Azzet reports on three resource stocks with price moving updates today.
Vulcan Energy falls on news of lithium plant deal in Germany
Shares in Vulcan Energy (ASX: VUL) were trading 3.4% lower by 1:45 pm AEST (3:45 am GMT) after the miner told the market it had received approval to build and operate its Central Lithium Plant (CLP) at Industrial Park Höchst in Frankfurt, Germany.
The CLP is the key downstream component of the company’s project, which will combine production of carbon-neutral lithium and renewable energy from deep geothermal brine, decarbonising lithium production and contribute to Europe’s critical raw materials independence.
It’s understood that the CLP will process lithium chloride from Vulcan’s geothermal brine operations into up to 24,000 tonnes annually of battery-grade lithium hydroxide, sufficient to produce around 500,000 EV batteries.
Financing progress includes €104 million (A$184.8 million) in German government grants and amendments to offtake terms with partners including Umicore, LG Energy Solution and Stellantis.
Commenting on today’s update, Vulcan’s CEO Cris Moreno told the market that the project marks a significant step toward Europe’s critical raw materials independence.
“Securing the CLP permit is an important step in the development of a domestic lithium supply chain for Germany and the European Union,” he said.
“We are making substantial progress in our aim to establish a sustainable, domestic and cost-effective source of lithium for the European battery and automotive industries, supporting the EU's goal of reducing critical raw material dependencies.”
Late July, Canaccord Genuity rated Vulcan a Speculative Buy with a price target of $9.75 after concluding that demand is much stronger than previously expected.
If Vulcan meets the Canaccord Genuity target, it will return around 147% (excluding dividends, fees and charges).
By comparison, the most recent analyst rating on the stock is a Buy with a $4.20 price target.
Meanwhile, Vulcan has announced an Extraordinary General Meeting (EGM) scheduled for 10 October 2025.
Vulcan Energy has a market cap of $876 million; the share price is up 5% in one year and down 30% year to date.
The stock’s shares appear to be in a near-term rally within a longer-term bearish trend.
Consensus is Strong Buy.
Iluka tumbles on news of mine closure
Shares in Perth-based Iluka Resources (ASX: ILU) were trading over 13.4% lower after the large-cap miner revealed plans to halt production at its Cataby mine in WA from 1 December due to subdued demand for mineral sands.
The group is blaming a potential 12-month hold on processing at the Synthetic Rutile Kiln 2 (SR2) to weak global demand for its products.
Management told the market that today’s decision has been taken, given subdued demand for mineral sands and their associated downstream products, particularly pigment.
“Lower levels of global economic activity continue to weigh on both the purchasing behaviour of customers and their ability to forecast with certainty,” management said.
The principal mineral mined at Cataby is chloride ilmenite, which is processed at SR2 to produce synthetic rutile, a high-grade titanium dioxide product used predominantly as a feedstock to make pigment.
While SR2 and Cataby will be restarted when market conditions warrant, the group believes it holds sufficient inventories of both synthetic rutile (finished product) and chloride ilmenite (work-in-progress) to satisfy customer requirements.
Meanwhile, the group reminded the market that production at Iluka’s Jacinth Ambrosia mine in South Australia continues, as does commissioning at the company’s new mine at Balranald in New South Wales, where mining is scheduled to commence in Q4 2025.
It’s understood that these mines have a product mix different to Cataby.
Management maintains that suspending production at Cataby and SR2 is a prudent move in light of demand uncertainty in mineral sands and positioning for recovery.
“It reflects the discipline that is a longstanding feature of Iluka’s approach,” management said.
“The suspension will enable inventory and cash liberation, cost savings and the preservation of balance sheet strength.”
In the meantime, Iluka is well-positioned to respond to any improvement in demand conditions and retains the ability to restart Cataby and SR2 quickly when that production is required.
While the stock has been on upward trajectory since falling to a low of $3.33 early April, it is still trading 20% lower than its 12-month high of $7.05.
Iluka Resources has a market cap of $2.4 billion; the share price is down 6% in the last week.
Iluka Resources was trading at $5.64 this afternoon.
Critical Resources slides after announcing prospecting permit in NZ
Shares in Critical Resources (ASX: CRR) retraced early declines of over 6% to trade flat following revelations it had signed a binding agreement to acquire 90% of the Rock and Pillar prospecting permit in NZ’s Otago region.
The deal secures nearly 10 kilometres of the Cap Burn Fault strike, including its down-plunge extension - consolidating tenure adjacent to the company's Cap Burn Project – and enables the company to fully test mineralisation continuity.
The Rock and Pillar permit spans 331 square kilometres and covers structurally complex greenschist terrain.
Historical soil sampling revealed extensive arsenic anomalies, while legacy rock samples returned antimony grades as high as 54.8% Sb.
Five diamond drill holes completed in 2020 confirmed the presence of orogenic gold mineralisation, with results such as 2 metres at 1.99 grams per tonne (g/t) gold and 3 metres at 0.35 g/t gold.
However, investors appear to be uninspired by revelations that A) the acquisition provides the miner with a contiguous and underexplored structural corridor for gold and antimony exploration and B) the Cap Burn Project sits only 11 kilometres from OceanaGold’s +10 million ounce Macraes gold camp.
It’s understood that the drill-ready Cap Burn Project has an access agreement in place, with a drill program expected to begin shortly after Ministerial consent is granted in October.
Commenting on today’s update, the miner emphasised the low-cost, high-impact potential of its NZ portfolio.
The acquisition is said to unlock access to the fault’s down-plunge potential and several historic alluvial gold workings, including the Hamilton Digging, which produced more than 80,000 ounces of gold in just 18 months during the 1860s.
“Previous exploration across the Rock and Pillar permit had not targeted the Cap Burn Fault, as Santana Minerals’ Rise and Shine geological model had not yet been established,” said Critical Resources CEO Tim Wither.
“Legacy work instead focused on elevated arsenic-in-soil anomalies away from the Cap Burn Fault, confirming gold and antimony mineralisation and delivering additional priority drill targets.”
Wither’s believes the existence of alluvial gold workings on both western and eastern sides of the Cap Burn fault highlights the prospectivity of the area, which remains untested by modern exploration.
As a result, the company is progressing the Cap Burn permit transfer, and once completed, exploration will be able to commence in cooperation with the station farming activities.
The company’s NZ subsidiary, Goldfire Resources, will acquire 90% of the Rock and Pillar permit from Euro Gold Ventures Pty Ltd.
The deal includes:
- $50,000 in cash upon completion.
- Three milestone payments ($100,000 in shares upon permit conversion, $150,000 on drill intersection and $750,000 on a JORC-compliant resource definition).
- Minimum exploration expenditure of NZ$50,000 p.a. during the prospecting phase, rising to NZ$250,000 post-conversion.
As a result of this deal, a joint venture will be formed, with Euro Gold free-carried until a final investment decision is made.
Field activities will commence following permit transfer and access approvals, with CRR to update shareholders as the transaction progresses.
The company finished the June Quarter with $1.82 million in cash.
Critical Resources has a market cap of $22 million; the share price is down 27% in one year and up 335% year to date.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
