Lotus Resources Limited · ASX:LOT
Lotus Resources — Investor Presentation (May 2023)
15 slides from Lotus Resources's investor presentation, May 18, 2023
Slide 1: Kayelekera Proven Uranium Producer Corporate Presentation
For personal use only Kayelekera Proven Uranium Producer Corporate Presentation May 2023 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 with
Slide 3: Positioned for a rapid re-start in a rising uranium market
Positioned for a rapid re-start in a rising uranium market Lotus is one of the best uranium investment opportunities today Leveraged to uranium price – Robust DFS - 2.4Mlbs U3O8 pa Strong cash position - low capex, quick restart over 10 years at US$29.10/ lb funded until late 2024 For personal use o
Slide 4: FID peers have tracked U3O8 spot price whilst developers drifted
FID peers have tracked U3O8 spot price whilst developers drifted Aug 2021 - SPUT enters 1 the market, starts to buy 2 4 spot (Price - $32/lb) 300% 120% SPUT buys 22Mlbs in 8 1 2 For personal use only months – decade high 250% 100% uranium price ($65/lb) 3 Interest rate rise for the 200% 80% 3 first
Slide 5: Three brownfield development assets on the ASX – Lotus the only one to not make FID
In 2020 there were three brownfield development assets on the ASX – Lotus is the only one to not make FID….….yet For personal use only Market Cap (A$ m) 1 $1.98Bn $973m $269m Capital required to recommence US$118m A$113m US$88m production8 Cash position (as at 31 March 2022) US$147m4 A$103m5 A$18m6
Slide 6: What is driving the uranium market long term
What is driving the uranium market long term For personal use only Multiple Largest global consumer Continues to grow at “Green” Energy initiatives a rapid rate Energy crisis due to Russian gas by major • US Inflation Reduction Act (US$400B) • dependence governments • Strategic Reserve Fund • Target
Slide 7: What will drive the uranium pricing in the near term?
What will drive the uranium pricing in the near term? New term contracting Bifurcation of the market (west vs east) Significant portion of current “new” term Bans on Russian materials forces up western contracting is in fact volume and time extension prices For personal use only to existing contract
Slide 8: Kayelekera Uranium Mine in Malawi
Kayelekera Uranium Mine in Malawi Low Capex Improved Opex For personal use only US$88m – Re-Start C1 costs US$29.10/lb2 US$300m replacement AISC of US$36.20/lb2 value1 Robust Mine life Quick Re-Start 10 yrs 19.3Mlbs U3O8 15 months from Final 2.4Mlbs U3O8 pa2 Investment Decision No ISR style ramp-up
Slide 9: Low Initial Capital Cost
Low Initial Capital Cost One of the lowest in the industry Capital Cost Estimates Item (US$M) Low initial capital cost Initial Capital • Existing infrastructure – replacement value today is ~US$300m For personal use only Mining Contractor 0.60 • Also reduces the time from FID to production Plant Ref
Slide 10: Driving operating costs lower through innovation
Driving operating costs lower through innovation Cash Costs are US$29.1/lb and AISC of US$36.2/lb Despite the current high inflation environment, during the first 7 years of production (excluding operating costs are lower compared to the ramp-up) historical operations and Re-Start Scoping Study For
Slide 11: Further Value Creation Opportunities
Further Value Creation Opportunities Lotus has an extensive tenement footprint comprising uranium and rare earth element prospects For personal use only Extending Life-of-Mine • Expanding Kayelekera resource • Resource growth outside current pit • Regional uranium exploration • Livingstonia prospect
Slide 12: ESG and Sustainability
ESG and Sustainability Studies show companies with strong ESG performance outperform their peers over the long term. ESG is a key driver of a company's future financial performance For personal use only Making a real difference in Malawi • Historically Kayelekera contributed 2.6% of GDP • Will be on
Slide 13: What work is required to be completed prior to FID
What work is required to be completed prior to FID Prior to a Final Investment Decision (FID), the Company will continue to advance a number of key areas including: For personal use only • Kayelekera Mine Development Agreement • Uranium offtake (term contracts) • Financing discussions • Agreement wi
Slide 14: Contact
For personal use only CONTACT Keith Bowes Managing Director Level 20 140 St George Tce Perth, WA 6000 For further information visit: www.lotusresources.com.au
Slide 15: Annexure - A proven uranium producer - History
Annexure - A proven uranium producer - History Lotus has optimised Kayelekera for a re-start of uranium production For personal use only Historical Production Care & Maintenance Lotus Acquisition Scoping Study DFS • Paladin Energy • Low uranium price • Acquisition • Delivered October • Delivered Aug