive Director and
Group Chief Financial Officer
Mr Angus Barker13
Non-Executive Director
Renewable energy
Ms Josephine Bush
Non-Executive Director, Audit,
Risk and ESG Committee Chair
Battery materials and renewable energy
Dr Francis Wedin
Executive Chair
Energy and chemicals
Mr Cris Moreno
Managing Director and
Chief Executive Officer
Chemical engineering
Dr Heidi Grön
Non-Executive Director
Chemicals and renewable energy
Dr Günter Hilken
Non-Executive Director,
Projects Oversight Committee
Chair
Investment banking
Mr Gavin Rezos
(retired December 2024)
Non-Executive Deputy Chair
Mining and energy
Mr Mark Skelton
(retired February 2024)
Non-Executive Director
Energy and battery materials
Ms Annie Liu
(retired September 2024)
Non-Executive Director
Media and communications
Ms Ranya Alkadamani
(retired December 2024)
Non-Executive Director, People
& Performance Committee Chair,
Nominations Committee Chair
VULCAN ENERGY ANNUAL REPORT | 2024
23
Interest in shares and other company
securities
The following table sets out each current Director’s relevant
interest in shares and performance rights of the Company
as at the date of this Report and based on publicly available
information.
Director14
Ordinary
shares
Performance
rights
Dr Francis Wedin
16,458,561
125,724
Mr Cris Moreno
-
521,308
Ms Felicity Gooding
-
272,945
Mr Angus Barker
25,128
-
Ms Josephine Bush
40,367
4,298
Dr Günter Hilken
4,745
9,492
Dr Heidi Grön
10,398
4,298
Total
16,539,199
938,065
Principal activities
The principal activities of the Company during the year were
geothermal energy and lithium development in Europe.
ARTIS-Photographie I Uli Deck - Open Doors Insheim
ARTIS-Photographie I Uli Deck - Open Doors Insheim
14 Former Directors Mr Gavin Rezos, Ms Ranya Alkadamani, Ms Annie
Liu and Mr Mark Skelton retired during the financial year.
VULCAN ENERGY ANNUAL REPORT | 2024
24
Information on 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 the entire period unless otherwise stated.
Dr Wedin is a battery raw materials industry executive, with an international career spanning four continents and multiple
commodities. Dr Wedin founded the Project in Germany and, as CEO from 2019 to 2023, was instrumental in driving Vulcan
Group's growth. Dr Wedin was previously Executive Director of successful ASX-listed Exore Resources Ltd (ASX: ERX),
where he defined and developed the Lynas Find Lithium Project, subsequently bought by Pilbara Minerals to become
part of its 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.
Dr Francis Wedin
Executive Chair
PhD & BSc (Hons) Geology & Mineral Exploration,
MBA in renewable energy
Mr Moreno has over 20 years’ global experience in successfully delivering major projects, including in the lithium chemicals,
cathode, upstream E&P and LNG sectors. In the LNG sector, he held senior leadership roles with Santos, Woodside, and
Shell, including working on the Browse, Gorgon and Prelude LNG projects. Prior to joining Vulcan Group, Mr Moreno worked in
the lithium chemicals and battery cathode sector in Europe, as Senior Director for Northvolt’s Cathode Active Material (CAM)
business unit, and as Founding Executive & Vice President of Engineering and Development for Aurora Lithium. Mr Moreno
has successfully been part of, and led, green start-up companies, taking them from pilot scale into commercial production.
Cris Moreno
Managing Director and Chief Executive Officer
BASc (Hons) BChE (Hons)
Ms Gooding is a Senior Finance executive and leader with over 20 years’ experience in strategic and financial analysis, debt
funding, corporate finance, mergers and acquisitions, management and financial accounting and governance in Australia,
Singapore, London, and Washington D.C. Her experience has been gained across multiple industries relevant to Vulcan
including energy, mining and infrastructure. Most recently Ms Gooding was CFO and Global Head of Commercial at Fortescue
Future Industries, where she led the finance team, including the specialist project financing team responsible for securing
finance to enable financial investment decisions for green energy projects.
Felicity Gooding (appointed 1 January 2025)
Executive Director and Group Chief Financial Officer
BCom (Accounting and Finance), Chartered Accountant
VULCAN ENERGY ANNUAL REPORT | 2024
25
Dr Hilken has over 35 years' experience in the German chemicals, renewables and infrastructure investment sectors and in
leading industry advocacy associations, and in the German Government at the state and federal level. Dr Hilken’s experience
and connections help Vulcan Group ensure that geothermal energy becomes a foundation of Germany’s supply of sustainable
and secure renewable energy as Germany diversifies away from local carbon-based energy sources and Russian energy. Dr
Hilken is also a member of the Board of the German Federation of Industrial Energy Consumers (VIK) as well as a former
Director of Currenta and member of the Supervisory Board of Currenta. He was previously CEO of Currenta for nine years,
held senior executive roles with Bayer in Germany, the US, Canada and Asia, and was a member of the supervisory board of
RWE Power AG.
Dr Günter Hilken
Non-Executive Director
PhD in Organic Chemistry, master’s degree in chemistry
Mr Barker is Deputy Chairman and Lead Independent Director of Vulcan Energy Resources, Chairman of rare earths and
uranium company Australian Rare Earths and a Director of listed investment company WAM Capital. Prior to this, he served as
Chief of Staff or Senior Adviser to Australian Government ministers in the key economic portfolios of trade and investment,
and superannuation and financial services. Previously, he held senior executive roles at top-tier global investment banks
across Australia, the United Kingdom and Asia, including 12 years based in Hong Kong. He holds a Master of Philosophy from
the University of Cambridge and a Bachelor of Commerce (Honours) from the University of Melbourne.
Angus Barker (appointed 13 September 2024)
Non-Executive Director
BCom (Hons) Economics, Finance
Ms Bush is a qualified solicitor, and chartered tax adviser, as well as earning the CFA ESG investing qualification and a
sustainable finance certification. She has an MA in Law from Cambridge University. Ms Bush was a senior partner at EY
for 14 years specialising in the renewable energy sector. She built and led the UK and Ireland Renewables Tax Practice, led
on market-leading transactions such as structuring for the initial public offerings of several environmental yieldcos, and
developed the EY global renewables business plan. She was a member of the Ernst & Young Power and Utilities Board and
UK&I Governance Board. Ms Bush is also a NED on the Next Energy Solar Fund (FTSE250) Board and within the Investment
Committee and Valuations Committee of Gresham House’s British Sustainable Infrastructure Fund.
Josephine Bush
Non-Executive Director
CTA, MA (Hons) Law, CFA ESG investing, Sustainable
Finance Certification
VULCAN ENERGY ANNUAL REPORT | 2024
26
Ms Alkadamani holds a Master of International Relations and International Communications and a Bachelor of Media from
Macquarie University. Ms Alkadamani is currently Founder and CEO of Impact Group International, a strategic communications
consultancy focused on advice to impact investors, philanthropists and innovative social impact programs. Ms Alkadamani
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 Press,
Australia’s only independent newswire. 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 Kevin
Rudd during his time as Australian Foreign Minister and a spokesperson for the Australian Department of Foreign Affairs
and Trade.
Ranya Alkadamani (retired 31 December 2024)
Non-Executive Director
BA Media, Communication, Media Studies, MA International
Relations & Affairs, MA International Communicationst
Mr Rezos has many years of Australian and international corporate, project finance and investment banking experience and
is both a former Head of Legal and Compliance across multiple countries for the HSBC Group and an investment banking
Director of HSBC Group with regional roles during his career based in London, Sydney and Dubai. Mr Rezos has held chair,
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 principal of Viaticus Capital.
Gavin Rezos (retired 31 December 2024)
Non-Executive Deputy Chair
B.Juris, LLB, BA, Law, Economics, International Politics)
Dr Grön is a chemical engineer and accomplished business leader with 24 years' experience in the chemicals industry.
Since 2007, Dr Grön has been a senior executive with Evonik in various commercial, technical and general management
roles. At Evonik, she has been responsible for production, technology, asset digitalisation, OT security, and global product
stewardship, and is currently transitioning to her new role as Senior Vice President & General Manager of the Business Line
Oil Additives at Evonik.
Dr Heidi Grön
Non-Executive Director
PhD Chemical Process Engineering, Dip. Chemical Engineering
VULCAN ENERGY ANNUAL REPORT | 2024
27
Mr Skelton has more than 35 years' experience including a 29-year tenure at BP and then at Fortescue Metals Group in
multiple project director and senior management roles. As a senior leader and advisor with a proven record in delivering
major projects, business transformation and developing organisational capability within the mining, energy and oil and gas
industries, Mr. Skelton has extensive project experience in Australia and internationally. He holds a Bachelor of Science
(Honours), Mechanical Engineering from the University of Greenwich and is a Chartered Engineer registered by the Institute
of Mechanical Engineers (UK).
Mark Skelton (retired 1 February 2024)
Non-Executive Director
BSc (Hons), Mechanical Engineering
Ms Liu is the Chief Strategy Officer at Mangrove Lithium, the first independent lithium refining plant in North America using
Clear-LiTM electrochemical technology aiming to produce battery-quality lithium in 2025. Ms Liu founded Alto Group Inc, a
trusted advisor to many of the world’s influential businesses in the EV value chain. Ms Liu is also currently a Non-Executive
Director with ASX Listed Alpha HPA Limited. Ms Liu was the Executive Director at Ford (Model E) from 2022 to 2023. Prior to
her role at Ford, Ms Liu forged 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. Earlier in her career, she held various leading
manufacturing and procurement roles at Microsoft and Sun Microsystems launching advanced technology products. She
holds a Bachelor of Science in Engineering from the University of California, Berkeley.
Annie Liu (retired 13 September 2024)
Non-Executive Director
BEng Industrial Engineering & Operations Research
VULCAN ENERGY ANNUAL REPORT | 2024
28
Directors' meetings
The number of Board and Committee meetings held during the year and the number of meetings attended by each Director
is contained in the table below.
In addition to the scheduled Board and Committee meetings, Directors regularly communicate by telephone, email or other
electronic means, and where necessary, circular resolutions are executed to affect decisions.
The committee members during the year were as follows
Project Oversight
Committee
Dr Günter Hilken I Chair
(following Mr Skelton’s
resignation), Dr Heidi Grön
and Mark Skelton16 (Chair
until his resignation on
1 February 2024)
People and Performance
Committee
Ranya Alkadamani18 I Chair
Annie Liu17, Angus
Barker (following Ms Liu’s
resignation) and
Gavin Rezos15
Nomination
Committee
Ranya Alkadamani18 I Chair
Gavin Rezos15 and
Josephine Bush, as well
as a representative from
the Projects Oversight
Committee
ARESG
Committee
Josephine Bush I Chair
Gavin Rezos15
Dr Heidi Grön
15 Gavin Rezos retired effective 31 December 2024.
16 Mark Skelton retired effective 1 February 2024.
17 Annie Liu retired effective 13 September 2024.
18 Ranya Alkadamani retired effective 31 December 2024.
19 Angus Barker appointed Lead Independent Director and Deputy Chair; People and Performance Committee Chair and Nominations
Committee Chair from 1 January 2025.
20 Dr Hilken and Dr Grön were to represent the Project Oversight Committee on the Nomination Committee subject to requirements.
Full Board
Audit, Risk and ESG
Committee
People and
Performance
Committee
Project Oversight
Committee
Nomination
Committee
Attended Eligible
to
attend
Held
Attended Eligible
to
attend
Held
Attended Eligible
to
attend
Held
Attended Eligible
to
attend
Held
Attended Eligible
to
attend
Held
Dr Francis Wedin
7
7
7
4
4
5
3
3
3
2
2
5
3
3
3
Cris Moreno
7
7
7
4
4
5
3
3
3
2
2
5
1
1
3
Angus Barker19
2
2
7
1
1
5
1
1
3
-
-
5
1
1
3
Josephine Bush
7
7
7
5
5
5
1
1
3
-
-
5
3
3
3
Dr Günter Hilken
6
7
7
-
-
5
1
1
3
5
5
5
2
320
3
Dr Heidi Grön
6
7
7
5
5
5
1
1
3
3
5
5
1
320
3
Gavin Rezos15
7
7
7
5
5
5
3
3
3
-
-
5
3
3
3
Ranya Alkadamani18
7
7
7
-
-
5
3
3
3
-
-
5
3
3
3
Annie Liu17
5
5
7
-
-
5
2
2
3
-
-
5
-
-
3
Mark Skelton16
-
-
7
-
-
5
-
-
3
1
1
5
-
-
3
VULCAN ENERGY ANNUAL REPORT | 2024
29
Board skills matrix
The composition of the Board is to be reviewed regularly against the Company’s Board skills matrix, which is prepared
and maintained by the Nominations Committee, or, in its absence, the Board, to ensure the appropriate mix of skills and
expertise is present to facilitate successful strategic direction and to manage and leverage new and emerging business and
governance issues.
Experience
Knowledge and skills
Corporate leadership
Successful experience in CEO and/or other senior corporate
leadership roles.
Strategic expertise
Setting and reviewing strategy and/or business development.
International experience
Senior experience in multiple international locations.
Marketing and communications
Media, stakeholder communication, investor relations,
public relations.
Resources or technology industry experience
Relevant industry (resources, energy, power, mining, exploration,
processing) experience.
Risk and compliance
Risk management and mitigation experience.
Other Board level experience
Membership of other listed entities (last three years).
Capital markets
Capital raising, mergers and acquisitions.
Capital projects
Major resources capital project development and management.
Corporate sustainability
ESG strategy development and associated corporate decision-
making frameworks, ESG goal/target setting and oversight.
Environmental
Proven experience with climate change policy, sustainability, and
carbon reduction.
Social
Positive human resource management.
Governance
Relevant exposure to controlling and operating organisational
procedures and processes.
VULCAN ENERGY ANNUAL REPORT | 2024
30
Additional expertise
Dr Kreuter is a highly experienced businessman and engineering geologist, with an extensive and distinguished record of
project development and consulting in the geothermal sector. Dr Kreuter is co-founder of the Phase One Lionheart Project,
alongside Dr Francis Wedin. Prior to Vulcan, Dr Kreuter spent over 15 years as leader of GeoThermal Engineering GmbH,
a consulting firm based in Karlsruhe, with work extending both domestically and internationally. Notably, Dr Kreuter was
actively involved in countries such as Tanzania, Turkey, Italy and Indonesia.
Mr Tydde is an experienced corporate lawyer with circa 20 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 reorganisations; and litigation. Prior to
joining Vulcan, he 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.
Dr Horst Kreuter
Chief Representative Germany and Board advisor
PhD in Geology
Daniel Tydde
Company Secretary and General Counsel
Bachelor of Laws, Bachelor of Commerce
VULCAN ENERGY ANNUAL REPORT | 2024
31
Material business risks
Global lithium market
Lithium prices are subject to unpredictable fluctuations,
driven in part by changes in the balance of global supply and
demand as well as international, economic and geopolitical
trends and developments. Any material decrease or
significant volatility in the price of, or demand, for lithium
could have a detrimental effect on the Company’s business,
its ability to raise equity and debt finance and share price.
Funding
As the Company does not currently generate significant
revenue, significant external funding will be required
to continue current operations and support further
implementation of the Project. Should Vulcan be unable to
enter into the envisaged financing agreements or to comply
with the terms of the existing financing arrangements or
those financing agreements it intends to enter into with
various lenders at the project level or to obtain additional
financing as needed on acceptable terms or at all, it may need
to abandon its development plans or reduce and/or change
their scope which may, in turn, adversely affect operations.
Moreover, the amount of capital required in future phases
will be determined and refined as the Company advances the
Project. In particular, as the Company has not completed a
DFS in relation to any subsequent phases, there remains
significant uncertainty regarding the funding requirements
beyond Phase One.
Value chain
Vulcan operates along a value chain to extract and produce
lithium and, as a result, faces risks along the entire value
chain. Current and expected future operations of Vulcan
include a broad range of activities including exploration,
appraisal, development and possible lithium production.
These activities may be affected by a range of factors,
including the acquisition and/or delineation of economically
recoverable mineralisation and heat, geological conditions,
receiving the necessary approvals from all relevant
authorities and parties, seasonal weather patterns
and workforce availability, as well as risks arising from
unanticipated
technical
and
operational
difficulties
encountered in extraction and production activities,
mechanical failure of operating plant and equipment,
shortages or increases in the price of consumables, spare
parts and plant and equipment, cost overruns, access to
the required level of funding and contracting risk from third
parties providing essential services, the COVID-19 pandemic
and any other possible future outbreaks of diseases or
pandemics as well as the Russia-Ukraine Conflict and its
repercussions.
Geopolitical
Geopolitical developments, changes and updates of trade
and public health policy and developments of defence and
security policy of the US, Russia, China and other countries
have adversely affected, and may continue to adversely
affect, the availability and price of equipment, components
and energy, supply chains, international trade, financing
conditions and the global economy at large, which may have
a detrimental effect on the Company. In its current phase,
Vulcan is sensitive to geopolitical developments, changes
and updates of trade policy and developments of defence and
security policy of the US, Russia, China and other countries.
The Company is reliant on the availability, steady supply and
the stability and/or predictability of the prices of equipment
and components, some of which need to be shipped long-
way or from overseas. As a result, it is dependent on stable
supply chains, open seaways and favourable trade policies
for deliveries of equipment and components.
CLEOP Topping Out Ceremony
VULCAN ENERGY ANNUAL REPORT | 2024
32
Resources and Reserve estimates
The Resource and Reserve estimates relating to the
Company’s current and future projects are subject to certain
assumptions and interpretations which may prove to be
inaccurate. Any material deviations may result in alterations
to development plans which may, in turn, adversely affect
the Company’s operations. Technical studies (such as pre-
feasibility studies and definitive feasibility studies) are often
used to demonstrate the technical and economic viability of
a mineral deposit. Technical studies are subject to material
uncertainties, in particular for projects in the exploration and
correspondingly early phases, such as the case for Vulcan.
Licencing and permitting
There is no guarantee the Company will be able to obtain all
required approvals, licences, permits and land for lithium and
geothermal renewable energy production in time or at all. The
Company currently holds all exploration licences required
to undertake its exploration programs, and a geothermal
production licence at the Insheim Plant. Permitting for Phase
One of the Project area is a carefully planned and iterative
process through to project execution. However, many of
the lithium and geothermal energy rights and interests
held by the Company are subject to the need for ongoing or
new governmental approvals, licences and permits as the
Project advances and the scope of operations change. No
guarantee can be given that approvals, licences, or permits
will be maintained or granted (at all or in a timely fashion), or,
if they are maintained or granted, that the Company will be in
a position to comply with all conditions that are imposed or
that they will not be challenged by third parties.
Climate change
The Company’s geothermal projects are subject to climate
change risks. While one of the primary purposes of the
Project is to avoid carbon emissions in the lithium supply
chain, there are a number of climate-related factors that
may affect the operations and proposed activities of
Vulcan. Climate change may cause certain physical and
environmental risks that cannot always be reasonably
predicted by the Company, including events such as
increased severity of weather patterns and incidence of
extreme weather events, as well as longer-term physical
risks such as shifting climate patterns. In particular, higher
temperatures prevailing over increasing periods of time,
as a result of anticipated global warming, may negatively
impact the efficiency of the processes in geothermal plants
used in the energy production business of the Company.
Personnel
The Company may lose its directors or other key personnel
or may be unable to recruit or retain qualified personnel
for key positions. Without such directors or key personnel
Vulcan may not be able to successfully manage, develop and
operate its business. While Vulcan’s strong environmental
ethics have proven to be an effective recruitment tool to
date, there can be no assurance the Company’s efforts
to retain and motivate its directors and key employees or
attract and retain other highly qualified technical personnel
will continue to be successful. In order to achieve its
strategic goals, the Company is targeting a significant
increase in the number of staff over the next three to five
years as it is planned to transition to an execution and
production company.
Safety
The Company’s operations involve the use of heavy
machinery, gas and chemical substances. Any technical or
human error could harm physical integrity, life or property
and, as a result, could have a material adverse effect on the
business, results of operations, prospects and reputation.
While the Company has implemented a variety of health
and safety measures to help prevent damage to individuals
or property arising from its construction, drilling and
transport activities and use of heavy machinery or handling
of chemicals, such activities are distinctly complex and
inherently risky.
Cyber security
The Company may fail to maintain the integrity of its IT
systems and successfully protect them against potential
cyber-attacks, security breaches or other instances of
intentional or unintentional disruption. Vulcan uses, collects
and stores multiple types of data including personal data.
The integrity, availability and reliability of such data may
be subject to intentional or unintentional disruption. Given
the increasing sophistication and scope of potential cyber-
attacks, these attacks could result in significant security
breaches that could compromise sensitive information and
financial transactions or cause systems to be unavailable
for a period of time. The Company’s IT department has
implemented several risk mitigation processes to protect
the Company and its stakeholders from the possibility of a
cyber security breach.
VULCAN ENERGY ANNUAL REPORT | 2024
33
Significant changes in the state
of affairs
There were no significant changes to the state of affairs
other than those noted elsewhere in this Report.
Matters subsequent to the
reporting period
Board changes
Group CFO Felicity Gooding was appointed Executive
Director, and Non-Executive Director Angus Barker was
appointed as Lead Independent Director and Deputy Chair,
both effective 1 January 2025. Mr Barker also assumed the
role of Chair of the People and Performance Committee
(PPC) on 1 January 2025, along with non-executive directors
Josephine Bush and Dr Günter Hilken who will also be
appointed as new PPC members. Mr Barker has also replaced
Ranya Alkadamani as Chair of the Nominations Committee,
and joined the Audit, Risk and Environmental, Social and
Governance (ARESG) Committee, which is chaired by
Josephine Bush, on 1 January 2025.
Start of production of battery-quality
lithium hydroxide monohydrate
On 13 January 2025, the Company announced the production
of the first battery-quality lithium hydroxide monohydrate
(LHM) at the downstream optimisation plant, by processing
high purity lithium chloride concentrate extracted from
brine at the upstream A-DLE optimisation plant in Landau,
Germany. This represents the first fully integrated,
battery-quality LHM produced in Europe, from resource to
final product.
Close of Share Purchase Plan
The Company’s Share Purchase Plan (SPP), announced in
December 2024, closed on 20 January 2025. Under the SPP,
shareholders validly subscribed for ~€4.9m (~A$8m) new
fully paid ordinary shares in the Company at an offer price of
A$5.85 per SPP share.
Start of V20 drill rig mobilisation to first
new production well site for Phase One
The Company announced the start of execution works on its
integrated Phase One renewable energy and lithium project
on 4 February 2025, with mobilisation of its V20 drilling rig to
the Phase One Schleidberg well site near Landau, Germany.
Joint 2D seismic survey with BASF SE
(BASF)
The Ludwigshafen City Council and Frankenthal City Council
unanimously approved the start of the seismic campaign for
a future phase of development, in the joint development area
(designated Ludwigsland) with BASF. These decisions were
made on 13 January 2025 and 21 January 2025 respectively,
marking the first major milestone in Vulcan and BASF’s
joint project.
2D seismic survey being undertaken in the Vorderpfalz region of
Germany in March 2025
LHM production at CLEOP
VULCAN ENERGY ANNUAL REPORT | 2024
34
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 if over certain facility or
corporate group thresholds. The Vulcan Group did not meet
these thresholds for 2024 but does voluntarily report annual
greenhouse gas emissions. The Australian operations of the
Company have been certified as carbon neutral under the
Australian Climate Active initiative since 2020, the German
operations, including VEE and VES have been certified
carbon neutral since 2021. The German operations were
certified under South Pole for 2021 and certified under
Climate Impact Partners for 2022. During the Period, Vulcan
together with ERM completed its Environmental and Social
Impact Assessment (ESIA) for Phase One, noting multiple
positive impacts of the Project, including renewable
heating provision for local communities, and carbon neutral
lithium production to decarbonise the lithium supply chain,
in a world leading first for the industry. ESIA is in line with
lenders’ requirements to ensure a level of environmental
performance prior to the furnishing of debt finance and is,
together with ESMP, integrated into the project level debt
and equity financing process.
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.
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 year, 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.
Officers of the Company who
are former partners of RSM
There are no officers of the Company who are former
partners of RSM Australia Partners.
CLEOP Topping Out Ceremony
VULCAN ENERGY ANNUAL REPORT | 2024
35
Remuneration report
The Remuneration Report outlines the remuneration
arrangements for the Vulcan Energy Resources Limited
(Vulcan, or the Company) Key Management Personnel
(KMP) for the year ended 31 December 2024 (FY24) in
accordance with the requirements of the Corporations Act
2001 (Cth) (the Act) and its regulations. This information
has been prepared in accordance with section 300A and
audited as required by section 308(3C) of the Act.
The Remuneration Report is presented under the
following sections:
1.
Introduction
2.
Remuneration summary
3.
Remuneration governance
4.
Executive KMP remuneration arrangements
5.
Executive KMP remuneration outcomes
6.
Executive KMP contracts
7.
Non-Executive Director remuneration arrangements
8.
Additional disclosures relating to rights and shares
9.
Loans to key management personnel and their
related parties
10. Other transactions and balances with key
management personnel and their related parties
VULCAN ENERGY ANNUAL REPORT | 2024
36
Committee Chair's message
Dear Shareholders,
On behalf of the Board and the People and Performance
Committee (PPC), I am pleased to present the 2024
Remuneration Report.
