Insights

Why the Vulcan (ASX:VUL) share price is surging 7%

The Vulcan Energy Resources (ASX: VUL) share price is jumping after the company advised it’s acquiring another geothermal consultancy firm.
The post Why the Vulcan (ASX:VUL) share price is surging 7% appeared first on The Motley Fool Australia. –

asx share price growth represented by cartoon man flexing biceps in front of charged battery

The Vulcan Energy Resources Ltd (ASX: VUL) share price is on the move after the company announced it has entered a binding agreement to acquire 100% of geothermal surface consultancy business, Global Engineering and Consulting Gmbh (gec-co). At the time of writing, Vulcan shares have jumped 6.82% higher to $8.14 apiece.

The acquisition will double the size of Vulcan’s technical team to drive the development of its Zero Carbon Lithium project.  

Acquisition news 

According to today’s release, gec-co is a world-leading planning and consultancy company for deep geothermal projects. It focuses on projects at surface including power plants, heat stations, drill pads and permitting. The company has a highly credentialed scientific team of 25 with more than 300 years of combined engineering knowledge.

In similar news that also sent the Vulcan share price soaring recently, the company announced in February it had acquired a sub-surface development company, GeoThermal Engineering. Vulcan has today advised that its latest acquisition now positions the company with an “unparalleled surface and sub-surface geothermal development team” to drive its flagship Zero Carbon Lithium strategy. 

Vulcan managing director Dr Francis Wedin commented on the gec-co acquisition, saying: 

By acquiring to grow our team, we are accelerating the development of our globally unique project. Our geothermal development team is well complemented with the acquisition of surface engineering consultancy gec-co, following the recent acquisition of sub-surface development consultancy GeoT. The gec-co team is immensely experienced… and also brings in public relations, administrative and logistical support to the rapidly growing Zero Carbon Lithium™ project.

…the Vulcan group is now very well positioned to execute on our strategy: to decarbonise heat and power in Europe with geothermal development in the Upper Rhine Valley, and in doing so to co-produce a world-first lithium hydroxide with net zero carbon footprint for the European electric vehicle market.

Vulcan share price snapshot

After briefly running as high as $14.20 on 19 January this year, the Vulcan share price has been mostly trading between the $5 and $7 marks. Today’s boost, however, has seen Vulcan shares push past $8 for the first time since early February. Year to date, the company’s shares are up by almost 200% and have also rallied by around 4,000% over the past year. 

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Kerry Sun 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.

The post Why the Vulcan (ASX:VUL) share price is surging 7% appeared first on The Motley Fool Australia.

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!