Lotus Resources Limited (ASX: LOT, OTCQX: LTSRF) has released an updated Scoping Study for its Letlhakane Uranium Project in Botswana, confirming its potential as a significant uranium operation. Combined with the planned restart of the Kayelekera Uranium Project in Malawi (Q3 2025), Lotus is positioning itself as a major uranium producer.
Key Takeaways from the Study
- Annual Production Potential: Letlhakane could produce 3Mlbpa of U3O8 over a 10-year life, with flexibility to scale production based on uranium price trends.
- Total Life-of-Mine Output: Estimated at 29Mlb, with the mining schedule based on 45Mlb of resource—75% of which is from Indicated Mineral Resources.
- Optimized Costs: Refinements in mining and acid consumption have lowered the projected cash cost to US$35/lb, down from US$41/lb.
- Path to Expansion: The project’s total resource base of 114Mlb U3O8 suggests additional growth opportunities beyond the initial mine plan.
What This Means for Lotus
With Kayelekera set to restart in late 2025, Letlhakane adds a second production stream, positioning Lotus as a 5.5Mlbpa uranium producer—one of the largest on the ASX. Given the strong long-term uranium price outlook, this dual-asset strategy could provide significant value for shareholders.
Lotus is also advancing trade-off studies to refine operational efficiencies, including:
- A two-stage leach process to cut acid consumption
- A modified downstream process to eliminate solvent extraction
- Collaborations with mining contractors to optimize extraction methods
The Road Ahead
Lotus remains well-funded, with $133M in cash (as of December 2024), and is now working on optimizing capital and operating costs. Further studies will refine Letlhakane’s development path and financing strategy, with potential funding options including project finance, joint ventures, or strategic partnerships.
Managing Director Greg Bittar stated:
“This updated Scoping Study highlights Letlhakane’s potential as a long-life, low-cost uranium operation. With Kayelekera on track to restart this year, we are building a platform for sustainable, large-scale uranium production to meet growing global demand.”
With strong project economics and a favourable uranium market outlook, Lotus is well-positioned to become a key player in the global nuclear fuel supply chain.
