Lotus Resources Becomes Even More Attractive Amidst Ukraine-Russia Conflict with MD Keith Bowes
Lotus Resources’ (LOT:ASX – LTSRF:OTC) Managing Director Keith Bowes explains why the company has become even more attractive to both investors and utilities amidst the geopolitics of the Ukraine-Russia conflict. He provides a thorough update on the recent progress at the company’s past producing Kayelekera uranium mine in Malawi. Lotus recently increased its U3O8 resources by 23% to 46.3Mlbs after its recent exploration success. The updated mineral resource estimate will be incorporated into the new mine plan for the Definitive Feasibility Study (DFS) which remains on track for mid-2022.
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 46.3Mlbs at 500 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 mid-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.
0:00 Introduction
2:05 Uranium market commentary
3:08 Ukraine-Russia conflict’s impact on uranium market
6:38 23% increase in MRE to 46.3Mlbs U3O8
9:10 New permits need for the bigger pit?
10:09 Metallurgy consistent?
10:36 Ore sorting tech allows for lower grade to 200ppm U3O8
14:50 Exploration potential
16:30 Inflation and DFS forecasts
18:37 Potentially shipping ore to North America
19:35 Recruiting personnel to run the mine?
20:20 Lotus consultant engaging utilities
21:36 How soon will you lock in price contracts?
22:30 Treasury and burn rate
