http://www.proactiveinvestors.com.au Proactiveinvestors RSS feed en Sat, 18 Aug 2018 09:02:04 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Peninsula Energy stands to benefit from US government uranium investigation ]]> http://www.proactiveinvestors.com.au/companies/news/201094/peninsula-energy-stands-to-benefit-from-us-government-uranium-investigation-201094.html Peninsula Energy Ltd (ASX:PEN) will be keeping a close eye on a nine-month investigation by the US Department of Commerce (DOC) into domestic uranium supply.

The investigation is based on whether the present quantity and circumstances of uranium ore and product imports into the US threaten to impair national security.

The entire uranium sector will be canvassed from the mining industry through to enrichment, defense, and nuclear utility consumption.

The result of a petition filed in January

This decision follows a petition filed by two other US uranium mining companies in January 2018 which proposed the establishment of a quota of 25% of US uranium be sourced domestically.

Given Peninsula’s uranium producing Lance Projects are located in the US state of Wyoming, it stands to benefit from any potential quotas of this nature being established.

READ: Peninsula Energy quarterly production from Lance projects exceeds expectations

Peninsula’s managing director and CEO Wayne Heili said “Our company is respectful of the economic impacts that this investigation may have on many of the participants in the US nuclear energy sector, including our valued customers.

“Having the DOC examine the impact that imports have on the struggling domestic industry may provide a valuable framework to improve the overall fundamentals of our industry.”

The DOC has nine months to complete its review and deliver its recommendation to the President, who will then have an additional three months to determine any actions.

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Thu, 19 Jul 2018 11:27:00 +1000 http://www.proactiveinvestors.com.au/companies/news/201094/peninsula-energy-stands-to-benefit-from-us-government-uranium-investigation-201094.html
<![CDATA[News - Peninsula Energy quarterly production from Lance projects exceeds expectations ]]> http://www.proactiveinvestors.com.au/companies/news/200560/peninsula-energy-quarterly-production-from-lance-projects-exceeds-expectations-200560.html Peninsula Energy Ltd (ASX:PEN) has exceeded quarterly uranium production expectations despite suspending the majority of alkaline-based production within the first mining unit (MU1) at the Lance Projects in Wyoming, USA.

Production during the quarter was 38,001 pounds of uranium oxide and a drying run over the period had a total of 43,553 pounds of uranium dried and drummed.

 

Peninsula managing director Wayne Heili said: “This action preserves in-situ pounds for future low pH extraction and also reduces cash outflows during the transition period being undertaken.”

Alkaline in-situ recovery (ISR) production continues in the second mining unit (MU2), where head grades are higher, and in a small number of MU1 production wells to assist with maintaining wellfield fluid control.

Production from MU2 using alkaline lixiviant will continue to form the basis of ongoing operations over the near-term while Peninsula progresses the various activities and permit actions required for the change to a low pH ISR uranium operation at Lance.

READ: Peninsula Energy to benefit from rising uranium price post Global X rebalance

Production guidance for the upcoming quarter of 22,500 to 27,500 pounds of uranium oxide is being maintained as the company advances the planned transition.

Peninsula believes transitioning to a low pH ISR operation has the potential to align the operating performance and cost profile of Lance with the industry leading global uranium production projects.

Uranium purchase agreements

During the quarter Peninsula also entered into two separate agreements to purchase an aggregate of 225,000 pounds of uranium at fixed prices.

The uranium will be delivered into existing term contracts across 2019 and 2020, reducing cost exposure that Peninsula has against increased prices for uranium.

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Wed, 11 Jul 2018 03:25:00 +1000 http://www.proactiveinvestors.com.au/companies/news/200560/peninsula-energy-quarterly-production-from-lance-projects-exceeds-expectations-200560.html
<![CDATA[News - Peninsula Energy to benefit from rising uranium price post Global X rebalance ]]> http://www.proactiveinvestors.com.au/companies/news/198738/peninsula-energy-to-benefit-from-rising-uranium-price-post-global-x-rebalance-198738.html Peninsula Energy Ltd's (ASX:PEN) recent selling pressure has now stopped following Global X Uranium Exchange Traded Fund reducing its holding to less than 5%.

The ETF was Peninsula's second largest shareholder, and is no longer a substantial holder, following a systematic reduction its holdings in all uranium mining and development companies.

Snapping up the opportunity to invest in Peninsula is Patersons Securities, who recently negotiated a block trade sale for the majority of the Global X position of 24 million shares at 24 cents per share to its institutional and high net worth clients.

David Coyne, finance director for Peninsula, commented at the time:

"We are very pleased that Paterson’s have completed this block trade in an orderly manner as it removes existing downward pressure on our share price caused by Global X’s recent underlying index changes."

The uranium price has been edging higher recently, and is now trading above US$23 a pound, or about 10% higher than two months ago.

WATCH: Peninsula Energy transitioning to 'a much more robust and effective process chemistry'

Peninsula last traded at 25 cents.

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Wed, 13 Jun 2018 09:43:00 +1000 http://www.proactiveinvestors.com.au/companies/news/198738/peninsula-energy-to-benefit-from-rising-uranium-price-post-global-x-rebalance-198738.html
<![CDATA[Media files - Peninsula Energy transitioning to 'a much more robust and effective process chemistry' ]]> http://www.proactiveinvestors.com.au/companies/stocktube/9545/peninsula-energy-transitioning-to-a-much-more-robust-and-effective-process-chemistry--9545.html Tue, 12 Jun 2018 12:48:00 +1000 http://www.proactiveinvestors.com.au/companies/stocktube/9545/peninsula-energy-transitioning-to-a-much-more-robust-and-effective-process-chemistry--9545.html <![CDATA[News - Peninsula Energy outlines efficient transition strategy to low pH operations ]]> http://www.proactiveinvestors.com.au/companies/news/196698/peninsula-energy-outlines-efficient-transition-strategy-to-low-ph-operations-196698.html Peninsula Energy Ltd (ASX:PEN) is in the process of transitioning from alkaline-based production to low pH operations at its Lance Project in US state of Wyoming.

To preserve in-situ uranium and reduce cash expenditure, the transition from existing alkaline operations will be streamlined.

READ: Peninsula Energy's US$50 per pound uranium sales contracts to 2030 generate cash while low pH operations gain approval

During May, Peninsula will suspend alkaline-based production activity within the first mining unit at the Lance Project.

However, production operations will continue in the second mining unit at the Lance Projects where head grades are higher.

Optimised production plan ahead of transition

Peninsula’s managing director Wayne Heili said: “The decision to suspend alkaline production at Mine Unit 1 aligns well with the company’s planned move to low pH mining operations at Lance.

“Thanks to the flexibility that we now have in certain off-take agreements, production from Mine Unit 1 is not necessary over the next 12 months, so it makes sense for us to buy on market as needed, save on operational expenditures and preserve the remaining MU1 resource for the more efficient low pH mining method.”

Production guidance revised

Peninsula has revised its current production guidance levels from between 30,000 and 40,000 pounds U3O8 per quarter to between 22,500 and 27,500 pounds U3O8 per quarter.

Selling uranium at well above spot prices

Peninsula is selling its produced uranium from the Lance Projects at well above spot prices.

In the six months to December 31, 2018, Peninsula sold 132,934 pounds of uranium at an average realised cash price of US$50 per pound.

Of these deliveries, 92,934 pounds of uranium was from material sourced entirely from the Lance projects and 40,000 pounds was purchased from the market.

Furthermore, forward sales agreements with a weighted price of more than US$50 per pound extend to 2030.

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Thu, 10 May 2018 13:05:00 +1000 http://www.proactiveinvestors.com.au/companies/news/196698/peninsula-energy-outlines-efficient-transition-strategy-to-low-ph-operations-196698.html
<![CDATA[News - Peninsula Energy confirms withdrawal from Karoo to focus on Lance Uranium Project ]]> http://www.proactiveinvestors.com.au/companies/news/195911/peninsula-energy-confirms-withdrawal-from-karoo-to-focus-on-lance-uranium-project-195911.html Peninsula Energy Ltd (ASX:PEN) has confirmed its withdrawal from any further development activities at the Karoo project in South Africa.

This decision should be well received as it will allow the company to fully focus on development of its Lance Uranium Project in Wyoming.

Unlike Karoo, Lance is a producing asset which is driving earnings even in a low uranium price environment.

There is the potential for Lance to become an even stronger earnings driver should Peninsula receive approval to establish a low pH, low-cost, high margin operation.

READ: Peninsula Energy's US$50 per pound uranium sales contracts to 2030 generate cash while low pH operations gain approval

Managing director Wayne Heili said: “The decision to discontinue our financial support for the development of the Karoo project and to focus our attention on the Lance project is regarded as the best approach to building value for our shareholders.

“In this enduring difficult uranium market, it has proven unrealistic to attribute any value to the Karoo project.

“The company has undertaken a difficult decision, but there is no value to be gained through continued investment in a secondary higher cost project.”

Not expected to impact balance sheet

The decision to suspend further development of the Karoo project is not expected to materially impact the company’s balance sheet.

Impairment and rehabilitation provisions were made in the financial statements for the six months ended December 31, 2017.

Peninsula is pursuing consent for the sale of the 322 square kilometres of freehold farmland held in the Karoo Basin, the proceeds of which should cover rehabilitation costs.

Impediments to continued investment

There were numerous hurdles for Peninsula to overcome at Karoo.

Prevailing uranium market conditions do not support the ongoing development of the hard rock uranium mining opportunity.

The limited duration and cost structure associated with holding South African mineral retention rights quickly become cost prohibitive.

Consequently, placing the project on hold to retain some form of ‘option value’ is not a viable scenario.

Rehabilitation underway

Discussions are underway with joint-venture partners.

Over the remainder of 2018, the activities at Karoo will focus on the necessary rehabilitation of exploration and historical trial mining activities.

Good progress has already been made with the rehabilitation of more than 6,000 boreholes.

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Fri, 27 Apr 2018 11:22:00 +1000 http://www.proactiveinvestors.com.au/companies/news/195911/peninsula-energy-confirms-withdrawal-from-karoo-to-focus-on-lance-uranium-project-195911.html
<![CDATA[News - Peninsula Energy's US$50 per pound uranium sales contracts to 2030 generate cash while low pH operations gain approval ]]> http://www.proactiveinvestors.com.au/companies/news/195619/peninsula-energy-s-us50-per-pound-uranium-sales-contracts-to-2030-generate-cash-while-low-ph-operations-gain-approval-195619.html Peninsula Energy Ltd (ASX:PEN) is hitting its straps with the uranium producer exceeding the top end of production guidance of 40,000 pounds at its Lance project in the March quarter.

In early April, the company submitted a request to the Wyoming Department of Environmental Quality (WDEQ) to allow the use of a low-pH recovery solution in the Ross Permit Area of the project in the US state of Wyoming.

This would substantially lower production costs.

Before the uranium bears dismiss Peninsula due to the flagging commodity price, it needs to be noted that the company is currently selling uranium well above the spot price.

First-half realised price of US$50 per pound

In the six months to December 31, 2018, Peninsula sold 132,934 pounds of uranium at an average realised cash price of US$50 per pound.

