Lotus Resources Limited · ASX:LOT
Lotus Resources — Investor Presentation (November 2024)
30 slides from Lotus Resources's investor presentation, Nov 13, 2024
Slide 1: ASX Announcement – Investor Presentation November 2024
ASX Announcement 13 November 2024 The Manager Markets Announcements Office ASX Limited Level 40, Central Park 152-158 St George’s Terrace PERTH WA 6000 Dear Sir / Madam For personal use only Investor Presentation – November 2024 In accordance with Lotus Resources Limited’s Continuous Disclosure Poli
Slide 2: The Next Global Uranium Producer
For personal use only THE NEXT GLOBAL URANIUM PRODUCER November 2024
Slide 3: Important notice
Important notice FORWARD LOOKING STATEMENT transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. To the fullest extent of the law, the Company, its officers, employees, agents and advisors do not make any representa
Slide 4: Executive summary
Executive summary Kayelekera – Low capital intensity Lotus funding Strategic priorities brownfield uranium restart project strategy for Lotus For personal use only ● Following the comprehensive FEED program, Lotus ● A$145m (US$98m) equity raise structured as a non- ● Accelerated restart to deliver f
Slide 5: Snapshot of Lotus Resources
Snapshot of Lotus Resources Near-term uranium producer with two strategic long-life projects For personal use only KAYELEKERA, MALAWI1 PRE-CAPITAL RAISE POST CAPITAL RAISE ● 85% owned restart uranium project with existing plant and infrastructure; refurbishment works approved Shares on issue (ASX: L
Slide 6: The next global uranium producer
The next global uranium producer Large-scale Mineral Resource of 169Mlb U3O81 comprising the 01 Kayelekera 2025 restart project and Letlhakane, which is a larger scale For personal use only project well positioned for the market’s long-term structural supply deficit Kayelekera production restart is
Slide 7: Board of Directors
Board of Directors For personal use only Michael Bowen Grant Davey Keith Bowes Dixie Marshall Mark Hanlon Non-Executive Chairman Executive Director Technical Director Non-Executive Director Non-Executive Director ● Mr Bowen is a partner of the ● Mr Davey has extensive experience ● Mr Bowes is a proc
Slide 8: Highly experienced team to deliver the Kayelekera restart
Highly experienced team to deliver the Kayelekera restart Michael Bowen ● Mr Bowen is a partner of the national law firm Thomson Geer practising corporate, commercial and securities law Team experience ● Over 40 years of experience and emphasis on mergers, acquisitions, capital raisings and resource
Slide 9: Accelerated restart takes advantage of strong uranium price environment
Accelerated restart takes advantage of strong uranium price environment Kayelekera to deliver product into a strengthening long-term pricing environment IMMEDIATE EXPOSURE TO CURRENT PRICING ENVIRONMENT1 For personal use only PHASED FUNDING APPROACH TO MULTI-ASSET URANIUM PRODUCER 110 Recent spot pr
Slide 10: Funding in place for Kayelekera
Funding in place for Kayelekera The equity raising proceeds, committed Curzon unsecured loan1 and existing cash funds2 Kayelekera For personal use only INDICATIVE FUNDING PLAN FOR KAYELEKERA (US$M)3 FUNDING STRATEGY3 ● Lotus expects the equity raising proceeds, the 15 committed Curzon facility1 and
Slide 11: Kayelekera Overview
For personal use only 1 KAYELEKERA OVERVIEW
Slide 12: Kayelekera highlights
Kayelekera highlights Kayelekera is a world-class uranium project with compelling economics KEY HIGHLIGHTS1,2 For personal use only 10 year 2.4Mlbs p.a. US$50m US$21/lb mine life avg. U3O8 production initial restart capex initial capital intensity5 targeting first production during first 7 years of
Slide 13: Accelerated Restart Plan
Accelerated Restart Plan Accelerated production plan confirms world-class economics with one of the lowest capital intensity projects globally For personal use only ● The comprehensive FEED program lays the foundation for the Accelerated Restart DFS ACCELERATED Plan to reduce initial restart capital
Slide 14: Kayelekera initial capital cost
Kayelekera initial capital cost Accelerated Production Plan reduces initial restart capital from US$88m to US$50m DFS CAPITAL COST INITIAL RESTART DEFERRED CAPITAL For personal use only ● Key updates to the initial capital schedule: ESTIMATES CAPEX5 (YEARS 1 – 2)5 − Grid connection and sub-station u
Slide 15: Kayelekera Life of Mine metrics