People are at the heart of Vulcan. For our current and
prospective employees, a career at Vulcan offers an
opportunity to put the just transition into action – to be part
of a multidisciplinary team with strong career paths, to be
part of the movement from the brown to the green sector,
and to make a contribution to the buildout of robust local
supply chains in a critical mineral essential to the European
mobility transition.
FY24 was a year of significant progress as Vulcan advanced
toward becoming a key supplier of sustainable lithium and
renewable energy for Europe. With major project milestones
achieved, a substantial quantum of financing locked in, and
the necessary regulatory approvals in place, we are now well
positioned for the next phase - delivering on execution and
production.
In that light, the PPC assessed FY24 remuneration outcomes,
with a focus on ensuring executive pay reflects performance,
business progress, and market competitiveness.
Key developments included:
Short-Term Incentive (STI)
performance and outcomes
This year, to improve our market competitiveness,
particularly in the German market where annual awards are
most often made wholly in cash, awards under the annual
incentive program for 2024 no longer have an additional year
of service condition. Accordingly, and to better describe the
nature of these annual awards, given there is no longer a
deferral feature, we have changed their name from Annual
Deferred Incentive (ADI) Awards to Short Term Incentive
(STI) awards.
The STI program delivered an average award outcome of
97% for the Vulcan Team. This high level of payout, relative
to just 41% the year before, directly reflects the outstanding
execution of critical milestones that underpin Vulcan’s
transition into an operational company, including:
·
Significant progress on project execution, including
securing
key
permits,
advancing
construction
readiness, and achieving production at the upstream
and downstream optimisation plants – the first fully
integrated lithium hydroxide produced in Europe, from
raw material to final product
·
Significant progress towards securing project financing
for the Phase One Lionheart Project, with Board approval
received from the European Investment Bank (EIB)
for up to €500m of participation and conditional debt
commitments from Export Finance Australia and a group
of seven commercial banks for up to €879m (~A$1.45bn),
a ~€105 million (A$172m) equity raise in December via a
placement and share purchase plan, a €40 million (~A$65
million) placement in June to strategic partners, and the
award of €100 million in German government grants
·
Advancements in sustainability and ESG commitments,
with the publication of an updated Environmental
and Social Impact Assessment for the Project and the
awarding of a Dark Green rating by S&P Global Ratings -
the highest ever received by a Metals and Mining company
globally, for our Green Financing Framework.
ARTIS-Photographie I Uli Deck - CLEOP Opening
VULCAN ENERGY ANNUAL REPORT | 2024
37
Achieving at or very close to the goal for each one of the
targets set for project and people, environment and social
measures was a significant achievement by the executive
team. To do so in all of the measures denoted a year of
remarkable progress for the company. The PPC determined
at year end that these milestones represent substantial de-
risking of the Company, as was reflected in an 84% increase
in the share price over the course of the year, from around
$2.90 to $5.35 (which is even more noteworthy against a
backdrop of a very challenging market for most listed lithium
companies), justifying the strong STI award outcomes while
maintaining alignment with shareholder value creation.
Long-Term Incentive (LTI) adjustments
and outcomes
In line with industry benchmarks and the Company’s growth
trajectory, LTI grants issued in FY24 were adjusted to a
three-year testing period (previously four years) to enhance
alignment with medium term company milestones and
leadership retention.
While no LTI awards vested in FY24, new LTI grants were
structured to drive sustainable performance, with clear
business execution, ESG, and shareholder return metrics.
Fixed remuneration and governance
enhancements
Fixed remuneration remained largely unchanged, with
increases only applied to reflect government-mandated
superannuation changes and Group Chief Financial
Officer (Group CFO), Ms Gooding, taking on additional
responsibilities as part of her Group CFO role.
Key changes to the PPC
The PPC transitioned to a fully independent structure from
1 January 2025, reinforcing best-practice governance, with
the Committee now comprising of myself as Chair, and
Ms Josephine Bush and Dr Günter Hilken as Committee
members. I thank the former Chair of the PPC, Ms Ranya
Alkadamani, along with Mr Gavin Rezos and Ms Annie Liu, for
their service.
Looking ahead to FY25
As Vulcan moves toward full-scale project execution and
operations, the PPC will continue to refine our remuneration
strategy to support the Company’s next phase of growth.
Key areas of focus for FY25 include:
·
Ensuring
remuneration
remains
competitive
and
performance-driven, reflecting Vulcan’s evolution into a
larger, more complex business
·
Continued monitoring of alignment of STI and LTI
structures with project execution and operational
performance, ensuring incentives support both short-
term delivery and long-term value creation
·
Ensuring our remuneration governance and disclosure
meets the expectations of an investor base with growing
institutional investor representation.
We appreciate your support and look forward to sharing our
continued progress with our shareholders over the course
of the year.
Sincerely,
Angus Barker
Chair, People and Performance Committee
VULCAN ENERGY ANNUAL REPORT | 2024
38
1. Introduction
This Remuneration Report details the remuneration arrangements for KMP who are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Company, directly or indirectly,
including any director (whether executive or otherwise) of the Company.
Each KMP was appointed for the entire year 1 January to 31 December 2024, unless otherwise stated. For the purposes of
this Remuneration Report, the term “Executive” includes Executive KMP of the Group as detailed in the table below.
(i) Non-Executive directors (NEDs)
Mr Gavin Rezos21
Non-Executive Deputy Chair
Ms Ranya Alkadamani21
Non-Executive Director
Dr Heidi Grön
Non-Executive Director
Ms Josephine Bush
Non-Executive Director
Dr Günter Hilken
Non-Executive Director
Mr Angus Barker22
Non-Executive Director
Mr Mark Skelton23
Non-Executive Director
Ms Annie Liu24
Non-Executive Director
(ii) Executive (Executive KMP)
Dr Francis Wedin
Executive Chair
Mr Cris Moreno
Managing Director & Chief Executive Officer (“MD–CEO”)
Ms Felicity Gooding25
Group Chief Financial Officer (“Group CFO”)
Mr Robert Ierace26
Chief Financial Officer (“CFO”)
21. Mr Gavin Rezos and Ms Ranya Alkadamani retired on 31 December 2024.
22. Mr Angus Barker joined the Board as Non-Executive Director on 13 September 2024 and was appointed Lead Independent Director and
Deputy Chair on 1 January 2025.
23. Mr Mark Skelton retired on 1 February 2024.
24. Ms Annie Liu retired on 13 September 2024.
25. Ms Felicity Gooding was appointed as Group CFO on 15 January 2024, and as Executive Director on 1 January 2025.
26. Mr Robert Ierace ceased to be an Executive KMP from 15 January 2024 following the appointment of Ms Felicity Gooding as Group CFO.
Mr Ierace stepped down from the role of CFO on 31 March 2024.
There were no other changes to the KMP after the reporting date and before the date the financial report was authorised
for issue.
Financial values referenced throughout this Remuneration Report are translated from Australian dollars to Euro using an
exchange rate of 0.61.
VULCAN ENERGY ANNUAL REPORT | 2024
39
2. Remuneration summary
Executive KMP are rewarded through fixed remuneration, a Short-Term Incentive (STI27) and a Long-Term Incentive (LTI).
NEDs receive a fixed fee for their service over the year including Company securities. The following table provides the key
remuneration highlights for both Executives and NEDs for FY24.
27 Previously referred to as Annual Deferred Incentive, or ADI
28 However under Ms Gooding’s new Employment Agreement her LTIs increased from 70% of her salary to 110% of fixed remuneration.
Executive
KMP Fixed
Remuneration
Fixed
Remuneration
adjustments
Executive fixed remuneration (inclusive of superannuation guarantee contributions) is
detailed in section 5.
On 1 July 2024, Ms Gooding’s fixed remuneration increased from $500,000 (€305,050) to
$557,500 (€340,131), to reflect an increase in responsibilities in her role as Group CFO. No
additional adjustment to fixed remuneration was made when Ms Gooding commenced the role
of Executive Director, from 1 January 2025.28
On 1 July 2024, Dr Wedin and Mr Moreno’s fixed remuneration increased from $666,000
(€406,327) to $669,000 (€408,157), to reflect an increase in mandatory superannuation
contributions from 11.0% to 11.5%, in accordance with Government regulations.
No further changes were made to Executive KMP remuneration during the period.
Executive KMP
Short-Term
Incentive (STI)
97% average STI
award delivered
for the period
to 31 December
2024
Under the Company’s Incentive Award plan, the Company issued STIs, designed to reward
the creation of exceptional short-term shareholder value aligned to the performance hurdles
detailed below. Due to a change in financial years, the assessed outcomes were based on a
period of 1 July 2023 to 31 December 2024 for Mr Moreno.
The STIs can be converted to Ordinary Shares in the Company once vested on election, under the
Company’s Performance Rights Plan. STIs issued during FY24 no longer have an additional year
of service condition to enhance market competitiveness.
Given the exceptional performance for the Company in a tough global environment, the Board
awarded an average of 97% of STI rights to Executive KMPs Mr Moreno and Ms Gooding, which
vested at 31 December 2024. This was compared with a 41% award in the previous year FY23.
In FY24 there was a different MD-CEO, Mr Moreno, relative to the previous year, when Dr. Wedin
was the MD-CEO. Dr Wedin as founder of the Company is already a substantial shareholder and
therefore had a smaller STI package relative to fixed remuneration.
In addition, Dr Wedin declined to take up any new STIs in 2024, and with the approval of the
Board those rights were instead allocated to other executives including Mr Moreno, to increase
incentivisation and shareholder alignment.
Finally as disclosed in the FY23 Remuneration Report, there was a remuneration adjustment
for the new MD-CEO given the increased size, complexity and number of operations, reflecting
the change from a development to an execution and construction-stage company. There was
therefore an increase in percentage of STI rights to fixed remuneration from 26% to 70% for the
MD-CEO relative to the previous year.
Refer to sections 4 and 5 for further detail.
Executive KMP
Long-Term
Incentive (LTI)
No LTI rights
vested
New LTI
performance
rights issued for
the period to 31
December 2024
No LTI performance rights vested between 1 January 2024 and 31 December 2024.
Under the Company’s Incentive Award plan, the Company issued LTIs, designed to reward
creation of exceptional long-term shareholder value aligned to the performance hurdles detailed
below. In order to align more closely with medium term company milestones, staff retention and
motivation, and to take into account the change in the Company’s year-end to 31 December, the
LTIs issued during FY24 are tested after three years, rather than four years previously.
The percentage of fixed remuneration constituted by LTI rights increased from 114% previously to
200% in FY24 for the MD-CEO. The increase is due to a change in MD-CEO relative to the previous
year, where the previous MD-CEO, Dr Wedin, already had a substantial shareholding in the Company.
The new incoming MD-CEO, Mr Moreno, has increased responsibility, including increased size,
complexity and number of operations, and is tasked with the completion of financing, and
construction of the Company’s main project. The change in package for the MD-CEO reflects the
planned shift from a development company to an execution and construction company, and the
need to incentivise the new incoming MD-CEO.
In addition, Dr Wedin in his new role as Executive Chair declined to receive any incentive
securities in FY 2024, and with the approval of the Board those rights were instead distributed
around Vulcan’s Executive Team including Mr. Moreno, allowing the Executive Team to be better
incentivised without dilution of other existing shareholders.
Refer to sections 4 and 5 for further detail.
VULCAN ENERGY ANNUAL REPORT | 2024
40
NED
remuneration
NED and
committee fees
unchanged from
the prior year,
decrease in
Deputy Chair fee.
The NED fee pool was unchanged for the year ended 31 December 2024.
NED and committee fees were unchanged from the prior period, except for a 25% decrease of
the Deputy Chair fee to $152,000 (€92,735) from 1 January 2024, to reflect the conclusion of the
handover period between the previous and current Chair.
NEDs will continue to be issued securities in the Company to a value of A$35,000 each year for
three years (i.e. a total value of A$105,000) commencing from the date of shareholder approval
to the award of the shares. Each annual tranche vests 12 months from the date of issue, and the
vesting criteria for each tranche is that NEDs are still a Director on the vesting date. No securities
were issued to NEDs during FY24 as all NEDs held unvested performance rights, however it is
intended to do so during FY25.
3. Remuneration governance
Remuneration decision making
The following diagram represents the Company’s remuneration decision making framework:
The People and Performance Committee (PPC) comprises of three NEDs, during FY24 a majority of which were
independent, and met regularly throughout the year. From 1 January 2025 the PPC is entirely comprised of independent
directors. The Executive Chair and MD-CEO attend certain Committee meetings by invitation, where management input
is required. The Executive Chair and MD-CEO were not involved in the final decisions related to their own remuneration
arrangements. Further information on the PPC’s role, responsibilities and membership can be found on the Company’s
website at https://v-er.eu
Use of independent remuneration consultants
To ensure the PPC is fully informed when making remuneration decisions, it seeks external remuneration advice where
required. Independent remuneration consultants are engaged by, and report directly to, the PPC. In selecting remuneration
consultants, the PPC considers potential conflicts of interest and requires independence from the Company’s KMP and
other executives as part of their terms of engagement.
During the financial year ended 31 December 2024, the PPC undertook a review of Executive KMP Remuneration. No
remuneration recommendations, as defined in Section 9B of the Corporations Act 2001, were provided by any external
consultant. A further independent review is planned for 2025 as the Company continues to increase in size and complexity.
Remuneration report approval at 2024 AGM
The Remuneration Report for the period ended 31 December 2023 received positive shareholder support at the 2024 AGM
with a vote of 92.32% in favour.
Board
Reviews and approves Executive remuneration and incentives.
Sets aggregate NED fees, subject to shareholder approval.
People and Performance Committee (PPC, the Committee)
Develops remuneration strategy, framework and policy and provides
Executive & NED remuneration recommendations to the Board.
MD-CEO and Executive Chair
Executive remuneration input
and implementation.
Remuneration Consultants
External, independent
remuneration advice and
information as required.
Audit, Risk and ESG Committee
Input to financial, risk and ESG
measures and outcomes as
required.
VULCAN ENERGY ANNUAL REPORT | 2024
41
4. Executive KMP remuneration arrangements
Remuneration principles and strategy
Vulcan’s executive remuneration strategy is designed to attract, retain and motivate the best people to create a positive
culture that delivers the Company’s business strategy and contributes to sustainable long-term returns.
The following diagram illustrates how the Company’s remuneration strategy aligns with its strategic direction and links
remuneration outcomes to performance.
Vulcan Mission
To become Europe’s leading sustainable lithium business and enabling
energy security through geothermal energy
Vulcan's Values
Remuneration strategy linked to business objectives
Market competitive
Competitive
remuneration compared
to companies of a similar
size and complexity.
Alignment to
performance
At-risk remuneration
including both short and
long-term elements,
subject to performance
in alignment with
business objectives.
Sustainability
Remuneration promotes
executive retention.
Rewards performance
in a balanced and
sustainable manner.
Culture
Aligns remuneration to
performance outcomes
which promote a positive
culture that champions
Vulcan’s values.
Climate Champion
Inspiring
Determined
VULCAN ENERGY ANNUAL REPORT | 2024
42
Approach to setting remuneration and details of incentive plans
The Executive remuneration framework consists of fixed remuneration, short and long-term incentives with different
reward focus.
The following diagrams set out the current Executive remuneration structure.
Fixed remuneration
STI
LTI
Unvested rights subject to forfeitures
Year 1
Base Salary, Superannuation and
Other benefits.
Annual award of rights under the
STI plan subject to achievement
of annual objectives. Vesting at
end of the relevant year.
Performance rights which vest
after three years subject to
the achievement of long-term
performance hurdles.
Year 3
Each component of the KMP remuneration structure is further outlined below.
Remuneration
Component
Vehicle
Purpose
Link to performance
Fixed remuneration
(FR)
Base salary
plus statutory
superannuation or
equivalent
Attract and retain Executives with the
capability and experience to deliver
Vulcan’s strategy, based upon the
competitive landscape among relevant
peers.
Regularly
reviewed
to
ensure
the
remuneration
levels
appropriately
compensate
Executives
for
their
capability in driving a positive culture
and delivering on the business strategy.
Short-Term
Incentives (STI)
Performance rights
Reward for performance against KPIs
aligned to annual business objectives,
including Group, Environmental Social
Governance (ESG) and individual linked
objectives.
Strategic
annual
objectives
are
embedded in each executive’s personal
scorecard of performance measures.
See section 8 (footnote 46) in relation to
the multiplier on the STIs issued to Mr
Moreno and Ms Gooding.
Long-Term
Incentives (LTI)
Performance rights
Align long-term performance focus to
drive shareholder returns. Encourage
sustainable, long-term value creation
through equity ownership.
Vesting is subject to the achievement
of defined business and sustainability
milestones and Total Shareholder Return
(TSR) over a three year period, changed
from 4 years in FY23. See section 8 in
relation to the multiplier on the LTIs
issued to Mr Moreno and Ms Gooding.
VULCAN ENERGY ANNUAL REPORT | 2024
43
Remuneration mix
How is overall
remuneration and mix
determined?
The overall remuneration mix reflects an appropriate balance of fixed and variable remuneration
considering the Company’s size and business operations.
The chart below summarises the MD-CEO, Group CFO and Executive Chair’s remuneration mix based on
maximum STI and LTI awards issued during FY24, including any multipliers.
MD-CEO
FR
STI
LTI
29%
34%
100%
47%
20%
Group
CFO
Executive
Chair
51%
19%
Fixed remuneration
How is fixed
remuneration reviewed
and approved?
Fixed remuneration is reviewed annually. Fixed remuneration changes for Executives are subject to
approval from the Board after considering recommendations from the PPC.
Short-Term Incentive (STI)
What is the STI plan?
The Company operates a Short-Term Incentive (STI) programme which is an award of rights which vest
annually on achievement of defined performance measures.
What is the
opportunity?
MD-CEO: 70%of fixed remuneration
Group CFO: 50%of fixed remuneration
The issue of rights to the MD-CEO was approved at the Company’s EGM on 5 August 2024.
To further incentivise the MD-CEO and Group CFO and provide value to shareholders, Mr Moreno and Ms
Gooding have certain multipliers on their STI rights, as set out in section 8.
What are the
performance criteria
and how do they
align with business
performance?
STI vesting is subject to performance criteria measured over a one-year performance period and relate to
project milestones (50%), ESG milestones (20%) and individual milestones (30%), which are directly linked
to the performance of the business and described in more detail in section 5.
How is vesting
determined?
After consideration of actual performance against KPIs, the Board assess and test the portion of rights
(if any) to vest for each Executive KMP on an annual basis, seeking recommendations from the PPC as
required.
What happens if an
Executive leaves?
Where a participant ceases employment prior to their rights vesting due to resignation or termination for
cause, rights will be forfeited subject to Board discretion.
Are Executives eligible
for dividends?
Executives are not eligible to receive dividends on unvested rights.
Long-Term Incentive (LTI)
What is the LTI plan?
Under the LTI plan, an annual grant of rights is made to Executive KMP to align remuneration with creation
of shareholder value over the long-term.
VULCAN ENERGY ANNUAL REPORT | 2024
44
What is the
opportunity?
Executive KMP were granted LTI performance rights valued at:
MD-CEO: approximately 200% of fixed remuneration
Group CFO: approximately 140% of fixed remuneration
The issue of rights to the MD–CEO was approved at the Company’s EGM on 5 August 2024.
To further incentivise the MD-CEO and Group CFO and provide value to shareholders, Mr Moreno and Ms
Gooding have certain multipliers on their LTI performance securities, as set out in section 8.
How is performance
measured?
Vesting of LTI rights issued during the period is subject to performance criteria measured over a three-year
period relating to business returns (40%), sustainability returns (20%) and total Shareholder returns (40%).
Total Shareholder returns are measured against compound annual growth rate (CAGR) and the Company’s
performance relative to its peer group.
Refer to section 5 for further details of LTI rights issued in the current and prior financial years.
For rTSR, which
companies do
Vulcan measure their
performance against?
Relative TSR assesses our TSR against a custom peer group with constituents being determined by the
Board and reviewed on a regular basis to ensure appropriateness for the purpose of assessment.
For LTI grants made for the period ending 31 December 2024, the customised peer group comprises
companies in lithium and the wider resource sector, as follows:
Syrah Resources Limited, Chalice Mining Limited, Lynas Rare Earth Limited, 29 Metals Limited, Novonix
Limited, Liontown Resources Limited, Sayona Limited, Lake Resources Limited, Core Lithium Limited,
Pilbara Minerals Limited, Ioneer Limited, Piedmont Lithium Limited and Galan Lithium Limited.
When is performance
measured?
The performance measures are tested at the end of the three-year performance period to determine the
number of Rights that vest. There is no opportunity for re-testing. Rights will lapse if the performance
measures are not met at the end of the performance period.
What happens if an
Executive leaves?
Where a participant ceases employment prior to their Rights vesting due to resignation or termination for
cause, rights will be forfeited subject to Board discretion.
Are executives eligible
for dividends?
Executives are not eligible to receive dividends on unvested Rights.
5. Executive KMP remuneration outcomes
Company performance
A summary of Company performance as measured by its earnings per share and share price for the prior five reporting
periods, including disclosure required by the Corporations Act 2001, is outlined in the table below.
Measure
31 Dec 2024
31 Dec 2023
6 months ended
31 Dec 2022
30 June 2022
30 June 2021
Revenue (€’000)
8,119
6,783
3,622
3,799
-
Net Loss After Tax
(NPAT) (€’000)
42,358
26,963
13,450
18,851
6,726
Loss per share
(Euro cents)
23.27
16.92
9.52
15.12
7.71
Closing Vulcan
security price ($)
5.35
2.85
6.33
5.42
7.70
VULCAN ENERGY ANNUAL REPORT | 2024
45
STI Outcomes
To align performance measures with business objectives, the Board approved the issue of 119,500 STI rights to the MD-CEO
and 72,500 STI rights to the Group CFO during the period ended 31 December 2024. The issue of rights to the MD-CEO was
approved at the Company’s EGM on 5 August 2024.
Based on the assessed outcomes for the period ended 31 December 2024, because of an exceptional performance in a
tough global environment, the Board awarded 96.9% of STI rights to the MD-CEO, and 97.3% of STI rights to the Group CFO
assessed against the following milestones, in contrast to only 41% vesting during the previous FY23 year. These STI rights
vested at 31 December 2024. A summary of STI performance is provided below.
Vulcan Energy FY24 Scorecard
Group milestones (70% weighting)
The table below illustrates Group milestones which apply to the MD-CEO and Group CFO during FY24. Group Milestones
include project (50% weighting) and ESG (20% weighting) milestones, comprising a total 70% weighting of STI performance.
The remaining 30% of STI performance is determined by individual milestones.
Measure
Weighting
Outcome
Outcome summary
Project Milestones - 50%
The Company has produced battery quality lithium
hydroxide at Vulcan’s Central Lithium Electrolysis
Optimization Plant (CLEOP)
8.3%
7.9%
The milestone was achieved on 13 January 2025, with
95% progress at 31 December 2024. Achievement
subsequent to 31 December 2024 was due to brine
supply delays from a third party supplier.
The Company has all permits necessary for the
planned execution of phase 1 as per the Bridging
Study
8.3%
8.3%
The Company has permits to start execution
and commence drilling at the first new planned
production site, and therefore the milestone was
fully met.
The Company has secured all land necessary for
the interconnecting pipeline and power between
Insheim and Schleidberg; D12 to 40 Morgen and
Trappelberg
8.3%
7.9%
Key preparations made however final acquisition
not yet completed due to project financing. Due
to substantial progress with local stakeholders,
the milestone was tested at 95% complete at 31
December 2024.
The Company has commenced ‘shovel in the
ground’ construction of the Geothermal and
Lithium Extraction Plant
8.3%
7.9%
Groundworks ready to commence with preparation
was 95% complete at 31 December 2024. The delay
in commencement is a result of a change in the
financing timeline.
The Company has commenced drilling its first new
well as part of project execution of Phase 1
8.4%
8.0%
Drilling is expected to commence in H1 2025,
however the milestone is judged at 95% complete as
drilling approval was granted and drilling operations
were readied to progress to the execution phase,
including the Schleidberg well pad and V20 rig
readiness for transport to Schleidberg.
The Company has entered into binding agreements
to fully finance Phase 1 of its operations (Finance
Milestone)
8.4%
8.0%
During the period, conditional debt commitment
letters for almost €1 billion were secured, as well as
Board approval for a €500m lending envelope with
the European Investment Bank (EIB). In addition,
€140m equity was raised, including from strategic
investors, and €100m grant funding was secured.
Whilst the total financing package is not yet
finalised, the commitments received to date cover
the CAPEX of the project, and therefore 95% of the
milestone is judged as achieved.
Total Project Milestones
50.0%
48.0%
VULCAN ENERGY ANNUAL REPORT | 2024
46
Measure
Weighting
Outcome
Outcome summary
ESG Milestones – 20%
Environment
Meet 2024 HSE targets of Lost Time Incident
frequency rate (LTIF) of 3
5.0%
5.0%
One Lost Time Incident recorded in FY24 however a
LTIF of less than 3 was recorded in total, therefore
this metric is 100% achieved.
Signing a binding agreement with a local utility to
supply the local community with renewable heat in
Phase One area
5.0%
4.8%
Agreement is not officially signed at 31 December
2024, however signing forthcoming and the local
city council has voted overwhelmingly in favour of
the Project, resulting in a 95% outcome.
