The company's thinking is the 2.5 million pounds of annual production and circa US$50 million of capital will be easier to contract and finance then much bigger operations requiring hundreds of millions of dollars.
Speaking from Toronto as part of the NWR Virtual Resources Conference, Lotus managing director Eduard Smirnov indicated a US$60 per pound price was of the order needed to trigger a sufficient supply response from the industry for a growing annual deficit of 30-60 million pounds over the period 2024-2028.
Further to the pricing question, Smirnov also pointed out some 750 million pounds were sold into contracts with utilities at more than $60/lb last time the term contract cycle was in full force.
Lotus, like other contenders, is in early stage discussion with utilities at present.
Kayelekera has about 14 years of resources, and would require 14-18 months to kick back into production.
Lotus had about A$3.3 million at the start of the current quarter.