Highlights

  • Lotus continues Kayelekera ramp-up toward steady-state production in Q1 CY2026.
  • Processing plant performance in November reached up to 88% of nameplate milling rates.
  • Cash position of AUD 73.9 million reported as at 30 November 2025.

Lotus Resources Limited (ASX:LOT) has released an operations update outlining progress at its Kayelekera Mine in Malawi, focusing on recent production outcomes and the phased ramp-up of the processing plant. The company continues to target steady-state operational production levels by the end of Q1 CY2026, consistent with previously stated timelines.

The update notes that plant operations during November delivered favourable throughput and recovery performance across periods of continuous operation. Processing activities during November and early December were, however, affected by constraints related to sulphuric acid availability, which temporarily impacted overall plant availability.

Processing Performance and Recovery Metrics

During a continuous 15-day operating period in November, the processing plant recorded an average uptime of 18.2 hours per day. Milling throughput averaged 138 tonnes per hour, with a peak single-hour throughput of 172 tonnes per hour. These rates equate to approximately 70% and 88% of nameplate milling capacity, respectively.

Preliminary uranium recovery for the month averaged approximately 83%, compared with a targeted steady-state recovery rate of 86.7%. The company utilised plant downtime resulting from acid shortages to complete planned commissioning tasks, implement optimisation initiatives, and undertake routine maintenance work across the processing facility and associated infrastructure.

Sulphuric Acid Supply and Mitigation Measures

Sulphuric acid supply challenges were primarily linked to production issues in Zambia, the mine’s main acid supply source, with South Africa acting as a secondary source. In response, Lotus increased the number of contracted acid suppliers and secured additional deliveries from South Africa to supplement supply requirements.

In parallel, the Kayelekera acid plant rebuild project remains on schedule, with commissioning activities expected to begin in early 2026. Once operational in Q1 CY2026, the acid plant is expected to produce sulphuric acid on site using sulphur, which requires lower transport volumes and reduced trucking intensity compared with externally sourced acid.

Production Ramp-Up and Product Qualification

Mining activities at Kayelekera commenced in early November 2025, with current efforts focused on embedding standard operating procedures across mining, processing, and laboratory functions. Preparations for initial product shipment are ongoing, supported by advancing product qualification activities.

The first shipment of product is now expected in late Q1 CY2026. Full product qualification with at least one converter is anticipated to be completed in early CY2026, following the opening of the first converter account.

Financial Position

As at 30 November 2025, Lotus reported cash holdings of AUD 73.9 million. The figure excludes restricted cash and includes USD 2.5 million in drawn debt, based on an exchange rate assumption of 0.6556 AUD:USD.

Share Price Snapshot
LOT was trading 4.687% higher at AUD 0.167 per share as of 04 December 2025.