Ann: Mine Development Agreement signed in Malawi, page-56

Lotus will produce 19.3M lbs of U308 over 10 years, at US$36.2 /lb. With US $88M startup costs (all debt?) and US $80/lb contract price I get an NPV of 380M. With 1830M shares out according to Google Finance I get a share price estimate of AU $0.32 for Kayalekera. Add roughly 0.08 per $10 increase in contract price. Numbers go up if they produce more from the mine (46M lb MI&I). I think they also have ramp up costs + cost to study, drill and develop Lethlekane which will weigh on the share price through dilutions

Not sure what the NPV for Lethlekane is or what percentage Lotus will get credit for. A-cap had a mcap of AU $110M, so let's divide that by 1800M shares and we get AU $0.06.

So..... my fair price estimate for Lotus would be AU $0.38 (+46%) at this moment. Maybe $0.46 (+77%) using $90/lb. Not bad upside but Otend to agree Lotus was overvalued at $0.50