http://www.proactiveinvestors.com.au Proactiveinvestors RSS feed en Thu, 23 Feb 2017 13:38:04 +1100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Directorate Change ]]> http://www.proactiveinvestors.com.au/companies/rns/170221pen4753x/ Tue, 21 Feb 2017 16:41:00 +1100 http://www.proactiveinvestors.com.au/companies/rns/170221pen4753x/ <![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[RNS press release - Holding(s) in Company ]]> http://www.proactiveinvestors.com.au/companies/rns/170202pen8691v/ Thu, 02 Feb 2017 09:13:00 +1100 http://www.proactiveinvestors.com.au/companies/rns/170202pen8691v/ <![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[RNS press release - Pre-Close Trading Update & Notice of Final Results ]]> http://www.proactiveinvestors.com.au/companies/rns/170119pen5561u/ Thu, 19 Jan 2017 07:00:00 +1100 http://www.proactiveinvestors.com.au/companies/rns/170119pen5561u/ <![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[RNS press release - Holdings in Company ]]> http://www.proactiveinvestors.com.au/companies/rns/161229pen9439s/ Thu, 29 Dec 2016 09:00:00 +1100 http://www.proactiveinvestors.com.au/companies/rns/161229pen9439s/ <![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[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.com.au/companies/rns/160930pen2609l/ Fri, 30 Sep 2016 07:00:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160930pen2609l/ <![CDATA[RNS press release - Appointment of Non-Executive Director ]]> http://www.proactiveinvestors.com.au/companies/rns/160927pen8788k/ Tue, 27 Sep 2016 07:00:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160927pen8788k/ <![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.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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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
<![CDATA[News - Peninsula Energy Ltd's uranium production ramp-up continues at Lance ]]> http://www.proactiveinvestors.com.au/companies/news/166112/peninsula-energy-ltds-uranium-production-ramp-up-continues-at-lance-70994.html Peninsula Energy Ltd's (ASX:PEN) uranium production ramp-up is continuing on schedule at the Lance Projects in Wyoming, U.S.

Gus Simpson, managing director and CEO, commented: "The Lance Projects continue to progress as forecast, Mine Unit 2 permeability looks good and production drilling is returning consistent support for the feasibility study estimates.

"The open house saw good attendance from Crook County officials, land owners and local residents.

"The plant and header house tours were very well received."


Production ramp-up

Uranium production from Lance is now sourced primarily from header houses 1, 2 and 3.

Header house 4 remains in early ramp-up phase, with header house 5 planned to be commissioned in October, header house 6 in November and header house 7 in December.

Circa 40,000 pounds of drummed U3O8 is scheduled to be delivered to a North American conversion facility on 15 September 2016 for storage prior to delivery under existing term contracts.


Flow rates

Average flow rates from extraction wells at header houses 1, 2 and 3 continue to be consistent with projections made prior to the commencement of operations.

Stage 1 steady state production will see up to seven header houses in simultaneous operation and the current rate of ramp up at the Lance Projects continues to support the targeted Stage 1 production levels.


High-grade uranium intercepts

During the period from June 2016 to present, Strata completed over 250 mining wells within MU2.

The mining wells are primarily for header houses 5, 6 and 7.

