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Highlights:
Lotus Resources is fully funded for the restart of production at the Kayelekera Uranium Project in Malawi, scheduled for Q3 2025.
The company has completed the first tranche of a $130 million placement and has secured $25 million in cash and equivalents as of September 2024.
Key early works include infrastructure upgrades, plant refurbishments, and recruitment of additional personnel to ensure the project meets its accelerated restart timeline.
Lotus Resources (ASX:LOT) has confirmed it is fully funded for the restart of production at its Kayelekera Uranium Project in Malawi, with operations set to resume in the third quarter of 2025. The company, with a market capitalisation of $514.67 million, has raised $130 million through a two-tranche placement. The first tranche has been successfully settled, with the second tranche pending shareholder approval at a meeting scheduled for next month.
As of 30 September 2024, Lotus Resources reported cash and cash equivalents of $25.015 million, positioning the company to meet its accelerated development schedule. CEO Greg Bittar highlighted significant progress on-site, with a range of activities already underway to prepare for production. These include upgrades to the tailings storage facilities, plant refurbishments, equipment repairs, and structural modifications to the plant.
Key early-stage works have also included upgrading the camp infrastructure, with improvements to water treatment and sewage systems, as well as placing orders for essential equipment such as calciner, scrubber, and screw feeder for the drying and packaging plants. Additionally, Lotus has ordered cranes for construction and operational needs, ensuring the necessary tools and equipment are in place for a smooth restart.
To support the operational ramp-up, the company has recruited key operations management personnel and expanded its workforce, which currently includes over 150 local and expatriate workers. The workforce is expected to grow in the coming months to meet the requirements of the project restart.
The Kayelekera Project, which historically produced 11 million pounds of uranium between 2009 and 2014, is owned 85% by Lotus Resources. The company also holds full ownership of the Letlhakane Project in Botswana, further solidifying its position as a prominent Africa-focused uranium player. With its accelerated restart plan well on track, Lotus Resources is preparing for a significant return to production at one of Malawi's key uranium assets.