Of these deliveries, 92,934 pounds of uranium was from material sourced entirely from the Lance projects and 40,000 pounds was purchased from the market.

Furthermore, forward sales agreements with a weighted price of more than US$50 per pound extend to 2030.

Bear in mind that should approvals be forthcoming, a low pH, low-cost, high margin Lance project will be producing well before then.

Permit to mine is pending

Approval for the use of the low pH recovery solution would effectively represent a permit to mine (PTM).

Management noted the extensive research and preliminary work undertaken in the lead up to the PTM lodgement.

Managing director and chief executive Wayne Heili said: “The submission of the PTM (Permit to Mine) amendment request is the culmination of many months of research.

“Extensive test work and analysis aimed at greatly enhancing the uranium recovery process at Lance has been undertaken and the submission of the PTM marks an important milestone in the pathway to low pH ISR operations.”

Low pH has always been the end game

Transitioning to a low pH recovery solution has always been a key operational goal for the group.

Using this form of production, Peninsula could potentially align the operating performance and cost profile of Lance with industry-leading global uranium projects.

It was only last week that the company confirmed that it was in a robust financial position to progress with such a project, having received support from its major shareholders.

Convertible loan provides certainty during transition

On April 20, Peninsula entered into binding offer letters with major shareholders Resource Capital Fund VI LP (RCF VI) and Pala Investments Ltd, a show of faith in the company’s future.

The new US$17 million facility involves the extension of the maturity date of the existing convertible note facility by two years to April 22, 2020.

Wayne Heili said: “Peninsula is pleased to have secured this extension to the convertible loan facility with two of our major shareholders.

“The two-year extension will allow Peninsula to achieve a number of important project milestones well before the new maturity date.

“This will greatly assist the company on its path to transition to low pH operations which are expected to significantly lower operating costs.”

Following this payment, Peninsula’s cash position remains strong at about US$20 million.

History demonstrates Peninsula’s resilience

Step back to 2010/2011 when the uranium price had fallen from about US$100 per pound to US$40 per pound and you will see that Peninsula’s share price was in a strong upward trajectory.

The four-fold increase to about $6.00 was predominantly driven by outstanding exploration results at Lance.

Long-term uranium price is the focus

Since 2011, the uranium price has had a virtually uninterrupted decline to around the US$20 per pound mark where it seems to have found support.

However, note that the following chart has two different prices.

The lower is the spot price, while the higher, which is the long-term uranium price, has been hovering in the vicinity of US$30 per pound.

As a company that has forward sales in place well above the long-term price, and is looking to bring low-cost production to market, the long-term price is more relevant.

Peninsula has defied price gyrations before

It is important to note that during that steep decline in the uranium price, Peninsula released its definitive feasibility study for the Lance project and investors liked what they saw.

So much so that the company’s shares increased three-fold to about $3.00 in the space of a month.

Today, Peninsula is trading in the vicinity of 27 cents, having gained about 20% after delivering a strong March quarter production performance.

The question now is whether this is the start of a share price recovery with investors finally acknowledging its strong production and sales profile.

This certainly appears overdue but should the PTM be forthcoming one would expect a substantial rerating.

DFS financial metrics don’t reflect low pH operation

While the definitive feasibility study (DFS) showed excellent financial metrics, the expanded economic study (EES) was based on uranium prices ranging between about US$63 per pound and US$80 per pound between 2013 and 2022.

With a steady-state total production cost of about US$31 per pound, the Lance project isn’t economically viable at a spot price of US$22 per pound, though not far off the futures price.

However, as the following chart indicates, production costs for low pH producers range from about US$10 per pound to US$30 per pound, with most sitting under the US$20 mark.

Even if Peninsula’s production costs were at the upper end of that scale at around US$25 per pound, it would still be in the money based on the current long-term uranium price.

Furthermore, pre-2030 production margins would be in the vicinity of 100% based on the company's current forward sales contract price.

Forward sales to generate US$340 million

Peninsula has forward sales contracts for 6.6 million pounds of uranium at a price point of about US$52 per pound through to 2030.

These are substantially higher prices to the prevailing spot or long-term price and management is forecasting that they will generate sales revenue of US$340 million.

The uranium under contract is for delivery to major utilities in the US and Europe, representing reliable end markets.

These contracts generate substantial earnings while allowing the company to retain significant quantities of planned uranium production for contracting during future periods.

In the current low-price environment, Peninsula has contracted to purchase 900,000 pounds of uranium over the next three years at an average cost of US$25 per pound.

Consequently, as an established player with steady-state production, even in the low-price environment, Peninsula is still in a position to generate cash.

Exceeds guidance in March quarter

Peninsula produced 43,638 of uranium from its Lance project during the three months to March 31, 2018, representing a quarter-on-quarter increase of 12%.

Wayne Heili said: “The most recent quarter continues our precedent of achieving consecutively higher quarter-over-quarter production levels at Lance.

“We are pleased to report production levels for the most recent quarter that exceed the upper band of our 30,000 to 40,000 pounds."

Daily production rates continue to improve

This is the production range is forecast during the transition phase to low pH operations.

The daily production rate continued to improve through the March quarter, realising an average of 485 pounds of uranium per day during the quarter.

This compares with an average of 427 pounds per day during the December quarter.

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Tue, 24 Apr 2018 14:15:00 +1000 http://www.proactiveinvestors.com.au/companies/news/195619/peninsula-energy-s-us50-per-pound-uranium-sales-contracts-to-2030-generate-cash-while-low-ph-operations-gain-approval-195619.html
<![CDATA[News - Peninsula Energy receives confirmation of finance as it progresses low pH uranium production ]]> http://www.proactiveinvestors.com.au/companies/news/195508/peninsula-energy-receives-confirmation-of-finance-as-it-progresses-low-ph-uranium-production-195508.html Peninsula Energy Ltd (ASX:PEN) has entered into binding offer letters with major shareholders Resource Capital Fund VI L.P. (RCF VI) and Pala Investments Ltd.

Peninsula is a uranium producer with its Lance Project based in Wyoming.

The new facility involves an extension of the maturity date of the existing convertible note facility by two years to April 22, 2020.

Peninsula produced more than 40,000 pounds of uranium in the March quarter but the real focus for the near term is on reducing costs through the introduction of a low pH operation.

Funding chimes in with development of low pH operation

Consequently, this confirmation of funding is timely as it provides financial assurance and balance sheet strength as the company looks to transition to a low pH operation.

Peninsula’s managing director Wayne Heili said: “Peninsula is pleased to have secured this extension to the convertible loan facility with two of our major shareholders.

“The two-year extension will allow Peninsula to achieve a number of important project milestones well before the new maturity date.

“This will greatly assist the company on its path to transition to low pH operations which are expected to significantly lower operating costs and are intended to align Lance with leading global uranium production projects.”

Peninsula reduces facility by US$3 million

The convertible loans will bear interest at the rate of 10% per annum for the first 12-month period up until April 22, 2019, and then 12% thereafter.

The facility will also be reduced from US$20 million to US$17 million following a cash repayment by Peninsula of US$3 million.

Following this payment, Peninsula’s cash position remains strong at about US$20 million.

Furthermore, the company continues to generate cash flow from production at Lance.

Potential conversion of shares at 50% premium

The lenders may elect to convert all or part of the principal amount of the convertible loans, including any capitalised interest, into ordinary shares at any time prior to maturity.

Under the terms of the agreement, this would be at a fixed conversion price of 40 cents per share.

This implies a 48.6% premium to the 5-day volume weighted average price of the company’s shares prior to the date of this announcement.

Option to convert to shares a show of confidence

The fact that the lenders have opted to include the conversion clause and signed off at a premium share price perhaps is an indication of the value they see in the project.

It also underlines the potential share price upside that could occur as the company transitions to a producer with a much lower cost profile.

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Mon, 23 Apr 2018 08:38:00 +1000 http://www.proactiveinvestors.com.au/companies/news/195508/peninsula-energy-receives-confirmation-of-finance-as-it-progresses-low-ph-uranium-production-195508.html
<![CDATA[News - Peninsula Energy enters ASX trading halt ]]> http://www.proactiveinvestors.com.au/companies/news/195418/peninsula-energy-enters-asx-trading-halt-195418.html Peninsula Energy Ltd (ASX:PEN) has been granted a trading halt by the ASX today.

The company requested its shares be halted pending the release of information regarding an extension and restructuring of the existing convertible note facility.

The halt will remain in place until an announcement is made or pre-market next Tuesday, whichever is earlier.

READ: Peninsula Energy exceeds uranium production guidance at Lance project, shares up

Peninsula produced 43,638 pounds of uranium from its Wyoming-based Lance Project during the three months to March 31, 2018.

This represented a quarter-on-quarter increase of 12% and was a catalyst for an increase of almost 10% in Peninsula Energy's shares to an intra-day high of 24 cents.

Notably, production levels for the March quarter exceeded the upper band of the company’s 30,000 to 40,000 pounds production guidance.

Convertible note facility with RCF and Pala

As at 31 December 2017, convertible loans represented a current liability of US$19.73 million on Peninsula’s balance sheet.

These loans are with Resource Capital Funds (RCF) and Pala Investments.

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Fri, 20 Apr 2018 10:25:00 +1000 http://www.proactiveinvestors.com.au/companies/news/195418/peninsula-energy-enters-asx-trading-halt-195418.html
<![CDATA[News - Peninsula Energy takes key step forward in transition to low pH uranium operations ]]> http://www.proactiveinvestors.com.au/companies/news/194472/peninsula-energy-takes-key-step-forward-in-transition-to-low-ph-uranium-operations-194472.html Peninsula Energy Ltd (ASX:PEN) has submitted a request to the Wyoming Department of Environmental Quality (WDEQ) to allow the use of a low-pH recovery solution in the Ross Permit Area of its Lance Projects in Wyoming, US.

Transitioning to a low pH ISR (in-situ recovery) operation could potentially align the operating performance and cost profile of Lance with industry-leading global uranium projects.

Peninsula managing director and chief executive Wayne Heili said: “The submission of the PTM (Permit to Mine) amendment request is the culmination of many months of research, extensive test work and analysis aimed at greatly enhancing the uranium recovery process at Lance and marks an important milestone in the pathway to low pH ISR operations”.

READ: Peninsula Energy on track for transition to low pH uranium operations at Lance Projects

The current PTM for the Lance Projects authorises the use of alkaline and oxidant solutions in the ISR process.

Since uranium recovery efforts commenced in December 2015, the ore deposit at the project has proven only moderately amenable to these alkaline solutions.

Despite improved production rates over the last year, the overall uranium recovery rates of the active ISR operational areas in the Ross Permit Area continue to be below targeted levels.

Aligning with industry-leading global uranium producers

The company conducted a series of bench-scale tests in 2017, which showed a significantly increased recovery rate using low concentrations of sulfuric acid (1.5% or less).

A successful transition to low pH operations could align the operating performance and cost profile of the Lance Projects with current industry-leading global uranium production projects.

Of the 77 million pounds of uranium produced by ISR methods worldwide in 2015, 96% or 74 million pounds came from facilities using low pH lixiviants.

