LOT - Lotus Resources

[Sean K]

Proposed Scheme of Arrangement. Restructure of capital perhaps? 1.3b shares on issue. Dunno...

 

[Dona Ferentes]

T/O more likely

 

[Sean K]

T/O more likely

ACB also in TH for a Scheme of Arrangement. This will not be good for LOT, IMO. ACBs resource is at around 200ppm, which is practically dirt. My pot plants are more radioactive.

 

[Sean K]

LOT up 11% on this. I'm not sure if the market knows how poor the ACB resource is. Or, maybe I just don't get it.

 

[peter2]

Looks like the ACB shareholders are the major beneficiaries from this deal. ACB was probably never going to get to production. While LOT's resource may have been considered not quite big enough to justify the huge capital expense. Looks like a win-win deal though.

 

[bux2000]

I have entered LOT in the August Competition.

I am acting on a white hot tip from an interesting bloke I met at the Pub down by the river.
I can only presume he had an active twitter account ........Not reallysure what that actually means.........but I am hoping is accounting for the large volume today ...... long may that interest continue.


bux

 

[Sean K]

I have entered LOT in the August Competition.

I am acting on a white hot tip from an interesting bloke I met at the Pub down by the river.
I can only presume he had an active twitter account ........Not reallysure what that actually means.........but I am hoping is accounting for the large volume today ...... long may that interest continue.


bux

I met his cousin in an Uber recently. Made me double down on my holdings. Toot toot!

 

[Sean K]

This woofer has been recovering with the rest of the U market. I put these shares in the sock draw in July when they teamed up with ACAP. I didn't think the low grade Botswana thing was a good move, but they have added a lot of uranium to the pot. I was actually hoping DYL would take over LOT but that's not going to happen now. I suppose if the uranium price keeps going up then this will as well. I'll take them out of the sock draw around 30c I think.

 

[brerwallabi]

Lotus has a completed a DFS which confirmed its Malawi uranium project as an extremely low cost project.
Project previously on hold due to decline of the uranium price, it has been in care and maintenance since 2014.
The project can be restarted within 15 months once a decision has been made on funding.
Recently completed a $25 million placement.
10 year mine life, another project in Botswana through acquisition of ASX listed ACB through a merge.

 

[Sean K]

LOT hasn't really responded like some of the other U stocks as well as I would have liked, but it has recovered a bit recently. Sort of a rounded bottom formation that might take it to 40c.

Not really impressed with the ACB TO, could have just focussed on getting back into production with Malawi. Not sure if Botswana will ever be mined.

They really should be much closer to BOE and half of PDN.

 

[brerwallabi]

Not much to add on Lotus, however they did acquire 100% of shares in ACB formally listed on the ASX.
ACB previously had held the mining license for the Letlhakane project in Botswana.
The Letlhakane Uranium Project in Botswana is one of the world’s largest undeveloped Uranium Deposits. The project has a total JORC resource of 822 million tonnes (Mt) @ 202ppm for 365.7Mt of U3O8 y.
The share price has risen from an early 2023 price of 15.5cents to close this week at 28.5cents and hopefully uranium stocks will have a spectacular year.
It will also be an entry in the yearly ASF competition.

 

[Sean K]

Should have sold the house and put it in uranium a few months ago. Well, I did sell a house but it's still settling so I missed the opportunity by about 6 months... grrrrr

Still not sure why they haven't announced they're refurbishing the mine. Shirley they have financing and offtakes organised already. If not, they're missing the boat.

 

[houtman]

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LOT and TOE along with Guy from Tribeca will be presenting via zoom in about 30 minutes if anyone is interested.

 

[brerwallabi]

I wish I had got on Lotus a bit earlier and with a larger purchase then the paltry amount I bought however it will be a tidy profit.

• Lotus is now a leading uranium player with the third largest resource of ASX-listed peers1.
- Mineral Resources of 241Mlbs U3O8 (100% basis) at Kayelekera and Letlhakane.
- Lotus will leverage its proven uranium expertise in developing Letlhakane, one of the
world’s largest undeveloped uranium resources, in Botswana, one of the world’s top
mining jurisdictions.
• Lotus has identified opportunities to add value at Letlhakane in the short to medium term
- Lotus will focus on optimising Letlhakane’s resource and targeting a higher grade
component as the basis for a value maximising development strategy.
- Letlhakane Resource update is planned for 1H 2024.
- A beneficiation metallurgical test work program is also underway to determine the
upgrade potential of the orebody.
• Lotus plans to test the market for debt for the Kayelekera restart of production.
- Increased enquiries from utilities for Kayelekera offtake.
- Lotus plans to engage a debt adviser shortly to test the market for debt for Kayelekera.
- Kayelekera work streams have been prioritised to enable a Final Investment Decision
(FID) can be made as quickly as possible.
• The market fundamentals are the strongest seen in well over a decade.
- A uranium spot price of over US$100/lb.
- Production constraints, including the recent commentary around reduced production
profiles from Kazatomprom for 2024 and 2025.
- Strong legislative support for new production from western facilities, including the
potential ban of Russian uranium imports into the USA currently in front of the Senate.

