Lotus Resources Limited · ASX:LOT
Lotus Resources — North American Institutional Roadshow & Red Cloud Uranium Conference 2021
21 slides from Lotus Resources's conference presentation, May 13, 2021
Slide 1: Kayelekera Proven Uranium Producer
For personal use only Kayelekera Proven Uranium Producer North American Institutional Roadshow & Red Cloud Uranium Conference – May 2021 LOT.ASX OTCQB: LTSRF
Slide 2: Important Notice
Important Notice 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 risks associated For p
Slide 3: A proven producing asset for the upcoming uranium boom
A proven producing asset for the upcoming uranium boom For personal use only PROVEN URANIUM PRODUCER 11Mlbs of historical uranium production CAPITAL STRUCTURE • 100% accepted by conversion facilities in the U.S., Canada and France • US$200m spent on infrastructure at Kayelekera 950M $170M SHARES ON
Slide 4: Significant valuation gap to peers
Significant valuation gap to peers1 Spreadsheet assumptions are not always achieved on a mine site For personal use only Company information - General (LOT) (PDN) (BOE) (PEN) (BMN) (DYL) (VMY) Market Capitalisation (A$ M) $170m $1,350m $410m $170m $210m $290m $150m Project Name (Main project only) /
Slide 5: Major work programs underway to drive future development
Major work programs underway to drive future development For personal use only DEVELOPMENT STUDY EXPLORATION ESG STRATEGY CORPORATE ACTIVITIES • Operational cost reduction • Planned ~5,000 metre RC / • Environmental, Social and • USA OTC Listing initiatives identified in the diamond drilling program
Slide 6: Scoping Study – Production and Costing Assumptions
Scoping Study – 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 facility,
Slide 7: Technical Studies to drive Feasibility Study
Technical Studies to drive Feasibility Study For personal use only Technical studies – underway • Improved options around power supply • Grid connections • Alternatives include solar/battery options and acid plant energy recovery • Ore sorting (or similar) technology • Upgrading of feed materials, s
Slide 8: Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance (ESG) For personal use only Industry Level Participation • Zero-carbon emissions are central to both government and company policies moving forward • Uranium is the only current, realistic energy source that provides zero-carbon emissions for global utilities ba
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) • Limited exploration in more than a decade, despite numerous near mine, drill ready t
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 material of up to 16% (Av. 8%) TREO2 and 3.4% (Av. 1.6%) CREO3 • Highly desirable assemblage – Neodymium an
Slide 11: Lotus well positioned for the next uranium cycle
Lotus well positioned for the next uranium cycle Proven production Significant existing Board and Valuation Upside For personal use only Strong cash position 11Mlb of historical infrastructure Funded to complete management team Significant valuation supply with sales to Low capex to planned work Ext
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 with an estimated 30-60Mlbs U3O8 per annum 350
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 164 China 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 from three to ten years 120% • Typically, no more than 10% is bought on spot 105% 98% Target coverage rate
Slide 17: Significant price increase required to meet growing demand
Significant price increase required to meet growing demand 2024 2028 For personal use only 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 $170m $1,350m $410m $170m $210m $290m $150m Project Name (Main project only) / Country Kayelekera, Malawi Langer Heinrich, Namibia Honeymoon , Australia Lance, USA E
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
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