The boss of Vulcan Energy Resources has announced the expansion of the target size of his German lithium company as his team attempts to create a bankable feasibility study and prepare platforms for deep drilling.
While keeping a low profile on his company’s campaign in Federal Court to block a negative report, Vulcan chief executive Francis Wedin told shareholders he sees demand for lithium tripling what they want to produce in the market. Haut-Rhin valley.
“We are not limited by our customers, we are limited by the size we want to reach,” Dr Wedin said at the company’s annual meeting in West Perth on Monday.
“With all of our customers, there is an effort to reduce the carbon footprint along the supply chain. “
Vulcan’s bullish picture contrasts with a report released five weeks ago by short seller J-Capital on the potential costs, community backlash, and resource qualities of the company’s highly prized Zero Carbon Lithium project. .
Shares of Vulcan jumped nearly 500% in the first nine months of 2021 amid investor enthusiasm for its development of plans to extract energy and lithium hydroxide from geothermal brine at more than 2 km below the surface.
Vulcan shares were trading near $ 15 before the release of the J-Capital report, but plunged in the wake of the report and were trading below $ 11 for most of November.
Vulcan launched a lawsuit three weeks ago in Federal Court, forcing J-Capital and its boss Tim Murray to withdraw the report titled Vulcan: God of Empty Promises.
When asked by a shareholder at the annual meeting to respond to the J-Capital report, Dr Wedin said he “should hijack this”.
“We have legal proceedings pending against the affected short seller and we hope to inform shareholders soon about this,” he said.
Lawyers for Vulcan have opposed a request by The West Australian for the Federal Court’s introductory process that outlines the basis of its claims against J-Capital.
The company revealed on November 19 that it had requested the suspension of an application for a seismic permit for its flagship Rhine Valley project in order to face opposition from the community.
Vulcan is testing a process to extract lithium chloride from brine and use geothermal energy to generate electricity for the project and sell it to the grid. The cooler brine would be pumped underground.
J Capital reportedly claimed that Vulcan’s pre-feasibility study for the project contained an unrealistic throughput assumption “which embellishes the project and can be easily disproved”.
The company is redeveloping two oil and gas drilling rigs in hopes of starting drilling in late 2022 to establish geothermal brine flows more than 2 km below the surface.
While still declining to discuss the J-Capital report, Dr Wedin said after the meeting that his group’s assumed throughputs were the average estimate of an expert analysis of the variety of multi-well projects.
“It’s based on an existing production that’s set in German,” he told The West Australian.
Vulcan recovered 16 ¢ to $ 10.41 on Monday.