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Vulcan (ASX:VUL) investors don’t bite after earnings, shares down 13% YTD

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Shares in Vulcan Energy Resources Ltd (ASX: VUL) are trading in the red on Monday despite no market-sensitive information today.

However, investors don’t appear impressed after the company released its interim report and financial results for the half-year ended 31 December 2021 last week.

Vulcan shares are currently swapping hands at $9.09 apiece, around 4% down on the day.

Key takeaways from the company’s earnings results include:

Cash and cash equivalents of 134,5 million Euros, up from 70.5 million euros the prior half Net assets of 206.4 million euros, a substantial gain from a base of 81.5 million euros 6 months prior Revenue from continuing operations came in at 689,999 euros, the first recording Net loss after tax (NLAT) of 6.2 million euros, more than 3.6 million euros of June 2021 Loss per share of 6.52 euros

What else happened this half for Vulcan?

During the half, Vulcan successfully raised $200 million via a placement from existing and new institutional investors. The company notes many of these investors included ESG-focused institutions.

Vulcan also says its chemical engineering team “successfully produced its first battery quality lithium hydroxide monohydrate (LHM) from piloting operations”.

“The plant sample exceeded traditional battery grade LHM product including best on the market battery grade specifications required from offtake customers, at >56.5% LiOH.H2O and with very low impurities”, the company said.

It also noted that it now boasts offtake agreements that are “fully booked for the first 5 years of operation” with names such as Umicore, Stellantis and Volkswagen Group to name a few.

The company also recorded NLAT of more than 6 million euros, whilst printing its first revenue from operations at a total of 690,000 euros for the period.

As a result of the successful capital raising and valuation of its asset base, the company now has a net asset value of 206 million euros.

Management commentary

Speaking on the company’s renewables and geothermal business, Vulcan directorship said:

A significant highlight of the reporting period was the acquisition of the operational geothermal renewable energy power plant in the Upper Rhine Valley at Insheim, Germany (the “Insheim Plant”). The acquisition established Vulcan as a renewable energy producer and is a source of revenue for the Company. The plant currently has the technical ability to produce a maximum of 4.8MW renewable power, equivalent to approximately 8,000 households, with an additional ability to produce heating. The plant is producing 2.9 MW of electricity on average and capitalises on the feed-in tariff for geothermal power.

What’s next for Vulcan?

At the company’s Upper Rhine Valley Project, its team of geological engineering experts continue to increase their understanding of the sub-surface areas, Vulcan says, and that 3D seismic survey-work will be carried out in advance of drilling. Phase 2 drilling for the site is targeted for 2023, it also noted.

Vulcan Energy share price snapshot

The Vulcan Energy share price has soared more than 54% in the past 12 months but is down 13% this year to date.

In the past week, it has lost 4%, however, it is still leading the benchmark index’s return as shown below.

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