Lotus Resources (LOT) 2025 Precious Metals Summit - Zurich summary

Project updates and operational milestones

• Achieved first uranium production at Kayelekera in Malawi in September, on budget and on schedule, with a 10-year mine life targeting 20 million lbs output.

• Processing of stockpiles has begun; mining to start soon, aiming for steady-state production of 2.4 million lbs per year by Q1 2026.

• Letlhakane project in Botswana progressing toward a PFS by late next year, with a 114 million lb resource and ongoing drilling for resource upgrade.

• Major plant refurbishments completed, including infrastructure upgrades and a workforce of 600 on site.

• Own acid plant to be operational in Q1 next year, with a power grid connection expected to reduce costs by $5-$6/lb by end of next year.

Financial strategy and contracting

• Raised $45 million in equity at $0.19 to avoid debt and maintain contracting flexibility.

• About 35% of production for 2026-2029 locked in under fixed price contracts with North American utilities and a trading house, providing price certainty.

• All-in sustaining cost targeted at $45/lb, with contract prices escalating from $75 to over $80/lb.

• Balance sheet is largely equity-funded, with less than $3 million in debt, supporting working capital and future growth.

Market outlook and strategic positioning

• Strong uranium demand drivers include decarbonization, China’s nuclear expansion, and emerging SMR and AI-related demand.

• Supply is constrained, with major producers reducing output and no significant new supply expected until 2030-2031.

• Term uranium price has risen to $86/lb, with expectations for further increases; company is participating in RFPs for market-linked contracts.

• Cash flow from Kayelekera expected to fund Letlhakane development and provide capital management flexibility.