Groundwater levels to be fully restored

The proposed change to low pH operations at the Lance Projects do not require oxidants.

Furthermore, laboratory test results and modelling indicate that groundwater can be fully restored to currently approved values after using low-pH solutions.

WDEQ will now undertake a comprehensive review of the amendment request, analysing the test results and inviting public review and comment on the proposed change.

READ: Peninsula Energy exceeds uranium production guidance at Lance project, shares up

The company produced 43,638 pounds of uranium at the Lance Project during the three months to March 31, 2018, representing a quarter-on-quarter increase of 12%.

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Mon, 09 Apr 2018 12:47:00 +1000 http://www.proactiveinvestors.com.au/companies/news/194472/peninsula-energy-takes-key-step-forward-in-transition-to-low-ph-uranium-operations-194472.html
<![CDATA[News - Peninsula Energy exceeds uranium production guidance at Lance project, shares up ]]> http://www.proactiveinvestors.com.au/companies/news/194383/peninsula-energy-exceeds-uranium-production-guidance-at-lance-project-shares-up-194383.html Peninsula Energy Ltd (ASX:PEN) produced 43,638 pounds of uranium from its Wyoming-based Lance Project during the three months to March 31, 2018.

This represented a quarter-on-quarter increase of 12% and was a catalyst for an increase of almost 10% in Peninsula Energy's shares to an intra-day high of 24 cents.

Managing director Wayne Heili said: “The most recent quarter continues our precedent of achieving consecutively higher quarter-over-quarter production levels at Lance.

Production exceeds guidance

“We are pleased to report production levels for the most recent quarter that exceed the upper band of our 30,000 to 40,000 pounds."

This is the production range that is forecast during the transition phase to low pH operations.

READ: Peninsula Energy on track for transition to low pH uranium operations at Lance Projects

Transitioning to a low pH ISR (in-situ recovery) operation could potentially align the operating performance and cost profile of Lance with industry-leading global uranium projects.

Daily production rates continue to improve

The daily production rate continued to improve through the March quarter, realising an average of 485 pounds of uranium per day during the quarter.

This compares with an average of 427 pounds per day during the December quarter.

Enters June quarter with momentum

Process improvements in 2017 have been largely responsible for ensuring that wellfield flow rates remained relatively stable during challenging winter conditions over the past three months.

The company is maintaining its production guidance levels for the upcoming quarter as it advances the planned transition to low pH operations at Lance. 

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Fri, 06 Apr 2018 10:41:00 +1000 http://www.proactiveinvestors.com.au/companies/news/194383/peninsula-energy-exceeds-uranium-production-guidance-at-lance-project-shares-up-194383.html
<![CDATA[News - Peninsula Energy on track for transition to low pH uranium operations at Lance Projects ]]> http://www.proactiveinvestors.com.au/companies/news/193923/peninsula-energy-on-track-for-transition-to-low-ph-uranium-operations-at-lance-projects-193923.html Peninsula Energy Ltd (ASX:PEN) is on track with its transition to low pH uranium operations at the Lance Projects in the US state of Wyoming.

Amendment applications to the company’s existing permits and licences are expected to be submitted in early April.

The commissioned low pH feasibility study is due for completion mid-year.

READ: Peninsula Energy has buy recommendation reiterated, price target of $1.50

Peninsula’s transition is supported by a long-term uranium concentrate sales contract portfolio of up to 6.6 million pounds of U3O8.

This is to be delivered through to 2030 at a weighted average delivery price of US$51-53 per pound.

READ: Peninsula Energy lifts uranium production for third straight quarter

Peninsula will release first quarter production results next week and based on operating performance to date, production is expected to be 10 to 12% higher than the previous quarter.

If as expected, this will be the fourth successive quarter of production increases from Lance.

The Lance Projects are in a prolific uranium producing area of the US.

Changes to ETF’s uranium index

The company’s second-largest shareholder Global X Uranium Exchange Traded Fund (ETF) is changing the underlying index it uses, the Solactive Global Uranium Total Return Index.

As part of the changes, the index will be expanded to include large companies involved in the global nuclear fuel cycle industry.

This will reduce the proportional representation of all uranium mining and development companies now included in the index.

Holdings likely to be reduced

As the changes are implemented over several months, it is anticipated that the Global X Uranium ETF will reduce its holdings in all uranium mining and development companies, including Peninsula.

These planned changes are not driven by the specific circumstances of any individual company, nor do they change the value proposition of an individual company.

READ: Peninsula Energy lifts cash position with US$19 million uranium sales deal

Peninsula remains well positioned to meet the challenges of the uranium market and to quickly capitalise as uranium market fundamentals improve.

The company has a strong cash position following a US$19 million contract monetisation and is progressing discussions to extend the term of the existing convertible notes.

An update on the status of the intended Karoo divestment process is expected during April.

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Wed, 28 Mar 2018 14:37:00 +1100 http://www.proactiveinvestors.com.au/companies/news/193923/peninsula-energy-on-track-for-transition-to-low-ph-uranium-operations-at-lance-projects-193923.html
<![CDATA[News - Peninsula Energy receives further investment from Global X uranium ETF ]]> http://www.proactiveinvestors.com.au/companies/news/191103/peninsula-energy-receives-further-investment-from-global-x-uranium-etf-191103.html Peninsula Energy Ltd (ASX:PEN) has had major shareholder, Global X Management Company, increase its stake in the company.

Global X, a well-known ETF company, has increased its equity position in Peninsula to 13.06% from 12.03%.

READ: Peninsula Energy has buy recommendation reiterated, price target of $1.50

Peninsula continues to increase uranium production from its flagship Lance Projects in the U.S.

There were circa 38,800 pounds of uranium produced in the December quarter, 4,300 pounds more than the previous quarter.

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Mon, 05 Feb 2018 09:38:00 +1100 http://www.proactiveinvestors.com.au/companies/news/191103/peninsula-energy-receives-further-investment-from-global-x-uranium-etf-191103.html
<![CDATA[News - Peninsula Energy has buy recommendation reiterated, price target of $1.50 ]]> http://www.proactiveinvestors.com.au/companies/news/191036/peninsula-energy-has-buy-recommendation-reiterated-price-target-of-150-191036.html Peninsula Energy Ltd (ASX:PEN) has had its buy recommendation reiterated by New York based investment bank H.C. Wainwright & Co.

The bank continues to forecast upside with a price target of $1.50 on the shares which are trading at $0.39.

Its forecast is supported by Peninsula’s long-term uranium contracts and its plan to transition operations at the Lance Projects in Wyoming to a lower pH solution.

READ: Peninsula Energy lifts cash position with US$19 million uranium sales deal

H.C. Wainwright & Co was established in 1868 and focuses on capital markets and equity research in multiple growth sectors.

Its buy recommendation indicates that Peninsula Energy is expected to outperform a passive index comprised of all the common stock of companies within the same sector.

The following is an extract from the report:

Quarterly results for period ending 31 December 2017

Production during the December 2017 quarter reached 38,828 pounds of uranium.

This was a 12% sequential increase over the September quarter and the third straight quarter that featured production growth.

The production improvement can be mostly attributed to a full quarter of production from header house 8 coupled with initial production from header house 9.

We note that Peninsula has also realised benefits from the production improvement initiatives, which have allowed for more stable production from other header houses.

That said, quarterly production is expected to remain between 30,000 and 40,000 pounds this year.

Some long-term uranium sale and purchase agreements monetised

This was achieved through an agreement to sell a portion of its interests in existing long-term uranium concentrate sale and purchase agreements for $19 million.

The funds are expected to be allocated to working capital, low pH permit amendments, additional technical testing and completion of a low pH feasibility study.

We note that the obligations totalled 935,000 pounds of uranium scheduled to be delivered between 2018 and 2021.

The company also sold its interest in an agreement to purchase 900,000 pounds of uranium to fulfill the delivery commitments mentioned above in the same transaction.

That said, Peninsula still expects to be under contract to deliver up to 6.6 million pounds of uranium between 2018 and 2030, following completion of the sale.

We view the company's decision to monetise a small portion of its future long-term contracts as a non-dilutive way to help finance the transition to low pH mining at the Lance Projects.

We also expect Peninsula's long-term portfolio of sales contracts to continue to provide some shelter from sub-$25 uranium spot prices.

Permit amendment process continues to progress

The company began preparing its permit and licence amendment submissions during the quarter. Peninsula believes that the amendments could be received within the next 18 to 24 months.

The company also had a white paper prepared to analyse ISR utilising low pH systems.

We note that this white paper also discussed current global practices, important regulatory considerations, and future use of a low pH process at the Lance Projects.

In our view, this document should continue to promote essential dialogue between the company, regulators, and other major stakeholders as the permit amendment process continues to advance.

Reiterating Buy rating

We are reiterating our Buy rating and our A$1.50 per share price target.

We plan to adjust current assumptions in our model once additional information is obtained regarding Peninsula's transition to a lower pH solution.

Our valuation remains predicated on a DCF of operations at the Lance Projects utilising a 10% discount rate and average uranium sales price of $55 per pound in 2018 and thereafter, above current spot prices but in-line with PEN’s long-term contractual commitments.

We continue to view Peninsula as a defensive uranium name, primarily due to the existence of higher-priced, long-term contracts and a long mine life.

Risks - 1) Financing risk; 2) uranium price risk; 3) operating and technical risk; and 4) political risk.

READ: Peninsula Energy lifts uranium production for third straight quarter ]]>
Fri, 02 Feb 2018 11:25:00 +1100 http://www.proactiveinvestors.com.au/companies/news/191036/peninsula-energy-has-buy-recommendation-reiterated-price-target-of-150-191036.html
<![CDATA[News - Peninsula Energy lifts cash position with US$19 million uranium sales deal ]]> http://www.proactiveinvestors.com.au/companies/news/190949/peninsula-energy-lifts-cash-position-with-us19-million-uranium-sales-deal-190949.html Peninsula Energy Ltd (ASX:PEN) has strengthened its cash position by selling part of its interests in long-term uranium sale and purchase agreements for US$19 million.

Binding contract sale agreements have been signed with a third-party for a portion of its delivery commitments under two existing concentrate agreements.

The quantity of delivery obligations sold represents 935,000 pounds of uranium.

These commitments were scheduled to be fulfilled between 2018 and 2021.

Financial position “greatly enhanced”

Wayne Heili, managing director said: “One of Peninsula’s defining strengths is our sales contract portfolio.

“We have greatly enhanced our current financial position by accelerating some of the income potential contained in that portfolio.

“This non-dilutive cash infusion should allow the company to comfortably advance our production improvement initiatives at the Lance projects.

“Peninsula greatly appreciates the full cooperation of our counterparties in this transaction.

“The professionalism and creativity exhibited by these industry leaders was on full display throughout the process of arranging this transaction.”

READ: Peninsula Energy lifts uranium production for third straight quarter

As part of the contract sale, Peninsula has also sold its entire interest in an agreement to purchase 900,000 pounds or uranium between 2018 and 2020.

This commitment is no longer required as uranium purchases under this agreement were intended to provide the bulk of material for commitments that have been satisfied through the contract sale.

