Vulcan Energy Resources Limited

This report is an updated version of the report published on the 13^th July 2022 at 3:55 PM GMT.

Section1: Company Overview and Fundamental Insights

1.1 Company Overview:

Vulcan Energy Resources Limited (ASX: VUL) is engaged in developing and extracting geothermal energy and lithium in the Upper Rhine Valley of Germany with its Zero-Carbon lithium^TM project to serve households in Germany and a burgeoning electric vehicle market in Europe.

1.2 The Key Positives, Negatives, Investment Highlights and Risks 

1.3 Top 10 Shareholders:

The top 10 shareholders collectively form ~44.52% of the total shareholdings. Wedin (Francis Edward Barnabas) holds the maximum number of shares with ~11.48% shareholding, followed by Stellantis NV with ~7.99%, as depicted in the chart below: 

Data Source: REFINITIV, Analysis: Kalkine Group

1.4 Key Metrics:

The company’s current ratio at 35.16x stood higher in 1HFY22 as compared to the industry median of 2.04x. With total revenue of EUR ~2.73mn in 1HFY22, the gross margin amounted to 78.3%. 

Section 2:  Business Updates and Financial Highlights

2.1 Recent Developments: The below table summarises the recent material updates:

2.2 Key Takeaways from Recent Results:

Section 3:  Key Risks and Outlook

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation 

Valuation Methodology: Price to Book Value Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

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