Lotus Resources has completed a A$76 million placement to bolster its financial position as it accelerates uranium production at the Kayelekera Mine, aiming for steady state output and first shipments in Q2 2026.
- Raised ~A$76 million via non-underwritten placement at A$2.15 per share
- Funds to support completion of acid plant and grid connection projects
- Pro-forma cash position of A$145 million including Share Purchase Plan proceeds
- Ramp-up to steady state uranium production with first shipment expected Q2 2026
- Placement shares to rank equally with existing shares; trading resumed 6 February 2026
Strong Capital Raise Amid Uranium Market Momentum
Lotus Resources Limited (ASX, LOT) has successfully completed a significant capital raise, securing approximately A$76 million through a non-underwritten placement priced at A$2.15 per share. This move comes as the company intensifies efforts to ramp up production at its Kayelekera Uranium Mine in Malawi, with the goal of achieving steady state output and initiating its first uranium shipment in the second quarter of 2026.
The placement attracted robust demand from both existing shareholders and new institutional investors, including overseas participants, underscoring confidence in Lotus’s operational progress and market positioning. The funds raised, combined with a planned Share Purchase Plan (SPP) targeting up to A$5 million, will enhance the company’s liquidity runway during this critical phase.
Strategic Use of Funds to Optimize Operations
With a pro-forma unaudited cash balance of approximately A$145 million, Lotus is well-positioned to complete key infrastructure projects that are expected to reduce operating costs and improve efficiency. Notably, the capital will support the execution and completion of an acid plant and grid connection projects, both vital to optimizing the mine’s cost structure and production reliability.
Additionally, the funding will cover the typical 5-6 month uranium working capital cycle, providing operational flexibility. The company is also negotiating potential inventory pre-payment facilities to further bolster liquidity if required, reflecting prudent financial management amid volatile commodity markets.
Market and Shareholder Implications
The placement shares will rank equally with existing shares, and trading resumed on the ASX on 6 February 2026. The offer price represented a 25.3% discount to the last closing price, a strategic decision to ensure strong uptake and broaden the shareholder base. The subsequent SPP offers eligible shareholders an opportunity to participate at the same price, albeit subject to regulatory waivers and potential shareholder approval.
Managing Director Greg Bittar highlighted the company’s strengthened balance sheet and simplified capital structure, which he believes will enable Lotus to capitalize on potential uranium price upside as Kayelekera moves towards positive cash flow. The timing aligns with a global resurgence in uranium demand, driven by energy transition policies and nuclear power’s role in decarbonisation.
Looking Ahead
Lotus’s focus now shifts to delivering on its operational milestones, including the completion of infrastructure upgrades and the ramp-up to steady state production. The company’s substantial mineral resource base across Kayelekera and its Botswana Letlhakane Project underpins its medium-term growth prospects, though execution risks remain inherent in mining operations and market fluctuations.
Investors will be watching closely how Lotus navigates the next phase, balancing capital deployment with operational delivery and market conditions.
Bottom Line?
Lotus’s capital raise sets the stage for a pivotal production ramp-up, but execution and market dynamics will test its momentum.
Questions in the middle?
- Will the ASX grant the waiver for the SPP discount, or will shareholder approval be required?
- How quickly can Lotus complete the acid plant and grid connection projects to reduce operating costs?
- What impact will uranium market price fluctuations have on Lotus’s path to positive cash flow?