Governance
No breaches with local authorities or regulatory
authorities
5.0%
5.0%
No breaches at 31 December 2024.
No cyber security breaches during the period
5.0%
4.7%
One cyber security breach occurred in late
December 2024, resulting in no financial loss to the
Company, resulting in a 95% outcome.
Total ESG Milestones
20.0%
19.5%
FY24 STI share outcomes
The following table outlines the proportion of maximum STI that was achieved and forfeited in relation to the 2024 financial
year. The maximum STI rights are established at the start of the financial year and outcomes are determined by the People
and Performance Committee at the end of the financial year. Achieved STIs vested at 31 December 2024.
Executive
Role
Achieved STI (%)
Forfeited STI (%)
Mr Cris Moreno
MD-CEO
96.9%
3.1%
Ms Felicity Gooding
Group CFO
97.3%
2.7%
In relation to the 2023 financial year, Mr Cris Moreno’s achieved STI was 37.4% (62.6% forefeited).
LTI rights issued in FY24
To align performance measures with business objectives, the Board approved the issue of 348,000 LTI rights to the MD-CEO
and 202,500 LTI rights to the Group CFO during the period ended 31 December 2024. The issue of rights to the MD-CEO was
approved at the Company’s EGM on 5 August 2024.
LTI’s that were granted in FY24 to Executive KMP’s will be tested at the end of the performance period which is 31 December
2026. LTI vesting is subject to the following performance criteria measured over a three-year performance period:
1) Business returns (40%) based on the satisfaction of the following strategic milestones:
·
Project construction and execution of the Central Lithium Plant is as per the Controlled Schedule (P50) (Project
Construction).
·
Deliver CAPEX as per Phase 1 bridging phase (as aligned with BNPP financing package) and assumptions.
·
Obtain Project Financing for Phase Two capital expenditure.
VULCAN ENERGY ANNUAL REPORT | 2024
47
2) Sustainability returns (20%): based on the satisfaction of the following milestones:
·
Achieve financing with ESG criteria and successfully execute all ESMP (Environmental, Social Management Plan)
requirements.
·
Set a publicly announced GHG emissions target (linked to a credible framework such as Science Based Targets) and meet
the target within timeline and volume of reduction requirements.
3) Total Shareholder returns (TSR) (40%):
a. Absolute TSR (aTSR) (20%):
aTSR compound annual growth rate (CAGR)
% to Vest
Less than 7.5%
0%
Between 7.5% and 10%
50%to 75% on a pro-rata basis
Between 10% and 12.5%
75%to 100% on a pro-rata basis
Greater than 12.5%
100%
b. Relative TSR (rTSR) (20%):
rTSR performance
% to Vest
50th percentile
50%
Between 50th percentile and 75th percentile
Pro-rata
75th percentile
100%
VULCAN ENERGY ANNUAL REPORT | 2024
48
Statutory Executive KMP remuneration
The following table sets out total remuneration for Executive KMP for the year ended 31 December 2024 (Dec-24) and for the
year ended 31 December 2023 (Dec-23), calculated in accordance with statutory accounting requirements and presented in
Euro (€).
Year/Period
Short-term
benefits
Post-
employment
benefits
Share-
based
payments
Total (€)
Performance
related %
Cash Salary
Non-
monetary
Superannuation
Executive KMP
Dr. Francis
Wedin29
Dec-24
366,119
-
41,182
54,150
461,451
12%29
Dec-23
361,690
-
38,899
88,710
489,299
18%
Mr Cristobal
Moreno
Dec-24
371,021
-
41,182
371,688
783,891
47%
Dec-23
307,200
-
33,178
43,980
384,358
11%
Ms. Felicity
Gooding30
Dec-24
299,310
-
25,809
247,651
572,770
43%
Dec-23
-
-
-
-
-
0%
Mr. Robert
Ierace 31
Dec-24
3,687
-
741
-
4,428
0%
Dec-23
165,908
-
17,841
(186)
183,563
0%
Mr. Vincent Ledoux
Pedailles 32
Dec-24
-
-
-
-
-
0%
Dec-23
135,000
-
-
(17,923)
117,077
(15%)
Totals
Dec-24
1,040,137
-
108,914
673,489
1,822,540
37%
Dec-23
969,798
-
89,918
114,581
1,174,297
10%
29 The Company’s Executive Chair, Dr Francis Wedin, has declined to receive STI or LTI rights in the future, as he is of the belief that he is already
sufficiently incentivised through his existing shareholding as founder of the business.
30 Ms Felicity Gooding was appointed as Group CFO on 15 January 2024, and as Executive Director on 1 January 2025.
31 Mr Robert Ierace ceased to be an Executive KMP on 15 January 2024.
32 Mr Vincent Ledoux Pedailles ceased to be an Executive KMP on 30 June 2023.
VULCAN ENERGY ANNUAL REPORT | 2024
49
6. Executive KMP Contracts
Remuneration arrangements for Executive KMP are formalised in employment agreements. All Executive KMP are employed
under an ongoing contract. Key terms of the agreements for Executive KMP in the current and prior financial year are as follows:
Executive KMP
Position
Fixed remuneration
(inclusive of
superannuation)
Termination notice
period by the
Company36
Termination notice
period by the
Executive37
Termination
benefits (in lieu
of notice)
Dr Francis
Wedin
Executive Chair
$669,000
(€408,157)
6 months
6 months
1 or 6 months
Mr Cris
Moreno
Managing Director and
Chief Executive Officer
$669,000
(€408,157)
6 months
6 months
1 or 6 months
Ms Felicity
Gooding33
Group Chief Financial
Officer and Executive
Director
$557,500
(€340,131)
6 months
6 months
1 or 6 months
Mr Rob
Ierace34
Chief Financial Officer
$304,140
(€185,556)
1 month
1 month
1 month
Mr Vincent
Pedailles35
Chief Commercial
Officer
€270,000
3 months
3 months
3 months
33 Ms Felicity Gooding was appointed as Group CFO on 15 January 2024, and as Executive Director on 1 January 2025.
34 Mr Rob Ierace ceased to be an Executive KMP on 15 January 2024 and stepped down from the role of Chief Financial Officer on 31 March 2024.
35 Mr Vincent Ledoux-Pedailles ceased to be an Executive KMP on 30 June 2023.
36 Unless the Company terminates the KMP Contract for circumstances relating to a serious breach of their appointment agreement (1 month)
or summarily without notice in extreme circumstances.
37 Unless the KMP terminates the KMP Contract for circumstances relating to the Company committing a serious breach of their appointment
agreement, whereby 28 days’ notice is required.
All Executive KMP are eligible to participate in Vulcan’s STI and LTI structure on terms as determined by the Board, subject
to receiving any required shareholder approval.
7. Non-Executive Director remuneration arrangements
Policy
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract and retain
directors of the highest calibre, at an acceptable cost to shareholders.
The fee structure is typically reviewed annually against fees paid to NEDs of comparable ASX listed companies with a similar
market capitalisation to Vulcan, as well as similar sized industry comparators. The Board considers advice from other
independent external consultants when undertaking the review process. No review was conducted in 2024, but a review is
expected to be conducted in 2025.
The Company’s constitution and the ASX Listing Rules specify that the NED fee pool shall be determined from time to time
by a general meeting. The latest determination was at the annual general meeting (AGM) held in November 2022 when
shareholders approved an aggregate fee pool of $950,000 (€628,470) per year.
VULCAN ENERGY ANNUAL REPORT | 2024
50
Structure
The fee for NEDs consists of directors’ fees and committee fees. The payment of additional fees for serving on a committee
recognises the additional time commitment required by NEDs to fulfil this role.
The Board fees paid to Deputy Chair Gavin Rezos included a consulting fee.
There were no increases to NED and committee fees for the year to 31 December 2024. The Deputy Chair fee reduced from
$204,000 (€125,338) as at 31 December 2023 to $152,000 (€92,735) from 1 January 2024, representing a 25% decrease. The
table below summarises the current NED fee policy.
Board fees
Deputy Chair
$152,000 (€92,735)
Directors
$81,000 (€49,418)
Committee fees
Committee Chair
$15,000 (€9,151)
Committee Members
$10,000 (€6,101)
Australian-based NEDs have superannuation included as part of their fees.
In addition to directors’ fees and committee fees, NEDs are issued securities in the Company to a value of A$35,000 each
year, with the intention being to issue the equivalent of three years’ worth of securities every three years (ie a total value of
A$105,000); it is intended that this arrangement continues whilst the NED is a Director. Each annual tranche (ie one third
of the total award) vests 12 months from the date of issue, and the vesting criteria for each tranche is that NEDs are still a
Director on the vesting date.
In his role as Lead Independent Director and Deputy Chair commencing on 1 January 2025, Mr Angus Barker will be granted
additional securities in the Company to a value of A$36,000, resulting in a total annual value of A$71,000 in Company
securities granted to Mr Angus Barker.
For FY24, no NED was granted equity awards linked to company performance. However, Ms Annie Liu and Ms Ranya
Alkadamani were paid a cash-settled pro-rata annual service fee in lieu of A$35,000 worth of ordinary shares, in consideration
for continuing on the board until their retirement dates of 13 September 2024 and 31 December 2024 respectively.
VULCAN ENERGY ANNUAL REPORT | 2024
51
NED statutory remuneration disclosures
The remuneration of NEDs for the year 1 January 2024 to 31 December 2024 (Dec24) and for the year 1 January 2023 to
31 December 2023 (Dec23) is detailed below, denominated in Euro (€).
Year/Period
Short-term
benefits (€)
Post-employment
(€)
Share-
based
payments (€)
Total (€)
Share based
payment %
Fees Superannuation (€)
Non - Executive Directors
Mr. Gavin
Rezos38
Dec-24
104,940
-
-
104,940
0%
Dec-23
129,639
-
82,239
211,878
39%
Ms. Ranya
Alkadamani38
Dec-24
65,28439
5,923
(1,751)
69,456
(3)%
Dec-23
49,643
5,345
21,867
76,855
28%
Dr. Heidi
Grön
Dec-24
61,620
-
3,285
64,905
5%
Dec-23
62,8233
-
11,799
74,622
16%
Ms. Annie
Liu41
Dec-24
43,95442
-
3,286
47,240
7%
Dec-23
51,917
-
11,799
63,716
19%
Ms. Josephine
Bush
Dec-24
58,570
-
3,285
61,855
5%
Dec-23
54,989
-
11,799
66,788
18%
Dr. Günter
Hilken
Dec-24
58,061
-
16,887
74,948
23%
Dec-23
57,44740
-
37,518
94,965
40%
Mr. Angus
Barker43
Dec-24
13,126
1,510
-
14,636
0%
Dec-23
-
-
-
-
-
Mr. Mark
Skelton44
Dec-24
4,600
506
-
5,106
0%
Dec-23
58,245
5,345
18,050
81,640
22%
Totals
Dec-24
410,155
7,938
24,992
443,086
6%
Dec-23
464,703
10,690
195,071
670,464
29%
38 Mr Gavin Rezos and Ms Ranya Alkadamani retired on 31 December 2024.
39 This amount includes the pro-rata annual service fee for $20,712 (€12,636) in lieu of ordinary shares for continuing on the board until
retirement date of 31 December 2024.
40 Fees for FY23 included $9,000 (€5,530) for participating in an additional three meetings as members of the Projects Oversight Committee (POC).
41 Ms Annie Liu retired on 13 September 2024.
42 This amount includes the pro-rata annual service fee for $7,767 (€4,739) in lieu of ordinary shares for continuing on the board until retirement
date of 13 September 2024.
43 Mr Angus Barker joined the Board as Non-Executive Director on 13 September 2024, and was appointed Lead Independent Director and
Deputy Chair on 1 January 2025.
44 Mr Mark Skelton retired on 1 February 2024.
VULCAN ENERGY ANNUAL REPORT | 2024
52
8. Additional disclosures relating to rights and shares
Rights awarded, vested and cancelled/lapsed during the year
The table below discloses the number of rights that vested, were exercised or cancelled during the year.
Rights do not carry any voting or dividend rights and can be exercised once the vesting conditions have been met and until
their expiry date.
Executive
KMP
Balance at
start of year
Granted as
remuneration
Performance
rights
exercised
during the year
Performance
rights
cancelled/
lapsed
Balance45 at
end of year
Performance
rights vested
during the year
Number of
performance
rights
vested and
exercisable at
1-Jan-24
31-Dec-24
31-Dec-24
Dr. Francis
Wedin
125,724
-
-
-
125,724
-
9,724
Mr. Cristobal
Moreno46
57,614
467,500
-
(3,806)
521,308
115,694
119,808
Ms Felicity
Gooding45, 46
-
275,000
(2,055)
272,945
70,445
70,445
Mr. Robert
Ierace47
34,716
-
-
(34,716)
-
-
-
218,054
742,500
-
(40,577)
919,977
186,139
199,977
45 Ms Gooding was appointed as Group CFO on 15 January 2024, and as Executive Director on 1 January 2025.
46 Mr Moreno has the following multipliers on his Rights: (1) LTI (a) 1.5x if Project Construction (defined as project construction and execution of
the Central Lithium Plant) is as per the Controlled Schedule (P50) as at the Measurement Period; and (b) 1.25x if Project Construction is within
six months of the Controlled Schedule (P50); and (1) STI performance rights (a) 1.5x if the Company has entered into binding agreements to
fully finance Phase 1 of its operations by 31 December 2024 (Financing Milestone). It is noted that the Company amended multipliers 1(a) and
1(b) for Mr Moreno from that originally disclosed in the 2023 Annual Report (but never issued) as the Board believed that the new multipliers
were more appropriate. It is noted that ~94% of shareholder votes were received to approve the new multipliers in August 2024. As set out
in section [5], the Board resolved that given significant financing achievements during 2024, the Financing Milestone (and accordingly the
Financing Milestone multiplier) was 95% met. Ms Gooding also has the same 1.5x multiplier in relation to both the Financing Milestone for her
STIs and Project Construction for her LTIs .
47 Mr Ierace ceased to be a KMP on 15 January 2024. Mr Ierace stepped down from the role of CFO on 31 March 2024, resulting in his rights
lapsing on that date.
VULCAN ENERGY ANNUAL REPORT | 2024
53
There were no rights issued to Non-Executive Directors as remuneration during the year ended 31 December 2024, however
rights held by Josephine Bush, Annie Liu and Dr Heidi Grön (4,297 each), Dr Günter Hilken (4,746) and Ranya Alkadamani (8,412)
vested during the course of the year.
The table below discloses the number of rights that vested or were exercised during the year.
Rights do not carry any voting or dividend rights and can be exercised once the vesting conditions have been met until their
expiry date.
NED
Balance at
start of year
Granted as
remuneration
Performance
rights
exercised
during the
year
Performance
rights
lapsed/
forfeited
Other
movement52
Balance48 at
end of year
Performance
rights vested
during the
year
Number of
performance
rights
vested and
exercisable
at
1-Jan-24
31-Dec-24
31-Dec-24
31-Dec-24
Mr. Gavin
Rezos49
-
-
-
-
-
-
-
-
Ms. Ranya
Alkadamani49
25,234
-
-
(16,823)
(8,411)
-
8,411
-
Dr. Heidi
Grön
4,298
-
-
-
-
4,298
4,298
4,298
Ms. Annie
Liu50
4,298
-
-
-
(4,298)
-
4,298
-
Ms. Josephine
Bush
4,298
-
-
-
-
4,298
4,298
4,298
Dr. Günter
Hilken
14,237
-
(4,746)
-
-
9,491
4,746
4,746
Mr. Angus
Barker51
-
-
-
-
-
-
-
-
Mr. Mark
Skelton53
14,237
-
-
(9,491)
(4,746)
-
-
-
66,602
-
(4,746)
(26,314)
(17,455)
18,087
26,051
13,342
48 Includes performance rights held directly, indirectly and beneficially by NEDs
49 Mr Gavin Rezos and Ms Ranya Alkadamani retired on 31 December 2024.
50 Ms Annie Liu retired on 13 September 2024.
51 Mr Angus Barker joined the Board as Non-Executive Director on 13 September 2024, and was appointed Lead Independent Director and
Deputy Chair on 1 January 2025.
52 The other movement represents the holding of the NED at the date they ceased to be a NED.
53 Mr Mark Skelton retired on 1 February 2024.
VULCAN ENERGY ANNUAL REPORT | 2024
54
The terms and conditions of each grant of rights affecting remuneration of directors and other Key Management Personnel
in this financial year or future reporting years are as follows:
Number
of per-
formance
rights
granted
Grant
date
Vesting
date
Fair value
per perfor-
mance right
at grant date
(€)
Total value of
performance
rights at
grant date (€)
Value of
performance
rights forfeit-
ed during the
year (€)
Value of
performance
rights exer-
cised during
the year (€)
NED
Ms. Ranya
Alkadamani54
Class AD
8,411
28/05/2023
28/05/2024
2.60
21,869
-
-
Class AD
8,411
28/05/2023
28/05/2025
2.60
21,869
(21,869)
-
Class AD
8,412
28/05/2023
28/05/2026
2.60
21,871
(21,871)
-
Dr Heidi
Grön
Class S
4,298
24/06/2021
24/06/2024
4.95
21,275
-
-
Ms. Annie
Liu55
Class S
4,298
24/06/2021
24/06/2024
4.95
21,275
-
-
Ms. Josephine
Bush
Class S
4,298
24/06/2021
24/06/2024
4.95
21,275
-
-
Dr. Günter
Hilken
Class AC
4,746
29/11/2022
29/11/2023
4.76
22,591
-
(22,591)
Class AC
4,746
29/11/2022
29/11/2024
4.76
22,591
-
-
Class AC
4,746
29/11/2022
29/11/2025
4.76
22,591
-
-
Mr Mark
Skelton56
Class AC
4,746
29/11/2022
29/11/2024
4.76
22,591
(22,591)
-
Class AC
4,746
29/11/2022
29/11/2025
4.76
22,591
(22,591)
-
54 Ms Ranya Alkadamani retired on 31 December 2024.
55 Ms Annie Liu retired on 13 September 2024.
56 Mr Mark Skelton retired on 1 February 2024.
VULCAN ENERGY ANNUAL REPORT | 2024
55
Number
of per-
formance
rights
granted
Grant
date
Vesting
date
Fair value
per perfor-
mance right
at grant date
(€)
Total value of
performance
rights at
grant date (€)
Value of
performance
rights forfeit-
ed during the
year (€)
Value of
performance
rights exer-
cised during
the year (€)
Executive KMP
Dr. Francis
Wedin
Class AA
26,000
29/11/2022
30/06/2024
4.52
117,520
-
-
Class AB
81,200
29/11/2022
30/06/2026
4.52
367,024
-
-
Class AB
11,600
29/11/2022
30/06/2026
3.46
40,136
-
-
Class AB
23,200
29/11/2022
30/06/2026
3.69
85,608
-
-
Mr. Cristobal
Moreno
Class AA
11,000
13/12/2022
30/06/2024
4.30
47,300
-
-
Class AB
37,450
13/12/2022
30/06/2026
4.30
161,035
-
-
Class AB
5,350
13/12/2022
30/06/2026
3.24
17,334
-
-
Class AB
10,700
13/12/2022
30/06/2026
3.50
37,450
-
-
Class IP
119,500
5/08/2024
31/12/2024
2.28
272,896
(8,692)
-
Class IP
208,800
5/08/2024
31/12/2026
2.28
476,826
-
-
Class IP
69,600
5/08/2024
31/12/2026
1.33
92,840
-
-
Class IP
69,600
5/08/2024
31/12/2026
1.72
119,372
-
-
Ms. Felicity
Gooding57
Class IP
72,500
17/06/2024
31/12/2024
2.63
190,977
(5,412)
-
Class IP
121,500
17/06/2024
31/12/2026
2.63
320,051
-
-
Class IP
40,500
17/06/2024
31/12/2026
1.88
76,203
-
-
Class IP
40,500
17/06/2024
31/12/2026
2.14
86,696
-
-
Mr. Robert
Ierace58
Class AA
9,000
19/09/2022
30/06/2024
5.24
47,160
(47,160)
-
Class AB
21,000
19/09/2022
30/06/2026
5.24
110,040
(110,040)
-
Class AB
3,000
19/09/2022
30/06/2026
4.18
12,540
(12,540)
-
Class AB
6,000
19/09/2022
30/06/2026
4.57
27,420
(27,420)
-
57 Ms Felicity Gooding was appointed as Group CFO on 15 January 2024, and as Executive Director on 1 January 2025.
58 Mr Robert Ierace ceased to be a KMP on 15 January 2024. Mr Ierace stepped down from the role of CFO on 31 March 2024, resulting in his
rights lapsing on that date.
Performance rights granted carry no dividend or voting rights.
VULCAN ENERGY ANNUAL REPORT | 2024
56
All performance rights were granted over unissued fully paid ordinary shares in the Company. The number of performance
rights that vest was determined having regard to the satisfaction of performance measures and weightings as described in
section 5. Performance rights vest based on the provision of service over the vesting period or satisfaction of performance
measures, whereby the executive and non-executive becomes beneficially entitled to the performance rights on vesting
date. There are no amounts paid or payable by the recipient in relation to the granting of such performance rights other than
on their potential exercise.
Shareholdings
The table below details the number of Vulcan shares held by NEDs and Executive KMP and the movement during the year
ended 31 December 2024.
Other movements in the table reflect shareholdings of the NED or Executive KMP on the date they ceased to be a NED or
Executive KMP, and does not indicate a sale of shares by the NED or Executive KMP.
Class of shares
Balance at
start of year
Exercise of
performance
rights
On market
purchase
/(sale)
Other
movement66
Balance at
end of year59
1-Jan-24
31-Dec-24
Non-Executive Directors
Mr. Gavin
Rezos60
Ordinary
8,635,500
-
-
(8,635,500)
-
Ms. Ranya
Alkadamani60
Ordinary
276,000
-
-
(276,000)
-
Dr. Heidi
Grön
Ordinary
10,398
-
-
-
10,398
Ms. Annie
Liu61
Ordinary
81,678
-
-
(81,678)
-
Ms. Josephine
Bush
Ordinary
26,167
-
14,200
-
40,367
Dr. Günter
Hilken
Ordinary
-
4,746
-
-
4,746
Mr. Angus
Barker62
Ordinary
-
-
-
20,000
20,000
Mr. Mark
Skelton63
Ordinary
2,000
-
-
(2,000)
-
Executive KMP
Dr. Francis
Wedin
Ordinary
16,458,561
-
-
-
16,458,561
Mr. Cristobal
Moreno
Ordinary
-
-
-
-
-
Ms. Felicity
Gooding64
Ordinary
-
-
-
-
-
Mr. Robert
Ierace65
Ordinary
125,454
-
-
(125,454)
-
Totals
25,615,758
4,746
14,200
(9,100,632)
16,534,072
59 Includes shares held directly, indirectly and beneficially by KMP
60 Mr Gavin Rezos and Ms Ranya Alkadamani retired on 31 December 2024.
61 Ms Annie Liu retired on 13 September 2024.
62 Mr Angus Barker joined the Board as Non-Executive Director on 13 September 2024, and was appointed Lead Independent Director and
Deputy Chair on 1 January 2025.
63 Mr Mark Skelton retired on 1 February 2024.
64 Ms Felicity Gooding was appointed as Group CFO on 15 January 2024, and as Executive Director on 1 January 2025.
65 Mr Robert Ierace ceased to be a KMP on 15 January 2024 .
66 Other movement represents the shareholding of NEDs/ Executive KMP on the date they ceased to be a NED/ Executive KMP, or in the case
of Mr Angus Barker, on the date he commenced as NED. It does not indicate a sale of shares by the NED or Executive KMP.
VULCAN ENERGY ANNUAL REPORT | 2024
57
9. Loans to key management personnel and their related parties
There were no loans to KMP and their related parties during the financial year.
10. Other transactions and balances with key management personnel and their
related parties
There was an outstanding balance payable to JRB Consulting Ltd, a related party of Ms Josephine Bush, of €4,780 in relation
to directors’ fees for the period ended 31 December 2024 (31 December 2023: nil). During the previous year, payments for
consultancy fees of €12,056 were made to JRB Consulting Ltd in respect of expert advice on ESG reporting.
There were outstanding balances payable to Mr Gavin Rezos of €8,563 (December 2023: €11,666), Dr Günter Hilken of €5,583
(December 2023: nil) and Dr Heidi Grön of €5,028 (December 2023: nil) in relation to directors’ fees for the period ended 31
December 2024.
Other than the above, there were no other transactions with related parties during the year ended 31 December 2024.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
End of Remuneration Report.
Signed in accordance with a resolution of the Directors made pursuant to S.298(2) of the Corporations Act 2001.
