Proven Uranium Producer Poised for the Expected Boom with Lotus Resources’ Keith Bowes
Lotus Resources’ (LOT:ASX – LTSRF:OTC) flagship Kayelekera uranium mine in Malawi is a proven past producer. Lotus owns 85% of the Kayelekera mine, which was acquired from Paladin Energy in the beginning of 2020. Kayelekera produced about 11Mlbs from 2009 to 2014 before being put on care and maintenance due to low uranium prices. The mine has an existing resource of 37.5Mlbs at 630 ppm U3O8 as well as multiple near-mine exploration targets. A scoping study was completed that estimates only US$50M capex is needed to recommence production. It is anticipated that the feasibility study would be completed in Q2 2022, followed by a production decision in early 2023. Then after an estimated 12-to-15-month refurbishment period, uranium ore could be feeding the plant again by early 2024. Lotus management believes this timeline fits well with the expected uranium price boom and offers investors an attractive risk-reward investment value proposition with substantial upside.
Keith Bowes is the managing director of Lotus Resources. He is a highly regarded mining executive with over 20 years of experience working on project development and operations in Africa, South America and Australia across a range of commodities and processes. Keith managed the Boss Resources’ redevelopment program for the Honeymoon Uranium Mine, including all study phases and commercial trials of the new processing technology. As part of the study he led the development in the application of two new technologies that have redefined the Honeymoon opportunity (leach chemistry and IX resins).
0:00 Introduction
1:19 Kayelekera uranium mine overview
3:05 Does Kayelekera have any fatal flaws?
5:39 Lotus’ relationship with Paladin Energy
5:59 Lotus owns 85% of Kayelekera
6:27 Argument for undervaluation
8:39 Scoping study
12:05 US$50M refurbishment capex needed
12:33 Feasibility study
14:27 Feasibility study to include additional exploration?
16:07 Uranium price contracting
17:59 Timeline of advancement
19:14 Malawi as a mining jurisdiction
21:30 Permitting
22:36 Keith Bowes’ qualifications
24:16 Treasury, debt and burn rate
26:39 Share registry
27:13 Upcoming catalysts
