Lotus Resources Limited · ASX:LOT
Lotus Resources — Non-Deal Roadshow (February 2022)
19 slides from Lotus Resources's roadshow presentation, Feb 10, 2022
Slide 1: Kayelekera Non-Deal Roadshow Presentation
For personal use only Kayelekera Non-Deal Roadshow Presentation Proven Uranium February 2022 Producer 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: Kayelekera is a proven uranium producer
Kayelekera is a proven uranium producer For personal use only FAST TRACK TO PRODUCTION CAPITAL STRUCTURE 4th largest brownfield uranium asset on care and maintenance with a PROVEN COMMERICAL PRODUCTON history1 A$312M A$27M • 11Mlbs U3O8 of production over four years US$218M US$19M • US$200m spent on
Slide 4: Brownfield assets the first to react to increased demand
Brownfield assets the first to react to increased demand For personal use only Brownfield uranium assets offer significantly lower risk compared to new development projects • Proven COMMERCIAL production history • Infrastructure and licensing in place • Lower capital requirement and quicker re-start
Slide 5: Making nuclear a part of the long-term solution
Making nuclear a part of the long-term solution For personal use only Multiple initiatives by major governments highlight the importance of nuclear “Green” Energy Largest global consumer Continues to grow at a rapid • EU Taxonomy – major new investment • US Bipartisan Infrastructure Deal rate potent
Slide 6: What will move the uranium price forward in the future?
What will move the uranium price forward in the future? For personal use only Sprott Physical Uranium Trust Utilities coming back to the market Supply deficit grows larger • Changed the dynamic of the uranium • Term contracting below consumption for • Major deficit forecasted to continue over a deca
Slide 7: Kayelekera – Low capital, quick re-start uranium asset
Kayelekera – Low capital, quick re-start uranium asset For personal use only Infrastructure New Processes Licences in place Exploration Mining and 1.4Mtpa processing Improved project Multiple near Environmental licences facility in place economics mine targets inplace lotusresources.com.au | LOT:ASX
Slide 8: Pathway to recommence production at Kayelekera
Pathway to recommence production at Kayelekera For personal use only 1Q22 2Q22 3Q22 4Q22 1H23 2H23 1H24 2H24 Exploration Resource Upgrade Kayelekera Initial Resource Livingstonia DFS Complete Mining Study Plant & infrastructure Offtake FID will not occur until an Financing appropriate uranium price
Slide 9: Multiple DFS improvements to enhance returns
Multiple DFS improvements to enhance returns For personal use only Re-Start Scoping Study sets a solid foundation1 • US$50m refurbishment capital cost – one of the lowest initial capital costs in the industry • 1.4Mtpa processing facility, tailings and other associated infrastructure in place • 14-y
Slide 10: Untested uranium and Rare Earth targets
Untested uranium and Rare Earth targets For personal use only Near-mine potential to increase mine life • Kayelekera has a total mineral endowment of ~50Mlbs based on current resource (37.5Mlbs)1 and historical production (11Mlbs) • First exploration program in +10 years has expanded the known footp
Slide 11: 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 • I
Slide 12: 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 With reserves until 1H2023 Valuation upside Valuation discount compared CAPITAL STRUCTURE to peers A$312M A$27M 1,202M 48M US$218M US$1
Slide 13: Contact
For personal use only CONTACT Keith Bowes Managing Director Level 20 140 St George Tce Perth, WA 6000 For further information visit: www.lotusresources.com.au
Slide 14: Appendix - Significant valuation gap to peers
Appendix 1 - Significant valuation gap to peers1 For personal use only Spreadsheet assumptions are not always achieved on a mine site LTSRF:OTC: Ticker PDN.ASX EFR.TSX BOE.ASX PEN.ASX URE.TSX UEC.NYSE BMN.ASX DYL.ASX VMY.ASX LOT.ASX Market Capitalisation (US$ M) US$218M US$1,406M US$1,083M US$423M U
Slide 15: 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 16: 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 17: Uranium – The only sustainable clean energy source
Appendix 3 For personal use only Uranium – The only sustainable clean energy source To achieve global CO2 emission targets, nuclear is not only critical but ESSENTIAL for a global strategy Nuclear Energy Produces the Least CO2 Equivalent Emissions Source: US Energy Information Administration, Ourwor
Slide 18: Appendix – Kayelekera Mineral Resource
Appendix 4 – 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 19: Appendix – Experienced Board and Management Team
Appendix 5 – 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