Lotus Upsizes Working Capital to US$30M as Kayelekera Commissioning Advances

Restart Progress at Kayelekera

Lotus Resources Limited is steadily advancing the restart of its Kayelekera uranium project in Malawi, with cold commissioning of the processing plant already well underway. This phase involves rigorous testing of equipment without ore to ensure mechanical and functional readiness ahead of hot commissioning, which is planned for early Q3 2025. The company remains on track to resume production in the third quarter of this year, a significant milestone given the project's previous operational hiatus.

Strategic Shift to Owner-Operator Mining

In a notable strategic pivot, Lotus has decided to adopt an owner-operator mining model rather than appointing an external mining contractor. This decision follows a comprehensive tender process and internal evaluation, reflecting the company's confidence in its operational team and the unique challenges of mining in Malawi. By managing mining operations directly, Lotus aims to gain enhanced control over production and run-of-mine (ROM) ore management, while also capturing cost efficiencies by eliminating contractor margins and administrative redundancies.

The owner-operator approach is expected to reduce mining costs, which constitute roughly a third of the project's cash costs, through an initial investment of approximately US$8 million in mining equipment. This equipment is being financed through facilities nearing finalisation, underscoring the company's commitment to cost discipline and operational flexibility. Mining activities are scheduled to commence in Q4 2025, initially utilising existing ore stockpiles before ramping up with newly mined ore.

Financial Foundations Strengthened

Supporting the restart, Lotus has successfully upsized its working capital facility to US$30 million, replacing a previously announced US$20 million facility. This revised facility, arranged through Standard Bank, is designed to finance the project's working capital needs until positive cash flow is achieved post-restart. Additionally, the company is close to finalising an equipment finance facility of US$8.5 million with First Capital Bank, which will fund the acquisition of mobile and mining equipment. These financing arrangements reflect growing lender confidence in Kayelekera's restart plan and the project's underlying value.

Operational and Community Outlook

Lotus plans to employ a predominantly Malawian workforce of around 200 people, blending experienced expatriate specialists with local talent. This approach not only supports operational effectiveness but also aligns with the company's commitment to creating lasting community impact. The mining operation will run on a 24/7 schedule for key activities, with a structured roster system to maintain efficiency and safety.

With a substantial mineral resource base and a positive restart study underpinning the project, Lotus is positioning Kayelekera as a viable and competitive uranium producer. The owner-operator model, combined with robust financing and commissioning progress, sets a promising stage for the project's next chapter.