Vul ASX “Our First Ten-Bagger” say German Research House (2024)

It has been barely two weeks since the Next Small Cap named Vulcan Energy Resources (ASX:VUL | FWB: 6KO) as our Pick of the Year for 2020. And while global markets have seen some major volatility in that time, our view of Vulcan hasn’t changed.

In fact, after reviewing the research we are bringing to you today, our optimism around Vulcan’s outlook has only strengthened.

That research by None has a target price for Vulcan at more than 12 times its current market value, making it “the first time in our company history of 14 years we initiate coverage with a ten-bagger”.

Located in Germany’s Upper Rhine Valley basin, the Vulcan Zero Carbon LithiumTM Project is aiming to be Europe — and the world’s — first Zero Carbon LithiumTM project.

It has outlined plans to produce battery-grade lithium hydroxide from hot sub-surface geothermal brines pumped from wells with a renewable energy by-product, with first commercial production targeted by as soon as 2023.

Not only has Vulcan developed a way to extract lithium with zero carbon emissions, but it has secured Europe’s largest lithium resource, right next to Europe’s largest car and battery manufacturing plants.

The company last month released its scoping study indicating the potential for its Vulcan Zero Carbon LithiumTM Project to be the first negative carbon lithium project in the world, helping to decarbonise what is known to be a highly CO2-intensive product.

The study demonstrates the potential for a combined operation producing lithium hydroxide and renewable energy, all with a net zero carbon footprint.

The positive scoping study prompted Alster to calculate an enterprise value, using a discounted cash flow projection, for Vulcan Energy Resources’ Zero Carbon LithiumTM Project of US$769 million — equivalent to approximately A$1.3 billion, or €700 million.

On that basis, and after allowing for some future dilution, Alster set a price target of €1.45, or A$2.45 per share with its initial investment recommendation a “buy”.

Vul ASX “Our First Ten-Bagger” say German Research House (1)

Market Capitalisation: A$8.73 million

Share Price: A$0.20 (€0.11)

Cash in bank: A$3.15 million, as 31 December 2019.

Here’s what I like about Vulcan Energy Resources:

Vul ASX “Our First Ten-Bagger” say German Research House (2)

Demand for battery quality lithium hydroxide for use in electric vehicles is on the rise in Europe, set to grow faster than anywhere else in the world over the coming decade. However, it has zero domestic supply of battery grade lithium products.

To help meet this demand, Vulcan Energy Resources (ASX:VUL) has secured Europe’s largest lithium JORC Resource (Indicated and Inferred) at the Vulcan Lithium Project — a globally significant 13.95Mt contained Lithium Carbonate Equivalent (LCE).

Not only has Vulcan secured Europe’s largest lithium resource, right next to the major car manufacturing plants, but it developed a way to extract lithium while emitting zero carbon emissions.

Positive scoping study sets the stage

The company last month released its scoping study demonstrating that Vulcan is on track to deliver battery-grade Zero Carbon LithiumTM hydroxide to the European electric vehicle battery industry.

The study indicates the potential for the Vulcan Zero Carbon LithiumTM Project to be the first carbon emission free lithium project not only in Europe, but in the world, helping to decarbonise what is known to be a highly CO2-intensive product.

For my take on Vulcan check the last Next Small Cap article for February 21 where I explain why Vulcan is our Top Pick of 2020 and why have we taken a large position in the company and are long term holders.

In it, I explain that according to our rough back of the envelope calculations, Vulcan could be bringing in US$350 million yearly at Stage 2 over the 30+ year project life.

Read: “REVEALED: Our Top Stock Pick for 2020”.

Since then, Alster Research has undertaken a more extensive review and valuation of the company and its project. Its investment recommendation and share price target were revealed in a May 4 report on Vulcan when Alster initiated coverage of the stock...

Based in Hamburg, Germany, SRH Alster Research is a research house with a focus on both equity and credit research. The group cover more than 70 different stocks and contribute to a joint research portfolio with one of Germany’s largest banks, Norddeutsche Landesbank (NORD/LB).

Alster Research continuously seeks exciting and promising investment opportunities for institutional investors, especially in the small and mid-cap sector.

Alster Research initiate coverage of Vulcan

The following is summary of Alster Research’s report initiating coverage of Vulcan energy resources and its reasons for its buy recommendation and its target price.

The complete report is available here:

By separating lithium from thermal water, Vulcan Energy Resources is planning to achieve a zero-emissions, cost-effective way of extracting lithium hydroxide. Other lithium deposits in Europe are hard rock deposits, the extraction of which would be quite environmentally damaging.

