Lotus Resources (ASX:LOT) - Fully-Funded Uranium Developer Racing Toward Q3 2025 Production

Feb 20, 2025

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Interview with Greg Bittar, CEO of Lotus Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/lotus-resources-asxlot-the-funded-fast-tracked-path-towards-2025-uranium-production-6191-200a9

Recording date: 19th February 2025

Lotus Resources (ASX:LOT) is positioning itself as one of the next uranium producers globally, with its Kayelekera project in Malawi targeting first production in Q3 2025. The company has secured robust funding, with US$135 million in available liquidity and a US$45 million buffer to support operations through initial production ramp-up.

The project's economics appear compelling, with projected all-in sustaining costs of $45/lb against current long-term contract prices of around $80/lb. At planned production rates of 2.4 million pounds per annum, this could generate annual operating cash flows of $70-80 million. The company has made significant progress on the contracting front, working toward securing term sheets for approximately 35% of production from 2026-2029 with fixed-price escalating contracts.

Project development is advancing well, with over 250 workers on site daily. Key infrastructure improvements include rebuilding the acid plant, upgrading power systems, and preparing for eventual grid connection to reduce operating costs. The company plans to initially operate using imported sulfuric acid before transitioning to on-site acid production by year-end.

Beyond Kayelekera, Lotus is advancing its Livingstonia project in Botswana, which offers significant resource upside potential. The company is conducting optimization studies to address mining approaches for the deep resource and improve acid consumption metrics.

CEO Greg Bittar emphasizes the disconnect between current spot market volatility and the more stable long-term contract market, where prices have remained steady around $81/lb. The company is strategically focusing on securing long-term contracts with utilities rather than exposure to the thinly traded spot market.

The project's advancement comes amid growing global interest in nuclear power as countries seek reliable, emissions-free baseload power to complement renewable energy sources. With major producers like Cameco and Kazatomprom having implemented supply cuts, and increasing demand from new reactor builds particularly in China and other growth markets, the uranium market fundamentals appear supportive of new production.

Lotus expects to be cash flow positive by early 2026, positioning it as one of the few new uranium producers entering the market during this cycle. With full funding in place, advancing contract discussions, and potential exploration upside, the company appears well-positioned to capitalize on the growing uranium market as nuclear power plays an increasingly important role in global decarbonization efforts.

View Lotus Resources' company profile: https://www.cruxinvestor.com/companies/lotus-resources-limited