Lotus Resources (ASX:LOT): Can New Funding Stabilise the Kayelekera Uranium Restart?

Aditi Sarkar

29 July 2026 10:39 PM AEST

Lotus Resources (ASX:LOT): Can New Funding Stabilise the Kayelekera Uranium Restart?

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Key Highlights

Lotus is raising approximately AUD 95 million through an entitlement offer and convertible notes.
Kayelekera produced 155,900 pounds of U3O8 in the June 2026 quarter, taking cumulative restart output to 332,100 pounds.
Remediation followed refractory brick failures in the acid plant’s sulphur furnace.
Lotus targets an early August 2026 restart and late-2026 steady-state output of about 2.4 million pounds annually.

Lotus Resources Limited (ASX:LOT) is seeking to move its Kayelekera uranium mine in Malawi through a difficult ramp-up with a new AUD 95 million funding package. Production has increased since restart, but acid-plant problems, retracted operating data and repeated capital raisings have made reliable plant performance the central issue.

Kayelekera Anchors the Business

Lotus owns 85% of Kayelekera, while the Malawian government holds 15%. The past-producing mine was restarted in early 2025 after previously operating and later entering care and maintenance.

The definitive feasibility study is supported by an ore reserve of 15.9 million tonnes at 660 ppm U3O8, containing about 23 million pounds. It outlined a mine life of roughly 10 years and total production near 19.3 million pounds.

Production Improves Before a Plant Setback

Cumulative production since restart reached 332,100 pounds of U3O8. Quarterly output rose from about 25,500 pounds in September 2025 to 72,500 pounds in December, 78,200 pounds in March 2026 and 155,900 pounds in June.

Refractory brick failures in the acid plant’s sulphur furnace interrupted commissioning. Lotus stated that remediation was complete and around 2,000 tonnes of acid had been procured. It targeted an early August 2026 production restart and late-2026 steady-state output of about 2.4 million pounds annually.

The Funding Package Extends the Runway

Lotus announced an approximately AUD 60 million underwritten entitlement offer at AUD 0.22 per share and AUD 35 million in convertible notes from CVI Investments. It also reported progress on a USD 30 million inventory financing facility with Mercuria.

Proceeds are intended for capital expenditure, working capital, corporate costs and customer-delivery obligations as Kayelekera moves towards positive operating cash flow.

Offtake Creates a Route to Revenue

Term offtake with PSEG Nuclear covers at least 2.3 million and up to 2.6 million pounds of U3O8 between 2026 and 2032. About 108,000 pounds of accepted product was positioned for dispatch, subject to export permits and logistics approvals.

What May Be Watched Next

Key tests include the August restart, sustained plant availability, first shipments, quarterly production and progress towards the targeted annual run rate.

Key Risks

Further processing disruptions could consume additional cash and delay deliveries. Equity issuance and convertible notes may dilute holdings, while export approvals, Malawi operating conditions and uranium-price volatility remain relevant.

What interest does Lotus hold in Kayelekera?

Lotus owns 85% of the project, with the Malawian government holding the remaining 15%.

How much is Lotus raising?

The package totals about AUD 95 million through an entitlement offer and convertible notes.

How much uranium has Kayelekera produced since restart?

Cumulative output reached approximately 332,100 pounds of U3O8.

What production rate is Lotus targeting?

Management targeted steady-state output of about 2.4 million pounds annually by late 2026.

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