Australian (ASX) Stock Market Forum

Out.
MDA agreement was not a disaster nothing really out of the normal.
Market not happy with Lotus, time to get out will watch closely, they will either need a loan facility or some dilution for cash, I fear the share price may drop further.
Another opportunity may arise.
 
I sold my Lotus shares as the uranium price was dropping, exit at 26 cents. I am back in today at 22.5 cents after perusing numerous articles on the future of the uranium price.
Some expectations are of uranium recovering to approximately $105lb next year.
Found some confidence had returned in my belief uranium stocks would be a good investment over the next year or two.
The uranium price still languishes at $81.55 hopefully it finds some support around this mark it still has a long way to go to get back to the $140lb of almost two decades ago.
Lotus have recently made significant management changes to fast track both their projects.
 
Think I made the right decision.
Lotus intersects further thick continuous zones of uranium mineralization in Letlhakane infill drilling


All additional infill drill holes have intersected mineralisation, confirming continuity
and grade as Lotus aims to upgrade the classification of the Letlhakane MRE

Diamond drilling commenced at Serule West to obtain samples for metallurgical test
work

10 exploration holes planned to commence later this month to test previously
identified intercepts outside defined resources

Drilling on track to be completed in September 2024, with updated MRE to follow

Letlhakane scoping level study remains on track for delivery in Q3

Lotus is progressing Letlhakane development in parallel with its focus on accelerating
Kayelekera in Malawi
 
Lotus now in a trading halt until commencement of trade Wednesday morning.
The trading halt was requested regarding an announcement on funding and offtakes.
Looking forward to this announcement as it might light a much needed fire under the share price.
Hopefully they have some sort of debt facility so no dilution for holders, fingers crossed.
 
Lotus now in a trading halt until commencement of trade Wednesday morning.
The trading halt was requested regarding an announcement on funding and offtakes.
Looking forward to this announcement as it might light a much needed fire under the share price.
Hopefully they have some sort of debt facility so no dilution for holders, fingers crossed.

I can't find how much they're getting for their cake or the terms of the loan. So, how do we work out a margin if they hide the detail?

Screenshot 2024-09-03 at 11.23.23.png
 
I guess with the loan it all depends and revealed when Lotus firmly commit to the restart.
With uranium predicted to be over well over 100 a pound I would start to work with 100 to get to NPV for the project.
More detail is required.
I have read the announcement yet just woke up.
 
Some reassurance from Lotus today

• Latest drilling has intersected some of the thickest (26.1m) continuous zones of mineralisation to
date, with this thicker mineralisation starting as shallow as 8.2m

• Diamond drilling at Serule West is complete and has commenced at Gorgon West to obtain samples
for metallurgical test work and QAQC assaying

• RC intersections from Gorgon West and diamond intersections from Serule West deposit include:
o MOKR2650: 26.1m at 265ppm eU3O8* from 30.2m
o MOKR2671: 24.9m at 180ppm eU3O8* from 8.2m
o MOKR2655: 4.1m at 597ppm eU3O8* from 39.5m, incl 1.8m at 1,253ppm eU3O8 from 40.7m
o MOKR2651: 2.1m at 2,053ppm eU3O8* from 50.8m
o SEDD0037: 3.9m at 469ppm eU3O8* from 48.4m
o SEDD0037: 3.1m at 467ppm eU3O8* from 61.3m
o SEDD0039: 3.9m at 594ppm eU3O8* from 44.8m

• All additional infill drill holes have intersected mineralisation, confirming continuity and grade as
Lotus aims to upgrade the classification of the Letlhakane MRE

• Drilling on track to be completed in September 2024, with updated MRE to be completed during
November 2024

• Exploration drilling has now commenced in the western portion of the mining lease, testing historical
intercepts outside the defined resources

• Scoping level study for Letlhakane remains on track for delivery in the first half of September 2024

• Lotus is progressing Letlhakane development in parallel with restarting uranium production at Kayelekera
In Malawi
 
Capex for this looks about normal for a start up, but a lot for A$400 MC company still working on re-starting their primary project.