Strong contract book retained

Peninsula has retained a strong contract book of up to 6.6 million pounds remaining under contract for delivery between 2018 and 2030 with customers in North America and Europe.

The weighted average delivery price of these contracts is US$51-53 per pound of uranium.

Deliveries under the agreements will be a combination of uranium from Peninsula’s Lance projects in Wyoming, U.S.A., and open origin uranium that the company may purchase on the open market.

Possible new agreements

Peninsula continues to engage with existing and potential new customers regarding possible new long-term concentrate sale and purchase agreements.

These are targeting pricing mechanisms that would support increased production scenarios under the company’s planned transition to low pH mining at the Lance projects.

Part of the contract sale proceeds will be used to progress the low pH permit amendments, finalise additional technical testing and complete a low pH feasibility study.

READ: Peninsula Energy’s substantial shareholder lifts position

With a strong cash position and additional financial flexibility, Peninsula does not anticipate the need for a working capital facility over the next 1 to 2 years.

Therefore, the Investec working capital facility has not been extended.

This reduces corporate overhead expenses by eliminating associated line fees, undrawn commitment fees and interest on drawn working capital amounts.

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Thu, 01 Feb 2018 11:13:00 +1100 http://www.proactiveinvestors.com.au/companies/news/190949/peninsula-energy-lifts-cash-position-with-us19-million-uranium-sales-deal-190949.html
<![CDATA[News - Peninsula Energy enters trading halt pending changes to uranium agreements ]]> http://www.proactiveinvestors.com.au/companies/news/190793/peninsula-energy-enters-trading-halt-pending-changes-to-uranium-agreements-190793.html Peninsula Energy Ltd (ASX:PEN) has been granted a trading halt by the ASX pending changes to Peninsula's uranium concentrate sale and purchase agreements.

Shares will remain in a trading halt until the earlier of the commencement of normal trading on Thursday, 1 February 2018, or when the changes are finalised.

READ: Peninsula Energy lifts uranium production for third straight quarter

Peninsula recently achieved its third successive quarter of increased uranium production from the Lance Projects in the U.S.

There were circa 38,800 pounds of uranium produced in the December quarter, 4,300 pounds more than the previous quarter.

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Tue, 30 Jan 2018 12:26:00 +1100 http://www.proactiveinvestors.com.au/companies/news/190793/peninsula-energy-enters-trading-halt-pending-changes-to-uranium-agreements-190793.html
<![CDATA[News - Peninsula Energy lifts uranium production for third straight quarter ]]> http://www.proactiveinvestors.com.au/companies/news/189975/peninsula-energy-lifts-uranium-production-for-third-straight-quarter-189975.html Peninsula Energy Ltd (ASX:PEN) has achieved its third successive quarter of increased uranium production from the Lance Projects in the U.S.

There were circa 38,800 pounds of uranium produced in the December quarter, 4,300 pounds more than the previous quarter.

The average daily production rate improved to 430 pounds during the quarter and this has continued into January with a rate of 500 pounds.

READ: Peninsula Energy’s substantial shareholder lifts position

Wayne Heili, managing director and CEO, said: “We are pleased to be producing at the high end of our 30,000 to 40,000 pounds quarterly forecast range.

“This comes as we prepare to transition the project to what we anticipate will be a substantially more robust and sustainable commercial operation utilising a lower pH mining solution.”

Lance Projects in Wyoming

The Lance ISR uranium operation is in the state of Wyoming, which is a premier uranium extraction jurisdiction, hosting multiple ISR operations.

Process improvement initiatives implemented in 2017 have been largely responsible for ensuring wellfield flow rates remained stable during extreme cold weather in December and early January.

Production from the company’s nine commissioned header houses using alkaline lixiviant will form the basis of ongoing operations over the near-term.

Changing to low pH operation

This will enable Peninsula to progress the various activities and permitting required for the change to a low pH ISR uranium operation.

The company is also constructing the surface facilities associated with the tenth header house to increase operating capacity by mid-2018 or as needed.

Uranium purchases

Peninsula is purchasing uranium from other producers to meet sales commitments.

Peninsula has contracted to purchase 900,000 pounds of uranium over the next 3 years at an average cost of US$25 per pound and its costs are well below sales prices.

The company has up to 7.6 million pounds of uranium remaining under contract for delivery to major utilities in the U.S. and Europe through to 2030 at a weighted average delivery price of US$54.50 per pound.

Projected revenue remaining under these existing long-term contracts is up to US$415 million.

These contracts provide a substantial earnings stream to Peninsula while allowing it to retain significant quantities of planned uranium production for contracting in the future.

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Mon, 15 Jan 2018 09:50:00 +1100 http://www.proactiveinvestors.com.au/companies/news/189975/peninsula-energy-lifts-uranium-production-for-third-straight-quarter-189975.html
<![CDATA[News - Peninsula Energy’s substantial shareholder lifts position ]]> http://www.proactiveinvestors.com.au/companies/news/189621/peninsula-energys-substantial-shareholder-lifts-position-189621.html Peninsula Energy Ltd's (ASX:PEN) substantial shareholder, Global X Management Company, has increased its stake in the uranium miner to 12.03% from 11%.

The New York-based fund now holds almost 28 million shares through its Global X Uranium ETF entity.

It has been steadily increasing its holding in Peninsula through regular share purchases.

In late October the Global X stake had increased to 8.64% from 7.62%.

Producing from Lance project

Peninsula is producing uranium from the Lance ISR Project in the U.S. state of Wyoming.

The state is a premier uranium extraction jurisdiction, hosting multiple ISR operations.

The company is also purchasing uranium from other producers to meet sales commitments.

Production from Lance for the three months ending September was circa 34,500 pounds of uranium with around 42,500 pounds of uranium dried and drummed in the period.

Sales totalled 132,934 pounds, which consisted of 92,934 pounds from Lance and the remaining 40,000 pounds from market purchases.

The average sale price was US$50 per pound for cash receipts of US$6.6 million.

Peninsula was trading at $0.44 today. 

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Mon, 08 Jan 2018 14:38:00 +1100 http://www.proactiveinvestors.com.au/companies/news/189621/peninsula-energys-substantial-shareholder-lifts-position-189621.html
<![CDATA[News - Peninsula Energy's substantial shareholder lifts position ]]> http://www.proactiveinvestors.com.au/companies/news/187862/peninsula-energy-s-substantial-shareholder-lifts-position-187862.html Peninsula Energy Ltd's (ASX:PEN) substantial shareholder, Global X Management Company, has increased its stake in the company to 9.94% from 8.64%.

Peninsula is producing uranium from the Lance ISR Project in the U.S. state of Wyoming.

Wyoming is a premier uranium extraction jurisdiction, hosting multiple ISR operations.

READ: Peninsula Energy records positive quarterly operating cash flow

Peninsula continues to take advantage of the current low uranium price environment by purchasing uranium to meet commitments under certain term contracts.

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Tue, 28 Nov 2017 09:58:00 +1100 http://www.proactiveinvestors.com.au/companies/news/187862/peninsula-energy-s-substantial-shareholder-lifts-position-187862.html
<![CDATA[News - Peninsula's David Coyne discussed unlocking the full potential of Lance Projects at Proactive's CEO Sessions ]]> http://www.proactiveinvestors.com.au/companies/news/187190/peninsula-s-david-coyne-discussed-unlocking-the-full-potential-of-lance-projects-at-proactive-s-ceo-sessions-187190.html Peninsula Energy Ltd's (ASX:PEN) finance director, David Coyne, joined Proactive's CEO Sessions in Melbourne and Sydney this week.

Peninsula is producing uranium from the Lance Projects in Wyoming, U.S., and the company has a world-class technical, financial and commercial team.

The projects contain resources of 53.5 million pounds of uranium, and is licensed to produce up to 3 million pounds per annum.

A game-changing low pH lixiviant is being evaluated.

ACCESS THE FULL PRESENTATION HERE

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Thu, 16 Nov 2017 13:52:00 +1100 http://www.proactiveinvestors.com.au/companies/news/187190/peninsula-s-david-coyne-discussed-unlocking-the-full-potential-of-lance-projects-at-proactive-s-ceo-sessions-187190.html
<![CDATA[News - Peninsula Energy to discuss positive cash flow from uranium sales at Proactive's CEO Sessions ]]> http://www.proactiveinvestors.com.au/companies/news/186449/peninsula-energy-to-discuss-positive-cash-flow-from-uranium-sales-at-proactive-s-ceo-sessions-186449.html Peninsula Energy Ltd (ASX:PEN) delivered positive operating cash flow and a 13% increase in uranium recovered in the September 2017 quarter, compared to the previous period, from the flagship Lance Projects in the U.S. state of Wyoming.

The quarterly production increase was due to header house 7 which operated for the full quarter and header house 8 which came online.

Quarterly sales generated cash proceeds of US$6.6 million, which was in line with forecasts, and the company holds US$11.8 million in cash.

Find out more from David Coyle at Proactive's CEO Sessions.

Click below to register by email

- Melbourne: Tuesday 14th November.
- Sydney: Wednesday 15th November.
- Email Pauline here.
- Call office on (02) 9280 0700.

Presenter list

- Zelda Therapeutics (ASX:ZLD): Dr. Stewart Washer
- Thred Ltd (ASX:THD): Geoff Marshall
- De Grey Mining (ASX:DEG): Simon Lill
- Peninsula Energy (ASX:PEN): David Coyle

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Fri, 03 Nov 2017 12:11:00 +1100 http://www.proactiveinvestors.com.au/companies/news/186449/peninsula-energy-to-discuss-positive-cash-flow-from-uranium-sales-at-proactive-s-ceo-sessions-186449.html
<![CDATA[News - Peninsula Energy records positive quarterly operating cash flow ]]> http://www.proactiveinvestors.com.au/companies/news/186460/peninsula-energy-records-positive-quarterly-operating-cash-flow-186460.html Peninsula Energy (ASX:PEN) had a solid September quarter supported by positive operating cash flow and a 13% increase in uranium recovered over the prior quarter.

During the quarter, the company produced 34,658 pounds of uranium and dried and drummed 42,665 pounds uranium from its flagship Lance Project located in the U.S. state of Wyoming.

The quarterly production increase was due to header house 7 which operated for the full quarter and header house 8 which came online during the quarter.

Quarterly sales generated cash proceeds of US$6.6 million, which was in line with forecasts and the company cash position was US$11.8 million at the quarter’s end.

Furthermore, recent encouraging research results at Lance have shown there is potential to transform the operating performance and cost profile at the project.

READ NOW: Peninsula Energy's game-changer adds potential for Lance to be in first quartile of uranium producers September operating performance

Focus during the quarter continued on operational improvement at the Lance Projects with production continuing at an average daily rate of ~400 pounds uranium per day.

Further improvement in performance is targeted as new header houses ramp up and production improvement initiatives are refined.

Current production rate targets are established so that production levels would meet the Lance Projects sourced delivery commitments under existing term contracts.

Peninsula continues to take advantage of the current low uranium price environment by purchasing uranium to meet commitments under certain term contracts.

Construction on header house 9 was completed during the quarter production from the nine commissioned header houses will form the basis of on-going operations over the near-term.