Kayelekera Life of Mine metrics For personal use only PRODUCTION AND OPERATING COSTS1 OPERATIONAL METRICS1,2,3 ● No change to LOM production of 19.3Mlbs over 10 years2 Ramp Up Mining Stockpile ● Steady-state C1 cash cost of US$34.5/lb compared to US$29.1/lb in the DFS2,3,4, the Phase Phase5 Phase pr
Slide 16: Kayelekera development plan
Kayelekera development plan Plant and equipment represents more than US$200m in sunk capital and a significantly higher replacement cost For personal use only 1. ROM Feed / Ore Sorter 2. Jaw Crusher 3. SAG Mill 20 4. Process Water Tank 21 9 19 5. Pre-leach Thickener 12 15 6. Leach 11 8 14 7. Resin-I
Slide 17: Kayelekera roadmap to production
Kayelekera roadmap to production The accelerated production plan brings forward first U3O8 production in Q3 2025 For personal use only Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 MDA Development FEED Initial offtake Mining contractor appointment Contracting Build contract portfolio ● Cal
Slide 18: Offtake strategy
Offtake strategy Lotus is targeting a balanced offtake portfolio across fixed, market linked and spot prices For personal use only LOTUS OFFTAKE PHILOSOPHY TARGET OFFTAKE CONTRACT DISTRIBUTION (% OF OFFTAKE PORTFOLIO) ● Fixed price escalated to cover more than half of expected cash operating costs A
Slide 19: Lotus has secured an MDA with the Government of Malawi
Lotus has secured an MDA with the Government of Malawi The MDA guarantees 10 years of protection against any detrimental changes to the fiscal regime1 For personal use only MDA SECURES A STABLE FISCAL REGIME FOR THE OPERATIONS GOVERNMENT SUPPORTIVE OF DEVELOPMENT ● MDA guarantees a Stability Period
Slide 20: Letlhakane Overview
For personal use only 2 LETLHAKANE OVERVIEW
Slide 21: Letlhakane development to closely follow Kayelekera
Letlhakane development to closely follow Kayelekera A large/long life, high value uranium project in a resource friendly mining jurisdiction For personal use only ● Globally significant uranium Mineral Resource (118Mlb U3O8, RPEEE basis) − In the top mining jurisdiction in Africa, and top 4 globally
Slide 22: Letlhakane optimisation program
Letlhakane optimisation program Unlocking value and defining development pathway For personal use only NEXT STEPS FOR LETLHAKANE INDICATIVE WORKS PROGRAM 4Q24 1Q25 After ● Lotus’s infill drill program at Letlhakane has been completed − Objective of the program was to confirm continuity and grade – o
Slide 23: Uranium Market Overview
For personal use only 3 URANIUM MARKET OVERVIEW
Slide 24: Addressing a growing uranium supply gap
Addressing a growing uranium supply gap For personal use only DEMAND AND SUPPLY FORECASTS1 350 Letlhakane a longer term, multi decade supplier 300 Kayelekera targeting to 250 fill the short-term gap 200 Mlb U3O8 150 100 50 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Slide 25: Long-term demand driven growth
Long-term demand driven growth For personal use only RAPID NEW PROJECT DEVELOPMENT IS REQUIRED TO MEET DEMAND NUCLEAR POWER GENERATION1 ● Nuclear generation capacity expected to grow by 3.6% annually, reaching 686GWe by 800 3.6% CAGR 686 2040 in the WNA Reference Scenario1 700 600 − Underpinned by t
Slide 26: Uranium is essential for a sustainable energy future
Uranium is essential for a sustainable energy future Recent market sentiment and geopolitical events has highlighted the importance of security of supply for nuclear as a clean and sustainable source of energy to meet demand and decarbonisation For personal use only GEOPOLITICAL INSTABILITY IMPACTIN
Slide 27: Annexure
For personal use only 7 ANNEXURE
Slide 28: Making a real difference in Malawi and Botswana
Annexure 1: Making a real difference in Malawi and Botswana ESG and sustainability Provides and maintains Continues to implement the Published our UDHR Statement: power and water to the mosquito abatement We value the fundamental human rights HEALTH ESG is a key focus for lotus Kayelekera Medical Cl
Slide 29: Consolidated uranium Mineral Resources & Ore Reserves
Annexure 2: Consolidated uranium Mineral Resources & Ore Reserves Grade U3O8 U3O8 1. See ASX announcements dated 15 February 2022 and 9 June 2022 for For personal use only information on the Kayelekera and Livingstonia Mineral Resource Project Category Mt (U3O8 ppm) (M kg) (M lbs) Estimates. Lotus c
Slide 30: Contact Us
For personal use only Contact Us Greg Bittar For further information visit: www.lotusresources.com.au Chief Executive Officer www.lotusresources.com.au LOT:ASX | LTSRF:OTCQX
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