Various cost advantages owing to geological factors point to the economic viability of the lithium project in the Upper Rhine Valley; in addition to the lithium content and a high flow/production rate achieved there, the energy required for the extraction process is significantly lower thanks to what is already a high starting temperature of over 120°C.

The most important aspect, however, which also combines cost-effectiveness considerations with the aspect of minimising the environmental footprint, is the immediate proximity to industrial customers.

The transportation distance of a few hundred kilometres to existing or planned battery factories and the industrial mobility cluster in the south-west of Germany is a decisive argument that helps to underpin the advantages associated with the carbon footprint of the electric drive versus the combustion engine.

The need for electric drive systems to have a superior carbon footprint in the production phase, too, is a key aspect, and one that has the very highest priority.

The supply security argument is also a top priority. For industrial and security policy reasons, Europe has to manage to break away from its current 100% reliance on raw material supplies from South America or Asia.

Vul ASX “Our First Ten-Bagger” say German Research House (4)

Project development

According to the recent scoping study a staged ramp-up to production is planned, with Stage 1 comprising the construction and operation of a Direct Lithium Extraction (DLE) and lithium hydroxide plant at the existing Insheim geothermal plant.

Vulcan signed an MoU in November 2019 giving it access to the Insheim licence that contains an operational geothermal plant and wells, where hot, lithium-rich brine is being pumped to the surface and electricity produced.

Stage 1 Production Plant:

Direct extraction and lithium plant to be located at an existing operational geothermal power plant. It is contemplated that this would commence a year prior to the larger Stage 2, as a means of scaling up commercial production.

Vulcan will base the pilot plant for lithium production at this operational geothermal power plant. This will shorten the process involved in both exploration for geothermal energy use and the construction of the geothermal power plant. Implementation of Stage 1 is likely to require funds of approximately US$55 million.

In order to ensure that the project progresses at a rapid pace, Vulcan is also focusing on the promising greenfield project at the Ortenau licence area, Stage 2 in the scoping study. Conducted in parallel with Stage 1, Stage 2 will involve the development of a lithium extraction facility in the Upper Rhine Valley.

Stage 2 Production Plants (Ortenau License):

Once the exploration phase and the planning process (pre-feasibility study/PFS, detailed feasibility study/DFS) is completed and once all official licences have been granted, two geothermal power plants are to be built in Ortenau, each with one DLE plant.

Stage 2 will add considerably larger capacity, with the drilling of ten new production geothermal wells across two plants, construction of a new combined geothermal, DLE and lithium hydroxide plant at Vulcan’s 100%-owned Ortenau license.

Plant 1 at Ortenau is to be equipped with a production capacity of four wells in 2024, and Plant 2 with a capacity of six wells. Production at both Stage 2 plants is anticipated to start in 2024.

The first expansion of four wells, direct lithium extraction (DLE), and capacity for lithium hydroxide synthesis will require an investment of US$425 million.

The Vulcan Zero Carbon LithiumTM process over the two stages:

Vul ASX “Our First Ten-Bagger” say German Research House (5)

Alster Research’s valuation

Based on the 181 mg/l lithium concentration in the brine, a resource mineral resource estimate of 13.9Mt LCE has been indicated for Vulcan Energy Resources, placing it at the very top of the rankings for the peer group of exploration projects in Europe – all of which are based on hard rock deposits.

However, at this stage Vulcan’s market valuation does not reflect the size of the lithium resource.

Nevertheless, with the project’s resources having only just been confirmed in December 2019, going forward they will from now appear in any comparative analyses performed by various issuers, which will attract increasing attention among investors due to the project’s outstanding magnitude.

Raising capital remains a key aspect for the implementation of the zero-carbon project in the Upper Rhine Valley. While the funds required for Stage 1 remain relatively lean at around US$55 million.

It is estimated that for the period 2024-2027 cash inflows of US$960 million will cover the total anticipated capex of US$848 million.

After the ramp-up phase from 2022 to 2023, which will be characterised by high capex, the investment will then pay for itself within a four-year period.

By discounting its modelled cash flow projection, Alster calculated an enterprise value for Vulcan at US$769 million — corresponding to around €700 million or A$1.3 billion.

Assuming dilution from raising additional equity as required, Alster determined a per share valuation of €1.45, or A$2.45 and provided and initial “buy” investment recommendation.

Clearly, there’s significant upside potential on offer here for investors, while the coming four years will see a large volume of newsflow as Vulcan progresses towards commercial production.

Vul ASX “Our First Ten-Bagger” say German Research House (6)

Vul ASX “Our First Ten-Bagger” say German Research House (2024)

FAQs

What is the forecast for VUL ASX? ›

Wall Street analysts forecast VUL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VUL is 14.62 AUD with a low forecast of 11.01 AUD and a high forecast of 20.57 AUD.

