Lotus Resources Limited has initiated a comprehensive schedule of deliveries designed to alleviate acid supply challenges and facilitate the ramp-up of its Kayelekera Uranium Mine in Malawi (Kayelekera) towards consistent, steady-state production in the coming months.
Sulphuric Acid Supply and Logistics
Sulphuric acid supply chain logistics are progressively reaching levels necessary for the transition to steady-state production. Commissioning of the acid plant remains on track for March 2026.
Production Ramp-Up and First Product Shipment
While the target for achieving nameplate production is set for March 2026, limitations in acid availability may delay full-month steady-state uranium production of approximately 200,000 lbs per month (~2.4 Mlbpa), which is now anticipated in Q2 CY26 (Q4 FY26). Product qualification with converters is underway, with outcomes expected in February 2026. Successful qualification with at least one converter will enable the commencement of permitting processes for the initial shipment, forecasted for Q2 CY26 (Q4 FY26).
Uranium Sales Commitments and Contracting Strategy
The term price increased to US$87/lb as of December 2025. Of the 2026 contracted commitments, 90% (1,000,000 lbs) are scheduled for delivery in 2H CY26. The company continues to prioritize North American power utilities as counterparties, with forthcoming contracts expected to be predominantly market-linked, thereby providing exposure to rising uranium prices. Flexibility is maintained to optimize strategic long-term value by holding uncontracted pounds and increasing inventories.
Cash Position and Financing
Lotus reported a closing cash balance of A$56.2M (unaudited), excluding restricted cash of US$10.0M. An additional A$7.2M equipment finance facility was drawn after the quarter end, resulting in a pro-forma cash position of A$63.4M. The company remains focused on maximizing working capital and advancing several financing alternatives, including prepayment and inventory financing structures that support monetization during product shipment and delivery.
Statement from Managing Director
Managing Director Greg Bittar stated: “By resolving acid supply chain logistics and progressing initiatives to further mitigate supply risks associated with key reagents such as sulphur for the acid plant, we can renew our focus on ramping up production.”Lotus boosts uranium output amid better acid supply