Lotus Resources (ASX:LOT) share price is on the up as the Uranium price has hit US$62.00 a pound, which according to LOT is the key level required for them to restart their Kayelekera mine in Malawi, with a FID decision for the mine reopening expected later this year. They are also in the process of a merger with A-Cap Energy (ASX:ACB) which has uranium deposit in Botswana and if the merger is successful will increase their uranium resource. The Botswana deposit is not as advanced as Kayelekera and will require significant investment to develop it into a producing mine. LOT are hoping to use some of the cashflow from Kayelekera once it is operating and producing to help fund the development of the Botswana deposit. STOCK HELD.
9th December 2023 | Share Price $0.28
Up 27% on original investment, share price has run on the back of uranium price increasing from US$53.0 a pound to US$83.0 a pound in CY2023. Expecting their Kayelekera Uranium mine in Malawi, Africa to reopen in FY25. Current $0.45 share valuation no longer applies due to A-Cap merger now making LOT the third largest uranium stock on the ASX, based on MRE size.