On behalf of the Directors
Dr Francis Wedin
Executive Chair
PERTH, Western Australia, 25 March 2025
VULCAN ENERGY ANNUAL REPORT | 2024
58
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
www.rsm.com.au
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Vulcan Energy Resources Limited for the year ended 31
December 2024, 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
Perth, WA
Matthew Beevers
Dated: 25 March 2025
Partner
59
Financial statements
VULCAN ENERGY ANNUAL REPORT | 2024
60
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
Note
31 Dec 24
31 Dec 23
€'000
€'000
Revenue from continuing operations
4
8,119
6,783
Other income
5
1,433
1,191
Gain on discontinuation of use of the equity method of
accounting for investments
29
-
3,874
Loss from equity accounted investments
29
(92)
(456)
Other own work capitalised
5
12,560
18,877
Raw materials and purchased services
(750)
(2,593)
Employee benefit expenses
(37,459)
(30,170)
Depreciation and amortisation expenses
6
(9,597)
(5,869)
Impairment expenses
18
-
(1,144)
Share-based payments expense
35
(851)
(1,688)
Other expenses
(19,085)
(21,294)
Net foreign exchange gain
33
1,456
299
Finance income
7
1,889
3,558
Interest expense
7
(173)
(172)
Loss before income tax expense
(42,550)
(28,804)
Income tax benefit
8
192
1,841
Loss after income tax for the year
(42,358)
(26,963)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations
(4,055)
(2,444)
Items that will not be reclassified subsequently to profit or loss
Revaluation of investments at fair value through other
comprehensive income
(1,090)
(1,870)
Total comprehensive loss for the year (net of tax)
(47,503)
(31,277)
Total comprehensive loss for the year attributable to the
owners of Vulcan Energy Resources Limited
(47,503)
(31,277)
Loss per share for the year attributable to the members Vulcan
Energy Resources Limited:
€
€
Basic loss per share (Euro)
9
(0.23)
(0.17)
Diluted loss per share (Euro)
9
(0.23)
(0.17)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be
read in conjunction with the notes to the financial statements.
VULCAN ENERGY ANNUAL REPORT | 2024
61
Vulcan Energy Resources Limited – Annual Report 1 January 2024 - 31 December 2024
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
Note
31 Dec 24
31 Dec 23
Assets
€'000
€'000
Current assets
Cash and cash equivalents
10
97,054
78,728
Trade and other receivables
11
12,519
6,899
Contract assets
12
-
117
Inventories
13
137
327
Total current assets
109,710
86,071
Non-current assets
Investments accounted for using equity method
29
-
124
Financial assets at fair value through other comprehensive
income
30
1,396
2,550
Exploration and evaluation expenditure
15
13,124
48,475
Other assets
14
8,244
11,775
Property, plant and equipment
16
237,329
138,605
Right-of-use assets
17
3,836
4,416
Intangible assets
18
3,821
1,655
Deferred tax assets
19
3,568
3,212
Total non-current assets
271,318
210,812
Total Assets
381,028
296,883
Liabilities
Current liabilities
Trade and other payables
20
18,412
17,194
Derivative financial instrument
21
-
133
Employee benefits
22
1,523
1,509
Lease liabilities
17
771
1,086
Provisions
24
-
750
Deferred income
23
2,110
-
Income tax liabilities
8(d)
57
113
Total Current liabilities
22,873
20,785
Non-current liabilities
Lease liabilities
17
3,081
3,325
Provisions
24
1,987
264
Deferred income
23
-
2,818
Deferred tax liabilities
25
1,535
1,410
Total non-current liabilities
6,603
7,817
Total Liabilities
29,476
28,602
Net Assets
351,552
268,281
Equity
Share capital
27
453,643
323,739
Reserves
28
9,083
13,377
Accumulated losses
40
(111,193)
(68,835)
Equity attributable to the owners of Vulcan Energy Resources
Limited
351,533
268,281
Non-controlling interest
19
-
Total Equity
351,552
268,281
The Consolidated Statement of Financial Position should be
read in conjunction with the notes to the financial statements.
VULCAN ENERGY ANNUAL REPORT | 2024
62
Vulcan Energy Resources Limited – Annual Report 1 January 2024 - 31 December 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Consolidated
Issued
Capital
Revaluation
Reserve
Reserves
Foreign
Currency
Reserve
Accumulated
Losses
Non-
controlling
interests
Total
€'000
€'000
€'000
€'000
€'000
€'000
€'000
At 1 Jan 23
259,158
-
9,706
6,169
(41,872)
-
233,161
Loss for the year
-
-
-
-
(26,963)
-
(26,963)
Other comprehensive loss
-
-
-
(2,444)
-
-
(2,444)
Revaluation of investments at fair value through other comprehensive income
-
(1,870)
-
-
-
-
(1,870)
Total comprehensive loss for the year after tax
-
(1,870)
-
(2,444)
(26,963)
-
(31,277)
Transactions with owners in their capacity as owners:
Issue of share capital
67,350
-
-
-
-
-
67,350
Share issue costs
(2,769)
-
-
-
-
-
(2,769)
Share-based payments (note 35)
-
-
1,816
-
-
-
1,816
At 31 Dec 23
323,739
(1,870)
11,522
3,725
(68,835)
-
268,281
At 1 Jan 24
323,739
(1,870)
11,522
3,725
(68,835)
-
268,281
Loss for the year
-
-
-
-
(42,358)
-
(42,358)
Other comprehensive loss
-
-
-
(4,055)
-
-
(4,055)
Revaluation of investments at fair value through other comprehensive income
-
(1,090)
-
-
-
-
(1,090)
Total comprehensive loss for the year after tax
-
(1,090)
-
(4,055)
(42,358)
-
(47,503)
Transactions with owners in their capacity as owners:
Issue of share capital
134,032
-
-
-
-
-
134,032
Share issue costs
(4,128)
-
-
-
-
-
(4,128)
Non-controlling interests acquired
-
-
-
-
-
19
19
Share-based payments (note 35)
-
-
851
-
-
-
851
Balance at 31 December 2024
453,643
(2,960)
12,373
(330)
(111,193)
19
351,552
The Consolidated Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.
VULCAN ENERGY ANNUAL REPORT | 2024
63
Vulcan Energy Resources Limited – Annual Report 1 January 2024 – 31 December 2024
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
31 Dec 24
31 Dec 23
Note
€'000
€'000
Cash flows from operating activities
Receipts from customers
8,578
8,315
Payments to suppliers and employees
(41,278)
(37,711)
Interest received
2,234
3,359
Other income
60
2,424
Interest paid
(173)
(172)
Income taxes paid
(100)
(546)
Net cash used in operating activities
10
(30,679)
(24,331)
Cash flows from investing activities
Payments for exploration and evaluation expenditure
(12,024)
(19,003)
Payment for plant and equipment
(58,290)
(73,629)
Payment to acquire subsidiary
(371)
(150)
Loans provided to external parties
(2,549)
-
Cash acquired upon acquisition of subsidiary
-
35
(Payments to acquire)/receipts from sale of financial
assets
(2,749)
287
Net cash used in investing activities
(75,983)
(92,460)
Cash flows from financing activities
Proceeds from issue of shares
134,032
67,350
Share issue costs
(2,436)
(2,770)
Repayment of loan acquired in business combinations
-
(81)
Lease repayments
(1,197)
(1,744)
Financing costs
(5,252)
-
Net cash from financing activities
125,147
62,755
Net decrease in cash and cash equivalents
18,485
(54,036)
Cash and cash equivalents at beginning of the year
78,728
134,107
Effect of exchange rate fluctuations
(159)
(1,343)
Cash and cash equivalents at end of the year
97,054
78,728
The Consolidated Statement of Cash Flows should be
read in conjunction with the notes to the financial statements.
VULCAN ENERGY ANNUAL REPORT | 2024
64
Vulcan Energy Resources Limited – Annual Report 1 January 2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 SUMMARY OF MATERIAL ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
(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 Level 11, 1 Spring Street, Perth
WA 6000. The consolidated financial statements of the Company as at and for the year ended 31 December 2024
comprise the Company and its subsidiaries (together referred to as the “consolidated entity” or the “Group”). The
principal activity of the Group is geothermal energy and lithium exploration and production.
(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 25 March 2025.
Functional and presentation currency
Items included in the financial statements of each of the consolidated 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 Euro, which is Vulcan Energy Resources Limited’s presentation currency.
Historical cost convention
The consolidated financial statements have been prepared under historical cost convention, except for, where
applicable, the revaluation of financial assets at fair value through other comprehensive income, certain classes
of property, plant and equipment and derivative financial instruments.
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 41.
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance
with that Corporations Instrument to the nearest thousand Euro, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early
adopted.
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 mandatory, have not been adopted by the Group for the annual reporting year ended 31
December 2024. 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.
VULCAN ENERGY ANNUAL REPORT | 2024
65
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONT.)
Going concern
The consolidated financial statements have been prepared on the going concern basis, which contemplates
continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal
course of business.
As disclosed in the consolidated financial statements, the Group incurred a loss after tax of €42.358m and had
net cash outflows from operating and investing activities of €30.679m and €75.983m respectively for the year
ended 31 December 2024. As at that date, the Group had a net current assets surplus of €86.837m and cash and
cash equivalents of €97.054m.
The Directors believe that it is reasonably foreseeable that the consolidated entity will continue as a going
concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report after
consideration of the following factors:
•
The Group’s ability to issue additional shares under the Corporation Act 2001 to raise further working
capital. The Group has demonstrated its ability to raise capital from strategic and institutional investors,
including over €460m raised through equity raisings in the past, including €134m raised in the year ended
31 December 2024.
•
During the reporting period, the Group was advised by the European Investment Bank (EIB) that its Board
had approved participation in the Group’s Phase One debt financing process, with the financing
potentially amounting to up to €500m, pending completion of final due diligence, signing of legal
documentation and final internal approval.
•
During the reporting period, the group received a conditional debt commitment letter for €879m from
Export Finance Australia (EFA) and a group of seven commercial banks for the financing of the Group’s
project.
VULCAN ENERGY ANNUAL REPORT | 2024
66
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONT.)
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.
Deferred tax assets and liabilities are always classified as non-current.
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) 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 31 December 2024 and the results of all subsidiaries for the
year then ended. Interests in subsidiaries are detailed in note 31.
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 or losses on transactions between consolidated
entity companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the consolidated entity.
VULCAN ENERGY ANNUAL REPORT | 2024
67
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONT.)
Subsidiaries (cont.)
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.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated
statement of comprehensive income, statement of changes in equity and statement of financial position
respectively.
Where the consolidated entity loses control over the subsidiary, it derecognises the assets including goodwill,
liabilities and non-controlling interest in the subsidiary together with any cumulative transaction differences
recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair
value of any investment retained together with any gain or loss on profit or loss.
(d) Foreign Currency Transactions
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.
(e) Entity Functional Currency Different From Group Presentational Currency
The assets and liabilities of entities with functional currency different from group presentational currency are
translated into Euro using the exchange rates at the reporting date. The revenues and expenses of entities with
functional currency different from group presentational currency are translated into Euro using the average
exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign
exchange differences are recognised in other comprehensive income through the foreign currency reserve in
equity.
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.
Exploration and evaluation expenditure
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence
commercial production in the future, from which time the costs will be amortised in proportion to the depletion
of the mineral resources. 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. In addition, costs are only capitalised that are expected to be recovered either through
successful development or sale of the relevant mining interest. Factors that could impact future commercial
production include the level of reserves and resources, future technology changes, which could impact the cost
of mining, future legal changes and changes in commodity prices. To the extent that capitalised costs are
determined not to be recoverable in the future, they will be written off in the period in which this determination
is made.
VULCAN ENERGY ANNUAL REPORT | 2024
68
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS (CONT.)
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.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life
intangible assets at each reporting date by evaluating conditions specific to the consolidated entity and to the
particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset
is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a
number of key estimates and assumptions.
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement
is required in determining the provision for income tax. There are many transactions and calculations undertaken
during the ordinary course of business for which the ultimate tax determination is uncertain. The consolidated
entity recognises liabilities for anticipated tax audit issues based on the consolidated entity's current
understanding of the tax law. Where the final tax outcome of these matters is different from the carrying
amounts, such differences will impact the current and deferred tax provisions in the period in which such
determination is made.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers
it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability.
Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease
or purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when
ascertaining the periods to be included in the lease term. In determining the lease term, all facts and
circumstances that create an economical incentive to exercise an extension option, or not to exercise a
termination option, are considered at the lease commencement date. Factors considered may include the
importance of the asset to the consolidated entity's operations; comparison of terms and conditions to prevailing
market rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs
and disruption to replace the asset. The consolidated entity reassesses whether it is reasonably certain to
exercise an extension option, or not exercise a termination option, if there is a significant event or significant
change in circumstances.
Restoration provision
Significant judgement is required in determining the provision for mine restoration and rehabilitation as there
are many factors that will affect the ultimate liability payable to rehabilitate and restore the mine sites. The
estimate of future costs therefore requires management to make assessment of the closure date, changes in
relevant local legal and regulatory framework, future inflation rates, changes in discount rates, the extent of
restoration activities and future removal and rehabilitation technologies. When these factors change or
become known in the future, such differences will impact the restoration and rehabilitation provision in the
period in which they change or become known. The provision recognised is periodically reviewed and updated
based on the facts and circumstances available at the time.
VULCAN ENERGY ANNUAL REPORT | 2024
69
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2 CRITICAL ACCOUNTING ESTIMATES, JUDGEMENTS AND ASSUMPTIONS (CONT.)
Development phase
During the year ended 31 December 2024, judgement was exercised determining the Group had proven the
technical feasibility and commercial viability of extracting a mineral resource from its Phase One Project, and
therefore exploration and evaluation expenditure should be reclassified to mine properties in development. At
this time, the Group is required to test exploration and evaluation expenditure immediately prior to
reclassification, which requires judgement in the determination of its cash generating units (CGU), and
assumptions regarding the calculation of recoverability of capitalised exploration and evaluation expenditure,
such as the level of reserves and resources and future commodity prices. Further information is included in
note 16.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is
estimated to discount future lease payments to measure the present value of the lease liability at the lease
commencement date. Such a rate is based on what the consolidated entity estimates it would have to pay a third
party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar
terms, security and economic environment.
NOTE 3 SEGMENT INFORMATION
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 three reportable segments.
Identification of reportable operating segments
The consolidated entity is organised into three operating segments based on geographical location: Germany,
Other European (comprised of France and Italy) and Australia. These operating segments are based on the
internal reports that are reviewed and used by the Executive Key Management Personnels (who are identified as
the Chief Operating Decision Makers (CODM)) in assessing performance and in determining the allocation of
resources. There is no aggregation of operating segments.
The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies
adopted for internal reporting to the CODM are consistent with those adopted in the financial statements.
The information reported to the CODM is on a monthly basis.
Types of products and services
Germany – the supply of geothermal energy, exploration and development related to the Company’s Phase One
Lionheart Project and engineering services.
Other European (France and Italy) – exploration and development relating to battery materials and geothermal
lithium.
Australia – administration and corporate support services.
Intersegment transactions
Intersegment transactions were made at market rates. Engineering services have been provided within the
German segment. All intersegment receivables and payables, including the profit margin, are eliminated on
consolidation.
Major customers
During the financial year ended 31 December 2024, approximately €4.6m (31 Dec 2023: €4.0m) of the consolidated
entity’s external revenue was derived from sales to Pfalzwerke.
VULCAN ENERGY ANNUAL REPORT | 2024
70
Vulcan Energy Resources Limited – Annual Report 1 January 2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 SEGMENT INFORMATION (CONT.)
FOR THE YEAR ENDED 31 DECEMBER 2024
Segment performance
Germany
Other European
Australia
Total
1 Jan 24 to 31 Dec 24
€'000
€'000
€'000
€'000
Revenue
Sales to external customers
8,119
-
-
8,119
Intersegment sales - Other own
work capitalised
12,377
-
183
12,560
Total sales revenue
20,496
-
183
20,679
Other income
1,433
-
-
1,433
Total segment revenue
21,929
-
183
22,112
EBITDA
(29,474)
(189)
(5,006)
(34,669)
Depreciation and amortisation
(9,542)
-
(55)
(9,597)
Finance expense
(168)
-
(5)
(173)
Interest income
261
-
1,628
1,889
Loss before income tax expense
(38,923)
(189)
(3,438)
(42,550)
Income tax expense
192
-
-
192
Loss after income tax expense
(38,731)
(189)
(3,438)
(42,358)
Material items include:
Employee benefit expense
(34,638)
(144)
(2,677)
(37,459)
VULCAN ENERGY ANNUAL REPORT | 2024
71
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 SEGMENT INFORMATION (CONT.)
AS AT 31 DECEMBER 2024
Germany
Other
European
Australia
Total
€'000
€'000
€'000
€'000
Assets
Segment assets
281,360
358 421,862
703,580
Intersegment eliminations
-
-
-
(322,552)
Total assets
381,028
Total assets include:
Additions to exploration and evaluation
expenditure
9,036
-
-
9,036
Additions to property, plant and equipment
64,991
-
-
64,991
Liabilities
Segment liabilities
51,607
113 4,383
56,103
Intersegment eliminations
-
-
-
(26,627)
Total Liabilities
29,476
VULCAN ENERGY ANNUAL REPORT | 2024
72
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 SEGMENT INFORMATION (CONT.)
FOR THE YEAR ENDED 31 DECEMBER 2023
Segment performance
Germany
Other European
Australia
Total
1 Jan 23 to 31 Dec 23
€'000
€'000
€'000
€'000
Revenue
Sales to external customers
6,783
-
-
6,783
Intersegment sales – Other own work
capitalised
18,486
-
391
18,877
Total sales revenue
25,269
-
391
25,660
Other income
1,191
-
-
1,191
Total segment revenue
26,460
-
391
26,851
EBITDA
(20,377)
(130)
(5,814)
(26,321)
Depreciation and amortisation
(5,814)
(2)
(53)
(5,869)
Finance expense
(164)
-
(8)
(172)
Interest income
1,181
-
2,377
3,558
Loss before income tax expense
(25,174)
(132)
(3,498)
(28,804)
Income tax benefit
1,841
-
-
1,841
Loss after income tax expense
(23,333)
(132)
(3,498)
(26,963)
Material items include:
Employee benefit expense
(28,069)
(95)
(2,006)
(30,170)
Impairment
(1,144)
-
-
(1,144)
Loss from equity accounted investment
-
-
(456)
(456)
Gain on discontinuing of use of equity
method for accounting for investments
-
-
3,874
3,874
VULCAN ENERGY ANNUAL REPORT | 2024
73
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 SEGMENT INFORMATION (CONT.)
AS AT 31 DECEMBER 2023
Germany
Other
European
Australia
Total
€'000
€'000
€'000
€'000
Assets
Segment assets
223,333
433
305,364
529,130
Intersegment eliminations
-
-
-
(232,247)
Total assets
296,883
Total assets include:
Investments accounted for using equity method
-
-
124
124
Exploration and evaluation expenditure additions
16,591
98
2,087
18,776
Additions to property, plant and equipment
71,657
-
-
71,657
Liabilities
Segment liabilities
33,776
466
1,183
35,425
Intersegment eliminations
-
-
-
(6,823)
Total Liabilities
28,602
VULCAN ENERGY ANNUAL REPORT | 2024
74
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 REVENUE
31 Dec 24
31 Dec 23
€'000
€'000
Revenue from contracts with customers
Sale of goods
4,619
4,036
Rendering of services
1,322
134
Drilling Personnel outsourcing
2,178
2,613
Revenue from continuing operations
8,119
6,783
Electricity sales
Engineering Services
Drilling Services
Total
31 Dec 24
31 Dec 23
31 Dec 24
31 Dec 23
31 Dec 24
31 Dec 23
31 Dec 24
31 Dec 23
€'000
€'000
€'000
€'000
€'000
€'000
€'000
€'000
Timing of revenue recognition
Goods
transferred
at a point in
time
4,619
4,036
-
-
-
-
4,619
4,036
Services
transferred
over time
-
-
1,322
134
2,178
2,613
3,500
2,747
4,619
4,036
1,322
134
2,178
2,613
8,119
6,783
All revenues are derived in Germany.
Accounting Policy
The consolidated entity recognises revenue as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected
to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer,
the consolidated entity: identifies the contract with a customer; identifies the performance obligations in the
contract; determines the transaction price which takes into account estimates of variable consideration and the
time value of money; allocates the transaction price to the separate performance obligation on the basis of the
relative stand-alone selling price of each distinct good or service to be delivered ; and recognises revenue when
or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods
and services promised.
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 REVENUE (CONT.)
Accounting Policy (cont)
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such
as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent
events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The
measurement of variable consideration is subject to a constraining principle whereby revenue will only be
recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur. The measurement constraint continues until the uncertainty associated with the
variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle
are recognised as a refund liability.
Sale of goods
Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods,
which is generally at the time of delivery.
Rendering of services
Revenue from a contract to provide services is recognised over time as the services are rendered based on either
a fixed price or an hourly rate.
NOTE 5 OTHER INCOME
31 Dec 24
31 Dec 23
€'000
€'000
Government grants
502
532
Other income
931
659
1,433
1,191
31 Dec 24
31 Dec 23
€'000
€'000
Other own work capitalised
12,560
18,877
12,560
18,877
Accounting Policy
Other income
Other income is recognised when it is received or when the right to receive payment is established.
Other own work capitalised
Other own work capitalised relates to engineering labour costs of Vulcan Energie Ressourcen GmbH, a wholly
owned subsidiary of Vulcan Energy Resources Limited, which are capitalised to exploration and evaluation
expenditure and property, plant and equipment. The costs are disclosed in the statement of profit or loss and
other comprehensive income as other own work capitalised. Labour costs which are not related to exploration
and evaluation expenditure or property, plant and equipment are disclosed in the statement of profit or loss and
other comprehensive income as employee benefit expenses. Other own work capitalised also includes the
capitalisation of Vercana GmbH staff costs relating to the refurbishment of electric drill rigs and partial
capitalisation of the Managing Director and Chief Executive Officer employed by Vulcan Energy Resources
Limited.
Other own work capitalised does not relate to any external revenue or any profit margin charge to intercompany
transactions.
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6 DEPRECIATION AND AMORTISATION EXPENSE
31 Dec 24
31 Dec 23
€'000
€'000
Depreciation of Right-of-use assets
1,219
1,826
Depreciation of Property, Plant and Equipment
8,236
3,387
Amortisation of intangible assets
142
656
9,597
5,869
NOTE 7 FINANCE INCOME/(COST)
Finance Income
31 Dec 24
31 Dec 23
€'000
€'000
Interest income
1,889
3,558
1,889
3,558
Accounting Policy
Interest
Interest revenue is recognised as interest accrues.
Finance cost
31 Dec 24
31 Dec 20
€'000
€'000
Interest expense - lease liabilities
173
172
173
172
Accounting Policy
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are
expensed in the period in which they are incurred.
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8 INCOME TAX
31 Dec 24
31 Dec 23
€'000
€'000
(a)
The components of tax benefit comprise:
Current tax
57
106
Deferred tax
(249)
(1,947)
Income tax benefit reported in the of profit or loss and
other comprehensive income
(192)
(1,841)
(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
(42,550)
(28,804)
Prima facie tax benefit on loss before income tax at
30% (31 December 2023: 30%)
(12,765)
(8,641)
Tax effect of amounts that are not deductible/taxable
in calculating taxable income
Non-deductible expense
326
615
Tax losses and temporary differences not brought to
account
6,705
3,468
Foreign corporate rate differential
5,542
2,717
Income tax benefit
(192)
(1,841)
(c)
Deferred tax assets/(liabilities) not brought to accounts are:
Accruals
39
173
Prepayments
-
86
Other
216
1,010
Tax losses
3,848
4,838
Total deferred tax balances not brought to account
4,103
6,107
(d) As at 31 December 2024, the consolidated entity has income tax payable of €57,000 (31 Dec 2023: €113,000).
Except for the deferred tax assets (note 19) and deferred tax liabilities (note 25) recognised in the subsidiary,
Natürlich Insheim GmbH, potential deferred tax assets attributable to tax losses and other temporary differences
have not been brought to account at 31 December 2024 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 consolidated entity 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 consolidated entity in realising the benefit from the
deductions for the expenditure.
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8 INCOME TAX (CONT.)
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 9 LOSS PER SHARE
31 Dec 24
31 Dec 23
Net loss for the year in €'000
(42,358)
(26,963)
Weighted average number of ordinary shares for basic
and diluted loss per share.
182,017,379
159,325,357
Basic and diluted loss per share €
(0.23)
(0.17)
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 9 LOSS PER SHARE (CONT.)
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 10 CASH AND CASH EQUIVALENTS
31 Dec 24
31 Dec 23
€'000
€'000
Cash at bank and in hand
96,988
23,915
Short-term deposits
66
54,813
97,054
78,728
Reconciliation of net loss after tax to net cash flows from operations
31 Dec 24
31 Dec 23
€'000
€'000
Loss for the financial year
(42,358)
(26,963)
Share-based payment expense
851
1,688
Impairment expenses
-
1,144
Depreciation and amortisation expense
9,597
5,869
Gain on discontinuation of use of the equity method
of accounting for investments
-
(3,874)
Loss from equity accounted investments
92
456
Allowance for expected credit losses
67
-
Net foreign exchange (profit)/loss
(1,456)
-
Other non-cash expenses
19
-
Changes in assets/liabilities
Increase in trade and other receivables
(1,422)
(787)
Decrease in contract assets and inventory
307
-
Increase /(decrease) in trade and other payables
5,358
(1,702)
(Decrease)/increase in provisions
(739)
1,661
Decrease in deferred income
(708)
-
Increase in deferred tax assets
(356)
(1,531)
Increase/(decrease) in deferred tax liabilities
69
(292)
Net cash used in operating activities
(30,679)
(24,331)
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 10 CASH AND CASH EQUIVALENTS (CONT.)
