Lotus Resources
Primary ticker: ASX:LOT
Stage of development: Development, Production
Primary mineral: Uranium
Project to promote: Kayelekera and Letlhakane
Project location: Malawi and Botswana
Website: lotusresources.com.au
Lotus Resources Ltd is an ASX listed company that owns an 85% interest in the Kayelekera Uranium Mine located in Malawi, Africa and a 100% interest in the Letlhakane Uranium Project in Botswana. Lotus’s Kayelekera mine in Malawi is a past producer, having produced 11Mlb U3O8e between 2009 and 2014, and is currently on care and maintenance pending a restart. The mine is fully permitted, and Lotus completed a re-start definitive feasibility study in 2022 based on its current Mineral Resources Estimate of 51Mlbs U3O8e. The study indicated capex of only US$88M is needed to re-start operations and that Kayelekera can be producing uranium within 15 months of a Final Investment Decision. The mine will have a robust Mine Life of 10 years, producing a total of 19.3Mlbs U3O8 at a peak rate of 2.4Mlbs U3O8 per annum, with a highly competitive C1 cost of US$29.10/1lb and AISC costs of US$36.20/lb. The Letlhakane Project has a Mineral Resource Estimate of 190Mlb U3O8e. The Letlhakane Project is a greenfield project, located close to existing infrastructure (road, rail, power and water) and the nearby population centres, including Francistown, which can provide a ready workforce. Botswana is one of the top mining jurisdictions in the world, and the top mining jurisdiction in Africa.
Cash: AUD$135M
Debt: NIL
Major shareholders:
Paradice Investment Management – 9.4%
WH Soul Pattinson – 7.3%
Grant Davey – 7.1%
Sprott Investment Management – 6.5%
Shenke Holdings Ltd – 6.3%
Management Ownership – 12%
Financials
Management Profile
Greg Bittar – Managing Director
Mr Bittar is an accomplished capital markets/finance and resource industry executive with 25 years of experience. Mr Bittar brings extensive experience from positions held across investment banking, metals and mining and energy companies in relation to funding, exploration, M&A, project evaluation and project development studies.
Mr Bittar is currently a Non-Executive Director of Horizon Oil (ASX: HZN) and holds an Economics (BEc) degree and Law (LLB) degree from the University of Sydney and a Masters in Finance from London Business School.
What is your rationale for taking part in 121 Mining Investment?
What recent news would you like to highlight to investors attending?
24 October – Upsized A$130 million Placement to Fund Kayelekera Restart
8 October – Low Capital Intensity and Accelerated Restart of Kayelekera
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Continued progress towards the restart of the Kayelekera Uranium Project, further offtake sales contracts and optimising the studies and work on Lethlakane.
6 Months:
Commence processing and production of uranium from the Kayelekera Uranium Project
12 Months:
Steady state U3O8 production and sales/shipments from the Kayelekera Uranium Project and a defined study and development pathway for Lethlakane
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
What do you think makes your company such a compelling investment?
What are the top 3 key investor takeaways?
Fully funded, low intensity capex
Near term production and cashflow
Strong uranium industry demand dynamics with limited supply growth