Why is Vulcan share price falling? ›

Investors have been selling down the Vulcan Energy share price on Friday after the company completed an institutional placement.

Is Vulcan a good investment? ›

If you are looking for stocks with good return, Vulcan Energy Resources Ltd stock can be a bad, high-risk 1-year investment option. Vulcan Energy Resources Ltd real time quote is equal to 4.085 AUD at 2023-06-29, but your current investment may be devalued in the future.

What is the Vulcan energy resources forecast? ›

VUL Stock Forecast FAQ

Based on analyst ratings, Vulcan Energy Resources Ltd.'s 12-month average price target is AU$9.75. What is AU:VUL's upside potential, based on the analysts' average price target? Vulcan Energy Resources Ltd. has 140.44% upside potential, based on the analysts' average price target.

What is the future stock price for Vale? ›

Stock Price Forecast

The 24 analysts offering 12-month price forecasts for Vale SA have a median target of 17.75, with a high estimate of 20.00 and a low estimate of 12.50. The median estimate represents a +28.53% increase from the last price of 13.81.

What is the share price of VUL Germany? ›

Key statistics
Open2.45
High2.62
Low2.45
Bid--
Offer--
1 more row

Is Vulcan Steel a buy? ›

The overall consensus recommendation for Vulcan Steel is Buy.

What is the placement of Vulcan Energy? ›

The Placement raised EUR 66m (A$109m) 1 from the issue of 21.4 million new, fully paid ordinary shares (“ New Shares ”) at an offer price of A$5.10 per New Share / EUR 3.08 per New Share. The Placement was strongly supported by existing and new shareholders, including a number of global ESG-focused institutions.

How much is Vulcan worth? ›

Vulcan Materials net worth as of June 23, 2023 is $28.4B.

How high will Vulcan go? ›

Bullish Vulcan Forged (PYR) price predictions range between $14.43 and $27.26 by 2030.

Who is Vulcan owned by? ›

Vulcan LLC is a privately held company founded by the Microsoft co-founder Paul Allen and his sister Jody Allen in 1986 to establish and oversee the family's diverse business activities and philanthropic endeavors. It includes Vulcan Real Estate, the Paul G. Allen Estate and Trust, and advises the Paul G.

Is Vulcan an American company? ›

Vulcan Materials Company (NYSE: VMC) is an American company based in Birmingham, Alabama.

Is Vulcan energy producing lithium? ›

We exist to decarbonise the carbon production footprint of lithium-ion batteries used in electric vehicles by producing a world-first lithium hydroxide monohydrate chemical product with carbon neutral footprint, from our geothermal lithium brine project in the Upper Rhine Valley, Germany.

Will Vulcan Energy pay dividends? ›

Vulcan Energy Resources Ltd. (AU:VUL) does not pay a dividend.

Will energy fuels stock go up? ›

Stock Price Forecast

The 7 analysts offering 12-month price forecasts for Energy Fuels Inc have a median target of 10.00, with a high estimate of 12.35 and a low estimate of 8.50. The median estimate represents a +60.51% increase from the last price of 6.23.

Is VALE a good buy now? ›

The consensus among 4 Wall Street analysts covering (NYSE: VALE) stock is to Buy VALE stock.

Is VALE a good dividend stock? ›

Vale is a dividend paying company with a current yield of 8.69% that is well covered by earnings.

What is the VALE stock prediction for 2023? ›

According to our current VALE stock forecast, the value of Vale S.A. shares will drop by -1.95% and reach $ 13.16 per share by July 7, 2023. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 39 (Fear).

Is VUL life insurance a good investment? ›

Is variable universal life insurance a good investment? VUL isn't a good investment for most people. It comes with fees and complexity at a high price that isn't worth the investment returns. Most people will save more by using a traditional investment account and buying term life insurance.

What is the highest share price in Germany? ›

Historically, the Germany Stock Market Index (DE40) reached an all time high of 16429.60 in June of 2023. Germany Stock Market Index (DE40) - data, forecasts, historical chart - was last updated on July of 2023.

What is the biggest German stock exchange? ›

Frankfurter Wertpapierbörse (FWB®, the Frankfurt Stock Exchange) is one of the world's largest trading centres for securities. With a share in turnover of around 90 per cent, it is the largest of Germany's seven stock exchanges. Deutsche Börse AG operates the Frankfurt Stock Exchange, an entity under public law.

