Lotus Resources Limited (ASX: LOT; OTCQB: LTSRF) is an Australian Stock Exchange listed uranium development company headquartered in Perth, Australia. The Company’s focus is on the restart of the Kayelekera uranium mine in Malawi, Africa. Lotus owns an 85% equity interest in Kayelekera with the remaining 15% held by the Malawi government.
The Project historically produced ~11Mlbs uranium oxide (U3O8 equivalent) over five-year between 2009-2014, before closing to preserve the asset longevity due to a sustained low uranium price. Kayelekera’s current Mineral Resource Estimate is 37.5Mlb of U3O8 at 630 parts per million (ppm).
In October 2020, Lotus released a Restart Scoping Study indicating that recommissioning of the Kayelekera plant would cost ∼US$50 million. The Company is currently completing a Definitive Feasibility Study that will be completed by mid-2022 with a decision to mine thereafter.
Kayelekera has the potential to become one of the first uranium operations to come back online to meet an impending supply shortfall in uranium. The restart timeline aligns with industry predictions of a market under-supply of approximately 30Mlbs uranium in 2024.