Lotus Resources Limited · ASX:LOT
Lotus Resources — 121 Conference Cape Town 2024
20 slides from Lotus Resources's conference presentation, Feb 5, 2024
Slide 1: Proven Uranium Producer
For personal use only PROVEN URANIUM PRODUCER Presentation to 121 Conference Cape Town February 2024 LOT:ASX | OTCQB: LTSRF
Slide 2: Important Notice
Important Notice FORWARD LOOKING STATEMENT KAYELEKERA DEFINITIVE FEASIBILTY STUDY Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause For information in this document relating to the Restart Definitive Feasibility Study, refer to ASX anno
Slide 3: Positioned for a rapid re-start and sustained, long life production
Positioned for a rapid re-start and sustained, long life production LOTUS IS ONE OF THE BEST URANIUM INVESTMENT OPPORTUNITIES TODAY For personal use only Retail - Management Global 12% 11% Strategic BROKER 10% COVERAGE Retail- Institutions Australian 42% 16% CAPITAL STRUCTURE 12-MONTH SHARE PRICE PE
Slide 4: Proven Uranium Producer with Major Growth Pipeline
Proven Uranium Producer with Major Growth Pipeline For personal use only URANIUM Leading uranium player with a low-cost production ready Project PRODUCTION (Kayelekera) and a large-scale growth asset (Letlhakane) FOCUS One of the largest, independent ASX listed uranium developers with total resource
Slide 5: Two strategic uranium projects
Two strategic uranium projects KAYELEKERA, MALAWI LETLHAKANE, BOTSWANA For personal use only Existing plant and Globally significant infrastructure in good uranium resource condition (190Mlb U3O8) – ready for development Proven production with ~11MIbs U3O8 over five Top mining jurisdiction in Africa
Slide 6: Malawi
Malawi “The Warm Heart of Africa” Rio Tinto recently invested US$40m (15% shareholder) in For personal use only Sovereign Metals rutile project, one of the largest globally One of the smallest countries in Africa with a population ~21 million Democratic multi-party republic with the Hon. Lazarus Cha
Slide 7: Botswana
Botswana “Botswana is a top mining jurisdiction in Africa” 2022 Fraser Survey1 For personal use only Overall global ranking of 2, and top three ranking in Africa consistently over the last 5 years Mining accounts for 21% of current GDP2 and is critical for continued economic growth Skilled mining wo
Slide 8: Growing uranium supply gap
Growing uranium supply gap NUCLEAR POWER GENERATION1 800 3.6% 686 700 CAGR RAPID NEW PROJECT DEVELOPMENT IS REQUIRED 600 For personal use only 500 447 • Nuclear generation capacity expected to grow by 3.6% annually, GWe reaching 686GWe by 2040 in the WNA Reference Scenario1 400 366 300 • Underpinned
Slide 9: Spot Price Momentum
Spot Price Momentum SPOT PRICES HAVE ACCELERATED SHARPLY SPOT PRICE January 24: KAP For personal use only guidance reduced • Near term supply uncertainty has helped accelerate prices in 2H23, with Spot prices above US$100/lb, up from US$30/lb in late 2021 120 Dec 23: COP28 declaration to • Major pro
Slide 10: Lotus - Filling the gap with near term production
Lotus - Filling the gap with RESOURCES2 near term production 250 241 200 190 For personal use only KAYELEKERA URANIUM MINE, MALAWI 150 Mlb • DFS completed and development ready 100 • Low initial capex of US$88m 51 50 • Robust mine life of 10 yrs producing 19.3Mlbs U3O8 at up to 2.4Mlbs U3O8 pa1 0 Ka
Slide 11: Lotus's compelling value proposition compared to peers
Lotus’s compelling value proposition 12.0 29 compared to peers Weighted average - restart For personal use only 10.0 9.7 MULTIPLES DISCOUNT • Peer average is ~$7/lb – Re-developers average ~$12/lb 8.0 • LOT pro forma resource multiple is only $2.6/lb Weighted EV A$/lb resource in the ground average
Slide 12: Kayelekera - exceptional fundamentals in a rising market
Kayelekera - exceptional fundamentals in a rising market KAYELEKERA UNIT REVENUES, COSTS AND MARGIN For personal use only 120 100 10 years of EBITDA production at ~ US$164m pa 80 Up to 2.4Mlbs (at current spot – US$106.5) Margin U3O8 pa1 68.5 Potential, US$/lb US$/lb 60 106.5 40 8 AISC US$88M <<1 ye
Slide 13: Next steps for Kayelekera
Next steps for Kayelekera READYING FOR FUTURE DEVELOPMENT For personal use only • Financing opportunities - appoint debt advisors in 1Q24 following multiple approaches from low-cost providers (e.g.; development banks, export agencies) • Maximise benefits of high uranium prices • Focus on minimising
Slide 14: Next steps for Letlhakane
Next steps for Letlhakane LOTUS IS FOCUSED ON: For personal use only • Update Letlhakane mineral resource model • Revised resource model will aid design of infill drill program • Technical work streams including: • Beneficiation test work to upgrade RoM material • Geometallurgical modelling to assis
Slide 15: Contact Us
For personal use only Contact Us Keith Bowes For further information visit: Managing Director www.lotusresources.com.au Level 20, 140 St Georges Tce Perth, WA 6000 LOT:ASX | OTCQB: LTSRF
Slide 16: Annexure 1: Consolidated Uranium Resources & Reserves
Annexure 1: Consolidated Uranium Resources & Reserves 1 – See ASX announcements dated 15 February 2022 and 9 Grade U3O8 U3O8 June 2022 for information on the Kayelekera and Livingstonia Mineral Resource Estimates. Lotus confirms that it is not aware Project Category Mt (U3O8 ppm) (M kg) (M lbs) of a
Slide 17: Annexure: Potential for value creation
Annexure 2 : Potential for value creation LEVERAGING LOTUS’S PROVEN URANIUM EXPERTISE ORE RESERVE INCREASE AT KAYELEKERA1 MINERAL RESOURCE INCREASE AT KAYELEKERA1 • Lotus has increased the Kayelekera Resource by 78% 25 23 60 For personal use only 51.1 from 28.7Mlb pre-Lotus1 to 51.1Mlb by: 20 50 • A
Slide 18: Annexure 3: ESG and Sustainability
Annexure 3: ESG and Sustainability ESG IS A KEY DRIVER OF OUR PERFORMANCE For personal use only Making a real difference in Malawi • Historically Kayelekera contributed 2.6% of GDP • Will be one of the largest employers • 450 directly employed • 5,000 indirect benefactors • Prioritising local recrui
Slide 19: Annexure: Kayelekera Initial Capital Cost
Annexure 4 : Kayelekera Initial Capital Cost CAPITAL COST ESTIMATES ITEM (US$M) LOW INITIAL CAPITAL COST For personal use only Initial Capital • Existing infrastructure valued ~US$300m today1 Mining Contractor 0.60 • Reduces time to production Plant Refurbishment 13.46 Acid Plant (with Steam Turbine
Slide 20: Annexure 5: Innovation decreasing Kayelekera operating costs
Annexure 5: Innovation decreasing Kayelekera operating costs Despite the current high inflation, operating costs are lower than Kayelekera Cash Costs are US$29.1/lb and AISC of US$36.2/lb For personal use only historical operations and restart Scoping Study estimates due to: during the first 7 years