Vulcan Energy Books EUR 2.6 Billion Ludwig NPV as First Lionheart Funds Land

Vulcan Energy has begun drawing on the EUR 2.2 billion financing package assembled for its Lionheart project, reporting on Friday that the first tranches of capital had started to flow. The announcement coincided with the release of third-quarter figures and a fresh economic study, and it came on a day when the company's shares shed 11%.

The preliminary feasibility study for Project Ludwig, disclosed alongside the quarterly update, puts the project's pre-tax net present value at EUR 2.6 billion, discounted at 8%. The internal rate of return is estimated at 25.0%. Both figures are outputs of the preliminary economic assessment.

Two Measures of a Balance Sheet

Cash and cash equivalents stood at EUR 129,432,000 at the close of the September 2026 quarter, down from EUR 193,880,000 at the start of the period, according to the cash flow statement. The activities report gives a broader figure: EUR 209.4 million in funds as of 30 September, a total that folds in deposits accessible after 90 days. The gap between the two numbers is entirely a matter of scope.

On the funding side, Vulcan collected the first two strategic equity contributions during the quarter, worth EUR 53.7 million combined. German state grant payments added EUR 10.7 million. Further equity instalments are expected before the first drawdown of debt, which is scheduled for the first quarter of 2027.

Drilling Confirms Injection Design

Work at Lionheart is running to both schedule and budget, the company said in its quarterly report — an assessment that, like its read on the drilling results, comes from Vulcan itself. The seventh well was tested after the quarter closed and confirmed the matrix injection, according to the firm. The result also lends support to the production scenario underpinning the project.

That follows the successful test of well LSC-3a, announced on 15 October. Vulcan said the outcome reduced the risks attached to the Lionheart field development plan and bolstered confidence in it.

Investors will get their next formal update at the Macquarie WA Mining Forum on 3 November 2026.