Accounting Policy
Cash and cash equivalents
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 11 TRADE AND OTHER RECEIVABLES
31 Dec 24
31 Dec 23
€'000
€'000
Trade receivables
1,100
608
Allowance for expected credit losses
(67)
-
Prepayments
615
712
Other receivables1
3,766
2,061
Other - bank guarantees
3,707
958
VAT receivable
3,398
2,560
12,519
6,899
1 On 27 September 2024, an agreement was signed to acquire 100% of the shares in Geox GmbH for a deferred
consideration. The transaction was not complete as at 31 December 2024, however the Group has provided a
workover loan of €2,549,000 as at 31 December 2024 to Geox GmbH, repayable when the transaction completes.
The workover loan amount is included in other receivables as at 31 December 2024 (31 December 2023: nil), and
is in addition to the partial cash payment of €371,000 for the acquisition of Geox GmbH, recorded in other
investments in note 14 (31 December 2023: nil).
Expected credit loss rate
Carrying amount
Allowance for Expected
Credit Loss
31 Dec 24
31 Dec 23
31 Dec 24
31 Dec 23
31 Dec 24
31 Dec 23
Consolidated
%
%
€’000
€’000
€’000
€’000
not overdue
0%
0%
833
608
-
-
overdue
25%
50%
267
-
67
-
1,100
608
67
-
Allowance for expected credit loss
Trade receivables are non-interest bearing and are generally on terms of 30 days. An allowance of €67,000 has
been recognised for the year ended 31 December 2024 (31 December 2023: nil) to cover expected credit losses.
Accounting Policy
Trade and other receivables
Trade and other receivables include amounts due from customers for goods sold and services performed in the
ordinary course of business. Trade and other receivables are initially recognised at fair value and subsequently
measured at amortised cost using the effective interest method less any allowance for expected credit loss.
Receivables expected to be collected within 12 months of the end of the reporting period are classified as current
assets.
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 11 TRADE AND OTHER RECEIVABLES (CONT.)
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.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax
authority. 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.
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 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.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are
either measured at amortised cost or fair value through other comprehensive income. The measurement of the
loss allowance depends upon the consolidated entity’s assessment at the end of each reporting period as to
whether the financial instrument’s credit risk has increased significantly since initial recognition, based on
reasonable and supportable information that is available, without undue cost or effort to obtain.
Impairment of financial assets (cont.)
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime expected credit
losses that are attributable to a default event that is possible within the next 12 months. Where a financial asset
has become credit impaired or where it is determined that credit risk has increased significantly, the loss
allowance is based on the asset’s lifetime expected credit losses. The amount of expected credit loss recognised
is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of
the instrument discounted at the original effective interest rate.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 12 CONTRACT ASSETS
31 Dec 24
31 Dec 23
€'000
€'000
Contract assets
-
117
-
117
Reconciliation of the written down values at the beginning and end of the current and previous financial year are
set out below:
31 Dec 24
31 Dec 23
€'000
€'000
Opening balance
117
42
Transfer (to)/from inventory
(117)
75
Closing balance
-
117
Accounting policy
Contract assets
Contract assets are recognised when the consolidated entity has transferred goods and services to the customer
but where the consolidated entity is yet to establish an unconditional right to consideration. Contract assets are
treated as financial assets for impairment purposes.
NOTE 13 INVENTORIES
31 Dec 24
31 Dec 23
€'000
€'000
Spare parts and
consumables
137
327
137
327
Accounting policy
Inventories
Raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value on a
“first in first out’’ basis. Cost comprises of direct materials and delivery costs, direct labour, import duties and
other taxes, an appropriate proportion of variable and fixed overhead expenditure based on normal operating
capacity. Costs of purchased inventory is determined after deducting rebates and discounts received or
receivable.
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 14 OTHER ASSETS
The group has recognised the following other assets.
31 Dec 24
31 Dec 23
€'000
€'000
Prepayments relating to capital items
1,392
11,775
Capitalised borrowing costs
6,451
-
Other investments1
401
-
8,244
11,775
1Other investments relate to a partial cash payment of €371,000 made for the acquisition of Geox GmbH (refer to
note 11 for further information) and an other investment of €30,000 previously accounted for as an immaterial
associate (refer to note 29 for further information).
Accounting policy
Prepayments relating to capital items
Prepayments relating to capital items comprise of payments made in advance to suppliers for goods received
and services rendered relating to the Group’s Phase One Lionheart Project. As goods and services are received,
prepayments relating to capital items are recognised in assets under construction within property, plant and
equipment. Once complete and ready for use, the assets are depreciated in accordance with the Group’s
depreciation policy.
Capitalised borrowing costs
The Group capitalises transaction costs directly attributable to debt financing of its Phase One Lionheart
Project, in accordance with IFRS 9. When debt funding is received, the borrowings will be partially offset by the
capitalised transaction costs, which are subsequently amortised through profit or loss over the life of the debt
term, using the effective interest method.
Other investments
Other investments are recognised at cost and tested for impairment when impairment indicators suggest the
carrying value may not be recoverable. Other investments at 31 December 2024 relate to a partial cash payment
made for the acquisition of Geox GmbH. An agreement was signed on 27 September 2024 to acquire 100% of the
shares in Geox GmbH for a deferred consideration. Refer to note 43 for further information.
VULCAN ENERGY ANNUAL REPORT | 2024
84
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 15 EXPLORATION AND EVALUATION EXPENDITURE
31 Dec 24
31 Dec 23
€'000
€'000
Carrying amount of exploration and evaluation
expenditure
13,124
48,475
At the beginning of the year
48,475
30,135
Exploration expenditure incurred
9,037
18,776
Reclassification to Property, plant and equipment1
(40,348)
-
Reclassification to Intangible Assets2
(2,308)
-
Other reclassifications3
(1,136)
-
Foreign exchange Loss
(596)
(436)
At the end of the year
13,124
48,475
1In the year ended 31 December 2024, the Group completed evaluation procedures and determined the technical
feasibility and commercial viability of its Phase One Lionheart Project are demonstrable. As such, exploration
and evaluation expenditure was reclassified to mine properties in development in accordance with IFRS 6. Refer
to note 16 for further information.
2Costs relating to the Group’s internally generated technology were reclassified to intangible assets to more
clearly reflect the nature of costs. Refer to note 18 for further information.
3Other reclassifications are adjustments relating to prior years and reclassified in the current year to more
clearly reflect the nature of costs.
Accounting Policy
Exploration and evaluation expenditure
Acquisition, exploration, and evaluation costs associated with licence areas 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.
NOTE 16 PROPERTY, PLANT AND EQUIPMENT
31 Dec 24
31 Dec 23
€'000
€'000
Software
395
655
Plant & Equipment
84,758
26,188
Land & Buildings
4,657
4,659
Assets under Construction
67,104
107,103
Mine Properties in Development
80,415
-
237,329
138,605
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 16 PROPERTY, PLANT AND EQUIPMENT (CONT.)
Movement in carrying amounts of property, plant and equipment for the financial year ended 31 December 2024
are as follows:
Software
Plant and
equipment
Asset under
construction
Land and
Building
Mine
Properties in
Development
Total
€'000
€'000
€'000
€'000
€'000
€'000
Cost
At 1 Jan 24
781
32,607
107,103
4,834
-
145,325
Additions
87
8,606
56,270
28
-
64,991
Disposals
(65)
(1,765)
-
(86)
-
(1,916)
Assets under
construction
completed1
-
56,695
(96,386)
102
39,589
-
Costs reclassified from
exploration and
evaluation expenditure2
-
293
379
-
39,676
40,348
Recognition of
restoration provision3
-
576
-
-
1,150
1,726
At 31 Dec 24
803
97,012
67,366
4,878
80,415
250,474
Accumulated Depreciation
At 1 Jan 24
(126)
(6,419)
-
(175)
-
(6,720)
Depreciation for the
year
(339)
(7,503)
(262)
(132)
-
(8,236)
Depreciation eliminated
on disposal
57
1,668
-
86
-
1,811
At 31 Dec 24
(408)
(12,254)
(262)
(221)
-
(13,145)
Carrying amount
At 1 Jan 24
655
26,188
107,103
4,659
-
138,605
At 31 Dec 24
395
84,758
67,104
4,657
80,415
237,329
1Assets completed during the year and ready for use were transferred from assets under construction to plant &
equipment at cost value, including €15,372,000 for the Group’s Central Lithium Electrolysis Optimisation Plant
(“CLEOP”) and €40,752,000 for the Lithium Extraction and Optimisation Plant (“LEOP”). Other assets under
construction of €39,589,000 relating to wellsites and mine development were reclassified to mine properties in
development.
2In the year ended 31 December 2024, the Group completed evaluation procedures and determined the technical
feasibility and commercial viability of its Phase One Lionheart Project are demonstrable. As such, exploration
and evaluation expenditure was reclassified to mine properties in development in accordance with IFRS 6.
3During the year ended 31 December 2024, a restoration and rehabilitation provision of €1,726,000 was recognised
relating to the Group’s operations. Refer to note 24 for further information.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 16 PROPERTY, PLANT AND EQUIPMENT (CONT.)
Movement in carrying amounts of property, plant and equipment for the financial year ended 31 December 2023
are as follows:
Software
Plant and
equipment
Asset under
construction
Land and
Building
Total
€'000
€'000
€'000
€'000
€'000
Cost
At 1 Jan 23
417
30,623
40,950
1,623
73,613
Additions
328
1,955
66,163
3,211
71,657
Disposals
-
(10)
(10)
-
(20)
Acquired in
Business
Combinations
36
39
-
-
75
At 31 Dec 23
781
32,607
107,103
4,834
145,325
Accumulated Depreciation
At 1 Jan 23
(34)
(3,212)
-
(87)
(3,333)
Depreciation for
the year
(56)
(3,201)
-
(88)
(3,345)
Depreciation
eliminated on
disposal
-
10
-
-
10
Acquired in
Business
Combinations
(36)
(16)
-
-
(52)
At 31 Dec 23
(126)
(6,419)
-
(175)
(6,720)
Carrying amount
At 1 Jan 23
383
27,411
40,950
1,536
70,280
At 31 Dec 23
655
26,188
107,103
4,659
138,605
Accounting Policy
Property, plant and equipment
Property, 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
3 -5 years
Plant & Equipment
2-20 years
Buildings
20 years
Mine Properties in Development
20-30 years
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.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 16 PROPERTY, PLANT AND EQUIPMENT (CONT.)
Assets under construction are carried at historical cost, and are transferred to the relevant class of property,
plant and equipment once completed and ready for use, at which point depreciation commences.
Mine Properties in Development
An exploration and evaluation asset shall be reclassified to mine properties in development when the technical
feasibility and commercial viability of extracting a mineral resource is demonstrable, and when evaluation
procedures have been completed.
Since publication of the Definitive Feasibility Study (DFS) and Bridging Engineering Study (BES), the Group has
further demonstrated the commercial viability of the Phase One Lionheart Project through its financing progress
and first production achieved at its Lithium Extraction Optimisation Plant (LEOP) and Central Lithium Electrolysis
Optimisation Plant (CLEOP) during the year ended 31 December 2024.
The Group has reclassified costs relating to the Phase One Lionheart project from exploration and evaluation
expenditure to mine properties in development, within property, plant & equipment. Costs relating to Phase
Two licence areas remain classified as exploration and evaluation expenditure and are subject to ongoing
annual impairment indicator testing under IFRS 6.
Immediately prior to reclassification, exploration and evaluation expenditure assets are tested for impairment.
Impairment testing is conducted at the cash-generating unit (CGU) level in accordance with IFRS 6.
The Group has identified an area of interest as a CGU for the purpose of assessing impairment. Three licence
areas comprising of the Phase One Lionheart Project are identified as a single area of interest and CGU, for which
impairment was assessed.
The recoverable amount of exploration and evaluation expenditure reclassified to mine properties in
development has been determined by a value-in-use calculation using a discounted cash flow model for the
Group’s Phase One Lionheart Project, based on a 30-year projection period.
Key assumptions used in the discounted cash flow model to which the recoverable amount of the CGU is most
sensitive include:
•
a pre-tax discount rate of 8%;
•
average forecast revenues and EBITDA over the Project’s life of €756m and €582m per annum
respectively;
•
total Phase One Lionheart capital expenditure of approximately €1,431m;
•
a long-term US dollar to Euro exchange rate of 0.91 ;
•
an inflation rate of 2.5% in 2025, decreasing to 2.0% from 2026 onwards.
The pre-tax discount rate of 8% reflects management’s estimate of the time value of money.
There were no other key assumptions used in the discounted cash flow model.
Based on the above, no impairment was recognised as the carrying amount of exploration and evaluation
expenditure reclassified to mine properties in development exceeded its recoverable amount.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 17 LEASE LIABILITIES & RIGHT-OF-USE ASSETS
Right-of-use
asset
Buildings
Vehicles
Hardware
and Software
Technical
Equipment
Land
Total
€'000
€'000
€'000
€'000
€'000
€'000
Cost
At 1 Jan 24
5,539
954
15
41
306
6,855
Additions
508
108
-
-
22
638
Disposals
(1,256)
(202)
(15)
(41)
(6)
(1,520)
Remeasurements
-
11
-
-
-
11
At 31 Dec 24
4,791
871
-
-
322
5,984
Accumulated Depreciation
At 1 Jan 24
(1,844)
(501)
(15)
(39)
(40)
(2,439)
Depreciation for
the year
(882)
(267)
-
-
(70)
(1,219)
Disposals
1,260
175
15
39
5
1,494
Remeasurements
-
16
-
-
-
16
At 31 Dec 24
(1,466)
(577)
-
-
(105)
(2,148)
Carrying amount
At 1 Jan 24
3,695
453
-
2
266
4,416
At 31 Dec 24
3,325
294
-
-
217
3,836
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 17 LEASE LIABILITIES & RIGHT-OF-USE ASSETS (CONT.)
Right-of-use asset
Buildings
Vehicles Hardware and
Software
Technical
Equipment
Land
Total
€'000
€'000
€'000
€'000
€'000
€'000
Cost
At 1 Jan 23
3,400
512
21
14
23
3,970
Additions
2,210
498
24
27
283
3,042
Acquired in
Business
Combinations
-
33
-
-
-
33
Disposals
(71)
(89)
(30)
-
-
(190)
At 31 Dec 23
5,539
954
15
41
306
6,855
Accumulated Depreciation
At 1 Jan 23
(422)
(148)
(15)
(3)
(5)
(593)
Depreciation for
the year
(1,444)
(442)
(30)
(36)
(35)
(1,987)
Eliminated on
cancellation
42
89
30
-
-
161
FX loss
(20)
-
-
-
-
(20)
(1,844)
(501)
(15)
(39)
(40)
(2,439)
Carrying amount
At 1 Jan 23
2,978
364
6
11
18
3,377
At 31 Dec 23
3,695
453
-
2
266
4,416
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 17 LEASE LIABILITIES & RIGHT-OF-USE ASSETS (CONT.)
Lease Liabilities
Buildings
Vehicles
Hardware and
Software
Technical
Equipment
Land
Total
€'000
€'000
€'000
€'000
€'000
€'000
At 1 Jan 24
3,814
328
-
1
268
4,411
New lease liabilities
entered during the year
508
108
-
-
22
638
Add: Interest
146
14
-
-
13
173
Less: Payment
(1,086)
(204)
-
(1)
(79)
(1,370)
Foreign exchange loss
At 31 Dec 24
3,382
246
-
-
224
3,852
Represented by:
Current lease liabilities
580
127
-
-
64
771
Non-current lease
liabilities
2,802
119
-
-
160
3,081
3,382
246
-
-
224
3,852
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 17 LEASE LIABILITIES & RIGHT-OF-USE ASSETS (CONT.)
Lease Liabilities
Buildings
Vehicles Hardware and
Software
Technical
Equipment
Land
Total
€'000
€'000
€'000
€'000
€'000
€'000
At 1 Jan 23
3,020
263
6
9
18
3,316
New lease liabilities
entered during the
year
2,156
376
(6)
27
283
2,836
Acquired in
business
combinations
-
33
-
-
-
33
Add: Interest
147
19
-
-
5
171
Less: Payment
(1,480)
(363)
0
(35)
(38)
(1,916)
Foreign exchange
loss
(29)
-
-
-
-
(29)
At 31 Dec 23
3,814
328
-
1
268
4,411
Represented by:
Current lease
liabilities
792
236
-
1
57
1,086
Non-current lease
liabilities
3,022
92
-
-
211
3,325
3,814
328
-
1
268
4,411
Accounting Policy
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.
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
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 17 LEASE LIABILITIES & RIGHT-OF-USE ASSETS (CONT.)
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 (cont.)
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, a laboratory, vehicles and land through its German subsidiary Vulcan Energie
Ressourcen GmbH as well as the subsidiaries of the German operating Company.
NOTE 18 INTANGIBLE ASSETS
31 Dec 24
31 Dec 23
€'000
€'000
Goodwill
1,076
1,076
Less: Impairment
(1,076)
(1,076)
-
-
Customer contracts – at cost
1,809
1,526
Acquired in Business Combinations
-
387
Less: Impairment
-
(104)
Less: Accumulated amortisation
(1,514)
(1,466)
295
343
VULSORB® – at cost
Reclassified from exploration & evaluation
expenditure1
2,308
-
Less: Accumulated amortisation
-
-
2,308
-
Operating permit - at cost
1,500
1,500
Less: Accumulated amortisation
(282)
(188)
1,218
1,312
Total Intangible Assets
3,821
1,655
1The Group reclassified costs relating to VULSORB® from exploration and evaluation expenditure to intangible
assets, to more clearly reflect the nature of costs.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 18 INTANGIBLE ASSETS (CONT.)
Reconciliation of the written down values at the beginning and the end of the current and previous financial year
are set out below:
Customer
Contracts
Operating
Permit
Goodwill VULSORB®
Total
€'000
€'000
€'000
€'000
€'000
Balance at 1 Jan 23
622
1,406
1,040
-
3,068
Acquired through business
combinations
387
-
-
-
387
Less: amortisation
(562)
(94)
-
-
(656)
Less: impairment
(104)
-
(1,040)
-
(1,144)
Balance at 31 Dec 23
343
1,312
-
-
1,655
Transferred from exploration &
evaluation expenditure1
-
-
-
2,308
2,308
Less: amortisation
(48)
(94)
-
-
(142)
Balance at 31 Dec 24
295
1,218
-
2,308
3,821
1The Group reclassified costs relating to VULSORB® from exploration and evaluation expenditure to intangible
assets, to more clearly reflect the nature of costs.
Goodwill
Goodwill arises on the acquisition of a business and is carried at cost less accumulated impairment losses.
Goodwill is not amortised, but rather tested annually for impairment, or more frequently if events or changes in
circumstances indicate that it might be impaired. Impairment losses on goodwill are taken to profit or loss and
are not subsequently reversed.
Customer contracts, operating permits, and order backlog
Customer contracts, operating permits and order backlog are deferred and amortised on a straight-line basis
over the period of their expected benefit, being their finite life of 3-5 years.
VULSORB®
VULSORB® is the Group’s internally generated intangible asset. The technology is an internally developed lithium
extraction sorbent which is used by the Group in the adsorption-type direct lithium extraction (A-DLE) process
at LEOP.
During the year ended 31 December 2024, the company reclassified €2,308,000 of capitalised VULSORB® costs
from exploration and evaluation expenditure to intangible assets, to more clearly reflect the nature of costs. As
the asset is used at LEOP in testing quantities, the technology will continue to be developed and will be
amortised when ready for use in commercial production, as intended by management. The asset will be subject
to annual impairment testing until it is ready for use in commercial production. As at 31 December 2024, the
value-in-use of VULSORB® was assessed as exceeding its carrying value, and no impairment was recognised
during the period.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 18 INTANGIBLE ASSETS (CONT.)
Accounting Policy
Goodwill and other indefinite life intangible assets
The consolidated entity tests annually, or more frequently if events or changes in circumstances indicate
impairment, whether goodwill and other indefinite life intangible assets have suffered any impairment, in
accordance with the accounting policy stated in note 1. The recoverable amounts of cash-generating units have
been determined based on value-in-use calculations. These calculations require the use of assumptions,
including estimated discount rates based on the current cost of capital and growth rates of the estimated future
cash flows.
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their
fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost.
Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment.
Finite life intangible assets are subsequently measured at cost less amortisation and any impairment. The gains
or losses recognised in profit and loss arising from the derecognition of intangible assets are measured as the
difference between the net disposal proceeds and the carrying amount of the intangible asset. The method and
useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption
or useful life are accounted for prospectively by changing the amortisation method or period.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life
intangible assets at each reporting date by evaluating conditions specific to the consolidated entity and to the
particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset
is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a
number of key estimates and assumptions.
Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-
use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate
specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent
cash flows are grouped together to form a cash-generating unit.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 19 DEFERRED TAX ASSETS
31 Dec 24
31 Dec 23
€'000
€'000
Deferred tax asset comprises of differences attributable to:
Other
823
2,145
Property, plant and equipment
1,417
241
Tax losses
1,328
826
Deferred tax asset
3,568
3,212
Movements:
Opening balance
3,212
1,681
Charged to income statement
356
1,531
Closing balance
3,568
3,212
Refer to note 8 for accounting policy.
NOTE 20 TRADE AND OTHER PAYABLES
31 Dec 24
31 Dec 23
€'000
€'000
Trade payables (i)
11,488
9,514
Accrued expenses
3,852
5,868
Other payables
1,296
1,812
VAT Payable
1,776
-
18,412
17,194
(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 and other payables
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.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 21 DERIVATIVE FINANCIAL INSTRUMENT
There is no derivative financial instruments in the statement of financial position as at 31 December 2024.
The group has the following derivative financial instruments in the following line items in the statement of
financial position:
Current liabilities
31 Dec 24
31 Dec 23
€'000
€'000
Forward foreign currency contract held for trading
-
133
-
133
Accounting Policy
(i)
Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative
instrument that does not qualify for hedge accounting are recognised immediately in profit or loss and are
included in other gains/(losses).
(ii)
Classification of derivatives
Derivatives are only used for economic hedging purposes and not as speculative investments. However, where
derivatives do not meet the hedge accounting criteria, they are classified as ‘held for trading’ for accounting
purposes and are accounted for at fair value through profit or loss. They are presented as current assets or
liabilities to the extent they are expected to be settled within 12 months after the end of the reporting period.
(iii)
Fair value measurement
For information about the methods and assumptions used in determining the fair value of derivatives see note
26.
NOTE 22 EMPLOYEE BENEFITS
31 Dec 24
31 Dec 23
€'000
€'000
Leave obligations
1,523
1,509
1,523
1,509
(i)
Leave obligations
The leave obligations cover the group’s liabilities for long service leave and annual leave which are classified as
either other long-term benefits or short-term benefits. The current portion of this liability includes all of the
accrued annual leave and the unconditional entitlements to long service leave where employees have completed
the required period of service. The entire provision of €1,523,000 (31 December 2023: €1,509,000) is presented
as current, since the group does not have an unconditional right to defer settlement for any of these obligations.
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 22 EMPLOYEE BENEFITS (CONT.)
Accounting Policy
Employee benefits
Defined contribution superannuation expenses
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
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. There were no long-term
employee benefit liabilities at 31 December 2024 (31 December 2023: nil).
NOTE 23 DEFERRED INCOME
31 Dec 24
31 Dec 23
€'000
€'000
Current Government grants
2,110
-
Non-current Government grants
-
2,818
2,110
2,818
Accounting Policy
Government grants
Government grants are not recognised until there is a reasonable assurance that the Group will comply with the
conditions attached to them and that the grants will be received.
Assistance from the Project sponsors aims to support the Group in testing, development and optimisation in
production of geothermal energy. Unfulfilled conditions relate to the spend requirements as part of the grant
acquittal processes which will be validated by the project sponsors by 31 December 2025. Therefore, all deferred
income is presented as current.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 24 PROVISIONS
Current:
31 Dec 24
31 Dec 23
€'000
€'000
Restructuring provision (i)
-
750
-
750
Non-Current:
Other provisions
261
264
Restoration provision (ii)
1,726
-
1,987
264
(i)
Restructuring provision
In December 2023, the decision was made to centralise engineering operations in Karlsruhe to ensure closer
collaboration between the engineering teams and proximity to future construction locations, resulting in closure
of the Augsburg office. All Augsburg located employees were offered new contracts in Karlsruhe, and a provision
of €750,000 was recognised representing potential termination benefits to those employees who did not accept
new contracts. During the year ended 31 December 2024, termination benefits were paid, and no further
restructuring provisions were required at 31 December 2024.
(ii)
Restoration provision
The extraction and processing activities of the Vulcan Group typically give rise to obligations for site closure or
restoration and rehabilitation.
Provisions for the cost of closure and rehabilitation program are recognised as soon as environmental
disturbance occurs. The nature of decommissioning activities includes dismantling and removing structures,
rehabilitating mine sites, dismantling operating facilities, closure of plant sites and restoration, reclamation, and
revegetation of affected areas.
Restoration provisions are measured based on the expected value of future cash flows, discounted to their
present value and determined according to the probability of alternative estimates of cash flows occurring.
