Impact: Slightly Positive
Lotus Resources announced that it has moved into the final planning phase for restarting its Kayelekera uranium project in Malawi. A restart date has been provided, targeting late-2025, within an estimated 15-month window of a Final Investment Decision (FID), work for which is underway. Short-to-medium-term plans to add value at the recently acquired Lentlhakane project in Botswana (read note) were also announced. Strong and rising U3O8 prices, ample resources and near-term production potential have helped Lotus rank as one of our top picks (read sector report) and amongst the top of its developer peer group in share price performance over the past three and twelve months (up 62% and 42%, respectively). This should help reduce any potential equity dilution as it goes to finance the estimated US$88M initial capex needed to restart Kayelekera. The 2022 DFS outlined a plan to mine 2.4M lbs U3O8 pa over 10 years at an average C1 cash cost of US$29.10/lb (read note), though a planned FEED program could update capital and operating cost estimates. Mine Development Agreement (MDA) and power discussions continue, FEED optimization is ongoing and interest in desired off-takes is increasing.
