Insights

Vulcan Energy (ASX:VUL) share price surges 10% on quarterly update

The lithium producer released its quarterly activites report today. We take a closer look
The post Vulcan Energy (ASX:VUL) share price surges 10% on quarterly update appeared first on The Motley Fool Australia. –

The Vulcan Energy Resources Ltd (ASX: VUL) share price was on fire today, finishing the session up 9.74% at $9.80.

The surge in Vulcan’s share price comes after the company released its quarterly activities report just after 1pm today.

Let’s take a closer look at what the report entails.

A bit more on Vulcan Energy

Vulcan Energy has interests in the exploration and development of copper-zinc and lithium supply solutions to the European market.

The company’s principal interest is in Norway, although it acquired the Vulcan Lithium Project, which is located in Germany.

As a result, it claims to be the “EU’s largest lithium resource”. Vulcan has a market capitalisation of $971 million at the time of writing.

Vulcan’s quarterly results

This quarter, Vulcan signed a “binding lithium offtake agreement” with LG Energy Solution to supply “10,000 metric tonnes per year of lithium hydroxide” into the coming periods.

It also commissioned a direct lithium extraction (DLE) plant through its “in-house engineering team”.

The DLE plant is now “successfully operating with (more than) >90% recoveries”, demonstrating lithium extraction from geothermal brine.

In addition, it also finalised the spinoff and initial public offering (IPO) of its “Scandinavian battery metals projects” into a new entity known as Kuniko Limited.

It raised $7.89 million via the offering, and established Kuniko as a standalone “zero carbon copper, nickel, and cobalt company”.

Moreover, a new exploration licence granted in the Upper Rhine Valley, for after “(the) June 2021 quarter”, came through this quarter also.

Additional takeouts from the report

Vulcan also reported a number of sustainability and governance advancements in the report.

To illustrate, it signed a binding agreement to acquire 100% of Global Engineering and Consulting GmbH, which is a “geothermal surface consultancy company”.

Additionally, the company was also admitted to the “Global Battery Alliance”, a consortium of 70 members “working towards a sustainable battery value chain globally”.

Vulcan was also certified as “carbon neutral” by Climate Active for Australian operations. This aligns with the company’s goal of becoming “the world’s first zero carbon lithium project”.

Vulcan Energy share price snapshot

The Vulcan Energy share price has produced outsized returns over the year to date, posting a return of 256% since January 1.

This extends the previous 12 month’s mammoth return of 1,992%. That sees Vulcan sit at the tip of the spear with respect to the constituent of ASX-listed securities.

These returns have far outpaced the S&P / ASX 200 Index (ASX: XJO)’s return of 23% over the past year.

Vulcan shares have posted a return of 27% over the previous month alone.

The post Vulcan Energy (ASX:VUL) share price surges 10% on quarterly update 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

Vulcan (ASX:VUL) share price on watch following spin-off IPO update
Why CSL, Humm, IntelliHR, & Vulcan shares are pushing higher

Why the Vulcan (ASX:VUL) share price is jumping 9% on Monday
Why Flight Centre, PolyNovo, Vulcan, & Zip shares are sinking

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

The author Zach Bristow has no positions in any of the stocks mentioned. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

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
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!