Lotus Resources Limited · ASX:LOT
Lotus Resources — Non-Deal Roadshow (September 2021)
21 slides from Lotus Resources's roadshow presentation, Sep 21, 2021
Slide 1: Kayelekera Proven Uranium Non-Deal Institutional Roadshow
For personal use only Kayelekera September 2021 Proven Uranium Non-Deal Institutional Roadshow Producer Europe & North America LOT.ASX OTCQB: LTSRF
Slide 2: Important Notice
Important Notice For personal use only 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
Slide 3: Lotus aspires to be a responsible uranium producer
For personal use only Lotus aspires to be a responsible uranium producer, building strong local communities, a safe and healthy work environment and making a positive contribution to a carbon free future lotusresources.com.au | LOT:ASX LTSRF:OTCQB | 3
Slide 4: Kayelekera is a proven uranium producer
Kayelekera is a proven uranium producer For personal use only LOW-COST, PROVEN URANIUM PRODUCING ASSET CAPITAL STRUCTURE US$50m initial capex to recommence production 1 – one of the lowest in the industry • Definitive Feasibility Study commenced – expected mid-2022 A$320M A$28M US$235M US$21M • Name
Slide 5: The Perfect Storm – Short and long-term catalysts
The Perfect Storm – Short and long-term catalysts For personal use only Sprott Physical Uranium is the Electrification Forecast Utilities required Current pricing Uranium Trust only sustainable revolution Supply & to re-enter term too low to (SPUT) zero carbon - Global growth demand contracts encour
Slide 6: Brownfield assets to be the first to react to increased demand
Brownfield assets to be the first to react to increased demand For personal use only Brownfield uranium assets offer significantly lower risk compared to new development assets • Proven COMMERCIAL production history • Infrastructure and licensing in place • Lower capital requirement and quicker re-s
Slide 7: Kayelekera – A proven 3Mlbs uranium producing asset
Kayelekera – A proven 3Mlbs uranium producing asset For personal use only Infrastructure New Processes Licences in place Exploration 1.4Mtpa processing Improved project Mining and Exploration Multiple near mine facility in place economics licences renewed untested targets lotusresources.com.au | LOT
Slide 8: Pathway to recommence production at Kayelekera
Pathway to recommence production at Kayelekera For personal use only Definitive Feasibility Study underway • Solid platform outlined – Re-Start Scoping Study (October 2020)1 • US$50m Initial capital cost – one of the lowest in the industry • 14-year life of mine producing 23.8Mlbs U3O8 (ave. feed ~6
Slide 9: Ore Sorting enhances output and economic returns
Ore Sorting enhances output and economic returns For personal use only • Significant opportunity, but not required to recommence production • Technology advanced significantly during the past decade • Commercially proven at multiple mining operations globally • Nickel in Western Australia • Gold – m
Slide 10: New power supply options with major CO2 reduction
New power supply options with major C02 reduction For personal use only • Previous operations at Kayelekera powered by diesel generators – this was the only viable option available • Maximum C02 emissions • Power historically accounted for 15% of total costs • Estimated historical power cost US$0.28
Slide 11: Untested uranium targets and Rare Earth potential
Untested uranium targets and Rare Earth potential For personal use only • Kayelekera has a total mineral endowment of ~50Mlbs based on current resource (37.5Mlbs)1 and historical production (11Mlbs) • Minimal exploration in last 20 years, despite multiple near mine targets • 5,000 metre RC drilling
Slide 12: Ensuring a lasting and positive impact on Malawi
Ensuring a lasting and positive impact on Malawi For personal use only Environmental, Social, and Governance (ESG) Lotus aspires to be a responsible uranium producer, building strong local communities, a safe and healthy work environment and making a positive contribution to a carbon free future • L
Slide 13: Lotus is positioned for the next uranium cycle
Lotus is positioned For personal use only for the next uranium cycle Proven production 11Mlb of historical supply with sales to major utilities Strong cash position Cash reserves until 2023 Valuation Upside Valuation discount compared CAPITAL STRUCTURE to peers A$320M A$28M 1,186M 61M US$235M US$21M
Slide 14: Contact
For personal use only CONTACT Keith Bowes Managing Director 1202 Hay St West Perth WA 6005 For further information visit: www.lotusresources.com.au
Slide 15: Appendix - Significant valuation gap to peers
Appendix 1 - Significant valuation gap to peers1 For personal use only Spreadsheet assumptions are not always achieved on a mine site LTSRF:OTC: Ticker PDN.ASX EFR.TSX BOE.ASX PEN.ASX URE.TSX UEC.NYSE BMN.ASX DYL.ASX VMY.ASX LOT.ASX Market Capitalisation (US$ M) US$235M US$1,740M US$1,080M US$480M U
Slide 16: Appendix - Significant valuation gap to peers (continued)
Appendix 1 - Significant valuation gap to peers1 For personal use only Continued – Global Uranium Development companies LTSRF:OTC: EFR.TSX Ticker PDN.ASX BOE.ASX PEN.ASX URE.TSX UEC.NYSE BMN.ASX DYL.ASX VMY.ASX LOT.ASX Project Name (Main project only) / Kayelekera, Langer Heinrich, White Mesa, Honey
Slide 17: Appendix - Brownfield Uranium Assets
Appendix 2 - Brownfield Uranium Assets For personal use only Top 10 brownfield C&M assets that achieved commercial production Majority owned by state owned group No No No Yes No No No No No Yes Nicholas Ranch Smith Ranch Project Name Kayelekera Langer Heinrich Alta Mesa Project Azelik Project Rabbit
Slide 18: China will be the largest consumer of uranium by 2030
Appendix 3 For personal use only China will be the largest consumer of uranium by 2030 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
Slide 19: India to be 4th largest consumer of uranium by 2040
Appendix 4 For personal use only India to be 4th largest consumer of uranium by 2040 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
Slide 20: Appendix – Kayelekera Mineral Resource
Appendix 5 – 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
Slide 21: Appendix – Experienced Board and Management Team
Appendix 6 – Experienced Board and Management Team For personal use only Production, offtake, redevelopment and financing experience in uranium industry Keith Bowes Michael Bowen Grant Davey Mark Hanlon Managing Director Non-Executive Chairman Non-Executive Director Non-Executive Director Mr. Keith