Vulcan Energy Reports €11.7M Operating Cash Outflow, Raises €10.9M Equity

Quarterly Cash Flow Overview

Vulcan Energy Resources Limited has released its quarterly cash flow report for the period ending 30 June 2025, revealing a period marked by substantial cash outflows primarily related to its lithium exploration and development activities. The company recorded a net cash outflow of approximately €11.7 million from operating activities, reflecting ongoing expenditures in exploration, evaluation, and corporate costs.

Investing activities further intensified cash demands, with €12.7 million spent on capitalised exploration and development, underscoring Vulcan's commitment to advancing its projects, notably the Lionheart Project. Despite these outflows, the company successfully raised €10.9 million through equity securities during the quarter, bolstering its financial position.

Liquidity and Financing Position

Vulcan's cash and cash equivalents at quarter-end stood at a healthy €48.8 million, down from €78.8 million at the start of the period, reflecting the heavy investment phase. Additionally, the company maintains an unused secured revolving credit facility of €10 million with BNP Paribas, maturing in June 2029, providing further financial flexibility. This facility carries a competitive interest rate of 1.8% plus EURIBOR until the end of 2025, increasing slightly thereafter.

The combined available funding of nearly €59 million supports an estimated five quarters of operations at current cash outflow levels, offering Vulcan a comfortable runway to continue its development activities without immediate funding pressure.

Operational and Strategic Implications

The cash flow report highlights Vulcan's strategic focus on advancing its lithium projects amid a capital-intensive phase. The significant operating and investing cash outflows are typical for a company transitioning from exploration towards development and production readiness. The equity raise during the quarter demonstrates investor confidence and provides a buffer against market volatility.

However, the decline in cash reserves and ongoing high expenditure levels will require careful management to sustain momentum. The availability of the credit facility adds a layer of security, but Vulcan will need to balance its growth ambitions with prudent financial stewardship in the coming quarters.