Lotus Resources (LOT) H2 2026 earnings summary

Executive summary

• Achieved first uranium production at Kayelekera since 2014, transitioning from developer to producer, but faced significant operational challenges and delays in ramp-up, impacting revenue and cash flow generation.

• Operational setbacks included sulphuric acid supply disruptions, plant reliability issues, and delays in export logistics, leading to higher costs and the need for additional funding.

• Strengthened operational leadership, improved plant performance, and advanced key infrastructure projects, including the acid plant and grid connection.

• Advanced Letlhakane Project in Botswana with metallurgical optimisation and resource conversion drilling.

Financial highlights

• Loss after income tax of $100.1 million for FY2026, compared to $15.6 million loss in FY2025, driven by high operating and ramp-up costs.

• Net cash outflow from operating activities was $114.9 million; cash and cash equivalents at year-end were $30.2 million, down from $54.1 million.

• Raised $65 million in September 2025 and $79 million in February 2026 through equity placements to support operations and infrastructure.

• Drew $7.4 million from an $8.5 million equipment finance facility.

Outlook and guidance

• Focus on achieving steady-state production, export readiness, and sales at Kayelekera.

• Completion of acid plant remediation and production restart expected in early August 2026, subject to financing.

• Strategic funding package post-year-end includes $60.1 million entitlement offer, $35 million convertible notes, and $30 million inventory-backed prepayment facility.

• Letlhakane Project to continue with metallurgical studies, infill drilling, and updated resource estimates.