Insights

Short-lived $10 party for the Vulcan Energy (ASX:VUL) share price

After surging past the $10 milestone on Wednesday, shares in the lithium miner are tumbling on Thursday.
The post Short-lived $10 party for the Vulcan Energy (ASX:VUL) share price appeared first on The Motley Fool Australia. –

The Vulcan Energy Resources Ltd (ASX: VUL) share price performance has had its ups and downs this week.

Shares in the emerging lithium producer rallied 10.87% on Wednesday to close at $10.20 apiece.

However, the Vulcan Energy share price has come under heavy selling pressure today, losing most of yesterday’s gains in a 9.61% slide to $9.22 at the time of writing.

Despite a brief euphoric moment above the $10 mark, the company’s shares are still up an impressive 20.5% in July and 235% year-to-date.

Vulcan Energy share price rallies in July

The lithium sector is a hot space right now, with Forbes warning of a potential “perpetual deficit” in lithium supply on the back of surging electric vehicle and battery storage demand.

The Global X Lithium & Battery Tech exchange-traded fund (ETF), comprising companies in lithium mining and refining through to battery production, surged to a new record all-time high on Monday.

Coinciding with the selloff in Vulcan Energy shares today, the Lithium ETF slumped 2.38% overnight, but is still up a solid 26.85% year-to-date.

Within the Lithium ETF’s holdings are ASX-listed lithium heavyweights Pilbara Minerals Ltd (ASX: PLS), Orocobre Ltd (ASX: ORE) and Galaxy Resources Ltd (ASX: GXY).

These household ASX lithium miners account for 1.11%, 0.93% and 0.71% respectively, of the ETF’s net assets.

Positive milestones ahead

Despite hitting a $1 billion market capitalisation, Vulcan Energy has yet to produce any of its zero-carbon lithium product.

The company is currently busy finalising pre-production milestones such as further exploration, a bankable feasibility study, securing offtake agreements and permitting.

According to Vulcan’s project timeline, construction of its zero-carbon lithium project should begin by the end of 2022 with a maiden lithium production by mid-2024.

Last Monday, the company announced that it appointed two companies to assist with the project’s definitive feasibility study (DFS).

Vulcan said it aimed to complete the DFS within the next 12 months.

In other news on Monday, Vulcan Energy announced a new exploration license for geothermal energy, geothermal heat, brine and lithium in the Upper Rhine Valley in Germany.

The post Short-lived $10 party for the Vulcan Energy (ASX:VUL) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in Vulcan Energy right now?

Before you consider Vulcan Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Vulcan Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Why Flight Centre, PolyNovo, Vulcan, & Zip shares are sinking

What these 2 best performing ASX shares have in common….and what to expect next

The 5 best ASX shares of FY21 revealed

ASX lithium shares are surging on Tuesday. Here’s why

Why Australian Pharma Industries, Audinate, NRW, & Vulcan are racing higher

Motley Fool contributor Kerry Sun owns shares of Vulcan Energy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!