Vulcan rejected the report as biased and tried to take advantage of a falling stock price.
In a statement to ASX, it said the report contained many inaccurate statements and allegations where Mr Murray had no technical qualifications in geothermal energy or lithium extraction.
“They claimed our report had inaccuracies, but they did not mention any of them,” Mr Murray said.
“I would have expected that they would have listed some important things, not small things that did not quite get some minor issues, these are key points that they need to address.”
Murray also questioned the credibility of Vulcan’s pre-feasibility study (PFS), published in January 2021, which reported that Vulcan’s combined renewable energy and lithium hydroxide project had a net present value after tax of € 2.25 billion ($ 3). , 48 billion).
J Capital claimed that PFS, which was used to support the company’s claims about the value and feasibility of its zero-carbon lithium projects, was prepared by two German consulting firms, Gec-co and Geo-T, with close links to Vulcan and its co-founder Horst Kreuter.
Dr. Kreuter was also the owner and CEO of Geo-T at the time of PFS, according to J Capital. Vulcan did not respond to a request for comment. Kreuter’s contact information in connection with other allegations in J Capital’s report.
The report acknowledges that Vulcan revealed its relationship with the consulting firms, but claimed that the relationship was not revealed in the PFS or when the expert selection was announced.
According to J Capital, Vulcan bought Gec-co less than a month after the PFS issue for about $ 4 million and earn-out clauses. Vulcan was not asked for comment on the acquisition of the other consulting firm.
Vulcan’s ambitious plans to become the world’s first carbon-free lithium hydroxide producer and geothermal energy supplier have helped equities rise by 6713 percent since June 2018 and 441 percent during 2021 after several positive announcements about the project’s potential.
In September, CEO Francis Wedin stated that it plans to target production from its combined lithium chemicals and renewable geothermal energy by 2024, but did not disclose a date for when it expects to achieve first revenue if it delivers on its complex logistical and commercial plans. . J Capital claimed that experts it spoke to who were familiar with the Upper Rhine said the project would take six to ten years to deliver.
The polarizing explorer raised $ 200 million from institutional investors, including Gina Rinehart President Hancock Prospecting, to $ 13.50 per share to target the brownfield acquisition of existing energy and saltwater infrastructure. It also offered an additional $ 20 million worth of shares to its large retail shareholder base.
Professional analyst coverage is limited to broker Canaccord Genuity, which received a fee for trading in the capital raising as a joint lead manager.
Canaccord has a $ 21 share price target on Vulcan and said the signing of divestiture agreements with European car and battery supply chain players Renault, LG Chemicals and Umicore is positive.
The broker predicts investment and operating cash flows of $ 1.3 billion in fiscal year 2024 without revenue. Financing of cash flows of $ 1.675 billion is also expected in fiscal year 2024 using a mix of debt and equity. Vulcan shares closed last at $ 14.99.