The well installation drilling has also intersected strong uranium mineralisation, testing the extent of the known ore zone and to date the results are in line with resource grade expectations for the ore body, a positive result ahead of the commencement of production and extraction of uranium from this mining zone.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 13 Sep 2016 11:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/166112/peninsula-energy-ltds-uranium-production-ramp-up-continues-at-lance-70994.html
<![CDATA[RNS press release - Holding in Company ]]> http://www.proactiveinvestors.com.au/companies/rns/160905pen9609i/ Mon, 05 Sep 2016 12:00:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160905pen9609i/ <![CDATA[RNS press release - Holding(s) in Company ]]> http://www.proactiveinvestors.com.au/companies/rns/160902pen8181i/ Fri, 02 Sep 2016 10:00:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160902pen8181i/ <![CDATA[RNS press release - Result of GM ]]> http://www.proactiveinvestors.com.au/companies/rns/160831pen5485i/ Wed, 31 Aug 2016 10:53:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160831pen5485i/ <![CDATA[RNS press release - Holding(s) in Company ]]> http://www.proactiveinvestors.com.au/companies/rns/160819pen6931h/ Fri, 19 Aug 2016 12:17:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160819pen6931h/ <![CDATA[RNS press release - Holding(s) in Company ]]> http://www.proactiveinvestors.com.au/companies/rns/160819pen6878h/ Fri, 19 Aug 2016 11:50:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160819pen6878h/ <![CDATA[RNS press release - Holding(s) in Company ]]> http://www.proactiveinvestors.com.au/companies/rns/160819pen6859h/ Fri, 19 Aug 2016 11:39:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160819pen6859h/ <![CDATA[RNS press release - Holding(s) in Company ]]> http://www.proactiveinvestors.com.au/companies/rns/160816pen3548h/ Tue, 16 Aug 2016 16:38:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160816pen3548h/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.com.au/companies/rns/160815pen1570h/ Mon, 15 Aug 2016 08:20:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160815pen1570h/ <![CDATA[RNS press release - Placing of ]]> http://www.proactiveinvestors.com.au/companies/rns/160815pen1157h/ Mon, 15 Aug 2016 07:00:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160815pen1157h/ <![CDATA[News - Peninsula Energy Ltd provides roadmap to NYSE MKT listing ]]> http://www.proactiveinvestors.com.au/companies/news/165188/peninsula-energy-ltd-provides-roadmap-to-nyse-mkt-listing-70357.html Peninsula Energy Ltd (ASX:PEN) has appointed Roth Capital Partners LLC to support the company’s plan to dual list on the New York Stock Exchange (NYSE).

Listing on the NYSE exposes Peninsula’s U.S. based producing uranium projects to the world’s largest capital market and institutional fund managers.

The NYSE listing is subject to the registration statement on Form 20-F being declared effective by the Securities and Exchange Commission and final clearance from the NYSE.

Peninsula is aiming to complete the NYSE listing process in the second half of 2016.


Background

Peninsula’s plan is to be a uranium producer with multiple sources of supply in established mining economies with low cost, long life mines.

Peninsula’s primary focus is ramping up production at its uranium Lance Projects located in the U.S. state of Wyoming.

The company also has a 74% interest in the 7,800 square kilometres located in South Africa, the Karoo Projects.

Peninsula also intends to acquire one of several projects it has identified in Australia or Canada.


Lance Projects

Effective production at the Lance Projects commenced in March 2016 with construction completed on-schedule and on-budget.

The Lance Projects have a 3 stage production profile building to 2.3 million pounds of uranium per annum by 2020, which is when Stage 3 plans to begin.

Stage 1 is on track and aims to produce 700,000 pounds of uranium by H1 2017 through 7 header houses.

The current JORC-2012 compliant resource is 53.7 million pounds of uranium with expansion potential to create over 70 years of mine life.

The project has strong economics with an internal rate of return (IRR) of 36% and average cash cost of US$29.16 per pound.

The Lance Projects’ all-in sustaining cash cost (AISC) will reduce from $41 to $31-32 per pound as the project enters Stage 2 during the second half of 2017.


Stage 2 financing

Peninsula continues to work on a funding package for the company’s Stage 2 expansion and has been progressing negotiations on a revenue streaming facility as the primary component of this package.

Revenue streaming is a non-dilutive mechanism that sees a proportion of future sales revenue being exchanged for a one-off upfront cash payment that is to be used for development or expansion capital expenditure.

The proportion of future sales revenue only applies for a finite time period and finite quantity of annual production.

Technical and commercial due diligence has now been completed by the funding party, and Peninsula and this party are working together to finalise a binding agreement in the near term.


Karoo Projects financing

Peninsula see the Karoo Projects as their second production centre as per their long term strategy to create multiple sources of supply.

Karoo has a JORC compliant resource of 23.3 million tonnes grading 1,108ppm for 56.9 million pounds of uranium.

Peninsula has recently entered into a subscription agreement with Concentrate Capital Partners Limited (CCP), an independent investment partner to DRA Global.

Peninsula will issue 976,696 shares to CCP at an issue price of $0.80 upon receipt of invoice from DRA Projects SA (DRA), and CCP will assume full responsibility for payment to DRA for services provided under the Pre-Feasibility Study (PFS).

