ASX-listed Lotus Resources completed the implementation of the merger with A-Cap during the quarter ended December 31, which the company avers has created a “leading uranium player with significant scale and resources”.
There were 361.7-million new Lotus shares issued to previous A-Cap shareholders and option holders and the integration of the A-Cap management teams into Lotus has been completed.
Lotus owns an 85% interest in the Kayelekera uranium project, in Malawi, and 100% of the Letlhakane uranium project, in Botswana.
The company reports mineral resources of 241-million pounds of triuranium octoxide (100% basis) at Kayelekera and Letlhakane.
Lotus says it will leverage its proven uranium expertise in developing Letlhakane, one of the world’s largest undeveloped uranium resources.
During the period, Lotus also released its 2023 Sustainability Report, prepared with reference to the Global Reporting Initiative (GRI) Sustainability Standards.
This step change in reporting reflects Lotus’ ongoing commitment to transparency, accountability and continuous improvement in environmental, social and governance performance, it points out.
The company is finalising preliminary work programmes to allow for an optimal restart of production at Kayelekera.
Lotus says the current uranium pricing and potential undersupply in the medium term are driving a revised timeline for Kayelekera’s restart.
Lotus plans to engage a debt adviser to test the market for debt for Kayelekera.
The company highlights that the market fundamentals are the strongest seen in well over a decade, with a uranium spot price of over $100/lb and increases in the long-term price expected.
Also, production constraints, including the recent commentary around reduced production profiles from Kazatomprom for 2024 and 2025, only provide further upward pressure on the price, the company avers.
It adds that there is strong legislative support for new production from western facilities on the back of a potential US ban of Russian uranium imports currently in front of the Senate.
Lotus had a closing cash balance of $12.4-million (unaudited), exclusive of restricted cash of $14.7-million.
Cash received from A-Cap was $1.2-million.
Current cash will fund Lotus to complete currently planned work activities.