Highlights

  • Lotus Resources shares closed at AUD 3.05, up 1,255.56% in a single session on 30 January.
  • Canaccord Genuity, Ord Minnett and Macquarie issued ratings with price targets ranging from AUD 3.22 to AUD 4.37.
  • The company continues progress toward uranium production milestones at its Kayelekera Mine in Malawi.

Shares in Lotus Resources Ltd (ASX:LOT) recorded an extraordinary move on Thursday, surging more than 1,255% to close at AUD 3.05, even as the broader S&P/ASX 200 Materials Index declined.

Following the sharp share price movement, broker rating gains limelight. Canaccord Genuity issued a speculative buy rating and a target price of AUD 3.57.

Ord Minnett also issued a speculative buy rating, assigning a higher target price of AUD 4.37. Meanwhile, Macquarie Research placed an outperform rating on the stock, with a target price of AUD 3.22.

The broker assessments come despite broader weakness across the resources sector. On the same day, the S&P/ASX 200 Materials Index (XMJ) fell 3.36% to 23,254.5.

Operational Update at Kayelekera

Lotus recently released its quarterly activities report for the period ending 31 December 2025, outlining progress at its Kayelekera Uranium Mine in Malawi. During the quarter, the company delivered its first high-grade ore from the mining pit to the run-of-mine pad following the commencement of mining activities.

Mining equipment is now fully mobilised on site, with waste mining reaching 265 kilotonnes, while 11.9 kilotonnes of ore were extracted as mining fronts were established. An in-pit grade control system has also been implemented.

Processing activities during November and December were affected by sulphuric acid availability and supply chain disruptions. Production resumed in mid-January, with the company reporting its longest continuous operating run since restart.

Path Toward Production and Deliveries

Lotus continues to target nameplate production during March 2026, though full steady-state output of approximately 200,000 pounds of uranium per month is now expected in Q2 CY26. Product qualification with converters is underway, a prerequisite for shipment approvals, with the first shipment forecast for the same period.

At the end of December, the uranium term price stood at USAUD 87 per pound, with 90% of Lotus’ 2026 contracted volumes scheduled for delivery in the second half of the year.

Financial Position and Project Pipeline

The company reported a closing cash balance of AUD 56.2 million, excluding restricted cash, which increased to a pro-forma AUD 63.4 million after post-quarter equipment financing. In Botswana, metallurgical test work at the Letlhakane Project indicated potential reductions in acid consumption of around 70%, alongside a simplified processing flowsheet.