What is the best steel stocks to buy? ›

Top 10 Metal Stocks to Invest in India
Company NameIndustry
Tata Steel LtdSteel
Hindalco Industries LtdAluminum
JSW Steel LtdSteel
Vedanta LtdCopper, Zinc, Aluminium, and Iron Ore
6 more rows
Mar 27, 2023

Is now a good time to invest in steel? ›

Demand for steel grew 4.5% in 2021 and will likely grow 2.2% through 2022. It is no surprise that with limited inventory and strong demand, steel prices are expected to go up. That's benefiting steel stocks. Steel Dynamics (STLD) holds a spot in the IBD 50, and is today's focus for IBD 50 Stocks to Watch.

Is US steel a buy right now? ›

United States Steel stock has received a consensus rating of hold. The average rating score is and is based on 6 buy ratings, 14 hold ratings, and 10 sell ratings.

How many people live on Vulcan? ›

Currently about 470 people live on the island of Vulcano, getting their income from tourism. In mythology, Vulcan was married to Venus, the goddess of love and beauty.

Is Vulcan Energy producing? ›

Vulcan Energy Resources is a lithium and renewable energy producer, specializing in the production of lithium with a net-zero carbon footprint. The company's stated goal is to decarbonize the transition to electric mobility through its Zero Carbon Lithium™ project.

Does Vulcan have water? ›

Vulcan is a harsh, desert planet with barely a quarter of its surface area containing water, however it has given rise to the Vulcan civilization, who refer to their world as T'Khasi, Minshara or Ti-Valka'ain.

How many engines does Vulcan have? ›

Vulcan Centaur booster propulsion is provided by a pair of BE-4 engines, each producing 550,000 lbs of thrust. The Vulcan Centaur vehicle is controlled by an avionics system that provides guidance, flight control and vehicle sequencing functions during the booster and Centaur phases of flight.

How much horsepower does a Vulcan have? ›

The Kawasaki Vulcan 900 Classic produces 50 horsepower and 58.2 pound-feet of torque. That grunt comes on fully at 3,500 rpm, so you can count on tractable power fairly low in the range from the broad powerband.

How long has Vulcan been in business? ›

Vulcan Materials Company became a publicly traded company with trading beginning on January 2, 1957. Its predecessor companies date to the early 20th Century.

Can the Vulcan go supersonic? ›

It wasn't supersonic but it was very close to that and I suppose the swept wing of the delta made it possible to achieve these speeds." Liam Shaw: "The Vulcan has a crew of five.

How long does Vulcan last? ›

There are instances of them living over 220 years. Having evolved on a desert planet, Vulcans can survive without water for longer periods than humans. Vulcans can also go without sleep for as long as two weeks.

Will the Vulcan fly again 2023? ›

Vulcan XH558, one of three remaining taxiable aircraft, will start its engines one last time on November 20, 2022, before its retirement in 2023. Since its last flight on October 28, 2015, XH558, the last airworthy example of the Avro Vulcan, was kept in taxiable condition at Doncaster Sheffield Airport (DSA).

Who is Vulcan competitor? ›

Vulcan Cyber's top competitors include Kenna Security, Brinqa, and Nucleus Security. Kenna Security is a cybersecurity company. The company offers vulnerability management solutions that enable organizations to identify, prioritize, and remediate vulner…

Who is the largest shareholder of Vulcan materials? ›

Top Shareholders

The Vanguard Group, Inc. BlackRock, Inc. State Street Global Advisors, Inc.

How many locations does Vulcan have? ›

Vulcan Materials is headquartered in Birmingham, AL and has 11 office locations located throughout the US. See if Vulcan Materials is hiring near you.

Where is Vulcan Arms headquarters? ›

Where is Vulcan Arms 's headquarters? Vulcan Arms is located in Addison, Texas, United States .

What is Vulcan called now? ›

And that's because Vulcan isn't Vulcan anymore, it's now called the planet “Ni'Var.” So, where did this name come from? Fans of Star Trek: Enterprise might have recognized the name “Ni'Var” from a specific Vulcan ship sent by the Vulcan High Command in 2151.

What does Vulcan mean? ›

noun. Vul·​can ˈvəl-kən. : the Roman god of fire and metalworking compare hephaestus.

What lithium company is Tesla buying? ›

At the end of 2021, Tesla inked a fresh three year lithium supply deal with top lithium producer Ganfeng Lithium (OTC Pink:GNENF,SZSE:002460). The Chinese company will provide products to Tesla for three years starting in 2022.

What company owns the most lithium? ›

Albemarle Corp is among the largest and most prominent lithium stocks. The company is one of the leading lithium miners, with a market value on par with other leading commodities names like Barrick Gold Corporation (GOLD). Lithium prices have been weak in 2023, and ALB stock has been volatile as a result.