This agreement also contains an option for CCP to fund post-PFS activities using the same mechanism.

Post-PFS activities include the Bankable Feasibility Study, reserve drilling and other related activities.


Broker spotlight

Peninsula has drawn research coverage from five investment banks and research houses, with recently published reports including:

Rodman & Renshaw Research: Buy rating – A$2.25 price target
BMO Capital Markets: Outperform rating – A$1.00 price target
Dundee Capital Markets: Buy rating - A$1.50 price target
Patersons Securities: Speculative Buy rating – A$1.20 price target

These price targets represent significant upside from the current share price of A$0.62.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Wed, 10 Aug 2016 13:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165188/peninsula-energy-ltd-provides-roadmap-to-nyse-mkt-listing-70357.html
<![CDATA[News - Peninsula Energy: Cash management important as Lance production ramps ]]> http://www.proactiveinvestors.com.au/companies/news/165187/peninsula-energy-cash-management-important-as-lance-production-ramps-70293.html Peninsula Energy Ltd (ASX:PEN) has received a Buy Recommendation from broker Dundee Capital Markets, with a $1.50 target.

Peninsula last traded at $0.65. The following is an extract from the report.


Cash Management Important as Lance Production Ramps

We recommend Peninsula as a BUY, but reduce our share target to A$1.50 from A$1.80/sh on deferred production for FY16 and FY17.

We apply a 0.9x multiple to our 10% DCF model. We also upgrade our risk rating to High from Speculative, given that production rates at Lance have begun to accelerate.

We watch Peninsula's cash balance as Stage 2 capital spend nears; particularly as early stage mine costs are higher, and U3O8 deliveries are fewer, smaller and sporadic. Uranium prices are less of an issue due to an extensive suite of industry leading high priced contracts.

Though sales of 105,000 lbs were made over the past two quarters, most of this material was sourced from purchases on the spot market.

Nevertheless, an exceptional production growth profile in the US coupled with a high-priced contract portfolio makes Peninsula one of our top defensive picks in the sector, provided that ramp-up continues as scheduled.

PEN trades at a P/NAV of 0.39x versus developers at 0.33x, producers at 0.38x.


Q4/16 production, sales pre-released.

Production was 29,000 lbs, and deliveries were 55,000 lbs at US$62.80/lb with cash received post-Q.

Production was sourced from Header Houses 1 and 2, now producing at 105% of target. Flow rates have also achieved targets at 18-20 gpm, and combined head grade now exceed the LOM average of 38 mg/L. We are impressed with the 130% premium over average spot.

This contract book is one of the best in the sector. It has 8.1 MM lbs sold forward at an average of US$55/lb U3O8 for the next ten years. Expect further off-takes to cover Stage 2 and Stage 3 production.


Production step change in July.

Header houses 3 and 4 have helped increase production by ~70%, post quarter, and 16,800 lbs was produced by July 27th.

There are no bottlenecks in the plant. This suggests an annual run rate of 228,000 lbs, which is roughly 1/3 of scheduled Stage 1 capacity. Stage 1 production guidance previously moved back.

We now expect 200,000 to 300,000 lbs in CY16, and a run rate of 600,000 to 700,000 lbs by CY17.


Cash management is important.

Cash is somewhat hand to mouth. We also expect lag time between production, deliveries and payment.

Including recent payments we estimate US$10.4 MM cash on hand, with plans to spend US$8.3 MM in FQ1/17. US$11.5 MM is available from a US$30 MM facility.

A $25 MM Revenue Streaming facility is nearing completion to help fund $35 MM Stage 2 Capex. Due diligence is completed and the agreement is being finalized.


Stage 2 development set to begin.

Initial development has started. This would be another step change, doubling production capacity to 1.2 MM lbs pa, bringing final processing in house.

Significant cost savings are expected, with total cash costs due to drop from US$41/lb U3O8 to US$31 to 32/lb.


NYSE listing now expected H2/16.

This should improve liquidity and provide access to new capital. Management believes the main issues are covered, namely using resources, not reserves, for qualifying technical studies.

