Lotus Resources Confirms Kayelekera Is Low-cost, Quick Restart Uranium Operation says MD Keith Bowes

Mining Stock Education · Lotus Resources Confirms Kayelekera Is Low-cost, Quick Restart Uranium Operation says MD Keith Bowes

Lotus Resources’ (LOT:ASX – LTSRF:OTC) Managing Director Keith Bowes shares regarding the just-released positive Definitive Feasibility Study (DFS) for the Kayelekera uranium mine in this interview.  Keith stated: “Having an asset with low technical risk and low restart capital, which can quickly commence production, are key characteristics that investors look for in a mining project. The results of the Restart DFS clearly put Kayelekera in this category and this provides an opportunity for the Company to leverage off the strongest fundamentals for the nuclear/uranium industry in many years. The standout features of the Restart DFS are the low capital costs and attractive operating costs, which consider the current high inflation environment, whilst also ensuring a positive legacy as we have significantly reduced our carbon footprint, in line with the Company’s ESG strategy. The initial upfront capital costs remain one of the lowest in the industry, both from a headline (US$88m) and an initial capital intensity perspective (US$37/lb annual production). This is an excellent achievement given current inflationary pressures. The number is higher than that originally announced in the Scoping Study, but includes three new items (ore sorting, grid connection and a new acid plant) which are critical for lowering our operating costs. The operating costs during steady state in the initial mining phase (i.e. before stockpile treatment commences) now sit at US$29.1/lb U3O8, well within the second quartile costs for current and planned uranium producers.”

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. It is anticipated that the final investment decision will be made by early 2023. Then after an estimated 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  1:25 Highlights of DFS 2:57 US$88M capex 4:38 Human personnel both local and ex-pat 5:40 Community development agreement 7:10 Permits 7:51 Electricity 9:16 NPV 10:12 Next 6mos before final investment decision 12:01 Hedging while leaving upside for investors 15:21 Extending mine life 17:19 Rare Earths project 18:03 Treasury 18:55 Timeline to production 19:20 Catalysts next 3mos Tickers: 

Lotus’ DFS presentation

DFS press releases discussed

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