Highlights

  • Lotus has executed full-form agreements with Mercuria for a Marketing platform of up to 3.0 million lbs of U3O8 and a prepayment Facility of up to US$30 million.
  • Transport approvals have been received in Malawi, Zambia and Namibia, with only the NRPA approval in Namibia still being finalised.
  • The first shipment of four containers holding about 144k lbs of U3O8 is being prepared.
  • The acid plant is operating at about 50–60% of design capacity, with grid connection still expected in Q1 CY2027.

Lotus Resources Limited (ASX:LOT) has signed and executed key agreements with Mercuria Energy Trading S.A., completing the strategic funding package first announced on 23 July 2026. The uranium producer also reported strong progress on the export permits needed to move product from its Kayelekera operation in Malawi to a conversion facility in France.

Mercuria Marketing and Prepayment Facility

The agreements provide a marketing platform for up to 3.0 million lbs of U3O8 over 30 months, along with an inventory-backed prepayment facility of up to US$30 million.

Lotus expects to start drawing on the prepayment facility from its first uranium shipment. The company said this should speed up cash conversion and support working capital.

Managing Director Greg Bittar said, "We are very pleased to be signing and executing full form documentation," adding that the agreements will add Balance Sheet Liquidity once shipments begin.

Export Permits and First Shipment

Uranium from Kayelekera will travel from Malawi through Zambia to Namibia, then through the Port of Walvis Bay to Orano CE's conversion facility in France. Lotus has received approval from the Malawi Atomic Energy Regulatory Agency, a Zambian transport licence through logistics partner Alistair Group, and approvals from two Namibian ministries.

Transport approval from Namibia's National Radiation Protection Authority (NRPA) is being finalised and is the only key approval outstanding. Once received, all permits across the three jurisdictions on the export route will be complete. The NRPA has already authorised Warehouse storage at Walvis Bay.

The first shipment is being prepared and will comprise four containers holding about 144k lbs of U3O8. Separately, discussions are well advanced for a near-term sale of about 173k lbs of off-specification product, most of which came from early commissioning and restart.

Acid Plant, Production and Grid Connection

The on-site acid plant is producing high-concentration sulphuric acid at about 50–60% of design capacity. Further optimisation and full furnace repairs are expected in early CY2027 as Lotus works towards nameplate capacity.

Between August and September, about 100k lbs of drummed uranium product was produced over 31 operating days. Output was limited by acid availability, power interruptions and planned optimisation, although September showed material gains in uranium recovery. Lotus expects uranium output to broadly track acid output for now.

Power issues have largely been fixed, and rental generators are being mobilised for added reliability. Substation construction at Kayelekera and Karonga is well advanced, and grid commissioning is still expected in Q1 CY2027.

Key Takeaways

  • Executed Mercuria agreements give Lotus access to a prepayment facility of up to US$30 million.
  • Only one key approval remains before all export permits along the route are in place.
  • A first shipment of about 144k lbs of U3O8 is being prepared for dispatch.
  • Acid Supply remains the key constraint on production until further optimisation in early CY2027.