The Vulcan Energy Resources Ltd (ASX: VUL) share price is falling in afternoon trading, down 3.78% to $7.89 despite a flying start out of the blocks this morning.
The ASX miner announced its quarterly activities and cash flow report for the period ending 31 December 2020 to the ASX market today. Let's take a closer look.
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What is in the report?
In today's release, Vulcan advised that its first zero carbon lithium pre-feasibility study demonstrated strong potential. The combined renewable energy and lithium hydroxide project, in the centre of Europe, has a positive net present value of €2.25 billion (AUD$3.56 billion). As such it is projected to be one of the cheapest lithium producers globally.
Vulcan also announced upgrades to a number of its resource estimations during the quarter. The company upgraded its estimation at its Taro site from 0.83 Mega tonnes (Mt) of lithium carbonate to 1.44 Mt.
More spectacularly, the company updated its resource estimation at its Ortenau resource in North Germany from 2.06 Mt to 15.85 Mt. This places it as the largest lithium resource in Europe. The project has since been integrated into the zero carbon lithium project mentioned above.
What's more, Vulcan claims proposed new regulations by the EU on carbon footprint rules and responsibly sourced materials may be poised to help the company.
About the Vulcan share price
The Vulcan share price has gained an astounding 4,344% in the last year alone. It shares tore up the charts last week on the back of its announcement on plans to become the world's first zero carbon lithium producer.
To do this, Vulcan will use its unique lithium process to produce both renewable geothermal energy, and lithium hydroxide, from the same source. In doing so, the company aims to address EU market requirements by reducing the high carbon and water footprint of production. At the same time it creates a wider global marketplace for lithium with less reliance on imports from China.
The small cap ASX miner was among was among the most traded shares on the ASX last week as a result. The Vulcan share price is currently trading 1.95% higher.
