Lotus Resources Limited · ASX:LOT
Lotus Resources — Investor Presentation (March 2020)
17 slides from Lotus Resources's investor presentation, March 2020
Slide 1: Investor Presentation March 2020
Investor Presentation March 2020 lotusresources.com.au ASX: LOT
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICES 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 with investments in
Slide 3: Introduction
Introduction UNIQUE OPPORTUNITY FOR A LOW-COST, RAPID RE-START AT KAYELEKERA Kayelekera is a fully Opportunity to US$200m capex Feasibility study permitted uranium mine restart production spent on update in project quickly and cheaply infrastructure Q4 2020 Significant exploration Malawi government
Slide 4: Kayelekera Uranium Project
Kayelekera Uranium Project +US$200m capex spent Fully permitted for production with all 3.3M Ib plant located in northern Malawi permits and licenses in place Infrastructure remains in excellent condition Simple Mining & Metallurgy Open pit mining operation with Significant exploration 1.5Mtpa (87.5
Slide 5: Kayelekera redevelopment strategy
Kayelekera redevelopment strategy GROUND-UP REVIEW OF OPERATIONS Same core team that re-developed the Honeymoon Uranium Mine in South Australia STRATEGY BASED UPON FUNDAMENTAL ENGINEERING AND GEOLOGY PRINCIPALS Geology – geology review, exploration targeting, resource opportunities Processing – plan
Slide 6: Kayelekera's exploration potential
Kayelekera’s exploration potential Kayelekera has 37.5Mlb U3O8 Resource with potential to significantly extend mine life Numerous radiometric anomalies have been identified over the broader project region Drill targets remain at Mwankenja South, Livingstonia and Chilumba untested radiometric anomali
Slide 7: Excellent infrastructure
Excellent infrastructure More than $200M capex invested into Kayelekera’s existing onsite infrastructure A 3Mlb per annum resin in pulp extraction plant is already in place Kayelekera Infrastructure Other key infrastructure at Kayelekera includes: 1.5Mt per annum ore capacity Fully serviced camp and
Slide 8: Uranium – Fundamentals point to higher prices
Uranium – Fundamentals point to higher prices Global Nuclear Reactor Fleet Demand • 446 reactors operational, 56 under construction, 111 planned and +300 proposed • China, India and Russia currently lead the world in reactors under construction (30 of an estimated 56 under construction) • Percentage
Slide 9: Uranium demand – a key price driver
Uranium demand – a key price driver A significant price increase is required for supply to keep up with demand Uranium Market Snapshot Demand Mine Supply Deficit Inventory Estimate Mobile Inventory Estimate 180 Mlb 135 Mlb 45 Mlb 1000 Mlb 360 Mlb March 2020 lotusresources.com.au ASX: LOT | 9
Slide 10: Global uranium production declining
Global uranium production declining Uranium production has fallen back to 2009 levels after peaking in 2016 OBSERVATIONS New production constrained by permitting and high costs 80 Uranium Price (US$lb) Global Uranium Mine Production (Tonnes U3O8) Spot Price 80,000 70 Long-term Price 75,000 60 70,000
Slide 11: Positioning for the next uranium cycle
Positioning for the next uranium cycle Unique opportunity to capitalise on the incoming uranium price rise with a low-cost, short-time frame restart Complete government approval process and Independent restart Capex acquisition evaluation Updated Feasibility Study Production Update JORC Resource Pil
Slide 12: Board and Management
Board and Management SIGNIFICANT COMMERCIAL AND TECHNICAL EXPERIENCE IN URANIUM AND AFRICAN DEVELOPMENT PROJECTS Simon Andrew – Managing Director Mr Andrew has significant experience in the Australian and Asian financial markets. This has included six years in equity research covering the Asian refi
Slide 13: Corporate summary
Corporate summary Share Price Performance Corporate Snapshot 25 $0.07 Millions Share price (13/03/20) $0.028 $0.06 Shares on issue (post-tranche 1 of consideration shares) 622.4m 20 Options on issue 205.4m $0.05 Fully diluted market capitalisation $23.5m 15 $0.04 Cash (pro-forma following tranche 2
Slide 14: Contact
Contact Simon Andrew Managing Director T: +61 (08) 9278 2441 E: info@lotusresources.com.au Twitter: @Lotus_Resources Level 1, Emerald House, 1202 Hay Street, West Perth 6005 March 2020 lotusresources.com.au ASX: LOT
Slide 15: Kayelekera's history
Kayelekera’s history 1982 The Central Electricity Generating Board of Great Britain discovered the Kayelekera sandstone uranium deposit 1992 The project was abandoned due largely to the poor uranium outlook, as well as privatization of CEBG and resultant pressure to return to its core business 1998
Slide 16: Capital raising structure
Capital raising structure Ordinary Status Price Raising (A$) Options Fully Diluted Tranche 1 to raise A$3m Issue Opening Shares on issue 100,139,194 - $0.02 - 9,930,718 110,069,912 Rights issue to raise A$1m Tranche 1 150,000,000 Closed $0.02 $3,000,000 75,000,025 225,000,025 Tranche 2 to raise A$4.
Slide 17: Proposed Lotus corporate structure
Proposed Lotus corporate structure Kayelekera Resources Pty Ltd Lotus Resources Limited (23.5%) (76.5%) Lily Resources Pty Ltd (85%) Government of Malawi Paladin (Africa) Limited (15%) Kayelekera Uranium Mine March 2020 lotusresources.com.au ASX: LOT | 17