Discount rates used are risk-free interest rates specific to Germany and the expected timing of the closure and
restoration expenditure. Material changes in Germany specific risk-free interest rates may affect the discount
rates applied. The Group reviews its discount rates used periodically.
The provision is recognised as a non-current liability with a corresponding asset included in property, plant, and
equipment and depreciated accordingly. The value of the provision is progressively increased over time due to
the unwind effect of discounting and inflation. The change is recorded as an expense in finance costs. If the
liability decreases and exceeds the carrying amount of the asset, the asset is written down to nil and the excess
is recognised immediately in the consolidated statement of profit or loss. If the liability increases and results in
an addition to the cost of the asset, the recoverability of the new carrying amount is considered and an
impairment indicator test is performed. In the event that an impairment expense occurs, this is recognised in
the consolidated statement of profit or loss and other comprehensive income in the period in which it occurs.
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 24 PROVISIONS (CONT.)
(iii)
Movement in provisions
Restructuring
obligations
Waste disposal
Decontamination
provision
Restoration
provision
Total
€'000
€'000
€'000
€'000
€'000
Cost
Carrying amount at 1 Jan
24
750
200
64
-
1,014
(Provisions utilised)/
charged to profit or loss
during the year
(750)
34
(37)
-
(753)
Recognised in property,
plant & equipment
-
-
-
1,726
1,726
Carrying amount at 31
Dec 24
-
234
27
1,726
1,987
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.
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 25 DEFERRED TAX LIABILITIES
31 Dec 24
31 Dec 23
€'000
€'000
Deferred tax liability comprises temporary differences attributable to:
Other
913
253
Property, plant and equipment
622
1,157
Deferred tax liabilities
1,535
1,410
Movements:
Opening balance
1,410
1,702
Additions through business combinations
-
115
Charged to income statement
125
(407)
Closing balance
1,535
1,410
Refer to note 8 for accounting policy.
NOTE 26 RECOGNISED FAIR VALUE MEASUREMENTS
(i)
Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial
instruments that are recognised and measured at fair value in the financial statements. To provide an indication
about the reliability of the inputs used in determining fair value, the group has classified its financial instruments
into the three levels prescribed under the accounting standards. An explanation of each level follows underneath
the table.
31 Dec 24
31 Dec 23
€'000
€'000
Level 1
Financial assets
Financial assets at fair value through other
comprehensive income
Australian listed equity securities
1,396
2,550
Level 2
Financial liabilities
Forward foreign currency contracts held for sale
-
133
There were no transfers between levels 1 and 2 for recurring fair value measurements during the year. The group’s
policy is to recognise transfers into and out of fair value hierarchy levels as at the end of the reporting period.
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 26 RECOGNISED FAIR VALUE MEASUREMENTS(CONT)
Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and
equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price
used for financial assets held by the group is the current bid price. The quoted market price incorporates the
market's assumptions with respect to changes in economic climate such as rising interest rates and inflation, as
well as changes due to ESG risk. These instruments are included in level 1.
Level 2: The fair value of financial instruments that are not traded in an active market (e.g. over-the counter
derivatives) is determined using valuation techniques that maximise the use of observable market data and rely
as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unlisted equity securities and for instruments where ESG risk gives rise to a
significant unobservable adjustment.
(ii)
Valuation techniques used to determine fair values
Specific valuation techniques used to value financial instruments include:
•
the use of quoted market prices or dealer quotes for similar instruments
•
for foreign currency forwards – the present value of future cash flows based on the forward exchange
rates at the reporting date
Accounting Policy
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date; and assumes that the
transaction will take place either: in the principal market; or in the absence of a principal market, in the most
advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement
is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each
reporting date and transfers between levels are determined based on a reassessment of the lowest level of input
that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise
is either not available or when the valuation is deemed to be significant. External valuers are selected based on
market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from
one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the
latest valuation and a comparison, where applicable, with external sources of data.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 27 CONTRIBUTED EQUITY
31 Dec 24
31 Dec 23
No.’000
€’000
No.’000
€’000
Fully paid ordinary shares
214,528
453,643
172,073
323,739
Ordinary shares
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.
Share buy-back
There is no current on-market share buy-back.
Date
Number
Issue
Price
€
€’000
At 1 Jan 24
172,073,008
323,739
Placement
12/06/2024
16,000,000
2.5
40,000
Exercise of Class Y performance rights
12/06/2024
60,000
-
Exercise of Class AC performance rights
12/06/2024
9,490
-
Exercise of Class AE performance rights
12/06/2024
41,357
-
Shares issued in exchange for service
12/06/2024
4,716
-
Placement
16/12/2024
5,602,241
3.57
20,000
Placement
17/12/2024
20,737,004
3.57
74,032
Less capital raising costs
-
-
(4,128)
At 31 Dec 24
214,527,816
-
453,643
Date
Number
Issue
Price
€
€'000
At 1 Jan 23
143,435,301
259,158
Placement
12/05/2023
21,400,000
3.15
67,350
Exercise of Class J performance rights
6/06/2023
1,500,000
-
-
Exercise of Class M performance rights
6/06/2023
1,000,000
-
-
Exercise of Class J performance rights
30/08/2023
1,000,000
-
-
Exercise of Class G performance rights
23/11/2023
250,000
-
-
Exercise of Class H performance rights
23/11/2023
472,727
-
-
Exercise of Class I performance rights
23/11/2023
910,909
-
-
Exercise of Class M performance rights
23/11/2023
500,000
-
-
Exercise of Class N Performance rights
23/11/2023
1,500,000
-
-
Exercise of Class S performance rights
23/11/2023
12,896
-
-
Exercise of Class D performance shares
23/11/2023
91,175
-
-
Less capital raising costs
-
-
(2,769)
At 31 Dec 23
172,073,008
-
323,739
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 27 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.
NOTE 28 RESERVES
31 Dec 24
31 Dec 23
€'000
€'000
Share-based payment reserve
12,373
11,522
Revaluation reserve
(2,960)
(1,870)
Foreign currency translation reserve
(330)
3,725
Total
9,083
13,377
Share-based Payment Reserve
Number of
Performance
Shares
Number of
Performance
Rights
€'000
Movement reconciliation
On issue at 1 Jan 24
-
1,551,268
11,522
Issue of performance rights during the year
-
2,703,756
-
Exercise of Performance Rights during the
year
-
(110,847)
-
Recognition of share - based payment
expense for performance rights issued to
Directors, staff & consultants (note 35)
-
-
851
Performance rights cancelled
-
(84,029)
-
Performance rights lapsed
-
(909,349)
-
On issue at 31 Dec 24
-
3,150,799
12,373
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 28 RESERVES (CONT.)
Number of
Performance
Shares
Number of
Performance
Rights
€'000
Movement reconciliation
On issue at 1 Jan 23
91,174
8,382,801
9,706
Issue of performance rights during the year
-
385,754
-
Exercise of Performance Rights during the
year
-
(7,146,533)
-
Exercise of Performance Shares during the
year
(91,174)
-
-
Recognition of share - based payment
expense for performance rights issued to
Directors, staff & consultants (note 35)
-
-
1,688
Performance rights issued for acquisition of
subsidiary (note 32)
-
82,714
128
Performance rights cancelled
-
(153,468)
-
On issue at 31 Dec 23
-
1,551,268
11,522
The share-based payment 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
31 Dec 24
31 Dec 23
€'000
€'000
Balance at the beginning of the year
3,725
6,169
Movement during the year
(4,055)
(2,444)
Balance at the end of the year
(330)
3,725
The foreign currency translation reserve is used to recognise exchange differences arising from the translation
of the financial statements of foreign operations to Euro.
Revaluation Reserve
31 Dec 24
31 Dec 23
€'000
€'000
Balance at the beginning of the year
(1,870)
-
Movement during the year
(1,090)
(1,870)
Balance at the end of the year
(2,960)
(1,870)
The revaluation reserve is used to recognise the revaluation of investments at fair value through other
comprehensive income.
VULCAN ENERGY ANNUAL REPORT | 2024
105
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 29 INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
Interest in Kuniko Limited
Prior to 17th July 2023, the Company’s interest in Kuniko Limited was recognised as an investment in associate
accounted for using the equity method. On 17th July 2023 the Group discontinued the use of the equity method
as a result of its shareholding in Kuniko Limited reducing to 19%, and a gain on discontinuation of use of the
equity method of accounting was recognised as follows:
31 Dec 23
€'000
Opening carrying value
974
Share of loss - associate
(456)
Fair value of Kuniko shares at the date of discontinuation of use of the equity method (note 30)
4,392
Gain on discontinuation of use of the equity method of accounting
3,874
Since 17th July 2023, the interest held in Kuniko Limited has been accounted for at fair value through other
comprehensive income. Refer to note 30 for further information.
Individually immaterial associate
As at 31 December 2023, the Group held a 50.1% interest in an immaterial associate accounted for using the equity
method. As at 16 December 2024, the Group’s interest in the associate reduced to 12.5% and use of the equity
method of accounting was discontinued. The interest is carried at cost in the Statement of Financial Position at
31 December 2024 for a value of €30,000, recorded in other investments (refer to note 14).
% of ownership
Carrying amount
Name of Associate
31 Dec 24
%
31 Dec 23
%
31 Dec 24
€'000
31 Dec 23
€'000
Immaterial associate
-
50.1
-
124
The share of losses of the associate prior to discontinuation of the equity method of accounting are recognised
as a loss from equity accounted investments in the Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2024. The prior year share of loss from associate related to the interest in Kuniko
Limited before the equity accounting method was discontinued.
31 Dec 24
31 Dec 23
€'000
€'000
Loss from equity accounted investments
(92)
(456)
Accounting policy
Associates
Associates are entities over which the consolidated entity has significant influence but not control or joint
control. Investments in associates are accounted for using the equity method. Under the equity method, the
share of the profits or losses of the associate is recognised in profit or loss and the share of the movements
in equity is recognised in other comprehensive income. Investments in associates are carried in the
statement of financial position at cost plus post-acquisition changes in the consolidated entity's share of net
assets of the associate.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 29 INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD (CONT.)
When the consolidated entity’s share of losses in an associate equals or exceeds its interest in the associate,
including any unsecured long-term receivables, the consolidated entity does not recognise further losses,
unless it has incurred obligations or made payments on behalf of the associate.
The consolidated entity discontinues the use of the equity method upon the loss of significant influence over
the associate and recognises any retained investment at its fair value. Any difference between the associate’s
carrying amount, fair value of the retained investment and proceeds from disposal is recognised in profit or
loss.
NOTE 30 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
31 Dec 24
31 Dec 23
€'000
€'000
Australian listed shares
1,396
2,550
1,396
2,550
Movement reconciliation
31 Dec 24
31 Dec 23
€'000
€'000
Carrying amount at the start of the year
2,550
-
Discontinuation of the use of equity method of
accounting for investments (note 29)
-
4,392
Charged to other comprehensive income
- change in value
(1,154)
(1,870)
Foreign exchange gain
-
28
Carrying amount at end of year
1,396
2,550
Accounting policy
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such
upon initial recognition. The group initially measures a financial asset at its fair value, with subsequent fair value
movements recognised through other comprehensive income.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired
or have been transferred and the group has transferred substantially all the risks and rewards of ownership.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 31 INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate assets, liabilities and results of the following wholly owned
subsidiaries in accordance with the accounting policy described in note 1.
Entity
Location
Primary activity
Date of foundation
or acquisition
Ownership
Interest 31
Dec 24 (%)
Ownership
Interest 31
Dec 23 (%)
Vulcan Energie Ressourcen
GmbH
Karlsruhe
Operating entity
September 26, 2019
100
100
Vulcan Energy Resources
Europe Pty Limited
Perth
Operating entity
October 11, 2019
100
100
Vulcan Energy Subsurface
Solutions GmbH1
Karlsruhe
Operating entity
July 2, 2021
100
100
Vulcan Energy Engineering
GmbH
Augsburg
Group holding
July 2, 2021
100
100
Vulcan Geothermal GmbH
Karlsruhe
Group holding
July 09, 2021
100
100
VER GEO LIO GmbH
Karlsruhe
Group holding
July 12, 2021
100
100
Vercana GmbH
Karlsruhe
Operating entity
December 09, 2021
100
100
Natürlich Insheim GmbH
Karlsruhe
Operating entity
December 31, 2021
100
100
Vulcan Energy Italy Pty Limited
Perth
Group holding
July 5, 2021
100
100
Comeback
Peronaldienstleistungen GmbH
Lingen
Operating entity
February 1, 2023
100
100
Vulcan Projektgesellschaft 3
GmbH2
Karlsruhe
Operating entity
April 26, 2023
100
100
Vulcan Projektgesellschaft 2
GmbH
Karlsruhe
Operating entity
April 26, 2023
100
100
Natürlich Südpfalz
Geschaftsführungs GmbH
Landau
i.d. Pfalz
Operating entity
December 28, 2022
100
100
Natürlich Südpfalz GmbH & Co.
KG
Landau
i.d. Pfalz
Operating entity
February 7, 2023
100
100
Lionheart Marketing GmbH3
Karlsruhe
Operating entity
December 28, 2022
100
100
Landau-Süd Joint Venture
GmbH & Co KG
Landau
i.d. Pfalz
Group holding
March 17, 2023
51
51
Landau-Süd Joint Venture
Verwaltungs GmbH
Landau
i.d. Pfalz
Group holding
March 17, 2023
51
51
Vulcan Energie France SAS
Haguenau
Operating entity
June 22, 2022
100
100
Vulcan Energy SA Pty Limited
Perth
Group holding
September 23, 2023
100
100
1Vulcan Energy Subsurface Solutions was merged into Vulcan Energie Ressourcen GmbH on 8 October 2024.
2 This entity was renamed to Natürlich Landau Lithium GmbH on 12 February 2025.
3This entity was renamed from Vulcan Lily Lithium Geschäftsführungs GmbH, on 2 December 2024.
The entity Vulcan Lily Lithium (Höchst) GmbH & Co.KG was dissolved on 2 December 2024
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 32 BUSINESS COMBINATIONS
No business combinations occurred in the year ending 31 December 2024.
Comeback Personaldienstleistungen GmbH
In the year ended 31 December 2023, Vulcan Energie Ressourcen GmbH, a subsidiary of Vulcan Energy Resources
Limited, acquired 100% of drilling labour hire company, Comeback Personaldienstleistungen GmbH, in
accordance with the Share Purchase Agreement, with an effective date on 1 February 2023 (closing-date).
As deferred consideration for the acquisition, two tranches of performance rights, each valued at €100,000 were
issued and vest subject to achieving the following milestones:
1.
The successful complete staffing of the drilling rigs for the year 2023 on or before December 31, 2023.
The rights will expire on December 31, 2024. These rights vested at 31 December 2023, and were
exercised during the year ended 31 December 2024.
2. The successful complete staffing of the drilling rigs for the year 2024 on or before December 31, 2024.
The rights will expire on December 31, 2025. These rights vested at 31 December 2024, and are
exercisable.
Performance rights issued as deferred consideration were valued at acquisition date using probability weighted
assumptions, and therefore the consideration value at acquisition date differs to the value of performance rights
vested at these dates.
The values identified in relation to acquisition of Comeback were final as at 31 December 2023.
Details of the acquisition are as follows:
€’000
Cash
35
Trade and other receivables
458
Property, plant & equipment
23
Right-of-use assets
33
Loans and borrowings
(81)
Trade and other payables
(429)
Lease Liabilities
(33)
Fair value of net assets acquired
6
Intangible assets acquired
387
Deferred tax liabilities arising on acquisition
(115)
Acquisition-date fair value of total consideration
278
Representing:
€’000
Cash paid
150
Performance rights issued as consideration
128
Total consideration
278
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 32 BUSINESS COMBINATIONS (CONT.)
Accounting policy
Business combinations
The acquisition method of accounting is used to account for business combinations regardless of whether
equity instruments or other assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity
instruments issued, or liabilities incurred by the acquirer to former owners of the acquiree and the amount of
any non-controlling interest in the acquiree. For each business combination, the non-controlling interest in the
acquiree is measured at either fair value or at the proportionate share of the acquiree's identifiable net assets.
All acquisition costs are expensed as incurred to profit or loss.
On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities
assumed for appropriate classification and designation in accordance with the contractual terms, economic
conditions, the consolidated entity's operating or accounting policies and other pertinent conditions in
existence at the acquisition-date.
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value.
Subsequent changes in the fair value of the contingent consideration classified as an asset or liability is
recognised in profit or loss. Contingent consideration classified as equity is not remeasured and its subsequent
settlement is accounted for within equity.
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-
controlling interest in the acquiree and the fair value of the consideration transferred and the fair value of any
pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-
existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to
the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisition-
date, but only after a reassessment of the identification and measurement of the net assets acquired, the non-
controlling interest in the acquiree, if any, the consideration transferred and the acquirer's previously held equity
interest in the acquiree.
NOTE 33 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
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 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.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 33 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
The carrying values of the Group’s financial instruments are as follows:
31 Dec 24
31 Dec 23
€'000
€'000
Financial Assets
Cash and cash equivalents
97,054
78,728
Trade and other receivables
11,904
6,187
Investment at fair value through other comprehensive
income
1,396
2,550
Other investments (note 14)
401
-
110,755
87,465
Financial Liabilities
Trade and other payables
18,412
17,194
Derivative financial instrument
-
133
Lease liabilities
3,852
4,411
22,264
21,738
(a)
Market risk
(i.)
Foreign exchange risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to
foreign currency risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial
liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using
sensitivity analysis and cash flow forecasting.
In order to protect against exchange rate movements, the consolidated entity entered into forward foreign
exchange contracts during the year ended 31 December 2023. No forward foreign exchange contracts were
entered during the year ended 31 December 2024.
A summary of the maturity, settlement amounts and the average contractual exchange rates of the consolidated
entity's forward foreign exchange contracts is as follows:
Sell Australian dollars
Average exchange rates
31 Dec 24
31 Dec 23
31 Dec 24
31 Dec 23
€'000
€'000
€'000
€'000
Buy Euros
Maturity:
0 - 3 months
-
10,000
-
0.610
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 33 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(a) Market risk (cont)
(i.) Foreign exchange risk (cont)
The carrying amount of the consolidated entity's foreign currency denominated financial assets and financial
liabilities at the reporting date were as follows:
Assets
Liabilities
31 Dec 24
31 Dec 23
31 Dec 24
31 Dec 23
Consolidated
€'000
€'000
€'000
€'000
US dollars
-
-
2,069
3,237
Canadian dollar
-
-
238
9,465
Australian dollar
75,617
44,007
1,725
-
75,617
44,007
4,032
12,702
The aggregate net foreign exchange gains/(losses) recognised in the P&L were:
31 Dec 24
€’000
31 Dec 23
€’000
Net foreign exchange gains/(losses) recognised in the P&L:
1,456
299
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 as follows (holding all other variables constant):
Impact on post-tax profit
31 Dec 24
31 Dec 23
€’000
€’000
EUR/AUD exchange rate - increase 5%
(3,781)
(2,096)
EUR/AUD exchange rate – decrease 5%
3,781
2,096
EUR/USD exchange rate – increase 5%
103
162
EUR/USD exchange rate – decrease 5%
(103)
(162)
EUR/CAD exchange rate – increase 5%
12
473
EUR/CAD exchange rate – decrease 5%
(12)
(473)
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 33 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(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:
31 Dec 24
31 Dec 23
Weighted average
interest rate
Average
Balance
Weighted average
interest rate
Average
Balance
€’000
€’000
Cash and cash equivalents
4.27%
62,476
3.93%
63,359
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 31 December 2024, 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:
Profit higher/(lower)
Profit higher/(lower)
31 Dec 24
31 Dec 23
€’000
€’000
+ 1.0% (100 basis points)
625
634
- 1.0% (100 basis points)
(625)
(634)
(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.
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 of forecast and actual cash flows.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 33 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)
(c) Liquidity risk (cont.)
The Group had access to a secured revolving credit facility of €10,000,000 for the year ended 31 December 2024,
which was not drawn at any time during the financial year. The facility is held with BNP Paribas, with an interest
rate of 1.8% plus EURIBOR charged on drawn funds. The facility matures in June 2029, with the interest rate
increasing to 2.3% plus EURIBOR on drawn amounts from 1 January 2026.
31 Dec 24
31 Dec 23
Revolving credit facility
€'000
€'000
Financing facility available at year-end
10,000
-
Amount drawn at year-end
-
-
Amount undrawn at year-end
10,000
-
The following are the contractual maturities of financial liabilities:
1 year or less
1-5 years
> 5 years
Total
31 Dec 24
€’000
€’000
€’000
€’000
Trade and other payables
18,412
-
-
18,412
Derivative liabilities
-
-
-
-
Lease Liabilities
771
2,553
528
3,852
31 Dec 23
Trade and other payables
17,194
-
-
17,194
Derivative liabilities
133
-
-
133
Lease Liabilities
1,086
2,596
729
4,411
(d)
Price risk
The Group is exposed to commodity price risk, as its energy sales are predominantly subject to prevailing market
prices. The contract with Pfalzwerke guarantees a minimum price of €0.25 per megawatt-hour (MWh) (31 Dec
2023: €0.25 per MWh). During the year ended 31 December 2024, Vulcan sold 18,490 MWh at an average price of
€0.25 per MWh (31 Dec 2023: 16,279 MWh at an average price of €0.26 per MWh).
A 50% upward movement in the average price for MWh would result in the Group’s loss decreasing by €2.3m, or
by €4.6m for a 100% upward price movement.
(e)
Capital risk management
The Group’s objectives when managing capital are to:
•
Safeguard the 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 manage capital risk, the Group may issue new shares or sell assets within the Group.
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 Company is equity funded and does not hold
interest-bearing debt as at 31 December 2024. Net capital has historically been obtained through share
placements on the Australian Securities Exchange (“ASX”).
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 34 CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
Lease liabilities
Loan
Total
€'000
€'000
€'000
Balance at 1 Jan 23
3,316
-
3,316
Net cash used in financing activities
(1,744)
(81)
(1,825)
Acquired in business combinations
33
81
114
Additions to leases
2,835
-
2,835
Other changes
(29)
-
(29)
Balance at 31 Dec 23
4,411
-
4,411
Net cash used in financing activities
(1,197)
-
(1,197)
Additions to leases
638
-
638
Balance at 31 Dec 24
3,852
-
3,852
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS
31 Dec 24
31 Dec 23
€'000
€'000
Recognised share-based payment transactions
Performance rights issued to Directors, staff and consultants
2,115
315
Performance rights issued to Directors & staff in prior year
(1,535)
1,373
Performance rights cancelled during the year
271
-
Performance rights issued as consideration for acquisition of
subsidiary Comeback (note 32)
-
128
851
1,816
Represented by
Shared-based payment expense
851
1,688
Acquisition of subsidiary (note 32)
-
128
851
1,816
Details of new issues during the year
On 29 March 2024 and 4 October 2024, the company granted 382,256 performance rights to staff to align their
interests to that of the Company's shareholders and assist as an effective means of retention.
In addition to remaining an employee on 31 December 2024, the rights were granted with the following
vesting conditions:
-
the Company has produced battery quality lithium hydroxide at Vulcan’s Central Lithium
Electrolysis Optimization Plant (CLEOP);
-
the Company has all permits necessary for the planned execution of phase 1 as per the Bridging
Study;
-
the Company has secured all land necessary for the interconnecting pipeline and power between
Insheim and Schleidberg; D12 to 40 Morgen and Trappelberg;
-
the Company has commenced ‘shovel in the ground’ construction of the Geothermal and Lithium
Extraction Plant;
-
the Company has commenced drilling its first new well as part of project execution of Phase 1;
-
the Company has entered into binding agreements to fully finance Phase 1 of its operations; and
-
meet 2024 HSE targets (Long-term Injury frequency rate (LTIF) of 3).
On the 24th of June, the Company granted 50,000 Special Performance Rights to the CFO of Germany,
which will vest upon the recipient remaining employed by the Company on 31 December 2025.
On the same date, the Company also granted 40,000 performance rights to an external consultant, which
were subject to a vesting condition of achieving production of battery-grade lithium hydroxide to
specification from the Central Lithium Electrolysis Optimisation Plant (CLEOP) by 31 December 2024.
The value of performance rights granted, and vesting outcomes are summarised as follows:
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS (CONT.)
Type
Fair
value
of
rights
(EUR)
Number
of Rights
granted
Grant date
Vesting
date
Expiry
date
Number of
rights
vested at
31 Dec 24
Share-
based
payment
expense
for the
year
(€'000)
Class
2024 Employee
Incentive Plan –
tranche 1
1.73
363,660
29/3/2024
31/12/2024
31/12/2026
333,951
587
IP
2024 Employee
Incentive Plan –
tranche 2
2.61
18,596
4/10/2024
31/12/2024
31/12/2026
17,356
46
IP
Special
Performance
Rights – CFO
Germany
2.36
50,000 24/06/2024
31/12/2025
31/12/2026
-
-
IP
Performance
rights – external
consultant
2.36
40,000 24/06/2024
31/12/2024
31/12/2026
38,000
88
IP
Total
472,256
389,307
721
Under the Company’s Incentive Award plan, the Company issued the following incentives to Executives during
the year:
•
A short-term incentive (STI), designed to reward creation of exceptional short-term shareholder value,
issued in three tranches as Class IP.