Sales prices still well below cost prices

Sales during the quarter totalled 132,934 pounds uranium which comprised 92,934 pounds from Lance and 40,000 pounds from market purchases.

The sales were made at an average price of US$50 per pound which generated cash receipts of US$6.6 million.

Considering Peninsula has contracted to purchase 900,000 pounds uranium over the next 3 years at an average cost of US$25 per pound, costs are still well below sales prices.

Peninsula currently has up to 7.6 million pounds of uranium remaining under contract for delivery to major utilities located in the U.S. and Europe through to 2030 at a weighted average delivery price of US$54.50 per pound.

Projected revenue remaining under these existing long-term contracts is up to US$415 million.

These contracts provide a substantial earnings stream to Peninsula whilst allowing it to retain significant quantities of planned uranium production for contracting during future periods.

Research sheds light on potential game-changing transformation

Currently, Peninsula uses and is permitted for an alkaline lixiviant leaching process to extract uranium at the Lance Projects.

However, recent laboratory testing results indicate that using a low pH ISR solution could transform the operating performance and cost profile at Lance.

Test results showed average uranium grades using lower pH solution were over 10 times higher than current average alkaline solution grades.

Furthermore, a 95% uranium recovery was achieved during low pH testing compared to 40% recovery at the same stage under actual alkaline operations.

To change to a low pH solution will require the approval of amendment requests for the existing permits and licenses.

Initial discussions with the relevant regulatory authority have been positive and have not identified any legal impediments.

Based on these preliminary discussions, Peninsula holds a reasonable expectation that amendments to existing operating permits and licenses could be granted within the next 18 to 24 months.

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Tue, 31 Oct 2017 15:35:00 +1100 http://www.proactiveinvestors.com.au/companies/news/186460/peninsula-energy-records-positive-quarterly-operating-cash-flow-186460.html
<![CDATA[News - Peninsula Energy's substantial shareholder boosts stake ]]> http://www.proactiveinvestors.com.au/companies/news/186378/peninsula-energy-s-substantial-shareholder-boosts-stake-186378.html Peninsula Energy Ltd's (ASX:PEN) substantial shareholder, Global X Management, has lifted its stake in the company to 8.64% from 7.62%.

Peninsula produces uranium from its Lance Projects in Wyoming, U.S.

Production for the three months ending September was circa 34,500 pounds of uranium with around 42,500 pounds of uranium dried and drummed in the period.

Sales totalled 132,934 pounds of uranium, which consisted of 92,934 pounds from Lance and the remaining 40,000 pounds from market purchases.

The average sale price was US$50 per pound for cash receipts of US$6.6 million.

READ NOW: Peninsula's game-changer adds potential for Lance to be in first quartile of uranium producers ]]>
Mon, 30 Oct 2017 10:54:00 +1100 http://www.proactiveinvestors.com.au/companies/news/186378/peninsula-energy-s-substantial-shareholder-boosts-stake-186378.html
<![CDATA[News - Peninsula Energy's game-changer adds potential for Lance to be in first quartile of uranium producers ]]> http://www.proactiveinvestors.com.au/companies/news/186315/peninsula-energy-s-game-changer-adds-potential-for-lance-to-be-in-first-quartile-of-uranium-producers-186315.html Peninsula Energy Ltd (ASX:PEN) has taken another step towards unlocking the full potential of its Lance Projects in Wyoming, U.S.

Laboratory testing indicates that using an alternative mining solution could transform the Lance Project’s operating performance and cost profile to be much closer to global industry leading ISR projects.

This is a game-changer for Peninsula, as the company is looking at a process development that could place the large scale project side by side with world leading uranium ISR production facilities from a performance and cost perspective.

How will this be achieved

Multiple laboratory tests confirm extremely positive results using a lower pH solution chemistry on Lance core samples.

Samples have returned dramatically increased peak uranium solution grades averaging nearly 1.0 g/L with uranium recoveries typically over 90%.

These initial results indicate that utilising a low pH system could be a major transformational development for Lance and could align the operating performance and cost profile with the industry leading global uranium production projects.

All first quartile uranium operations globally are ISR utilising a low pH lixiviant.

Wayne Heili, managing director, commented:

"From a regulatory perspective, we have received a positive response from the relevant regulator which bodes well for a smooth and timely process to amend existing permits.

"In the interim the company will continue to steadily produce uranium as we are now, supported by a very strong contract base which underpins Peninsula’s business plan."

Importantly, no legal impediments have been identified to use of low pH ISR solutions at Lance.

The company’s current production and uranium sales contract portfolio provides a consistent revenue stream throughout the transformation timeline.

Analysis

The transition to a low pH recovery system could not only positively transform Peninsula’s key asset in the U.S. during the currently challenging uranium market conditions, but could also ultimately position the company to rapidly grow when uranium markets recover.

Moving to current production, the September quarter results show a consistent improvement over recent periods.

Production from Lance for the three months ending September was circa 34,500 pounds of uranium with around 42,500 pounds of uranium dried and drummed in the period.

Sales totalled 132,934 pounds of uranium, which consisted of 92,934 pounds from Lance and the remaining 40,000 pounds from market purchases.

The average sale price was US$50 per pound for cash receipts of US$6.6 million.

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Fri, 27 Oct 2017 14:11:00 +1100 http://www.proactiveinvestors.com.au/companies/news/186315/peninsula-energy-s-game-changer-adds-potential-for-lance-to-be-in-first-quartile-of-uranium-producers-186315.html
<![CDATA[News - Peninsula Energy tightens its focus on the Lance Projects ]]> http://www.proactiveinvestors.com.au/companies/news/185754/peninsula-energy-tightens-its-focus-on-the-lance-projects-185754.html Peninsula Energy Ltd (ASX:PEN) is producing uranium from its Lance Projects in the U.S., where it delivered positive cash flow for the June quarter 2017.

READ NOW: Peninsula delivers positive free cash generation from uranium sales

The company has highlighted a stronger focus on these key assets, by deciding to exit and sell its interests in the Karoo Projects in South Africa.

Peninsula said that it intends to complete a divestment of its 74% interest in the Projects through an active process over the remainder of the 2017 calendar year.

Dependent on the nature of any transaction, Peninsula may opt to retain some level of exposure, albeit at a significantly reduced level to that which it currently holds.

The move will allow Peninsula to focus its future capital expenditures on the operating Lance Projects to best take full advantage of its long term sales contracts, which are well above current and forecast spot prices and extend out to 2030.

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Wed, 18 Oct 2017 10:39:00 +1100 http://www.proactiveinvestors.com.au/companies/news/185754/peninsula-energy-tightens-its-focus-on-the-lance-projects-185754.html
<![CDATA[News - Peninsula Energy rewards Wayne Heili with unlisted options ]]> http://www.proactiveinvestors.com.au/companies/news/184340/peninsula-energy-rewards-wayne-heili-with-unlisted-options-184340.html Peninsula Energy Ltd (ASX:PEN) is a uranium producer from its Lance Projects in the U.S., and under a recent management transition process,  Wayne Heili was appointed managing director and chief executive officer.

Heili is approaching his six-month anniversary and the board has recognised this contribution by resolving to grant 900,000 unlisted $0.50 options which will vest in equal proportions over a 3 year period.

READ NOW: Peninsula delivers positive free cash generation from uranium sales

Peninsula‘s wholly-owned subsidiary Strata Energy Inc. began in-situ uranium recovery operations from the Ross Permit Area at Lance in December 2015.

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Thu, 21 Sep 2017 12:55:00 +1000 http://www.proactiveinvestors.com.au/companies/news/184340/peninsula-energy-rewards-wayne-heili-with-unlisted-options-184340.html
<![CDATA[News - Peninsula Energy delivers positive free cash generation from uranium sales ]]> http://www.proactiveinvestors.com.au/companies/news/181740/peninsula-energy-delivers-positive-free-cash-generation-from-uranium-sales-181740.html Peninsula Energy Ltd (ASX:PEN) has delivered a major milestone with its first positive free cash flow quarter achieved from the sale of uranium, produced from its Lance Projects in the U.S.

Peninsula produced 30,574 pounds during the June 2017 quarter, a 21% increase over the prior three month period.

The cash proceeds received from sales of US$7.2 million in June quarter were in line with forecasts.

Opportunity from lower uranium prices

Current production is focused on meeting its Lance Projects sourced delivery commitments under existing term contracts.

Peninsula also continues to take advantage of the current low spot price when it can purchase uranium to meet additional commitments under term contracts.

Uranium is currently priced just above US$20 a pound.

Peninsula has contracted to purchase 900,000 pounds of uranium over the next three years at an average cost of US$25 per pound to meet non-Lance sourced delivery commitments under term contracts.

Peninsula currently has up to 7.7 million pounds of uranium remaining under contract for delivery to major utilities located in the United States and Europe through to 2030 at a weighted average delivery price of US$54/lb U3O8.

Projected revenue remaining under these existing long term contracts is up to US$420 million.

Peninsula held cash of US$12.6 million at the end of June 2017.

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Tue, 01 Aug 2017 11:09:00 +1000 http://www.proactiveinvestors.com.au/companies/news/181740/peninsula-energy-delivers-positive-free-cash-generation-from-uranium-sales-181740.html
<![CDATA[News - Peninsula Energy managing director buys shares on-market ]]> http://www.proactiveinvestors.com.au/companies/news/179352/peninsula-energy-managing-director-buys-shares-on-market-179352.html Peninsula Energy (ASX:PEN) has had 115,000 shares purchased by its managing director and CEO, Wayne Heili.

Heili purchased the 115,000 shares for $37,689.86 resulting in an average price of $0.3277.

Peninsula is currently experiencing improved operational performance at its flagship Lance Projects located in Wyoming, U.S.

The daily rate of uranium production recently increased to above 400 pounds per day, a 40% increase from the March 2017 quarter daily average.

Production in the June quarter is expected to be circa 30,000 pounds of uranium oxide which is a 20% improvement over the March 2017 quarter.

The Lance Projects have a mine life of at least 20 years, underpinned by 53.7 million pounds of uranium, the largest uranium ISR JORC-Code compliant resource in North America.

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Fri, 16 Jun 2017 12:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/179352/peninsula-energy-managing-director-buys-shares-on-market-179352.html
<![CDATA[News - Peninsula Energy has Buy rating reiterated by New York broker ]]> http://www.proactiveinvestors.com.au/companies/news/179346/peninsula-energy-has-buy-rating-reiterated-by-new-york-broker-179346.html Peninsula Energy (ASX:PEN) has had its Buy rating reiterated by New York based investment bank, Rodman & Renshaw.

The investment bank continues to forecast upside with a A$1.75 price target supported by Peninsula’s long term uranium contracts continuing to provide healthy margins.

An extract from the report is below:


On June 14, 2017, Peninsula provided an update for its operations at the Lance Projects.

The firm is expected to produce 30,000 pounds of uranium in the quarter ending in June, which would be a 20% improvement over the prior quarter ending in March.

Operations have improved, with the daily average rate of production increasing almost 40% from the prior quarter.

We note that the average daily rate of production in the current quarter was above 400 pounds per day, in part due to additional Header houses.

Header houses 5 and 6 were activated in 2017, and production has improved at each since they were brought online.

