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A cashed- up Lotus Resources (ASX:LOT) is on target with its the ramp up of uranium production and the commissioning of the acid plant at its Kayelekera mine in Malawi.
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In early February, Lotus completed a $76 million placement to deliver improved financial flexibility during the ramp-up to steady state production at Kayelekera, which is now set up to deliver nameplate levels in CY26’s second quarter, following a mostly consistent second-half February performance.
Funds raised from the placement and a share purchase plan have seen Lotus well placed with pro-forma unaudited cash of $145 million.
Lotus managing director, Greg Bittar, today confirmed that the project’s processing plant operated at 80% in the second half of February, with a processing/milling rate at 65% of the steady-state level.
“Lotus’ recent capital raising positions the balance sheet for us to complete key capital projects to optimise Kayelekera and will support working capital through product qualification, ramp up and first product delivery. This is without relying on significant debt for working capital and allows Lotus to remain predominantly uncontracted for future uranium sales,” Mr Bitter said.
“Progress at Kayelekera during February was pleasing, and we are demonstrating continued improvement in plant availability, milling rate and other key processing parameters, which positions us for steady-state production.”
The project’s acid plant cold commissioning is underway, with hot commissioning planned for April. The improvements in acid inventory and the ongoing delivery schedule will support the ramp-up of production to steady state.
Elsewhere, pressure testing has been completed for key components such as the waste heat boiler, steam drum, superheater, final economiser and inter gas economiser.
LOT is up +1.83%, to $1.67 today.
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