Who produces the most lithium batteries in the world? ›

Chile holds the world's largest lithium reserves and is the world's second-largest producer. Lithium is currently produced from hard rock or brine mines. Australia is the world's biggest supplier, with production from hard rock mines. Argentina, Chile and China mainly produce it from salt lakes.

What is the share price of Vulcan ASX? ›

Vulcan Energy Resources Limited's current share price is $4.19. This constitutes a share price movement of 8.55% when compared to its closing share price of $3.86 seven days ago. Relative to today's opening stock price, the VUL stock price is up 0.07 or 1.70%.

How high will fuel cell stock go? ›

Stock Price Forecast

The 7 analysts offering 12-month price forecasts for Fuelcell Energy Inc have a median target of 2.50, with a high estimate of 3.00 and a low estimate of 1.50. The median estimate represents a +15.47% increase from the last price of 2.17.

What is the stock price prediction for clean energy fuels? ›

Stock Price Forecast

The 11 analysts offering 12-month price forecasts for Clean Energy Fuels Corp have a median target of 7.00, with a high estimate of 22.00 and a low estimate of 5.50. The median estimate represents a +55.73% increase from the last price of 4.50.

How long will energy prices be up? ›

A huge question on many people's minds is “will energy prices continue to rise?”, and unfortunately, current forecasts predict that prices will continue to increase into 2023.

What is the price prediction for Vanguard Energy ETF? ›

Average Price Target

Based on 759 Wall Street analysts offering 12 month price targets to VDE holdings in the last 3 months. The average price target is $141.55 with a high forecast of $164.66 and a low forecast of $121.22. The average price target represents a 27.72% change from the last price of $110.83.

Is Volt Resources a good investment? ›

The overall consensus recommendation for Volt Resources is Hold.

Can you withdraw money from VUL? ›

You can partially or fully withdraw the policy's fund value, which is the investment portion of a VUL policy. You can withdraw from a VUL investment, tax-free and interest-free, to pay for emergencies, medical bills, college tuition, retirement, or any financial need.

Can I cash out my variable life insurance policy? ›

Yes. You can cash out a life insurance policy. How much money you get for it, will depend on the amount of cash value held in it. If you have, say $10,000 of accumulated cash value, you would be entitled to withdraw up to all of that amount (less any surrender fees).

What happens to VUL after maturity? ›

Maturity Benefits: The maturity benefit is a lump-sum amount of money that your insurance company needs to pay you once your VUL plan matures. This means that if you have a 15-year term on your insurance policy, you will only receive your payout once these 15 years are up.

What is Vanguard's best performing ETF? ›

The largest Vanguard ETF is the Vanguard 500 Index Fund VOO with $311.46B in assets. In the last trailing year, the best-performing Vanguard ETF was VGT at 27.95%. The most recent ETF launched in the Vanguard space was the Vanguard Short-Term Tax-Exempt Bond ETF VTES on 03/09/23.

Is now a good time to buy Vanguard ETFs? ›

This ETF could have a lot of potential in 2023 and beyond.

With the market in a slump, now could be a smart time to buy. It's more important than ever, however, to choose your investments wisely. If a recession is on the horizon, some stocks may not be able to recover.

Is Vanguard Value ETF a good buy? ›

Vanguard Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VTV is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market.

What is the price target for Volt stock? ›

Volt Information Sciences Inc quote is equal to 5.990 USD at 2023-06-22. Based on our forecasts, a long-term increase is expected, the "VOLT" stock price prognosis for 2027-04-23 is 8.645 USD.

What is the price prediction for Volt token? ›

According to our Volt Inu price prediction, the price of VOLT is predicted to increase by $0.00000002096764 over the next 7 days, reaching $0.00000043209775 by July 9, 2023.

What is the share price of Volt Bank ASX? ›

Volt Resources Limited's current share price is $0.01.

Will Cardinal Energy pay a dividend? ›

Cardinal Energy is a dividend paying company with a current yield of 10.88% that is well covered by earnings. Next payment date is on 14th July, 2023 with an ex-dividend date of 29th June, 2023.

Will AMD ever pay dividends? ›

AMD - 26 Year Dividend History | AMD

Historical dividend payout and yield for AMD (AMD) since 1997. The current TTM dividend payout for AMD (AMD) as of June 23, 2023 is $0.00. The current dividend yield for AMD as of June 23, 2023 is 0.00%. Advanced Micro Devices offers the industry?

How often do Jupiter pay dividends? ›

Dividend Summary

There are typically 2 dividends per year (excluding specials), and the dividend cover is approximately 1.1.

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