In May, header house 7 was turned to the Central Processing Plant (CPP) and also began contributing to total production.

Overall, operating wells have responded favorably to multiple improvement initiatives implemented by the company in the current quarter.


Additional production options are expected to come online.

Construction at Header house 8 is now complete, and the house has began operating in re-circulation mode.

The company anticipates turning header house 8 towards the CPP in July. At the same time, the company plans to continue with the roll out of header houses 9 and 10 as well.

While we do not expect the additional capacity to be used to ramp up production in the near future, we do think it may provide increased flexibility in allowing optimization of average uranium grades among the various header houses and a shorter-term ramp-up of operations once prices improve.


Lower production to continue in the near term.

We note that current production target levels should remain subdued as additional production isn't needed to fulfill the company's sourced delivery commitments under existing contracts.

The company has contracted sales for 7.7 million pounds of uranium through 2030 at a weighted average delivery price of $54 per pound.

In addition, the company has contracted to purchase 900,000 pounds of uranium over the next three years at an average cost of $25 per pound.

We think that limiting the company's exposure to the current weak uranium price environment by making additional purchases at the current spot price makes sense.


Long-term contracts should help to maintain healthy margins.

Given that Peninsula has a number of long-term contracts totaling 7.7 million pounds at an average price of $54 per pound, we believe that substantial margins should continue to be realized despite the current weak uranium price.

With spot purchases over the next few years around $25, the company could maintain margins above 50%, which is extremely impressive in today's market.

We still envision the Stage 2 expansion beginning in 2019 with the incremental Stage 3 expansion beginning in 2022.

However, until these expansions are initiated, we expect the company to maintain healthy margins by producing less and purchasing more at the spot price.


We are reiterating our Buy rating and A$1.75 per share price target.

Our valuation remains predicated on a DCF of operations at the Lance Projects utilizing a 10.0% discount rate and average uranium sales price of $53 per pound in 2017 and $55 per pound thereafter in-line with PEN’s long-term contractual commitments.

We continue to view Peninsula as a defensive uranium name, primarily due to the existence of higher-priced, long-term contracts.

In our view, these contracts should not only allow Peninsula to survive the current downturn, but position the firm to thrive once prices increase and expansion plans are moved forward.

 

Risks. 1) Financing risk; 2) uranium price risk; 3) operating and technical risk; 4) political risk.

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Fri, 16 Jun 2017 08:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/179346/peninsula-energy-has-buy-rating-reiterated-by-new-york-broker-179346.html
<![CDATA[News - Peninsula Energy increasing daily rate of uranium production ]]> http://www.proactiveinvestors.com.au/companies/news/179192/peninsula-energy-increasing-daily-rate-of-uranium-production-179192.html Peninsula Energy (ASX:PEN) is seeing improved operational performance during the current June quarter at its flagship Lance Projects located in Wyoming, U.S.

The daily rate of uranium production has now increased to above 400 pounds per day, a 40% increase from the March 2017 quarter daily average.

Production in the June quarter is expected to be circa 30,000 pounds of uranium oxide which is a 20% improvement over the March 2017 quarter.

The Lance Projects have a mine life of at least 20 years, underpinned by 53.7 million pounds of uranium, the largest uranium ISR JORC-Code compliant resource in North America.

Multiple headers houses are used to extract uranium and currently seven header houses are in simultaneous operation.

Construction on header house 8 is now complete and the roll out of header houses 9 and 10 will continue.

The improvement in production evident this quarter continues to support guidance for the year of a minimum of 150,000 pounds uranium oxide for the 2017 calendar year.

 

Uranium contracts

Current production target levels have been set to meet Lance Projects sourced delivery commitments under existing term contracts.

In the current low uranium spot price environment, the company has contracted to purchase 900,000 pounds uranium oxide over the next 3 years at an average cost of US$25 per pound to meet additional non-Lance Project sourced delivery commitments under term contracts.

With up to 7.7 million pounds uranium oxide of remaining contracted sales through to 2030 at a weighted average delivery price of US$54 per pound, Peninsula is able to limit its exposure to the spot market during periods of low prices. 

In summary, Peninsula continues to buy its uranium at much lower prices than which it is selling it.

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Wed, 14 Jun 2017 12:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/179192/peninsula-energy-increasing-daily-rate-of-uranium-production-179192.html
<![CDATA[News - Peninsula Energy buying uranium low, selling high ]]> http://www.proactiveinvestors.com.au/companies/news/177689/peninsula-energy-buying-uranium-low-selling-high-177689.html Peninsula Energy (ASX:PEN) is forecasting a cash positive current June quarter, largely thanks to its contract sales book that that has locked in an averages sales price of US$54 per pound.

To illustrate, year to date, Peninsula has sold 250,000 pounds of uranium at an average price of US$54 per pound.

Of this 250,000 pounds sold, 100,000 pounds was produced from Peninsula’s flagship Lance Projects located in Wyoming, U.S. and the remaining 150,000 pounds was purchased.

Peninsula is buying its uranium much lower than it is selling it, with contracts secured to purchase a further 300,000 pounds over the next 3 years at an average price of US$25 per pound.

Existing contracts over the next decade have a projected revenue of US$420 million meaning Peninsula is ideally positioned for a future rebound in uranium prices.


Background

Peninsula is producing uranium from the Lance Projects in the U.S. state of Wyoming.

The Lance Projects have a mine life of at least 20 years, underpinned by 53.7 million pounds of uranium, the largest uranium ISR JORC-Code compliant resource in North America.

Production for the previous March quarter was 25,2938 pounds uranium.

Multiple headers houses are used to extract uranium and currently seven header houses are in simultaneous operation.

Header house #8 is under construction and is due online in the current June quarter.

Peninsula also owns 74% of the undeveloped Karoo Projects in South Africa, which have a JORC resource of 56.9 million pounds uranium grading 1,108 ppm.

Karoo has the potential to be a second long-life asset for Peninsula.


Uranium market commentary

A common theme in the uranium market is production restraint with a number of the large uranium miners cutting production by 10-12% in the March quarter.

However, the demand for carbon-free nuclear power continues to grow with utilities now having over 800 million pounds of uranium uncovered over the next 10 years.

The consensus is that the secondary supplies can’t and won’t cover this supply gap over the long term.


All eyes on Peninsula

Peninsula has been recognised as a compelling place to be to play a uranium rebound and this is recognised by both its major shareholders and research coverage.

It boasts major shareholders that include Resource Capital Funds, Pala Investments, Global X Funds, BlackRock Funds and Areva.

Peninsula is currently covered by five research houses.

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Fri, 12 May 2017 11:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/177689/peninsula-energy-buying-uranium-low-selling-high-177689.html
<![CDATA[News - Peninsula Energy outlines board changes ]]> http://www.proactiveinvestors.com.au/companies/news/175483/peninsula-energy-outlines-board-changes-175483.html Peninsula Energy (ASX:PEN) has advised that John (Gus) Simpson will be stepping down from his position as managing director and chief executive officer and also from the board of the company and all its subsidiaries, effective immediately.

Peninsula is producing uranium from the Lance Projects in the U.S. state of Wyoming.

The company noted in a statement that the decision follows careful consideration by the board of the key operational and commercial priorities for Peninsula in the near term and beyond, together with the skillsets required to further progress the company.

Wayne Heili, an experienced uranium mining executive, has been appointed to the role of managing director and chief executive officer, effective 3 April 2017.

John Harrison, chairman, commented: "We are fortunate to be able to secure such a highly qualified senior uranium executive at this important time for the
company.

"Wayne oversaw the development and operation of the successful Lost Creek insitu uranium project in Wyoming and brings industry specific operational and corporate expertise to the company as we progress the ramp-up of the Lance Projects and studies at the Karoo Projects."


Other changes

Warwick Grigor and Richard Lockwood have also agreed to step down from the board.

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Tue, 28 Mar 2017 11:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/175483/peninsula-energy-outlines-board-changes-175483.html
<![CDATA[News - Peninsula Energy flooded with demand for in-the-money raising ]]> http://www.proactiveinvestors.com.au/companies/news/174572/peninsula-energy-flooded-with-demand-for-in-the-money-raising-174572.html Peninsula Energy (ASX:PEN) has resolved to increase its share purchase plan (SPP) to raise $14.2 million from the original $6.5 million after receiving overwhelming demand.

The SPP increase came after the company received more than 1,340 applications from eligible shareholders for a total of $15.02 million.

With shares trading at $0.62, the offer was in-the-money as eligible shareholders were able to subscribe for up to $15,000 worth of shares priced at $0.50.

In line with Peninsula’s debt reduction drive, additional proceeds from the SPP will be used to repay all debt drawn on the Investec revolving loan facility.

Gus Simpson, managing director, commented: “In light of the significant SPP demand, the board felt it appropriate to maximise shareholder participation by keeping the scale back to a minimum.”


Background

Peninsula is producing uranium from the Lance Projects in the U.S. state of Wyoming.

The Lance Projects have a mine life of at least 20 years, underpinned by 53.7 million pounds of uranium, the largest uranium ISR JORC-Code compliant resource in North America.

Production for the 6 months ended 31 December 2016 was 84,000 pounds uranium.

Multiple headers houses are used to extract uranium and Stage 1 steady state production will see up to seven header houses in simultaneous operation.

Funding from the recent capital raisings will be used for the construction and roll-out of additional header houses (header houses #8 to #10) at the Lance Projects.

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Fri, 10 Mar 2017 09:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/174572/peninsula-energy-flooded-with-demand-for-in-the-money-raising-174572.html
<![CDATA[News - Peninsula Energy closes heavily oversubscribed share purchase plan ]]> http://www.proactiveinvestors.com.au/companies/news/174343/peninsula-energy-closes-heavily-oversubscribed-share-purchase-plan-174343.html Peninsula Energy (ASX:PEN) has been swamped by existing shareholders wanting to participate in the company's share purchase plan (SPP).

The SPP was priced at $0.50, the same as a price as the recent placement, and a recent increase in the uranium price had the offer trading in-the-money.

Peninsula last traded at $0.67.

The underwritten SPP was for A$6.5 million, and was heavily oversubscribed attracting 1340 applications for circa A$15.47 million.

A scale back is expected, with details to come.

The issue date for the SPP shares is 13 March 2017.

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Tue, 07 Mar 2017 10:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/174343/peninsula-energy-closes-heavily-oversubscribed-share-purchase-plan-174343.html
<![CDATA[News - Peninsula Energy's in-the-money offer gets snapped up with glee ]]> http://www.proactiveinvestors.com.au/companies/news/173643/peninsula-energy-s-in-the-money-offer-gets-snapped-up-with-glee-173643.html Peninsula Energy (ASX:PEN) has recently had a share price re-rating on the back of a surging uranium price.

The timing happened to be spot on for shareholders, and following a placement at $0.50 per share, the company priced the share purchase plan (SPP) at the same level.

Peninsula last traded at $0.68, and has been as high as $0.91 this year.

The SPP for $6.5 million is fully-underwritten, and Peninsula said that valid applications received as at the close of business on Wednesday 22 February 2017 totalled $5.9 million, representing a 91% take up to date.

