Lotus Resources Limited (ASX: LOT) has provided an update on significant operational advancements, including the finalisation of a marketing and inventory prepayment facility, substantial progress on export permitting, and ongoing production optimisation at its Kayelekera Uranium Mine. Lotus Resources is an emerging uranium producer focused on the restart and development of its Kayelekera Uranium Mine in Malawi.
The company announced the execution of full documentation with Mercuria Energy Trading S.A. for a marketing platform covering up to 3.0 million pounds of U3O8 and an inventory-backed prepayment facility of up to US$30 million. This agreement is set to enhance Lotus’s balance sheet liquidity and working capital. Simultaneously, Lotus has made considerable progress on securing transport permits required for the export of uranium product from Malawi, through Zambia, to Namibia. Approvals from key Namibian ministries have been secured, with final transport authorisation from the National Radiation Protection Authority nearing completion. The company is now preparing for its first shipment of approximately 144,000 pounds of U3O8.
Operationally, the Kayelekera acid plant is successfully producing high concentration sulphuric acid, currently at 50-60% of its design capacity. This strategic asset significantly enhances acid supply security and reduces reliance on external suppliers, with further optimisation planned for early 2027 to reach full capacity. Uranium production during August and September was approximately 100,000 pounds, constrained by acid availability and prior power generation interruptions, which have since been largely addressed. Discussions are also well advanced for the sale of approximately 173,000 pounds of off-specification product inventory, primarily from early production, following material improvements in product quality.