•
A long-term incentive (LTI), designed to reward creation of exceptional long-term shareholder, issued in
seven tranches as Class IP.
The STI and LTI performance rights issued for the year ended 31 December 2024 were as follows:
Type
Number of
Rights
Granted
Number of Rights
Vested at 31 Dec 24
Number of Rights
Lapsed at 31 Dec 24
Share-based payment
expense for the year
(€'000)
Class
MD-CEO - STI
119,500
115,694
(3,806)
271
IP
MD-CEO - LTI
348,000
-
-
73
IP
Group CFO -
STI
72,500
70,445
(2,055)
184
IP
Group CFO -
LTI
202,500
-
-
64
IP
Executives -
STI
236,000
219,709
(16,291)
510
IP
Executives -
LTI
653,000
-
-
175
IP
Special - STI
600,000
-
-
101
IP
Total
2,231,500
405,848
(22,152)
1,378
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS (CONT.)
MD-CEO and Group CFO STI rights multiplier
The number of performance rights issued to the MD-CEO and Group CFO include a multiplier for the following
milestones tested at the measurement date:
• The financing milestone (STI) includes a 1.5x multiplier;
• If project construction is as per the Controlled Schedule (P50) (LTI) includes a 1.5x multiplier; and
• If project construction is within six months of the Controlled Schedule (P50) (LTI) includes a 1.25x multiplier.
Refer to Section 5 of the Remuneration Report for the STI financing milestones outcome.
Details of the Executive STIs are as follows:
Item
Executive Rights – STI
Special Executive Rights – STI
Tranche 1
Tranche 2
Tranche 3
Tranche 1
Tranche 2
Tranche 3
Grant date
24/6/2024,
21/8/2024
24/6/2024,
21/8/2024
24/6/2024,
21/8/2024
5/12/2024
5/12/2024
5/12/2024
Fair value of
each right (EUR)
2.36,
2.36
2.36,
2.36
2.36,
2.36
3.82
3.82
3.82
Commencement
of performance
period
24/6/2024,
21/8/2024
24/6/2024,
21/8/2024
24/6/2024,
21/8/2024
5/12/2024
5/12/2024
5/12/2024
Performance
measurement
date
31/12/2024
31/12/2024
31/12/2024
31/12/2026
31/12/2025
31/12/2025
Vesting date
31/12/2024
31/12/2024
31/12/2024
31/12/2026
31/12/2025
31/12/2025
Expiry date
31/12/2026
31/12/2026
31/12/2026
4/12/2028
4/12/2028
4/12/2028
Number of
Rights granted
118,000
47,200
70,800
100,000
250,000
250,000
Valuation per
Tranche (€’000)
278
111
167
382
956
956
Item
MD-CEO Rights– STI
Group CFO Rights – STI
Tranche 1
Tranche 2
Tranche 3
Tranche 1
Tranche 2
Tranche 3
Grant date
5/8/2024
5/8/2024
5/8/2024
17/6/2024
17/6/2024
17/6/2024
Fair value of
each right (EUR)
2.28
2.28
2.28
2.63
2.63
2.63
Commencement
of performance
period
13/6/2024
13/6/2024
13/6/2024
17/6/2024
17/6/2024
17/6/2024
Performance
measurement
date
31/12/2024
31/12/2024
31/12/2024
31/12/2024
31/12/2024
31/12/2024
Vesting date
31/12/2024
31/12/2024
31/12/2024
31/12/2024
31/12/2024
31/12/2024
Expiry date
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
Number of
Rights
59,750
23,900
35,850
36,250
14,500
21,750
Valuation per
Tranche (€’000)
136
55
82
95
38
57
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS (CONT.)
Performance conditions of the STI performance rights issued to the MD-CEO, Group CFO and other executives
are as follows:
Tranche 1
Project Milestones (50% weighting; 8.3% equal weighting)
- The Company has produced battery quality lithium hydroxide at Vulcan’s Central Lithium Electrolysis
Optimization Plant (CLEOP);
- The Company has all permits necessary for the planned execution of phase 1 as per the Bridging Study;
- The Company has secured all land necessary for the interconnecting pipeline and power between Insheim
and Schleidberg; D12 to 40 Morgen and Trappelbert;
- The Company has commenced ‘shovel in the ground’ construction of the Geothermal and Lithium
Extraction Plant;
- The Company has commenced drilling its first new well as part of project execution of Phase 1;
- The Company has entered into binding agreements to fully finance Phase 1 of its operations (Finance
Milestone).
Tranche 2
ESG Milestones (20% weighting; 5% equal weighting):
- Environment: Meet 2024 HSE targets of long-term injury frequency rate (LTIF) of 3;
- Social: Signing a binding agreement with a local utility to supply the local community with renewable heat
in Phase One area;
- Governance: no breaches with local authorities or regulatory authorities;
- Governance: no cyber security breaches during the period.
Tranche 3
Individual Milestones (30% weighting):
Tranche 3 will vest subject to specific individual performance milestones. Refer to Section 5 of the Remuneration
Report for individual milestones of Executive KMP.
Special STI Performance rights issued to executives
Special STI performance rights issued on 5 December 2024 have different performance milestones to the MD-
CEO, Group CFO and other executive milestones described above, to align the incentive with the creation of
short-term shareholder value.
Performance conditions of the special STI performance rights are as follows:
Tranche 1
Continued full-time employment with the Company or one of its subsidiaries until 31 December 2026
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS (CONT.)
Tranche 2
The Company secures all land that its lenders require the Company to hold prior to financial close and first debt
draw down as contained in the final financing documents signed by the lenders or amended at a later date or in
accordance with a potential future land acquisition rider causing no delay to the Schedule Completion Date or
the Completion Date beyond the Completion Longstop Date;
Tranche 3
The Company receives such Permits envisaged to be awarded under the Permitting Action Plan by December 31
2025 for Phase 1 signed by the lenders or amended at a later date, either by 31 December 2025 or by a later date
without causing a delay to the Scheduled Completion Date or the Completion Date beyond the Completion
Longstop Date based on Permitting Non-Conformance.
Details of LTI performance rights issued to the MD-CEO, Group CFO and other executives during the year ended
31 December 2024 are as follows:
Item
MD-CEO Rights – LTI
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
ATSR
Rights
RTSR
Rights
Grant date
5/8/2024
5/8/2024
5/8/2024
5/8/2024
5/8/2024
5/8/2024
5/8/2024
Fair value of each
right (EUR)
2.28
2.28
2.28
2.28
2.28
1.33
1.72
Commencement
of performance
period
13/6/2024
13/6/2024
13/6/2024
13/6/2024
13/6/2024
13/6/2024
13/6/2024
Performance
measurement
date
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
Vesting date
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
Expiry date
31/12/2027
31/12/2027
31/12/2027
31/12/2027
31/12/2027
31/12/2027
31/12/2027
Volatility
n/a
n/a
n/a
n/a
n/a
70%
70%
Risk-fee rate
n/a
n/a
n/a
n/a
n/a
3.64%
3.64%
Number of Rights
46,400
46,400
46,400
34,800
34,800
69,600
69,600
Valuation per
Tranche (€’000)
106
106
106
79
79
93
119
VULCAN ENERGY ANNUAL REPORT | 2024
120
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS (CONT.)
Item
Group CFO Rights – LTI
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
ATSR
Rights
RTSR
Rights
Grant date
17/6/2024
17/6/2024
17/6/2024
17/6/2024
17/6/2024
17/6/2024
17/6/2024
Fair value of
each right (EUR)
2.63
2.63
2.63
2.63
2.63
1.88
2.14
Commencement
of performance
period
17/6/2024
17/6/2024
17/6/2024
17/6/2024
17/6/2024
17/6/2024
17/6/2024
Performance
measurement
date
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
Vesting date
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
Expiry date
31/12/2027
31/12/2027
31/12/2027
31/12/2027
31/12/2027
31/12/2027
31/12/2027
Volatility
n/a
n/a
n/a
n/a
n/a
70%
70%
Risk-fee rate
n/a
n/a
n/a
n/a
n/a
3.79%
3.79%
Number of
Rights
27,000
27,000
27,000
20,250
20,250
40,500
40,500
Valuation per
Tranche (€’000)
71
71
71
53
53
76
87
Item
Executive Rights – LTI
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
ATSR
Rights
RTSR
Rights
Grant date
24/6/2024
21/8/2024
24/6/2024
21/8/2024
24/6/2024
21/8/2024
24/6/2024
21/8/2024
24/6/2024
21/8/2024
24/6/2024
21/8/2024
24/6/2024
21/8/2024
Fair value of
each right (EUR)
2.36
2.36
2.36
2.36
2.36
1.69
1.79
Commencement
of performance
period
24/6/2024
21/8/2024
24/6/2024
21/8/2024
24/6/2024
21/8/2024
24/6/2024
21/8/2024
24/6/2024
21/8/2024
24/6/2024
21/8/2024
24/6/2024
21/8/2024
Performance
measurement
date
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
Vesting date
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
31/12/2026
Expiry date
31/12/2027
31/12/2027
31/12/2027
31/12/2027
31/12/2027
31/12/2027
31/12/2027
Volatility
n/a
n/a
n/a
n/a
n/a
70%
70%
Risk-fee rate
n/a
n/a
n/a
n/a
n/a
3.93%
3.93%
Number of
Rights
87,068
87,065
87,067
65,300
65,300
130,600
130,600
Valuation per
Tranche (€’000)
205
205
205
154
154
220
233
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS (CONT.)
Performance conditions of the LTI performance rights are as follows:
Business Returns (40%)
Tranche 1
Tranche 1 will vest subject to project construction and execution of the Central Lithium Plant per the Controlled
Schedule (P50) (Project Construction).
Tranche 2
Tranche 2 will vest subject to delivering CAPEX as per the Phase 1 bridging phase (as aligned with BNPP financing
package) and assumptions.
Tranche 3
Tranche 3 will vest subject to obtaining Project Financing for Phase Two capital expenditure.
Sustainability Returns (20%)
Tranche 4
Tranche 4 will vest subject to achieving financing with ESG criteria and successfully executing all ESMP
(Environmental, Social Management Plan) requirements.
Tranche 5
Tranche 5 will vest when a publicly announced GHG emissions target is set (linked to a credible framework such
as Science Based Targets) and meet the target within timeline and volume of reduction requirements.
Total Shareholder Returns (TSR) (40%)
Absolute Total Shareholder Returns (ATSR) Rights:
The ATSR Rights will vest according to the following schedule:
ATSR compound annual growth rate (CAGR)
Percentage of ATSR Rights eligible to vest
Less than 7.5%
Nil
Between 7.5% and 10%
50% to 75% on a pro-rata basis
Between 10% and 12.5%
75% to 100% on a pro-rata basis
Greater than 12.5%
100%
Relative Total Shareholder Returns (RTSR) Rights:
Relative TSR is based on an increase in share-price and market capitalisation relative to a basket of peer
companies in the lithium sector and wider resource companies predominately in the ASX 300 comparative to the
beginning of the review period. The RTSR Rights will vest according to the following schedule:
Company's TSR performance relative
to the Peer Group
Percentage of RTSR Rights eligible to vest
50th percentile
50%
Between 50th percentile and 75th percentile
Pro-rata
75th percentile
100%
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS (CONT.)
Vesting conditions of performance rights issued in prior years
Class S
One third of the rights vest on each 12 month anniversary of 24 June 2021, with the final tranche vesting on 24
June 2024. All performance rights have vested.
Class T
The rights vest subject to 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 vesting conditions were not met and therefore all rights lapsed.
Class U
The rights vest subject to 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 vesting conditions were not met and therefore
all rights lapsed.
Class V
The rights vest subject to the Company being granted a permit according to BImSchG for the first lithium refinery,
on or before the Expiry Date of 1st December 2024. The vesting conditions were not met and therefore all rights
lapsed.
Class Z
The rights vest subject to the Company obtaining project finance for the first commercial plant, on or before the
Expiry Date of 1 December 2024. The vesting conditions were not met and therefore all rights lapsed.
Class AA
The STI rights issued in the year-ended 31 December 2022 vest subject to:
Tranche 1:
•
the Company obtaining sufficient funding in order to allow for completion of the first plant that will be
able to produce lithium on a commercial scale and/or the first new commercial geothermal heating
plant, in accordance with Vulcan’s business plan (First Plant) by 30 June 2023.
Tranche 2:
•
the achievement of various individual and business KPIs. The STI targets reflect a balance of individual
and organisational goals impacting overall STI. Individual goals in the assessment of the STI include
items such as sustainability, cost performance, funding, approval of drilling permits, drilling activity,
compliance and governance, growth and safety. Individual executive goals are all clearly defined and
specifically measurable.
Tranche 3 will vest subject to the achievement of shared objectives as follows:
People:
•
>80% retention rate for agreed critical roles at all levels of the organisation for FY 23 onwards; and
•
increased employee satisfaction rate based on previous annual internal employee satisfaction survey.
Environment:
•
obtain an ESG rating from a recognised third party ESG provider that is above 50;
•
obtain a carbon neutral emission certification from a recognised third-party issuer where the Group’s
carbon emissions footprint is measured and offset by supporting credible carbon offset projects and
verified across all business units by 30 June 2023; and
•
reporting of climate related impacts, risks and opportunities management by the Group according to
the Taskforce for Climate-Related Financial Disclosures (TCFD) guidelines and/or report according to
the Taskforce for Nature-Related Financial Disclosures (TNFD).
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS (CONT.)
Social:
•
all exploration/production licenses to be in good standing as at 30 June 2023; and
•
release an announcement on the ASX that it has commenced drilling in the Upper Rhine Valley
All tranches of the STI rights have been assessed and the vesting conditions were partially met, resulting in 26,903
rights vesting and 63,797 rights lapsing.
Class AB
The LTI rights issued in the year-ended 31 December 2022 vest subject to:
Tranche 1:
•
the successful ramp up to nameplate capacity for Phase 1 energy and lithium chemicals production, and
achievement of corresponding revenue.
Tranche 2:
•
obtain positive definitive feasibility study for Phase 2 energy and lithium chemicals production, and
achievement of corresponding revenue.
Tranche 3:
•
obtain project financing for completion of Phase 2 capital expenditure
Tranche 4:
•
achievement of carbon neutral emission certification across all operations through each year in the four-
year period commencing 30 June 2022.
Tranche 5:
•
achievement of the lowest quartile absolute GHG emissions.
Tranche 6 and 7:
•
the achievement of Total Shareholder Returns (TSR) over the four years from 1 July 2022 to 30 June
2026.
The performance rights are tested on 30 June 2026 and will vest or lapse on that date.
Class AC
One third of the rights vest on each 12 month anniversary of 29 November 2022, with the final tranche vesting on
29 November 2025. A total of 14,237 performance rights have vested, 9,491 lapsed, and 4,746 will be assessed on
29 November 2025.
Class AD
One third of the rights vest on each 12 month anniversary of 28 May 2023. A total of 8,411 performance rights have
vested and 16,823 have lapsed.
Class AE
The performance rights were issued as consideration for the acquisition of Comeback Personaldienstleistungen
GmbH (refer to note 32) and vest subject to successful staffing of the drilling rigs at the time of setting up the
same, and during the drilling of the wells according to the drilling plan. The vesting conditions have been met,
with 41,357 rights vesting at 31 December 2023, and 41,357 rights vesting at 31 December 2024.
VULCAN ENERGY ANNUAL REPORT | 2024
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Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS (CONT.)
Set out below is a summary of movements of performance rights by class during the year ended 31 December
2024:
As at
1 Jan 24
Granted
Exercised
Lapsed or
Cancelled
As at
31 Dec 24
Exercisable
performance
rights
Class S
12,894
-
- -
12,894
12,894
Class T
260,000
-
-
(260,000)
-
-
Class U
250,000
-
-
(250,000)
-
-
Class V
110,000
-
-
(110,000)
-
-
Class Y
60,000
-
(60,000)
-
-
-
Class Z
50,000
-
-
(50,000)
-
-
Class AA
37,232
-
-
(10,329)
26,903
26,903
Class AB
274,200
-
-
(65,000)
209,200
-
Class AC
28,474
-
(9,490)
(9,492)
9,492
4,746
Class AD
25,234
-
-
(16,823)
8,411
8,411
Class AE
82,714
-
(41,357)
-
41,357
41,357
Class IP
360,520
2,703,756
-
(221,734)
2,842,542
989,042
1,551,268
2,703,756
(110,847)
(993,378)
3,150,799
1,083,353
VULCAN ENERGY ANNUAL REPORT | 2024
125
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS (CONT.)
Set out below is a summary of movements of performance rights by class during the year ended
31 December 2023:
As at
1 Jan 23
Granted
Exercised
Lapsed or
Cancelled
As at
31 Dec 23
Exercisable
performance
rights
Class G
250,000
-
(250,000)
-
-
-
Class H
472,727
-
(472,727)
-
-
-
Class I
910,909
-
(910,909)
-
-
-
Class J
2,500,000
-
(2,500,000)
-
-
-
Class M
1,500,000
-
(1,500,000)
-
-
-
Class N
1,500,000
-
(1,500,000)
-
-
-
Class S
25,791
-
(12,897)
-
12,894
-
Class T
260,000
-
-
-
260,000
-
Class U
250,000
-
-
-
250,000
-
Class V
110,000
-
-
-
110,000
-
Class W
100,000
-
-
(100,000)
-
-
Class Y
60,000
-
-
-
60,000
60,000
Class Z
50,000
-
-
-
50,000
-
Class AA
90,700
-
(53,468)
37,232
-
Class AB
274,200
-
-
-
274,200
-
Class AC
28,474
-
-
-
28,474
9,491
Class IP
-
360,520
-
-
360,520
-
Class AE
-
82,714
-
-
82,714
41,357
Class AD
-
25,234
-
-
25,234
-
8,382,801
468,468
(7,146,533)
(153,468)
1,551,268
110,848
VULCAN ENERGY ANNUAL REPORT | 2024
126
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 35 SHARE-BASED PAYMENTS (CONT.)
Accounting Policy
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to Directors, Key Management
Personnel and employees.
Equity-settled transactions are awards of shares, or performance rights which convert to shares, and are
provided to employees in exchange for the rendering of services and achieving performance based milestones.
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 or paid in lieu of the issue of performance rights.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value of equity-settled
transactions containing market conditions are independently determined using an appropriate valuation model
that takes into account the exercise price, term of the option, impact of dilution, share price at grant date,
expected price volatility of the underlying share, expected dividend yield and risk free interest rate for the term
of the performance right, together with non-vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity
reserves 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.
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.
VULCAN ENERGY ANNUAL REPORT | 2024
127
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 36 RELATED PARTY DISCLOSURE
Parent entity
Vulcan Energy Resources Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 31.
Associates
Interests in associates are set out in note 29.
The aggregate compensation made to directors and other members of key management personnel of the
consolidated entity is set out below.
31 Dec 24
31 Dec 23
€
€
Short-term benefits
1,450,292
1,434,501
Post-employment benefits
116,852
100,608
Share-based payments
698,481
309,652
2,265,625
1,844,761
(a)
Transactions with associates
There were no loans to or from associates at 31 December 2024 (31 December 2023: nil).
(b)
Transactions with related parties
There was an outstanding balance payable to JRB Consulting Ltd, a related party of Ms Josephine Bush, of €4,780
in relation to directors’ fees for the year ended 31 December 2024 (31 December 2023: nil). During the previous
year, payments for consultancy fees of €12,056 were made to JRB Consulting Ltd in respect of expert advice on
ESG reporting.
There were outstanding balances payable to Mr Gavin Rezos of €8,563 (December 2023: €11,666) , Dr Günter Hilken
of €5,583 (December 2023: nil) and Dr Heidi Grön of €5,028 (December 2023: nil) in relation to directors’ fees for
the year ended 31 December 2024.
Other than the above, there were no other transactions with related parties during the year ended 31 December
2024.
There were no loans to or from related parties at 31 December 2024 (31 December 2023: nil).
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
VULCAN ENERGY ANNUAL REPORT | 2024
128
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 37 COMMITMENTS
Below are the commitments in relation to its exploration and evaluation assets:
31 Dec 24
31 Dec 23
€'000
€'000
Within one year
2,239
1,888
One to five years
6,766
-
9,005
1,888
Below are the commitments in relation to capital expenditure:
31 Dec 24
31 Dec 23
€'000
€'000
Within one year
2,566
22,472
One to five years
-
-
2,566
22,472
NOTE 38 CONTINGENCIES
The Group has given bank guarantees as at 31 December 2024 of €3,707,000 (31 December 2023: €958,000)
The Group has no contingent assets and liabilities as at 31 December 2024 (31 December 2023 : nil).
NOTE 39 AUDITOR’S REMUNERATION
31 Dec 24
31 Dec 23
€’000
€’000
Amounts received or due and receivable by RSM
Australia Partners for:
Audit or review of the annual financial report
126
102
Comfort letter in relation to listing prospectus
-
111
Amounts received or due and receivable by RSM
GmbH for:
Review of the financial report
-
46
Comfort letter in relation to listing prospectus
-
46
Amounts received or due and receivable by RSM
Ebner Stolz:
Audit of the annual financial report
176
135
Audit of standalone German entity financial statements
35
-
337
440
VULCAN ENERGY ANNUAL REPORT | 2024
129
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 40 ACCUMULATED LOSSES
31 Dec 24
31 Dec 23
€'000
€'000
Balance at beginning of the year
(68,835)
(41,872)
Loss after income tax for the year
(42,358)
(26,963)
Balance at end of the year
(111,193)
(68,835)
NOTE 41 PARENT ENTITY
31 Dec 24
31 Dec 23
€'000
€'000
Statement of Financial Position
Assets
Current Assets
90,955
49,838
Non-Current Assets
331,413
254,262
Total Assets
422,367
304,100
Liabilities
Current Liabilities
4,222
1,052
Non-Current Liabilities
274
-
Total Liabilities
4,496
1,052
Equity
Issued Capital
453,643
323,739
Reserves
(7,127)
6,049
Accumulated losses
(28,645)
(26,740)
Total Equity
417,871
303,048
Statement of Profit or Loss and other comprehensive
income
Loss for the year
(3,132)
(3,498)
Total Comprehensive Loss
(3,132)
(3,498)
Contingent liabilities
The parent entity has no other contingent assets or contingent liabilities as at 31 December 2024 and 31
December 2023.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 31 December 2024 and
31 December 2023.
Exploration commitments
The parent entity has no exploration commitments as at 31 December 2024 and 31 December 2023.
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:
(i.)
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
VULCAN ENERGY ANNUAL REPORT | 2024
130
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 42 DIVIDENDS
No dividend has been declared or paid during the year ended 31 December 2024 (31 December 2023: nil), and the
Directors do not recommend the payment of a dividend in respect of the year ended 31 December 2024.
Accounting Policy
Dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the Company.
NOTE 43 EVENTS AFTER THE REPORTING DATE
On 1 January 2025, Ms Felicity Gooding commenced the role of Executive Director, in addition to her role as Group
Chief Financial Officer, and Mr Angus Barker commenced his role as Lead Independent Director and Deputy Chair.
Apart from the above, no other matter or circumstance has arisen since 31 December 2024 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.
NOTE 44 USE OF EXEMPTION PROVISIONS
The following fully consolidated German Group companies made use of the exemption provisions in Section 264
Paragraph 3 and Section 264b HGB in 2024.
Company Name
Seat
Vulcan Energie Ressourcen GmbH
Karlsruhe
Vulcan Energy Engineering GmbH
Augsburg
Vulcan Geothermal GmbH
Karlsruhe
VER GEO LIO GmbH
Karlsruhe
Vercana GmbH
Karlsruhe
Natürlich Insheim GmbH
Karlsruhe
Comeback Personaldienstleistungen GmbH
Lingen
Vulcan Projektgesellschaft 3 GmbH
Karlsruhe
Vulcan Projektgesellschaft 2 GmbH
Karlsruhe
Natürlich Südpfalz Geschäftsführungs GmbH
Karlsruhe
Natürlich Südpfalz GmbH & Co. KG
Landau i.d. Pfalz
Lionheart Marketing GmbH
Karlsruhe
Landau Süd JV-Verwaltungs GmbH
Karlsruhe
Landau Süd Joint Venture GmbH & Co. KG
Landau i.d. Pfalz
VULCAN ENERGY ANNUAL REPORT | 2024
131
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
Consolidated entity disclosure statement
As at 31 December 2024
The following table provides a list of all entities included in the Gorup’s consolidated financial statements,
prepared in accordance with the requirements of Section 295(3A) of the Corporations Act. The ownership interest
is only disclosed for those entities which are a body corporate, representing the direct and indirect percentage
share capital owned by the Company.
Entity name
Entity type
Country of
incorporation
Australian
resident
Foreign
jurisdiction(s)
in which the
entity is a
resident for
tax purposes
Ownership
interest %
Vulcan Energy Resources Ltd
Body
Corporate
Australia
Yes
N/A
100
Vulcan Energy Italy Pty Ltd
Body
Corporate
Australia
Yes
N/A
100
Vulcan Energy Resources
Europe Pty Ltd
Body
Corporate
Australia
Yes
N/A
100
Vulcan Energy SA Pty Ltd
Body
Corporate
Australia
Yes
N/A
100
Vulcan Energie Ressourcen
GmbH
Body
Corporate
Germany
No
Germany
100
Vulcan Energie France, SAS
Body
Corporate
France
No
France
100
Vulcan Energy Engineering
GmbH
Body
Corporate
Germany
No
Germany
100
Vercana GmbH
Body
Corporate
Germany
No
Germany
100
Comeback
Personaldienstleistungen
GmbH
Body
Corporate
Germany
No
Germany
100
Vulcan Geothermal GmbH
Body
Corporate
Germany
No
Germany
100
Landau-Süd JV Verwaltungs
GmbH
Body
Corporate
Germany
No
Germany
51
Landau-Süd JV GmbH & Co.
