Lotus Resources Nears Key Operational Milestones at Kayelekera

Lotus Resources is making significant progress in the ramp-up of its Kayelekera uranium mine in Malawi. The company is now focused on securing operational costs through strategic infrastructure initiatives as the transition to commercial production draws closer.

Commercial Production and First Delivery on Schedule

The timeline for Kayelekera’s commercial phase remains firmly on track. The first commercial uranium delivery is still scheduled for the second quarter of 2026. This schedule is supported by advancements in product qualification; in February, Lotus received preliminary confirmation from a major Western converter that product samples meet all required specifications.

Achieving full production capacity of 2.4 million pounds of uranium per year is also targeted for Q2 2026. These upcoming milestones represent the next critical operational steps for the company.

Processing Performance Shows Consistent Gains

Operational data from the Kayelekera plant indicates a marked improvement in consistency. During the latter half of February, the processing plant achieved an 80% utilization rate of available operating time. The milling rate climbed to 65% of the capacity required for sustained, full-scale production.

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Mineral recovery rates have remained stable at approximately 82.1%, consistent with prior quarters. Management anticipates further efficiency gains once planned modifications are completed in the current quarter. To prevent logistical bottlenecks, on-site sulphuric acid inventory has been increased to nearly maximum storage capacity.

Infrastructure Projects Aim to Reduce Operating Costs

A central pillar of the cost-reduction strategy is the commissioning of an on-site sulphuric acid plant. Construction is virtually complete, and initial testing is already underway. The hot commissioning phase, where acid is first produced from existing sulphur stockpiles, is slated to begin in April 2026.

Once fully operational, this facility will significantly reduce reliance on expensive imported reagents. In parallel, Lotus is advancing its connection to the national power grid. Construction of the transmission line and substations is expected to be finalized by the end of 2026. Switching from diesel generators to grid-supplied hydropower is projected to lower power costs by an estimated US$5 to US$6 per pound of uranium produced.

Key Upcoming Dates for Investors:
* April 2026: Hot commissioning of the sulphuric acid plant begins.
* Late April 2026: Quarterly report for the period ending March 31 is published.
* Second Quarter 2026: Target date for the first commercial uranium delivery.
* End of 2026: Planned completion of the grid connection for cost reduction.