Eligible shareholders can apply for either of the following denomination parcels: $2,500, $5,000, $7,500, $10,000, $12,500 or $15,000.

Peninsula added that applications may be scaled back based on demand.

Offer closes: 5.00 pm (Perth time) 3 March 2017.

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Fri, 24 Feb 2017 08:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/173643/peninsula-energy-s-in-the-money-offer-gets-snapped-up-with-glee-173643.html
<![CDATA[News - Peninsula Energy: Global X Management once again increases stake ]]> http://www.proactiveinvestors.com.au/companies/news/173359/peninsula-energy-global-x-management-once-again-increases-stake-173359.html Peninsula Energy's (ASX:PEN) substantial holder, Global X Management Company Co LLC, continues to increase its stake in the uranium producer.

Global X now holds 8.68%, up from 7.46%.

This is the third time over the past month the fund has notified an increased change of interests.

Peninsula is producing uranium from the Lance Projects which have a mine life of at least 20 years, underpinned by 53.7 million pounds, the largest uranium ISR JORC-Code compliant resource in North America.


In-the-money share-purchase-plan

Peninsula has opened its in-the-money share purchase plan, offering shares at $0.50, which is the same price as the recent placement.

Following a rebound in the uranium price, Peninsula is trading at circa $0.74 a share.

Eligible shareholders can apply for either of the following denomination parcels: $2,500, $5,000, $7,500, $10,000, $12,500 or $15,000.

Peninsula added that applications may be scaled back based on demand, as the offer is seeking to raise $6.5 million.

Offer closes: 5.00 pm (Perth time) 3 March 2017.

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Mon, 20 Feb 2017 08:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/173359/peninsula-energy-global-x-management-once-again-increases-stake-173359.html
<![CDATA[News - Peninsula Energy opens in-the-money share purchase plan ]]> http://www.proactiveinvestors.com.au/companies/news/172894/peninsula-energy-opens-in-the-money-share-purchase-plan-172894.html Peninsula Energy (ASX:PEN) has now opened its in-the-money share purchase plan, offering shares at $0.50, which is the same price as the recent placement.

Peninsula shares last traded at $0.78, with recent strong gains due to the uranium price increasing by around one-third.

Eligible shareholders can apply for either of the following denomination parcels: $2,500, $5,000, $7,500, $10,000, $12,500 or $15,000.

Peninsula added that applications may be scaled back based on demand, as the offer is seeking to raise $6.5 million.


Key details:

- Offer closes: 5.00 pm (Perth time) 3 March 2017.
- Issue of new shares: 13 March 2017.
- Quotation of new shares on ASX: 14 March 2017.
- Dispatch of holding statements: 14 March 2017.

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Thu, 09 Feb 2017 12:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/172894/peninsula-energy-opens-in-the-money-share-purchase-plan-172894.html
<![CDATA[News - Peninsula Energy's substantial holder continues to lift stake ]]> http://www.proactiveinvestors.com.au/companies/news/172886/peninsula-energy-s-substantial-holder-continues-to-lift-stake-172886.html Peninsula Energy's (ASX:PEN) substantial holder, Global X Management Company Co LLC, has once again advised the company of an increased position.

Global X now holds 7.46%, up from 6.40%.

The company is producing uranium from the Lance Projects which have a mine life of at least 20 years, underpinned by 53.7 million pounds, the largest uranium ISR JORC-Code compliant resource in North America.


Share purchase plan underway

Peninsula currently has a share purchase plan open, offering $15,000 at $0.50 a share, the same price as the recent placement.

The company is expected to receive very strong interest as the offer is heavily in the money, with shares currently trading at $0.78.

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Thu, 09 Feb 2017 09:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/172886/peninsula-energy-s-substantial-holder-continues-to-lift-stake-172886.html
<![CDATA[News - Peninsula Energy to boost cash position with underwritten share plan ]]> http://www.proactiveinvestors.com.au/companies/news/172657/peninsula-energy-to-boost-cash-position-with-underwritten-share-plan-172657.html Peninsula Energy (ASX:PEN) is set to further boost its cash position with the underwriting on a share purchase plan (SPP).

Peninsula is already expected to receive very strong interest as the offer is heavily in the money, as the company's shares have recently traded firmer following a circa 30% jump in the price of uranium.

The company is producing uranium from the Lance Projects which have a mine life of at least 20 years, underpinned by 53.7 million pounds, the largest uranium ISR JORC-Code compliant resource in North America.

Gus Simpson, managing director and CEO, commented:

“We are pleased to offer the opportunity to our existing shareholders to participate in this SPP, which together with the recently completed placement enables the company to continue the production ramp-up under the recently implemented streamlined operating strategy.

"We have seen a buoyant start to the new year in the uranium industry, with increases in the spot price and the announcement that Kazatomprom will reduce production by 10% this year reflected in widespread increases in uranium company valuations.

"This in turn has resulted in an attractively priced investment opportunity for Peninsula’s existing shareholders”.


SPP details

The plan will offer $15,000 at $0.50 a share, the same price as the recent placement.

Offer documents will be dispatched this week.

Peninsula is currently trading at $0.73, and a fortnight ago spiked to $0.91, as the bear market in uranium came to an abrupt halt, and investors scrambled to snap up stocks with exposure to the commodity.

UK stockbroker Numis Securities has underwritten the offer.


Peninsula comment

The company is expecting strong demand, and noted that it may scale back applications to the extent and in the manner it sees fit, if they exceed $6.5 million in aggregate.

Peninsula said eligible shareholders are encouraged to submit their applications early.

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Mon, 06 Feb 2017 09:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/172657/peninsula-energy-to-boost-cash-position-with-underwritten-share-plan-172657.html
<![CDATA[News - Peninsula Energy substantial holder lifts stake as uranium price rallies ]]> http://www.proactiveinvestors.com.au/companies/news/172316/peninsula-energy-substantial-holder-lifts-stake-as-uranium-price-rallies-172316.html Global X now holds a 6.4% interest, up from 5.32%.

Peninsula is producing uranium from the Lance Projects, which are located in Wyoming, U.S.

Shares in the company have been performing strongly recently, up around 60% since the $8.5 million capital raising in December 2016.

The price of uranium has added a third in value over the time.

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Mon, 30 Jan 2017 07:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/172316/peninsula-energy-substantial-holder-lifts-stake-as-uranium-price-rallies-172316.html
<![CDATA[News - Peninsula Energy gains a new substantial shareholder ]]> http://www.proactiveinvestors.com.au/companies/news/171569/peninsula-energy-gains-a-new-substantial-shareholder-171569.html Peninsula recently raised $8.5 million through the placement of shares at $0.50 and intends to raise up to an additional $5 million through an in-the-money share purchase plan offer.

The funding will allow Peninsula to implement a streamlined operational strategy to enhance business performance from the uranium-producing Lance Projects located in Wyoming, U.S.


Uranium re-rating

Over the past three weeks, the price of uranium has increased over 20%, potentially signalling the commodity has bottomed out.

Peninsula shares have rebounded circa 70% since the raising, with shareholders now awaiting the next news on the potential share purchase plan.

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Fri, 13 Jan 2017 08:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/171569/peninsula-energy-gains-a-new-substantial-shareholder-171569.html
<![CDATA[News - Peninsula Energy shares continue to fly high in 2017 ]]> http://www.proactiveinvestors.com.au/companies/news/171438/peninsula-energy-shares-continue-to-fly-high-in-2017-171438.html During December, the company raised $8.5 million through the placement of shares at $0.50 and will look to raise up to an additional $5 million through a SPP at the same price.

Peninsula last traded at $0.78, a significant premium.

The company intends to finalise and announce the results of the SPP shortly.

Peninsula is producing uranium from the Lance Projects which have a mine life of at least 20 years, underpinned by 53.7 million pounds, the largest uranium ISR JORC-Code compliant resource in North America.

Funds raised from both the placement and planned SPP are being used to roll-out header houses 8, 9 and 10 at the Lance Projects and to strengthen the company’s balance sheet.

While Peninsula is insulated from current uranium prices through its existing long term contracts, there have been positive signs in the market with uranium prices bouncing circa 20% off their November lows.

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Wed, 11 Jan 2017 12:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/171438/peninsula-energy-shares-continue-to-fly-high-in-2017-171438.html
<![CDATA[News - Peninsula Energy responds to ASX query after 36% jump ]]> http://www.proactiveinvestors.com.au/companies/news/171284/peninsula-energy-responds-to-asx-query-after-36-jump-171284.html Peninsula said it was unaware of any reason for the change in trading.

The company did however note that there were widespread increases in the share prices of uranium companies in North America recently, and on the ASX.

The uranium price has increased close to 20% in recent weeks.


Background

Peninsula is producing uranium from the Lance Projects which have a mine life of at least 20 years, underpinned by 53.7 million pounds, the largest uranium ISR JORC-Code compliant resource in North America.

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Mon, 09 Jan 2017 08:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/171284/peninsula-energy-responds-to-asx-query-after-36-jump-171284.html
<![CDATA[News - Peninsula Energy has a new substantial holder ]]> http://www.proactiveinvestors.com.au/companies/news/170502/peninsula-energy-has-a-new-substantial-holder-170502.html Peninsula Energy (ASX:PEN) has received a notice of initial substantial holder from Global X Management Company Co. LLC, which holds circa 9 million shares, or a 5.03% stake.

Peninsula recently raised $8.5 million through the placement of shares at $0.50 and intends to raise up to an additional $5 million through an in-the-money share purchase plan offer.

The funding will allow the company to implement a streamlined operational strategy to enhance business performance from the uranium-producing Lance Projects located in Wyoming, U.S.


Background

Peninsula is producing uranium from the Lance Projects which have a mine life of at least 20 years, underpinned by 53.7 million pounds, the largest uranium ISR JORC-Code compliant resource in North America.

Uranium extraction from wellfields at the Lance Projects for the quarter ended 30 September 2016 was 54,000 pounds of uranium, an increase of 25,000 pounds of uranium over the quarter ended 30 June 2016.

Multiple headers houses are used to extract uranium and Stage 1 steady state production will see up to seven header houses in simultaneous operation.

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Thu, 15 Dec 2016 11:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/170502/peninsula-energy-has-a-new-substantial-holder-170502.html
<![CDATA[News - Peninsula Energy raises $8.5M to continue uranium production ramp-up ]]> http://www.proactiveinvestors.com.au/companies/news/170155/peninsula-energy-raises-85m-to-continue-uranium-production-ramp-up-170155.html Peninsula Energy (ASX:PEN) has raised $8.5 million through the placement of shares at $0.50 and intends to raise up to an additional $5 million through an in-the-money share purchase plan offer.

The funding will allow Peninsula to implement a streamlined operational strategy to enhance business performance from the uranium-producing Lance Projects located in Wyoming, U.S.

Shares in Peninsula are trading at $0.54 representing a healthy premium to the placement price of $0.50.

The placement was strongly supported by the company’s major institutional shareholders, Resource Capital Funds VI and Pala Investments.

Gus Simpson, CEO, commented:

"We are pleased to secure this funding which enables the company to continue the production ramp-up, implement a more streamlined operating strategy, meet deliveries under existing contracts and provides certainty on the convertible loans."