KG
Partnership
Germany
No
Germany
51
VER GEO LIO GmbH
Body
Corporate
Germany
No
Germany
100
Vulcan Projektgesellschaft 3
GmbH1
Body
Corporate
Germany
No
Germany
100
Natürlich Insheim GmbH
Body
Corporate
Germany
No
Germany
100
Natürlich Südpfalz
Geschäftsführungs GmbH
Body
Corporate
Germany
No
Germany
100
Natürlich Südpfalz GmbH & Co.
KG
Partnership
Germany
No
Germany
100
Lionheart Marketing GmbH2
Body
Corporate
Germany
No
Germany
100
Vulcan Energy Subsurface
Solutions GmbH3
Body
Corporate
Germany
No
Germany
100
Vulcan Projectgesellschaft 2
GmbH
Body
Corporate
Germany
No
Germany
100
1This entity was renamed to Natürlich Landau Lithium GmbH on 12 February 2025.
2This entity was renamed from Vulcan Lily Lithium Geschäftsführungs GmbH, on 2 December 2024.
3Vulcan Energy Subsurface Solutions was merged into Vulcan Energie Ressourcen GmbH on 8 October 2024.
The entity Vulcan Lily Lithium (Höchst) GmbH & Co.KG was dissolved on 2 December 2024.
VULCAN ENERGY ANNUAL REPORT | 2024
132
Vulcan Energy Resources Limited – Annual Report 1 January2024 – 31 December 2024
Directors’ Declaration
In the Directors’ opinion:
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 31 December 2024 and of its
performance for the year ended on that date.
b)
The financial statements and notes comply with International Financial Reporting Standards.
c)
The consolidated entity disclosure statement set out on page 132 of the Annual Report, as required by
section 295(3A) of the Corporations Act, is true and correct.
d)
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:
Dr Francis Wedin
Executive Chair
25 March 2025
VULCAN ENERGY ANNUAL REPORT | 2024
133
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
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 31 December 2024, 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 material accounting policies, the consolidated entity disclosure
statement, 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 31 December 2024 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.
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.
134
Key Audit Matter
How our audit addressed this matter
Going Concern
Refer to Note 1 in the financial statements
For the year ended 31 December 2024, the Group
incurred a loss after tax of €42.36m and had net cash
outflows from operating and investing activities of
€30.68m and €75.98m respectively for the year
ended 31 December 2024. As at that date, the
Group had a net current assets surplus of €86.84m
and cash and cash equivalents of €97.05m.
The directors have prepared the financial report on
the going concern basis. The directors' assessment
of the Group's ability to continue as a going concern
is based on a cash flow budget which includes future
capital raisings and debt financing.
We determined this assessment of going concern to
be a key audit matter due to:
•
the significant management assumptions
and judgements involved in preparing the
cash flow budget; and
•
the fact that the achievement of the cash flow
forecasts is subject to future events, some of
which are beyond the direct control of the
Group.
Our audit procedures included:
•
Assessing and discussing with management and
Directors the reasonableness of the Group’s
cash flow forecast for the 12-month period ended
31 March 2026;
•
Checking the mathematical accuracy of
management’s cash flow forecast;
•
Challenging the reasonableness of the key
assumptions and mitigating factors used by
management in the cash flow forecast by
comparison to our knowledge of the business
and supporting documentation;
•
Assessing the sensitivity of the key assumptions
within management’s cash flow forecast,
particularly in relation to debt and equity funding;
and
•
Assessing the adequacy of disclosures made in
the financial report.
Property, plant and equipment, including Mine
development properties
Refer to Note 16 in the financial statements
The Group has property, plant and equipment,
including mine development properties, with a
carrying value of €237,329,000 as at 31 December
2024.
We considered this to be a key audit matter due to
the significant level of costs capitalised and
management judgement involved in assessing the
carrying value of these assets including:
•
Determining the nature of costs incurred
meet the specific recognition criteria in AASB
116 Property, plant and equipment for
capitalisation;
•
Determining the timing of when the
exploration expenditure capitalised should be
re-characterised as mine development
properties
•
Undertaking mandatory impairment testing of
exploration and evaluation assets
immediately prior to transfer to mine
development properties; and
•
at year end, assessing whether any
indicators of impairment with respect to
property, plant and equipment and other non
current assets are present.
Our audit procedures included:
•
Assessing the Group’s accounting policy for
compliance with Australian Accounting
Standards;
•
Obtaining the schedule of property, plant and
equipment and on sample basis, testing the
additions to supporting documentation and
ensuring the amounts were capital in nature;
•
Assessing management’s determination of when
assets are available for use, including
challenging management assumptions used;
•
Evaluating management’s assessment for the
reclassification of exploration and evaluation
assets to mine development properties;
•
Assessing and evaluating the reasonableness of
management’s mandatory impairment testing of
exploration and evaluation assets immediately
prior to transfer to mine development properties;
•
At 31 December 2024, evaluating management’s
assessment that no indicators of impairment
existed in relation to property, plant and
equipment and other non current assets; and
•
Assessing the appropriateness of disclosures in
the financial statements.
135
Key Audit Matter
How our audit addressed this matter
Share-based payment
Refer to Note 35 in the financial statements
During the year, the Group issued performance rights
to key management personnel and employees.
Management has accounted for these instruments in
accordance with AASB 2 Share-Based Payment.
We have considered this to be a key audit matter
because:
•
The complexity of the accounting associated with
recording these instruments and management
estimation in determining the fair value of
instruments granted;
•
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:
•
Assessing the Group’s accounting policy for
compliance with Australian Accounting
Standards;
•
Obtaining an understanding of the terms and
conditions of the instruments granted during the
year;
•
Assessing the completeness of the instruments
granted/cancelled/lapsed during the reporting
period;
•
Assessing the appropriateness of management’s
valuation methodology used to determine the fair
value of the instruments granted in the current
year, including assessing the work performed by
management experts;
•
Testing the appropriateness of assumptions and
data used in determining the fair value of
instruments granted in the current year;
•
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 the
consolidated statement of profit or loss and other
comprehensive income; and
•
Assessing 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 31 December 2024 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:
a.
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
b.
the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
136
for such internal control as the directors determine is necessary to enable the preparation of:
i.
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
ii.
the consolidated entity disclosure statement that is true and correct and is free of 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.
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/admin/file/content102/c3/ar1_2020.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 31 December
2024.
In our opinion, the Remuneration Report of Vulcan Energy Resources Limited, for the year ended 31 December
2024, 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
Perth, WA
Matthew Beevers
Dated: 25 March 2025
Partner
137
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 the date of this Report unless otherwise noted.
1. Equity securities on issue
·
There are a total of 217,574,820 fully paid ordinary shares on issue all of which are listed on the ASX.
·
A total of 1,680,672 fully paid ordinary shares are subject to voluntary escrow until 30 June 2025.
·
The number of holders of fully paid ordinary shares is 26,818 as at 20 March 2025.
·
Holders of fully paid ordinary shares are entitled to participate in dividends and the proceeds on winding up of the
Company.
·
There are 3,150,799 performance rights on issue. Please see the table in the Appendix for further information.
·
There are no other securities on issue.
2. Distribution of fully paid ordinary shareholders is as follows:
Ordinary Shares67
Performance Rights
Range
Number of
holders
Number of
shares
% of issued
capital
Number of
holders
Number of
performance
rights
% of issued
capital
1 - 1,000
18,986
6,211,625
2.85%
91
73,337
2.33%
1,001 - 5,000
5,668
13,375,107
6.15%
317
491,413
15.60%
5,001 - 10,000
1,099
8,159,941
3.75%
7
57,909
1.84%
10,001 - 100,000
980
25,586,401
11.76%
25
1,145,946
36.37%
100,001 and over
85
164,241,746
75.49%
5
1,382,194
43.87%
Total
26,818
217,574,820
100.00%
445
3,150,799
100.00%
67 As at 20 March 2025.
3. Holders of non-marketable parcels
Holders of non-marketable parcels are deemed to be those whose shareholding is valued at less than $500. As at 20 March
2025, there were 6,213 shareholders who held less than a marketable parcel of shares, which amounts to 0.21% of issued
capital based on a price per Share of $4.00.
4. Substantial shareholders of ordinary fully paid shares
As at 20 March 2025, the names of substantial shareholders who have notified the Company in accordance with section
671B of the Corporations Act 2001 are:
Holding balance
% of issued capital
Mr Francis Edward Barnabas Wedin and related parties
16,458,561
7.56
Hancock Prospecting Pty Limited
14,123,048
6.49
CGI3 Pty Limited
13,520,284
6.21
PSA Automobiles S.A
11,448,959
5.26
VULCAN ENERGY ANNUAL REPORT | 2024
138
5. Share buy-backs
There is currently no on-market buyback program for any of Vulcan Energy Resources’ listed securities.
6. Voting rights
All fully paid ordinary shareholders are entitled to vote at any meeting of the members of the Company via proxy, attorney or
corporate representative and their voting rights are on:
·
show of hands – one vote per shareholder present; and
·
poll – one vote per fully paid ordinary share.
Holders of performance rights do not have any voting rights.
7. Major Shareholders as at 20 March 2025
Twenty largest shareholders
Rank
Shareholders
Number held
Percentage (%)
1
BNP PARIBAS NOMINEES PTY LTD
41,143,861
18.91%
2
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
28,013,099
12.88%
3
CITICORP NOMINEES PTY LIMITED
13,890,780
6.38%
4
CGI3 PTY LIMITED
13,520,284
6.21%
5
PSA AUTOMOBILES SA
11,448,959
5.26%
6
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
8,066,691
3.71%
7
MR FRANCIS EDWARD BARNABAS WEDIN 68
6,096,667
2.80%
7
MR FRANCIS EDWARD BARNABAS WEDIN 68
6,096,667
2.80%
8
MR JOHN LANGLEY HANCOCK
4,053,128
1.86%
9
BNP PARIBAS NOMS PTY LTD
3,560,521
1.64%
10
MR FRANCIS EDWARD BARNABAS WEDIN 68
3,452,727
1.59%
11
DR HORST DIETER KREUTER
2,644,096
1.22%
12
MONSLIT PTY LTD 69
1,600,000
0.74%
13
LHO LA PTY LTD
1,018,559
0.47%
14
BNP PARIBAS NOMINEES PTY LTD
962,779
0.44%
15
SNOWBALL 3 PTY LTD 69
957,000
0.44%
16
MR HOANG HUY NGUYEN
900,815
0.41%
17
MAGNI ASSOCIATES PTY LTD 68
812,500
0.37%
18
RHODIUM CAPITAL PTY LIMITED
750,000
0.34%
19
MR LEENDERT HOEKSEMA
730,000
0.34%
20
CITICORP NOMINEES PTY LIMITED
553,646
0.25%
Totals
150,272,779
69.07%
68 Mr. Francis Edward Barnabas Wedin and his related parties (Francis Wedin Group) hold a total of 16,458,561 shares (7.56%).
69 Part of the Torresan Group which holds a total of 2,557,000 shares (1.18%).
8. Options
There are no listed or unlisted options on issue as at the
date of this Report.
9. Tax status
The Company is treated as a public company for taxation
purposes.
VULCAN ENERGY ANNUAL REPORT | 2024
139
12. Tenement schedule
The information as required by ASX Listing Rule 5.20 is set out below:
Vulcan's licences as at the date of this Report, with the licences of Phase One shaded in grey
Name
State
Resources
applied for
Area
(km²)
Expiry
Ownership
As at 30
June 2024
Change in
ownership
Type
Ried
Hessen
Geothermal,
brine & lithium
289.92
7.2025
100 % VER GmbH
N/A
exploration
Luftbrücke
Hessen
Geothermal,
brine & lithium
207.25
9.2026
100 % VER GmbH
N/A
exploration
Rift-Nord
RLP
Geothermal &
lithium
61,83 (VER
share),
149.74 km²
total
6.2027
50 % VER GmbH,
50 % GET, Vulcan
has rights to
develop production
projects with 100%
ownership in the
licence area
N/A
exploration
Waldnerturm
BW
Geothermal,
brine & lithium
20.43
12.2026
100 % VER GmbH
N/A
exploration
Lampertheim II
Hessen
Geothermal,
brine & lithium
1.99
7.2026
100 % VER GmbH
N/A
exploration
Ortenau II
BW
Geothermal,
brine & lithium
374.1
12.2025
100 % VER GmbH
N/A
exploration
Mannheim
BW
Geothermal,
brine & lithium
144.49
6.2027
100 % VER Pty Ltd
N/A
exploration
Taro
RLP
Geothermal
32.68
8.2025
100% GGH (part of
VER Group)
N/A
exploration
Lisbeth
RLP
Lithium
9.2027
100 % VER GmbH
N/A
exploration
Ludwig
RLP
Geothermal &
lithium
96.34
12.2027
100 % VER GmbH
N/A
exploration
Therese
RLP
Geothermal &
lithium
81.12
12.2027
100 % VER GmbH
N/A
exploration
Lampertheim
Hessen
Geothermal,
brine & lithium
108.03
7.2026
100 % VER GmbH
N/A
exploration
Kerner
RLP
Geothermal &
lithium
72.26
12.2027
100 % VER GmbH
N/A
exploration
Löwenherz
RLP
Geothermal &
lithium
75.43
12.2026
100 % VER GmbH
N/A
exploration
Flaggenturm
2023
RLP
Geothermal
166.75
12.2027
100 % VER GmbH
N/A
exploration
Fuchsmantel
2023
RLP
Lithium
7.2025
100 % VER GmbH
N/A
exploration
10. Franking credits
The Company has no franking credits.
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.
VULCAN ENERGY ANNUAL REPORT | 2024
140
Name
State
Resources
applied for
Area
(km²)
Expiry
Ownership
As at 30
June 2024
Change in
ownership
Type
Landau-Süd
RLP
Geothermal
19.41
5.2034
Agreement signed
by Vulcan to
acquire 100%
N/A
production
Ilka
RLP
Lithium
11.2025
Agreement signed
by Vulcan to
acquire 100%
N/A
exploration
Insheim
RLP
Geothermal
19
11.2037
100% Natürlich
Insheim GmbH
N/A
production
LiThermEx
RLP
Lithium
3.202570
100% Natürlich
Insheim GmbH
N/A
exploration
Kachelhoffa
FR
Geothermal
463.34
7.2029
100% Vulcan
Énergie France
N/A
exploration
Kachelhoffa
minéral
FR
Lithium
7.2029
100 % Vulcan
Énergie France
N/A
exploration
Cesano
IT
Geothermal &
Lithium
11.46
01.2027
50% Vulcan Energy
Italy Pty Ltd., 50 %
Enel Green Power
N/A
exploration
Boccaleone
IT
Geothermal &
Lithium
4.31
07.2025
50 % Vulcan
Energy Italy Pty
Ltd., 50 % Enel
Green Power
N/A
exploration
70 Vulcan has submitted an extension application for this licence.
13. Mineral Resource Estimate
Vulcan’s combined Upper Rhine Valley Project Lithium Brine Measured, Indicated and Inferred Mineral Resource estimates
as at 31 December 2024.
Vulcan’s combined Project lithium (Li) brine Measured, Indicated and Inferred Mineral Resource Estimates
Licence/Area
Reservoir
Classification
GRV km3
Avg. NTG
%
Avg.
Phie
%
Avg. Li
mg/L
Elemental
Li
t
LCE
kt
Insheim
*MUS, BST,
ROT, BM
Measured
13
69
9
181
151,823
808
Rift-North
*MUS, BST,
ROT, BM
Measured
9.5
70
9
181
110,181
586
*MUS, BST,
ROT, BM
Indicated
29
71
9
181
355,443
1892
Landau- Süd
*MUS, BST,
ROT; BM
Measured
12
68
9
181
134,677
717
*MUS, BST,
ROT; BM
Indicated
2.7
69
9
181
29,620
158
Flaggenturm
BST
Indicated
7
90
10
181
115,215
613
BST
Inferred
37
65
9
181
391,201
2,082
Kerner
BST
Indicated
5
90
10
181
76,242
406
BST
Inferred
13
65
9
181
132,558
705
VULCAN ENERGY ANNUAL REPORT | 2024
141
Licence/Area
Reservoir
Classification
GRV km3
Avg. NTG
%
Avg.
Phie
%
Avg. Li
mg/L
Elemental
Li
t
LCE
kt
Kerner Ost
*MUS, BST,
ROT
Indicated
4.3
73
8
181
66,708
355
Taro
*MUS, BST,
ROT
Indicated
14.5
73
8
181
237,362
1,263
Ortenau
*MUS, BST,
ROT
Indicated
57
73
8
181
659,013
3,507
BST
Inferred
105
73
8
181
1,883,212
10,024
Mannheim
BST
Indicated
4
90
10
153
54,111
288
BST
Inferred
32
65
9
153
290,312
1,545
Ludwig
BST
Indicated
7
90
10
153
93,220
496
BST
Inferred
22
65
9
153
199,226
1,060
Therese
BST
Indicated
2
90
10
153
29,907
159
BST
Inferred
22
65
9
153
200,708
1,068
mg/L
kt
Total LCE
Measured
181
2,112
Indicated
178
9,137
Inferred
172
16,484
Note 1: Mineral Resources are not Ore Reserves and do not have
demonstrated economic viability. Refer to Competent Person
Statement and Mineral Resource Statement in the Appendix for further
information.
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 value
percentages.
Note 3: Reservoir abbreviations: MUS – Muschelkalk Formation, BST –
Buntsandstein Group; ROT Rotliegend Group; BM - Variscan Basement.
Note 4: 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).
Note 5: NTG and Phie averages have been weighted to the thickness of
the reservoir.
Note 6: GRV refers to gross rock volume, also known as the aquifer
volume.
Note 7: Mineral Resources are considered to have reasonable prospects
for eventual economic extraction under current and forecast lithium
market pricing with application of Vulcan’s A-DLE processing.
Note 8: The values shown are an approximation and with globalised
rounding of values in the presented summary table as per JORC
guidelines, cannot be multiplied through to achieve the Mineral
Resource estimated volumes shown above.
14. Ore Reserves Estimate
The following table sets out Vulcan’s Phase One Ore Reserves as at 31 December 2024.
Insheim, Landau South, and Rift North
Reserves Classification
Lithium grade
Economic Reserves Quantity at
Wellhead Reference Point
mg/l Li
kt LCE
Proved
181
318
Probable
181
252
The table above shows Vulcan's Phase One Ore Reserves. Note: see Competent Person Statement and Ore Reserves Statement contained in the
Appendix for further information.
VULCAN ENERGY ANNUAL REPORT | 2024
142
Corporate directory
Board of directors
Dr Francis Wedin
Executive Chair
Mr Cris Moreno
Managing Director & Chief Executive Officer
Ms Felicity Gooding
Group Chief Financial Officer and Executive Director
(appointed Executive Director from 1 January 2025)
Mr Angus Barker
Non-Executive Director (appointed 13 September 2024)
(appointed Lead Independent Director and Deputy Chair
from 1 January 2025)
Ms Josephine Bush
Non-Executive Director
Dr Günter Hilken
Non-Executive Director
Dr Heidi Grön
Non-Executive Director
Board adviser
Dr Horst Kreuter
Chief Representative Germany
Company secretary
Mr Daniel Tydde
Registered office and
principal place of business
Level 11, 1 Spring Street
Perth WA 6000
Australia Telephone: 08 6331 6156
Website: https://v-er.eu
Stock exchange listing
Listed on the Australian Securities Exchange
(ASX Code: VUL)
Listed on Prime Standard of Frankfurt Stock Exchange
(FSE Code: VUL)
Auditors
RSM Australia Partners
Level 32, 2 The Esplanade
Perth WA 6000
Solicitors
Ashurst
Brookfield Place Tower II
Level 10 and 11 St Georges Terrace
Perth WA 6000
Bankers
Westpac Banking Corporation
Level 4, Brookfield Place, Tower Two
123 St Georges Terrace
Perth WA 6000
Share registry
Automic Share Registry
Level 5, 191 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
VULCAN ENERGY ANNUAL REPORT | 2024
143
Appendix
Ore Reserve and Mineral Resource Statement
The Company reviews and reports its Ore Reserves and
Mineral Resources at least annually. The date of reporting is
31 December each year, to coincide with the Company’s end
of financial year balance date.
Governance Arrangements and Internal Controls
The Company has ensured that the Mineral Resources and
Ore Reserve reported are subject to thorough governance
arrangements and internal controls. The Mineral Resources
and Ore Reserves for the Project were prepared by
independent energy consulting group GLJ Ltd (GLJ).
The Company confirms the following:
·
The Mineral Resource and Ore Reserve statements
above are based on and fairly represents information
and supporting documentation prepared by a Competent
Person or Persons.
·
The Mineral Resource statement as a whole has been
approved by and is based on and fairly represents,
information that was reviewed, and audited by G. Gabriella
Carrelli, M.Sc., P.Geo., who was a full-time employee of
GLJ Ltd. at the time of the Bridging Study and is now
full-time with GGC Geo Consulting, contracted on behalf
of GLJ Ltd. and deemed to be a ‘Competent Person’. Ms.
Carrelli is a Professional Geoscientist of the Association
of Professional Engineers and Geoscientists of Alberta
(APEGA), with certification in the Province of Alberta,
Canada,
a
'Recognised
Professional
Organisation'
included in a list that is posted on the ASX website from
time to time. Ms. Carrelli has sufficient experience
relevant to the style of mineralisation and type of deposit
under consideration and to the activity which she is
undertaking to qualify as a Competent Person as defined
in the JORC Code. Ms. Carrelli consents to the disclosure
of the statement and technical information as it relates
to the Mineral Resources information in this document in
the form and context in which it appears.
71 https://www.investi.com.au/api/announcements/vul/22623520-1b3.pdf
·
The Production Target and Ore Reserve statement
as a whole has been approved by and is based on and
fairly represents, information that was reviewed,
overseen, and compiled by Ms. Kim Mohler, P.Eng.,
who is a full-time employee of GLJ Ltd. and deemed to
be a ‘Competent Person’. Ms. Mohler is a member as a
Professional Engineer of the Association of Professional
Engineers and Geoscientists of Alberta (APEGA), a
'Recognised Professional Organisation' included in a list
that is posted on the ASX website from time to time. Ms.
Mohler has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration
and to the activity that she is undertaking to qualify as
a Competent Person as defined in the JORC Code. Ms.
Mohler consents to the disclosure of the statement and
technical information as it relates to the Production
Target and Ore Reserve information in this document in
the form and context in which it appears.
Competent person statement
The information in this Report that relates to Mineral
Resources and Ore Reserves, and any Exploration
Results and Production Targets is extracted from the ASX
announcement made by Vulcan on 16 November 2023
(“Positive Zero Carbon Lithium™ Project Bridging Study
Results”)71, which is available to view on Vulcan's website at
https://v-er.eu. Vulcan confirms that:
A) in respect of estimates of Mineral Resources and Ore
Reserves, and any Exploration Results and Production
Targets, included in this Report:
• 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 original market announcement
continue to apply and have not materially changed; and
• The form and context in which the Competent Person’s
findings are presented have not been materially
modified from the original market announcement; and
B) All material assumptions underpinning any production
targets
(and
any
forecast
financial
information
derived from such production targets) included in this
announcement continue to apply and have not materially
changed.
VULCAN ENERGY ANNUAL REPORT | 2024
144
Performance Rights
At the date of this Report there were the following performance rights on issue, none of which have an exercise price:
Class
Number
Number of Holders
Expiry Date
Exercise Price
Class S
12,894
3
30/6/2025
Nil
Class AA
26,903
7
30/6/2026
Nil
Class AB
209,200
5
30/6/2027
Nil
Class AC
9,492
1
31/12/2025
Nil
Class AD
8,411
1
30/6/2026
Nil
Class AE
41,357
1
31/12/2025
Nil
Class IP
193,886
163
1/7/2025
Nil
Class IP
845,156
251
31/12/2026
Nil
Class IP
600,000
1
4/12/2028
Nil
Class IP
1,203,500
12
31/12/2027
Nil
Total
3,150,799
445
Shares issued on the exercise of Performance Rights and Performance Shares
Ordinary shares of Vulcan Energy Resources Ltd were issued during the year ended 31 December 2024 and up to the date of
this report on the exercise of 110,847 performance rights and nil performance shares.
Information required by ASX Listing Rule 4.10.16
Class
Holders over 20%
Number of
performance rights
Holding %age
Class S
Annie Liu, Dr Heidi Gron and
Josephine Bush
4,298 each
33%
Class AA
Dr Francis Wedin
9,724
36.14%
Class AB
Dr Francis Wedin
116,000
55.45%
Class AC
Dr Günter Hilken
9,492
100%
Class AD
Ranya Alkadamani
8,411
100%
Class AE
Sven Schluter
41,357
100%
VULCAN ENERGY ANNUAL REPORT | 2024
145
https://v-er.eu
ABN 38 624 223 132