In a report titled “Vulcan: God of Empty Promises”, the agency specializing in due diligence on public firms calls into query the validity of Vulcan’s claims of constructing a “worthwhile geothermal energy and inexperienced lithium venture” to serve the rising European electrical car market.
J Capital alleges the venture might by no means truly get underway as the prices are greater than the corporate claims, output might be decrease, the environmental affect is brutal sufficient that public outcry will block permits, as has occurred earlier than within the space, and the standard of the lithium useful resource is low.
J Capital alleges Vulcan’s administration group low-balled the prices, thus making the venture look worthwhile, and overstated the standard of the useful resource proven within the venture’s pre-feasability research (PFS).
The research, which was issued in January, is rife with contradictions, J Capital says, pointing to Vulcan’s utilization of so-called “unbiased specialists” who introduced contradictory info equivalent to working prices and low cost charges to the German authorities.
“The PFS contained an unrealistic assumption for the stream price that beautified the venture and may be simply disproved scientifically,” J-Capital says.
Vulcan additionally claims to have a restoration price of 90% for the lithium, whereas different tasks with the identical lab efficiency are estimating with a 70% restoration price, it provides.
“Real looking assumptions would halve the output of lithium and kill the industrial viability of the venture,” J Capital says.
Vulcan has additionally reportedly declined to disclose key details about the direct lithium extraction (DLE) expertise crucial to eradicating lithium from the brine at an affordable price, however claimed to have prices that might be half these of comparable proposed tasks which can be clear about their DLE methodology, in accordance with J Capital.
Extra real looking stream and restoration charges will decrease lithium output by 50% in contrast with the PFS, their analysis estimates.