Highlights

  • Ord Minnett and Canaccord Genuity have both issued Speculative Buy ratings on Lotus Resources.
  • Target prices set at AUD 0.35 (Ord Minnett) and AUD 0.31 (Canaccord Genuity).
  • Lotus achieved first yellowcake production at Kayelekera in Q3 CY2025 and continues ramp-up toward full production in Q1 CY2026.

Lotus Resources Limited (ASX:LOT) has received Speculative Buy ratings from leading brokerage firms Ord Minnett and Canaccord Genuity, with target prices of AUD 0.35 and AUD 0.31, respectively. The ratings come as Lotus progresses toward full production at its Kayelekera uranium mine in Malawi and advances development activities at its Letlhakane project in Botswana.

Operational Progress at Kayelekera Mine

During the quarter ended 30 September 2025, Lotus achieved a major operational milestone with the first production of yellowcake uranium at its Kayelekera project. The company successfully commissioned all process plant circuits within budget, marking its entry into the global uranium producer tier.

Ore for processing was sourced from existing stockpiles mined prior to the project’s care and maintenance phase. Mining of new ore is expected to commence in Q4 CY2025. The Accelerated Restart Program remains on track, with early restart of the processing plant completed on schedule and within budget. Refurbishment of the acid plant continues, targeting completion in Q1 CY2026, while grid connection works are underway and expected to conclude by Q4 CY2026.

Advancement of Letlhakane Uranium Project

Lotus has also made steady progress at its Letlhakane uranium project in Botswana. The company commenced infill and extensional drilling comprising up to 12,000m of reverse circulation (RC) drilling and 1,500m of diamond drilling across approximately 180 holes. This program aims to upgrade Inferred resources to Measured and Indicated categories.

Metallurgical testwork from Letlhakane indicates the potential for a low-acid processing flowsheet, which could significantly reduce acid consumption by about 70%, with only a modest reduction in uranium recovery. Results from these studies will support a comprehensive Pre-Feasibility Study (PFS), scheduled for completion in the second half of CY2026.

Financial Position

As of 30 September 2025, Lotus reported a closing cash balance of AUD 96.7 million (unaudited), excluding restricted cash of USD 10 million. During the quarter, the company completed an AUD 65 million strategic equity placement, attracting participation from both domestic and international institutional investors.

In addition, Lotus finalised a USD 8.5 million Equipment Finance Facility with First Capital Bank plc, with the first drawdown of USD 2.5 million occurring after the quarter’s end. The company continues to explore potential working capital and inventory financing structures as part of its long-term funding strategy, aligned with initial uranium shipments expected in the near term.

LOT shares closed 5.26% higher at AUD 0.20 per share on 30 October 2025.