It has also moved to US$ reporting which should help reduce A$:US$ FX sensitivity.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 08 Aug 2016 08:40:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165187/peninsula-energy-cash-management-important-as-lance-production-ramps-70293.html
<![CDATA[News - Peninsula Energy Ltd enters agreement to advance Karoo Uranium ]]> http://www.proactiveinvestors.com.au/companies/news/165186/peninsula-energy-ltd-enters-agreement-to-advance-karoo-uranium-70257.html Peninsula Energy Ltd (ASX:PEN) has entered a partnership to advance its Karoo uranium projects in South Africa, (Peninsula 74% / BEE Groups 26%).

Peninsula has entered into a subscription agreement with Concentrate Capital Partners Limited (CCP), an independent investment partner to DRA Global.

Peninsula will issue 976,696 shares to CCP at an issue price of $0.80 upon receipt of invoice from DRA Projects SA (DRA), and CCP will assume full responsibility for payment to DRA for services provided under the Pre-Feasibility Study (PFS).

This agreement also contains an option for CCP to fund post-PFS activities using the same mechanism.

Post-PFS activities include the Bankable Feasibility Study, reserve drilling and other related activities.

John Simpson, managing director and CEO, commented: “The company is confident this work will provide us with clear parameters for the future development at the Karoo Projects.

"We are pleased to partner with DRA and Concentrate Capital Partners in moving the Karoo Projects toward production."

Peninsula has previously appointed DRA to complete the preliminary mining and process engineering and enhanced metallurgical test work to support the PFS at the Karoo Projects in South Africa.

The PFS follows a preliminary technical and economic assessment concluded by DRA in late 2013 and additional metallurgical test work conducted during 2014-2016.

The current metallurgical testing is primarily aimed at establishing the economic benefits of carbonate removal ahead of leaching along with confirmatory hydrometallurgical test work.

Pending the outcome of this test work phase, the PFS process design will consider the incorporation of a carbonate rejection step ahead of leaching to optimise the process flow sheet and minimise operating costs.

The PFS will also include preliminary mine design and layout (both open pit and underground), all engineering works associated with the proposed mine, plant tailings storage facility and inplant infrastructure.


Broker spotlight

- Rodman & Renshaw Research: Buy rating and A$2.25 price target.
- BMO Capital Markets: Outperform rating and A$1.00 price target.
- Dundee Capital Markets: Buy rating and A$1.80 price target.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 04 Aug 2016 16:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/165186/peninsula-energy-ltd-enters-agreement-to-advance-karoo-uranium-70257.html
<![CDATA[News - Peninsula Energy Ltd: Uranium production trending up ]]> http://www.proactiveinvestors.com.au/companies/news/160724/peninsula-energy-ltd-uranium-production-trending-up-70212.html Peninsula Energy Ltd (ASX:PEN) has received a Speculative Buy and $1.20 target price from Perth broker Patersons.

Peninsula last traded at $0.69. The following is an extract from the report.


URANIUM PRODUCTION TRENDING UP

Investment Highlights

Peninsula Energy (PEN) is in the process of ramping up uranium production at its Lance In-Situ Recovery (ISR) project in Wyoming.

Significantly, since commencing production, grades have continued their upward trajectory which should allow the operation to reach Stage 1 production levels during 1H/CY17.

Importantly, PEN expects to finalise funding for Stage 2 production over the next quarter, which is expected to bring costs down towards US$30/lb.

We see PEN’s key advantage over other uranium producers is that it has secured several long term uranium contracts with fixed pricing close to US$60/lb that is significantly above the current spot price (cUS$26/lb).

We see a number of short term catalysts that could positively impact the stock including a NYSE MKT listing and further developments at its Karoo project in South Africa.

We rate PEN a Speculative Buy with a price target of $1.20/sh.


Uranium Production Ramping-Up:

PEN recently provided an update on its operations which demonstrated that uranium production is moving in the right direction. Since commencing production at the end of last year, uranium grades are gradually increasing and are currently in the 35-40mg/l range. They are expected to peak at around 40-45mg/l over the next half.

This should allow Stage 1 production levels of 500-700klbpa U3O8 to be achieved.

For July, uranium production has effectively reached an annualised rate of 230,000lbpa with production continuing to ramp-up with contributions from Header Houses 3 & 4.