 

[Sean K]

It's quite incredible the number of free options management give themselves in these companies when they're not actually really doing anything, like making money.

Bowes gets paid $400K which isn't anything to sneeze at by itself but how about the free options he's getting for whatever performance hurdle. Like, just keeping the lights on I assume.

The latest gift was 6m shares ($2m) for nil consideration.

Other options and incentives total close to 16m shares ($5m).

I know this is standard bog but geesh, they're two years from baking any cake, if they even do.

I suppose I voted yes at the AGM....

 

[Sean K]

Should have sold the house and put it in uranium a few months ago. Well, I did sell a house but it's still settling so I missed the opportunity by about 6 months... grrrrr

Still not sure why they haven't announced they're refurbishing the mine. Shirley they have financing and offtakes organised already. If not, they're missing the boat.

View attachment 168902

They must have been reading ASF and put out an ann the very next day regarding the restart plans.

Lotus plans to test the market for debt for the Kayelekera restart of production.
- Increased enquiries from utilities for Kayelekera offtake.
- Lotus plans to engage a debt adviser shortly to test the market for debt for Kayelekera.
- Kayelekera work streams have been prioritised to enable a Final Investment Decision (FID) can be made as quickly as possible.

Market Cap now around $500m with about 250M lbs and DYL has a MC of $1b with 400M lbs. LOT still undervalued on a basic peer to peer measure espcially since they have a mine already established.

Hopefully some offtakes and financing announcements soon.

Not too far off my target which is simply the last ATH. Should really be there already with POU smashing it.

 

[brerwallabi]

Uranium is yet to reach its all time, it still has a long way to go about another $30 a pound to exceed $136 a pound.
For uranium stocks the future looks bright, I feel the uranium run has another couple of years in it.
My thinking of picking up another parcel of LOT sub 30cents has disappeared.
Things looked bright for lithium stocks too, how things have changed
My mailbox is full of emails promoting uranium stocks so it’s seems uranium is the new lithium.

 

[Sean K]

Uranium is yet to reach its all time, it still has a long way to go about another $30 a pound to exceed $136 a pound.
For uranium stocks the future looks bright, I feel the uranium run has another couple of years in it.
My thinking of picking up another parcel of LOT sub 30cents has disappeared.
Things looked bright for lithium stocks too, how things have changed
My mailbox is full of emails promoting uranium stocks so it’s seems uranium is the new lithium.

Yes, and adjusted for inflation an equivalent ATH is much higher.

There's got to be a healthy correction soon. I really don't like it when things go parabolic. On a steep pullback stocks will cop it.

I'm still confident it'll go higher with what's going on fundamentally, but still wary of another accident.

 

[Sean K]

About $12m in the bank but only spending $1.2m in a quarter. Not sure how that's possible. Must have super efficient LEDs on the project site.

They say they're working on a revised timeline for a restart but if they can't go rapid with POU spot over $100 then I'm not sure what they're doing with themselves. Surely they've identified all the washers and rubber bits that need to be replaced to get the plant back into action and just need to hit the order button.

Has stalled at 35c resistance as expected but can't imagine why it doesn't get back to ATHs as long as POU stays above a hundred bucks. Unless there's an accident or they do something dumb with the financing.

 

[brerwallabi]

About $12m in the bank but only spending $1.2m in a quarter. Not sure how that's possible. Must have super efficient LEDs on the project site.

They say they're working on a revised timeline for a restart but if they can't go rapid with POU spot over $100 then I'm not sure what they're doing with themselves. Surely they've identified all the washers and rubber bits that need to be replaced to get the plant back into action and just need to hit the order button.

Has stalled at 35c resistance as expected but can't imagine why it doesn't get back to ATHs as long as POU stays above a hundred bucks. Unless there's an accident or they do something dumb with the financing.

View attachment 169879

Outgoing was considerably more from memory and it was offset by income derived by acquiring cash in the takeover of A-cap which was approximately $1.2 million.
Really hope they get a move on, statements like plan to get a debt advisor don’t really excite me, I would have thought that would have been well under way.