Lotus Achieves 88% Throughput at Kayelekera Despite Supply Challenges

Operational Progress at Kayelekera

Lotus Resources Limited is advancing steadily toward full production at its Kayelekera uranium mine in Malawi, with steady state operations anticipated by the end of the first quarter of 2026. The company’s recent update highlights encouraging throughput and recovery metrics achieved in November, signaling that the processing plant is approaching its designed capacity despite some operational hurdles.

During a continuous 15-day run in November, the processing plant operated for an average of 18.2 hours per day, milling 138 tonnes per hour on average, which equates to 70% of the plant’s nameplate throughput. Peak hourly throughput reached 172 tonnes, or 88% of capacity. Preliminary uranium recovery rates averaged around 83%, nearing the targeted steady state recovery of 86.7%. These figures provide a solid foundation for Lotus to meet its production goals in the coming months.

Supply Chain Challenges and Mitigation

The ramp-up has not been without challenges. The availability of sulphuric acid, a critical input for uranium processing, has been constrained due to production difficulties in Zambia, the primary supplier, and secondary supply issues in South Africa. This has temporarily limited plant availability and slowed the ramp-up pace.

In response, Lotus has diversified its supplier base, securing additional acid supplies from South Africa. More importantly, the company is progressing on its acid plant rebuild project, which remains on schedule for commissioning in early 2026. This facility will produce sulphuric acid onsite from sulphur, a more reliable and logistically simpler feedstock, reducing dependence on external suppliers and mitigating future supply risks.

Path to Product Shipment and Market Entry

Product qualification is underway, with the first shipment of uranium product now expected in late Q1 2026. Lotus is working closely with converters and anticipates opening its first converter account early next year, a critical step for commercial sales and revenue generation. The company is also focusing on embedding standard operating procedures across mining and processing operations to ensure consistent performance.

Financially, Lotus remains robust with a strong cash position of A$73.9 million as of November 30, 2025, providing a solid buffer to support ongoing operations and capital projects. The company’s strategic focus on operational excellence and supply chain resilience positions it well to capitalize on uranium market dynamics as it transitions to steady state production.

Looking Ahead

As Lotus Resources moves closer to full production at Kayelekera, the successful commissioning of the acid plant and the first product shipments will be key milestones to watch. These developments will not only alleviate current supply constraints but also mark the transition from ramp-up to sustained uranium output, with implications for the company’s revenue trajectory and market positioning.