Lotus Resources Limited · ASX:LOT
Lotus Resources — Non-Deal Roadshow (March 2021)
21 slides from Lotus Resources's roadshow presentation, Mar 9, 2021
Slide 1: Kayelekera Proven Uranium Producer
For personal use only Kayelekera Proven Uranium Producer GLOBAL INSTITUTIONAL ROADSHOW MARCH 2021
Slide 2: Important Notice
Important Notice For personal use only FORWARD LOOKING STATEMENT Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information, including
Slide 3: Kayelekera is a proven uranium producer
Kayelekera is a proven uranium producer For personal use only Proven production Low Capital Cost Significant High- Permitted for Upside Potential 11Mlbs of US$50M initial cost Grade Resource production Production costs production over Significant existing 37.5Mlb Resource1 Strong government Explorat
Slide 4: Significant valuation gap to peers
Significant valuation gap to peers1 For personal use only Spreadsheet assumptions are not always achieved on a mine site Company information - General (LOT) (PDN) (BOE) (PEN) (BMN) (DYL) (VMY) EV (A$ M) $105m $1,067m $260m $88m $135m $175m $68m Kayelekera, Langer Heinrich, Lance, Etango, Tumas, Proj
Slide 5: 11Mlbs of proven production history
11Mlbs of proven production history For personal use only • Proven historical production with 11Mlbs of uranium produced between 2009 – 2014 • Environmental Permit and Mining License already in place for restart • 100% of historical production accepted by conversion facilities in the U.S., Canada an
Slide 6: Scoping Study - historical production and costing assumptions
Scoping Study - historical production and costing assumptions For personal use only • Scoping Study1 confirms Kayelekera can be among the first uranium projects to recommence production • Low total initial capital cost of US$50M, due to existing infrastructure • 1.4Mtpa processing facility, tailings
Slide 7: Outcome of technical studies to drive Feasibility Study
Outcome of technical studies to drive Feasibility Study For personal use only • Following the positive outcomes of the Scoping Study work has now commenced on technical improvements to support a Feasibility Study Technical studies - underway • Application of ore sorting (or similar) technology • Upg
Slide 8: Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance (ESG) For personal use only • The Company’s ambition is to become a uranium industry leader in ESG • Uranium is the only current, realistic energy source that provides zero-carbon emissions for global utilities base load power requirements • The Company has comm
Slide 9: Near mine and greenfield exploration potential
"~ "~ Near mine and greenfield exploration potential For personal use only Mineral Resources • Kayelekera has a total mineral endowment of ~50Mlbs based on current resource (37.5Mlbs)1 and historical production (11Mlbs) • Little to no exploration in more than a decade, despite numerous near mine, dr
Slide 10: Rare Earths - Neodymium and Praseodymium oxides
Rare Earths - Neodymium and Praseodymium oxides For personal use only Milenje Hills high-grade Rare Earth Oxides (REO)1 • Geophysics, mapping and trenching identified and discovered high-grade REO material of up to 16% (Av. 8%) and 3.4% (Av. 1.6%) CREO2 • Highly desirable assemblage - Neodymium and
Slide 11: Lotus well positioned for the next uranium cycle
Lotus well positioned for the next uranium cycle For personal use only Proven production Significant existing Strong cash position Board and Valuation Upside 11Mlb of historical infrastructure Significant cash management team Significant valuation supply with sales to Low capex to reserve until 2023
Slide 12: Uranium Market Update
For personal use only UPDATE MARKET URANIUM
Slide 13: Uranium positioned for significant re-rating
Uranium positioned for significant re-rating For personal use only • A decade of low uranium prices has resulted in no new developments, discoveries and minimal exploration 400 Mlbs 400 Mlbs • Supply and demand fundamentals have significantly tightened 350 Mlbs 350 Mlbs with an estimated 30-60Mlbs U
Slide 14: China will be the largest consumer of uranium by 2030
China will be the largest consumer of uranium by 2030 For personal use only NUCLEAR REACTORS - CHINA Nuclear Electricity Generation (% of total power) 180 4.9% 10.1% World China 164 average 160 140 Uranium consumption 120 Today vs. 2030/2040 target (Mlbs U308) 104 65Mlbs 100 28 Mlbs (2030) today 91M
Slide 15: India will be the 4th largest consumer of uranium by 2040
India will be the 4th largest consumer of uranium by 2040 For personal use only NUCLEAR REACTORS - INDIA Global ranking - uranium consumption Today vs. 2040 (tpa) 60 11th 4th 57 3 Mlbs 15 Mlbs 50 Nuclear Electricity Generation 40 (% of total power) 36 3.2% 10.1% India -2019 World average 30 22 20 18
Slide 16: Long-term contracting cycle is imminent
Long-term contracting cycle is imminent For personal use only • Nuclear utilities cover their fueling needs through long- UTILITIES FACING RAPID PURCHASING term contracts, which generally range between three to 120% ten years • Typically, no more than 10% is bought on spot 105% 98% Target coverage r
Slide 17: Significant price increase required to meet growing demand
Significant price increase required to meet growing demand For personal use only 2024 2028 Shot-term Demand Mine Supply Long-term Demand Mine Supply 190Mlb 160Mlb 210Mlb 150Mlb Annual Deficit Annual Deficit 30Mlbs U3O8 60Mlbs U3O8 Source: WNA, The Nuclear Fuel Report, September 2019; Note: Values ba
Slide 18: Contact
For personal use only CONTACT Keith Bowes Managing Director 1202 Hay St West Perth WA 6005 For further information visit: www.lotusresources.com.au
Slide 19: Appendix – Peer comparison
Appendix 1 – Peer comparison For personal use only Company information - General (LOT) (PDN) (BOE) (PEN) (BMN) (DYL) (VMY) EV (A$ m) 1 $105m $1,067m $260m $88m $135m $175m $68m Project Name (Main project only) / Country Kayelekera, Malawi Langer Heinrich, Namibia Honeymoon , Australia Lance, USA Eta
Slide 20: Appendix – Historical uranium pricing during the last boom
Appendix 2 – Historical uranium pricing during the last boom For personal use only UTILITY LONG TERM CONTRACTING VOLUME AND PRICING (2006 – 2010) >$90 205 754Mlb U308 sold at prices Utility Long-term Contract Price Category (US$/lbs U3O8 ) $81-90 59 greater than US$60 / lb U308 $71-80 324 $61-70 166
Slide 21: Appendix – Kayelekera Mineral Resource
Appendix 3 – Kayelekera Mineral Resource 1 For personal use only Grade U3O8 Category Mt (U3O8 ppm) (M lbs) Measured 0.7 1,010 1.5 Measured – RoM Stockpile 2 1.6 760 2.6 Indicated 18.7 660 27.1 Inferred 3.7 590 4.8 Total 24.6 660 36.0 Inferred – LG Stockpiles 3 2.4 290 1.5 Total All Materials 27.1 63