Lotus moves to feasibility at Kayelekera after scoping encouragement

POTENTIAL uranium producer Lotus Resources says scoping work for the shuttered Kayelekera project in Malawi estimated US$50 million would be needed to reboot operations.
Lotus moves to feasibility at Kayelekera after scoping encouragement Lotus moves to feasibility at Kayelekera after scoping encouragement Lotus moves to feasibility at Kayelekera after scoping encouragement Lotus moves to feasibility at Kayelekera after scoping encouragement Lotus moves to feasibility at Kayelekera after scoping encouragement

Kayelekera's time in the sun could return one day

The two production scenarios envisaged entailed either an eight-year operation producing a total of 16.4 million pounds of uranium or a 14-year operation yielding 23.8Mlbs - with the latter involving the processing of both mined ore and stockpiles.

Cash costs are put at about $33/lb, which is broadly equivalent to the current spot price.

Lotus said it was in discussions with "several major global nuclear utilities", with contracted uranium prices typically 25% above the spot price.

Lotus, which holds 65% of the project, also said it would now proceed to a feasibility study.

Kayelekera was developed earlier this century by Paladin before being closed due to the collapse in the uranium price.

Proponents of the nuclear energy sector believe a significant increase in the uranium price is inevitable.

Lotus had mainly restricted and some unrestricted cash totalling A$16.4 million at the start of the September quarter, with about $2.4 million worth of options subsequently exercised during the just-completed three-month period.

Shares in Lotus were up 3% to 9.3c in morning trade, capitalising the company at $69 million.

The stock was at trading at levels of 5-6c 12 months ago.