Still not sure why they didn't just focus on Malawi instead of creating more risk with development and capital buying Botswana. They've just created much more risk and have to access crap loads more capital to stay afloat. If they think paying for Botswana out of Malawi profit is a good idea then good luck.

No NAV provided on any POU scenarios probably because of the term market for uranium contracts that no one seems to understand, not even RR.

SP in the toilet like a few of our uranium plays after the market stalled around $100 and has slowly capitulated to under 80 bucks. Not sure what is going to turn it around. Maybe it's all done and dusted.


Screenshot 2024-09-19 at 09.41.27.png

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Update on getting Malawi back into action. Reduced costs and timeframe which is good. Assuming $90lb, not so good when it's around $80, but actual term contract prices could be anything.

SP came off like all the other U players after POU ran too hard too fast, but seems to have settled. The entire URNM looks similar really. 20c looks pretty bottomish down there.


Screenshot 2024-10-08 at 09.25.55.png
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$90 seems quite conservative when some are arguing for $100 to $120 a pound.
They already have a number of off takes the price was not disclosed but was a fixed price with an escalating percentage increase per annum.
Pleasing to read the announcement of reduced time to production with reduced capex.
 
Lotus in a trading halt today, (capital raise) we will how much they need and at what price at the latest Thursday morning.
The share price had been ticking back up currently 31.5 cents after falling as low as 20 cents in early September.
 
Lotus in a trading halt today, (capital raise) we will how much they need and at what price at the latest Thursday morning.
The share price had been ticking back up currently 31.5 cents after falling as low as 20 cents in early September.

Been above 25c for the past month but that's the price of the raise. 15% discount t the 5 day VWAP.

They said on 8 Oct that the restart was reduced to US$50m...but now they're asking for US$74m. I wonder what changed in the past 2 weeks? Maybe the extra $24m is just to keep the lights on as well as the Capex.


Screenshot 2024-10-22 at 11.48.05.png
 
I won’t be partaking, I dont want to take on any more risk.
Cash balance in the quarterly was $25 which was stated unaudited, I guess it’s better to have some in reserve than go to the market again.
 
Not really happy this morning, Lotus dropped 5 cents to 26.5 after upsizing their placement to A$130 million.

My chances of having 4 stocks in the green in the yearly comp also disappeared.

Retraction from Lotus also on the Letihkane project

The Scoping Study Announcement contains forward looking statements in the form of production targets
and forecast financial information. However, following consultation with the ASX, the Company did not have
a reasonable basis for those forward-looking statements due the proportion of inferred mineral resources
in the production target. The Company retracts all production targets and forecast financial information
included in the Scoping Study Announcement.
The Company advises investors that due to the absence of reasonable basis for the statements, they should
not rely on the Scoping Study Announcement as a basis for investment decisions.
 
Capex for this looks about normal for a start up, but a lot for A$400 MC company still working on re-starting their primary project.

Still not sure why they didn't just focus on Malawi instead of creating more risk with development and capital buying Botswana. They've just created much more risk and have to access crap loads more capital to stay afloat. If they think paying for Botswana out of Malawi profit is a good idea then good luck.

No NAV provided on any POU scenarios probably because of the term market for uranium contracts that no one seems to understand, not even RR.

SP in the toilet like a few of our uranium plays after the market stalled around $100 and has slowly capitulated to under 80 bucks. Not sure what is going to turn it around. Maybe it's all done and dusted.


View attachment 184448
View attachment 184450
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This is a bit embarrassing, but it was just a Scoping Study. Obviously there's some very particular rules with what you can put in a forecast production rate in regard to resource classification. You'd think that they would know that though...

Not a good enough reason for the sell-off this am IMO.

Screenshot 2024-10-24 at 12.12.57.png
 
Well with the second lot coming in December after it gains shareholder approval I can’t see LOT going anywhere this year.
It might range a bit now in the mid 20’s, happy to hold.
As news comes through drilling, plant restart, Botswana etc I think the share price will move back up again starting early next year.
 
I have been waiting and waiting and now it’s the last day for the yearly comp to post on your nominated stocks I was hoping to write about an upgraded MRE which Lotus said would be announced this month however it seems not to be.
 
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