Lotus Resources (LOT) Q3 2026 TU earnings summary

Executive summary

• Operational ramp-up at Kayelekera Uranium Mine continues, with safety prioritized and new leadership and infrastructure upgrades enhancing performance.

• No Lost Time Injuries recorded, reflecting a strong safety culture.

• Product acceptance achieved at Orano conversion facility in France, providing delivery flexibility.

• Mining now active across three fronts, with high-grade stockpiles exceeding 200,000 tons at quarter end.

• Sulphuric acid supply restored, but reagent management and maintenance impacted processing performance.

Financial highlights

• Cash operating costs for the quarter were AUD 36 million, impacted by critical spares, insurance, duties, and elevated freight costs; not reflective of steady-state costs.

• Outflows for the next quarter are forecast at AUD 38 million, with a significant portion allocated to capital projects, especially the power grid connection.

• AUD 85 million in unrestricted cash at quarter end, providing flexibility for ramp-up and working capital.

• Net cash used in operating activities for the quarter was A$37.7M, mainly for production costs.

• Placement raised A$76M and SPP raised A$3M before costs.

Outlook and guidance

• Expectation of more stable operations and consistent ramp-up in coming months, with recovery improvements anticipated as work streams are executed.

• First uranium shipment targeted for this quarter, pending permitting and logistics through Namibia.

• Letlhakane updated Mineral Resource Estimate and preliminary feasibility study expected in H2 CY26 and H1 CY27, respectively.

• Inventory financing facility to be announced soon, structured as a debt facility secured by uranium inventory, more attractive than equity or hybrids.

• May and June expected to deliver improved throughput and production, trending toward steady-state in Q2 CY26.