The Vulcan Energy Resources Ltd (ASX: VUL) share price is gaining on Wednesday amid the release of the company's annual and sustainability reports.
Financial year 2022 saw the lithium hopeful progress its Zero Carbon Lithium Project and acquire an operational German geothermal renewable energy power plant.
The Vulcan Energy share price is $7.60 at the time of writing, 1.33% higher than its previous close.
For context, the All Ordinaries Index (ASX: XAO) is up 0.14% and the S&P/ASX 300 Index (ASX: XKO) has lifted 0.14%.
Let's take a closer look at today's news from the ASX 300 lithium developer.
Vulcan Energy share price lifts amid maiden revenue
Here are the key financial takeaways from Vulcan Energy's annual report (converted from Euro to AUD at today's exchange rate):
- Revenue of $5.66 million – up from zilch in financial year 2021
- Net loss of around $17.7 million – up from an $8.7 million loss
- Equates to an earnings per share (EPS) loss of approximately 22 cents
- Closed financial year 2022 with $266 million of cash
The company's strong financial position at the end of the fiscal year was largely due to its $200 million capital raise and a $76 million investment from automaker, Stellantis.
It also recorded its maiden revenue after acquiring renewable energy plant, Natür³Lich Insheim. The plant brought in around $4.5 million of revenue since its December acquisition.
What else happened in FY22?
Financial year 2022 was a busy one for the lithium hopeful.
The company has been strategically expanding its granted licence area to cover 1,465.38 square kilometres.
It also produced its first battery-quality lithium hydroxide monohydrate from piloting operations. The plant sample exceeded battery grade specifications required from offtake customers at more than 56.5% lithium hydroxide monohydrate with very low impurities.
The company has also signed lithium offtake agreements with Volkswagen, Renault, Stellantis, LG Energy, and Umicore. Its planned lithium production is now fully booked for the first five years of operation.
It believes such partnerships will see it take a key role in Europe's transition to electric vehicles.
Finally, the company faced a challenging period on the market when it was hit with a short-seller attack. The Vulcan Energy share price tumbled amid the release of a scathing report by activist short-seller J Capital.
What did management say?
Vulcan Energy chair Gavin Rezos commented on the company's activities and outlook:
Vulcan anticipates the use of geothermal renewable energy on a mass scale will play an important part in achieving Europe and Germany's energy security and independence.
In the Upper Rhine Valley Brine Field, the extraction of both renewable heat and lithium from the same geothermal resource will put Vulcan in the front seat of the transition to renewable energy and e-mobility in Europe.
We are confident that we have the right team to deliver for our shareholders, assisting Europe in its much-needed transition away from Russian gas supplies as soon as possible, whilst maintaining a strong sustainability focus.
What's next?
The company expects to deliver the Net Zero Lithium Project's definitive prefeasibility study in the first quarter of 2023.
It's also working to construct and commission its Sorption-Demo Plant. Cold commissioning of the plant is expected to begin later this year. Meanwhile, its lithium hydroxide production demo plant is progressing concurrently and is on track to start commissioning late in the first quarter of 2023.
Finally, Vulcan is progressing a systematic exploration program over its project area in the Upper Rhine Valley Brine Field.
Looking to its sustainability targets, the company plans to expand its taskforce for climate-related financial disclosures, pilot test the taskforce for nature-related financial disclosures, and publish its first communication on progress as part of its United Nations Global Compact membership.
Vulcan Energy share price snapshot
Sadly, the Vulcan Energy share price has been struggling lately.
It has dumped 30% since the start of 2022. It's also trading 42% lower than it was this time last year.
For comparison, the ASX 300 has fallen 15% year to date and 11% over the last 12 months.
