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Highlights

  • Shares increase following the announcement of new production well drilling
  • Lionheart Project enters next development phase with operational progress
  • Broker initiates speculative buy rating with lithium outlook supporting EBITDA forecasts

Vulcan Energy Resources Ltd (ASX: VUL) shares rose today to AUD 4.18, up 2%, after the company confirmed that drilling has started for the first production well at the Lionheart Project. This marks the beginning of Phase One development for its lithium project in Europe.

The update also coincided with a new broker report from Bell Potter, which initiated coverage on Vulcan with a speculative buy rating and an AUD 6.10 price target. The report projects average annual EBITDA of EUR 290 million under long-term lithium pricing assumptions, supporting optimism around project economics.

The start of drilling represents a key operational milestone for Vulcan, which uses a novel extraction method aiming to produce lithium with a lower environmental impact. As global lithium markets evolve, investors appear to be tracking the project's timeline closely.

Vulcan's stock performance today stands out within a generally muted session on the ASX. Moving forward, success will depend on execution, market conditions, and the project's ability to meet development targets.