Background

Peninsula is producing uranium from the Lance Projects which have a mine life of at least 20 years, underpinned by 53.7 million pounds, the largest uranium ISR JORC-Code compliant resource in North America.

Uranium extraction from wellfields at the Lance Projects for the quarter ended 30 September 2016 was 54,000 pounds of uranium, an increase of 25,000 pounds of uranium over the quarter ended 30 June 2016.

Multiple headers houses are used to extract uranium and Stage 1 steady state production will see up to seven header houses in simultaneous operation.


Use of funds

Funds from the placement and share purchase plan will be used for:

- The construction and roll-out of additional header houses (header houses #8 to #10) at the Lance Projects (A$5.6 million);
- Working capital purposes including raising costs; and
- To repay debt drawn on the Investec revolving loan facility which is currently drawn to US$3.5 million (A$4.8 million).


Interim operating strategy

In light of current uranium market conditions, the company has reviewed the operating plan at the Lance Projects and has decided to implement an interim operating strategy until uranium prices normalise.

Under the interim strategy, the Lance Projects production forecast is aligned to delivery commitments under existing term contracts, maximising the value attained for the extracted resource.

Construction activity is almost complete on header house 7, which is planned to be ready for start-up by the end of December 2016.

Peninsula will continue with the roll out of additional header houses, as construction of header houses 8 to 10 will allow flowrates across all production wells to be varied, optimising operating costs and increasing average uranium head grade.

While the company will operate in line with the modified and low cost production plan on an interim basis, at full capacity the Lance Projects development plan comprises a three stage ramp up:

- Stage 1: production rate of between 500,000 and 700,000 pounds uranium oxide;
- Stage 2: production rate of up to 1.2 million pounds uranium oxide; and
- Stage 3: production rate of up to 2.3 million pounds uranium oxide.


Analysis

The successful $8.5 million placement and planned share purchase plan places Peninsula in a sustainable position going forward with ample cash funding.

The lower operating costs combined with high value term contracts from the interim operating strategy will see Peninsula move to sustainable cash generation in the first half of 2017, a significant achievement in the current market.

While the present uranium market is challenging, Peninsula is insulated from current prices through its existing long term contracts.

By implementing a managed production ramp-up, the company is well positioned to sustain itself through the current uranium market and then to expand quickly when the market improves.

Peninsula’s largest shareholders, Resource Capital Funds and Pala have again demonstrated their commitment to the company, both through participation in the placement and improvement in the terms of the existing convertible loan facility.

Peninsula has received a vote of confidence from the market as its shares trade at a premium to the placement price.

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Thu, 08 Dec 2016 13:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/170155/peninsula-energy-raises-85m-to-continue-uranium-production-ramp-up-170155.html
<![CDATA[News - Peninsula Energy gets ready to raise ]]> http://www.proactiveinvestors.com.au/companies/news/169993/peninsula-energy-gets-ready-to-raise-169993.html Broker Numis is a fan on Peninsula, and has a target of A$1.05 per share.

The halt will remain in place until the opening of trade on Thursday 8th December 2016, or earlier if an announcement is made to the market.

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Tue, 06 Dec 2016 10:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/169993/peninsula-energy-gets-ready-to-raise-169993.html
<![CDATA[Media files - Peninsula Energy Ltd insulated from the challenging uranium price ]]> http://www.proactiveinvestors.com.au/companies/stocktube/6488/peninsula-energy-ltd-insulated-from-the-challenging-uranium-price-6488.html Tue, 29 Nov 2016 16:12:00 +1100 http://www.proactiveinvestors.com.au/companies/stocktube/6488/peninsula-energy-ltd-insulated-from-the-challenging-uranium-price-6488.html <![CDATA[News - Peninsula Energy Ltd a favoured uranium play of broker Numis ]]> http://www.proactiveinvestors.com.au/companies/news/169446/peninsula-energy-ltd-a-favoured-uranium-play-of-broker-numis-169446.html A strategy of rapid production increases and spot sales enabled the company to make tremendous market share gains, but at the expense of prices globally that have suffered due to oversupply.

But things might be changing suggests Justin Chan, an analyst at broker Numis.

 

Can the uranium price recover?

In short, the uranium price can recover and rapidly.

Spot uranium prices are currently languishing at US$18.50 from a price of over US$50 four years ago.

The Fukushima nuclear disaster in Japan is one reason but there are others.

“In our view, the current spot price reflects short term oversupply with the largest factor being the growth in Kazakh spot production,” said Chan.

"As this ends it may create a short squeeze situation as nuclear power generating utilities have increasingly relied on spot purchases to supplant contracts signed in the rush of the 2006-2009 uranium bull market.

US utilities have less than 50% of their uranium supply under contract from 2020 onward, he adds, while EU utilities will have less than 50% coverage from 2022.


Favoured uranium plays

Chan's favoured uranium miners are Berkeley Energia (ASX:BKY, LON:BKY) with a 100p target price. First production at its Salamanca open pit project in Spain is scheduled for 2018.

Canadian group NexGen Energy (TSX:NXE) with a C$4.00/share target has, in Numis’s view, the most strategically important undeveloped deposit in the uranium sector.

Peninsula Energy (ASX:PEN) with a target of A$1.05/share, meanwhile, is ramping up phase I production at the Lance ISR facility in Wyoming, U.S.

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Thu, 24 Nov 2016 13:00:00 +1100 http://www.proactiveinvestors.com.au/companies/news/169446/peninsula-energy-ltd-a-favoured-uranium-play-of-broker-numis-169446.html
<![CDATA[News - Peninsula Energy secures additional funding from major shareholders ]]> http://www.proactiveinvestors.com.au/companies/news/167407/peninsula-energy-secures-additional-funding-from-major-shareholders-167407.html Peninsula Energy Ltd (ASX:PEN) has entered into agreements with major shareholders Resource Capital Fund VI L.P. and Pala Investments Ltd to increase the Total funding from US$15 million to US$20 million under the existing convertible loans.

Peninsula said that the final binding agreement nearing completion on US$25 million revenue streaming facility.

Peninsula is producing uranium from the Lance Projects which have a mine life of at least 20 years, underpinned by 53.7 million pounds, the largest uranium ISR JORC-Code compliant resource in North America.

Uranium extraction from wellfields at the Lance Projects for the quarter ended 30 September 2016 was 54,000 pounds of uranium, an increase of 25,000 pounds of uranium over the quarter ended 30 June 2016.

Each header house experiences slightly different rates of ramp-up and Peninsula said that it is currently seeing header houses 3 and 4 taking longer to ramp-up than originally projected.

The additional funding will be used for the commissioning of the remaining Stage 1 header houses 5 to 7 as well as allowing the Company to progress Stage 2 development preparations.

Gus Simpson, managing director, commented:

"Peninsula is pleased to have secured this additional funding from our major shareholders and hopes to conclude the revenue streaming deal in the near future, which will enable the company to accelerate development activity at the Lance Projects and move to the next production phase."


Use of funds

Total proceeds from the convertible loans will be mainly used for general well field development activities at the Lance Projects, resource development drilling, final stage 2 engineering design, and for general working capital purposes.

The completed Stage 2 expansion is expected to reduce projected all-in sustaining cash costs by US$9-10 a pound.


Broker spotlight

Last month London based Numis Securities Limited initiated coverage on Peninsula.

The broker noted: "We initiate coverage with a target price of A$1.20 based on 1x our 7% NAV for Lance and 0.5x our 10% NAV for Karoo."

Peninsula last traded at $0.54 per share.

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Fri, 14 Oct 2016 10:30:00 +1100 http://www.proactiveinvestors.com.au/companies/news/167407/peninsula-energy-secures-additional-funding-from-major-shareholders-167407.html
<![CDATA[News - Peninsula Energy Ltd: Cashflow as Lance ramps up, growth from Karoo ]]> http://www.proactiveinvestors.com.au/companies/news/166113/peninsula-energy-ltd-cashflow-as-lance-ramps-up-growth-from-karoo-71087.html Peninsula Energy Ltd (ASX:PEN) has received a Buy recommendation from the London based Numis Securities Limited.

Numis initiated coverage with a A$1.20 per share price target, or around double the current valuation.

The following is an extract from the report.


Cashflow as Lance ramps up, growth from Karoo

Peninsula is a growth focused uranium miner which is ramping up production at its Lance ISR project in Wyoming, which should produce up to 2.5Mlb/year at an AISC of US$29/lb once fully developed.

PEN have remaining forward sales of 8.0Mlbs at an average price of US$56/lb, a premium to the spot price of US$26/lb, and, as a US producer, is well positioned to secure further agreements.

The company also owns the Karoo project in South Africa that hosts a high grade Resource of 56.9Mlb that should be developed into a 2.5Mlb-3Mlb mine over the medium term.

We initiate coverage with a BUY recommendation and a target price of A$1.20/share.


Ramping up Stage 1 at Lance, with 8.0 Mlb of long term deliveries secured at US$56/lb.

Peninsula commenced production at its In Situ Recovery Lance project in Wyoming in late 2015.

Stage I should hit design capacity of 600-700klb of U3O8 in H1 2017.

The development of Stages II and III of the project should increase production to 2.3Mlbs/year by 2020 and mgmt have put in place a series of long-term off-take agreements (8.0Mlbs remaining, 8.2Mlbs originally signed) at US$56/lb with European and US-based utilities.

AISC at the project should decline from US$41/lb during Stage 1 to US$29/lb once Stage 3 is developed due to greater economies of scale and vertical integration.

This should place the company in the lowest quartile on the cost curve.


Karoo should double production over the long term.

The Karoo project in South Africa has a current Resource of 56.9Mlb at 1,108ppm U3O8, however, it occurs within a far larger series of mineralised palaeochannels, which could host a far larger Resource.

In line with BEE legislation Peninsula holds a 74% interest and has entered into an agreement with DRA to complete a PFS.

We assume that Karoo enters production in CY2020 with capex of US$150 million (plus a US$45 million payment to Areva) to develop a 2.5-3Mlbpa project with AISC of US$31/lb.


Uranium pricing not sustainable at current low levels.

The spot uranium price has come under stress post-2011 due to the idling of Japanese reactors, reduced contracting, and supply increases due to underfeeding and increased Kazakh ISR production.

Notwithstanding this, the majority of natural uranium is transacted between producers and energy utilities through long term contracts whose prices are more stable than the spot price.

The current contract price of US$38/lb is above the US$26/lb spot price and we believe that contract prices will move upwards due to improving demand factors and is currently too low for producers to be willing to transact long term contracts.

We expect contracting activity and prices to increase as utilities replace the contracts and volumes signed in the 2008-2010 period.


Initiate coverage with a BUY recommendation and A$1.20 target price.

We initiate coverage with a target price of A$1.20 based on 1x our 7% NAV for Lance and 0.5x our 10% NAV for Karoo.

Over the short term we expect the shares to re-rate as Stage 1 production at Lance is completed in H1 2017, further long term supply contracts are secured and the PFS for Karoo is completed.

 

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Tue, 20 Sep 2016 09:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/166113/peninsula-energy-ltd-cashflow-as-lance-ramps-up-growth-from-karoo-71087.html