Why the Vulcan (ASX:VUL) share price hit a record high today

The Vulcan share price hit a record high of $1.98 today after the company released an update about its Taro asset in Germany.

| More on:
success, high flyer, win, challenge

The Vulcan Energy Resources Ltd (ASX: VUL) share price rocketed up to a record high earlier today based on an update on its Taro lithium asset. After jumping 19.28% to its peak of $1.98 this morning, the Vulcan share price has since retreated significantly. It’s now trading up 2.11% at $1.69 at the time of writing.

What did Vulcan announce?

Vulcan released an updated and reclassified resource estimate for its Taro asset. The new estimate indicated that the Taro asset includes .83 million tonnes of lithium carbonate equivalent (LCE) at a grade of 181 milligrams per litre of lithium. This was based on the acquisition and interpretation of seismic and well data. 

The company also announced:

  • Taro inferred resource estimate revised upward to 1.44 million tonnes of contained LCE at a grade of 181 milligrams per litre of lithium
  • Upper Rhine Valley project now estimated to contain 16.19 million tonnes LCE indicated and inferred with a grade of 181 milligrams per litre of lithium

The company will also include the higher resource estimates into its pre-feasibility study for the Upper Rhine Valley project. Vulcan aims to produce lithium hydroxide for electric cars with the lowest carbon dioxide equivalent footprint in the world from this “zero carbon lithium” project. 

About the Vulcan share price

Vulcan Energy Resources is a lithium development company with assets in Germany. Vulcan has been listed on the ASX since 2018.

In the quarter to 30 September 2020, Vulcan Energy Resources spent $2.23 million on exploration and evaluation. The company had cash of $5.11 million at the end of the September quarter.

In September, former Tesla Inc (NADAQ: TSLA) director Jochen Rudat joined Vulcan as a sales and marketing consultant. Mr Rudat previously reported directly to Tesla CEO Elon Musk. 

The Vulcan share price is up 1316.67% since its 52-week low of 12 cents, and 962.50% higher than the beginning of the year. The company’s shares are up 1207.69% since this time last year. 

Wondering where you should 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 over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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

*Returns as of January 12th 2022

Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Top 10 - asx shares today
Share Market News

Here are the top 10 ASX shares today

Today, the S&P/ASX 200 Index (ASX: XJO) fought back against the selling pressure throughout the day to finish in the green. …

Read more »

The word inflation written with a ticking time bomb.
Share Market News

Why is it when Jerome Powell sneezes, the ASX 200 catches a cold?

Key points The ASX 200 took a hit following comments from the United States Federal Reserve chair Jerome Powell Expectations …

Read more »

blue arrows representing a rising share price ASX 200
Share Market News

These 3 ASX 200 shares are topping the volume charts this Friday

Finally, a day of green for ASX shares! The S&P/ASX 200 Index (ASX: XJO) is bouncing back strongly today, after a …

Read more »

Young boy wearing suit and glasses adds up on calculator with coins on table
Share Market News

This world-famous fund manager is ‘buying the dip’. Here’s why

Key points Bill Ackman is one of the most famous fund managers in the world He runs Pershing Square Capital …

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Share Market News

ASX 200 (ASX:XJO) midday update: ResMed and PointsBet disappoint

At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a much-needed positive …

Read more »

A man activates an arrow shooting up into a cloud sign on his phone, indicating share price movement in ASX tech shares
Share Market News

Is the Betashares Nasdaq 100 ETF (ASX:NDQ) an opportunity in this market correction?

Could the Betashares Nasdaq 100 ETF (ASX: NDQ) be a good opportunity during this correction for both the global share …

Read more »

A woman shouts through a megaphone.
Share Market News

2 ASX growth shares to buy in February with 40% upside

If you’re looking to make some additions to your portfolio in February, then the two ASX shares listed below could …

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Friday

On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard and was able to record a small gain. The benchmark index rose …

Read more »