A number of ASX uranium stocks have been racing higher this year.
One stock that appears to have missed the memo is Lotus Resources Ltd (ASX: LOT).
The uranium developer's shares are down 15% since the start of the year.
As a comparison, Boss Energy Ltd (ASX: BOE) shares are up 46% and Deep Yellow Ltd (ASX: DYL) shares are up 50% in 2025.
While this is disappointing, the team at Bell Potter believes it could have created a very attractive buying opportunity for investors with a high tolerance of risk.
Image source: Getty Images
What is the broker saying about this ASX uranium stock?
Bell Potter highlights that Lotus Resources is getting closer to producing its first uranium from the Kayelekera Uranium mine.
And while things are looking tight, the broker believes that the ASX uranium stock should have enough cash to see it through to positive cash flow generation. It said:
The target for first production in the Sep-Q is likely to be met, subject to teething issues within the plant. Ore will be sourced from stockpiles initially (through to Oct), with the delay through the plant being ~2 weeks from first ore feed. Assuming commissioning of the remainder of the plant in mid-Aug with stockpiled ore, this should see production commence in early to mid-Sept.
The US$48.5m in working capital facilities should be sufficient to cover cash requirements during ramp up, however this is dependent upon the extent of any issues during the ramping phase, and successful qualification from the converters allowing for a speedy turn around in cashflow.
Time to buy
In light of the above, the broker believes that investors should be buying the ASX uranium stock.
As a result, it has reaffirmed its speculative buy rating and 35 cents price target on its shares. Based on its current share price of 17.2 cents, this implies potential upside of 103% over the next 12 months.
Bell Potter believes the market is sceptical on the restart of the Kayelekera Uranium mine. So, if management delivers on its targets, it could put a rocket under its shares. It concludes:
Our valuation and recommendation remain unchanged heading into first production. We believe the market is sceptical of the restart, and partially rightly so, given the issues experienced across the space over the last 12 months. Should LOT demonstrate a successful restart and commence processing of fresh ore, we believe this would be the catalyst for re-rate. At current prices, we estimate LOT is implying a long-term price of US$73/lb, which compares to their average contracted price of ~$80/lb.