Significant Long Term Uranium Contracts:

In our opinion, PEN’s biggest advantage over its peers is that it has secured five long-term uranium contracts.

In total, PEN has 8.1Mlb contracted at a weighted average price of US$55/lb over the next 10 years.

This demonstrates that the PEN management team has significant relationships with the end-users.

Four of these contracts are with US utilities and one with a large European utility.

We expect PEN to continue to build these relationships with one more contract expected to be concluded over the next 2-3 months to further de-risk Stage 1 production.


Valuation $1.20/sh:

Our valuation for PEN has decreased to $1.20/sh (from $1.90/sh). The key driver has been revisions to our uranium price forecasts.

We have incorporated the US$15m convertible note and have also made some minor adjustments to the production ramp-up which has been delayed due to a significant loss of drilling days during the 2015/6 winter and delays in obtaining the initial production permits.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 03 Aug 2016 11:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/160724/peninsula-energy-ltd-uranium-production-trending-up-70212.html
<![CDATA[News - Peninsula Energy Ltd: Rodman & Renshaw reiterates A$2.25 price target ]]> http://www.proactiveinvestors.com.au/companies/news/160723/peninsula-energy-ltd-rodman-renshaw-reiterates-a225-price-target-70175.html Peninsula Energy Ltd (ASX:PEN) has received a Buy recommendation from Rodman & Renshaw, who have reiterated their A$2.25 price target.

Peninsula last traded at $0.69. The following is an extract from the report.


Rodman & Renshaw / PEN-AU: Stage 2 Development On-Deck; Reiterating Buy


On July 29, 2016, Peninsula Energy announced 2Q16 financial results.

During the quarter, Peninsula produced 28,858 pounds of uranium at the Lance Projects, primarily from header houses 1 and 2.

Although header houses 3 and 4 are currently operating, they did not come online until July, which leads us to believe Peninsula can increase QoQ production in 3Q16.

Overall, the firm sold a total of 55,000 pounds of uranium at an average price of $62.80 per pound—significantly above the current spot price of below $30.00 per pound.

Given the current ramp up of production at Lance, we think a 600,000 - 700,000 pound per annum run rate should be achievable by 1H17.

Eventually, Stage 1 at Lance is expected to host seven header houses that should all be online by the end of 2016.


Development of Stage 2 expected.

While the ramp up of Stage 1 continues to move forward as expected, Peninsula has begun initial development activities for Stage 2 of the project, while final financing arrangements are ironed out.

The funding package for the expansion remains underway as the due diligence process proceeds with respect to securing a revenue streaming facility.

While the terms of the envisioned financing package have yet to be released, we think this non-dilutive financing should provide approximately $25.0 million towards the total capital cost of Stage 2, which we estimate to be approximately $35.0 million.

We view the development of Stage 2 as critical, since the expansion expected to increase production capacity to 1.2 million pound per annum while also reducing costs substantially to approximately $30 per pound on an AISC basis.


Long-term contracts allow for profitability.

Given that Peninsula currently has five long-term contracts totaling 7.9 million pounds at an average price of $56 per pound, we believe substantial margins should be realized despite a floundering uranium spot market.

With AISC expected to drop to the $30 per pound range following the Stage 2 expansion, we expect Peninsula to enjoy margins of approximately 45%-a luxury in today’s uranium market.

While we expect Stage 2 to be constructed by 2018, we continue to believe flexibility with respect to this timeline remains.

While we do not view the scenario as likely, should spot uranium stay below the firm’s AISC of production, management could choose to purchase uranium at spot and sell it into its higher-priced long-term contracts rather than moving forward with the expansion.

While we fully expect the Stage 2 expansion to occur, this potential provides management with greater flexibility to tailor operations depending on market conditions.

We are reiterating a Buy rating and $2.25 per share price target on Peninsula Energy.

Our valuation remains predicated on a DCF of operations at Lance utilizing a 10% discount rate, which we expect to revisit following the completion of the Stage 2 expansion.

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

In our opinion, these contracts should allow Peninsula to not only survive, but thrive in the current uranium price environment.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 02 Aug 2016 08:20:00 +1000 http://www.proactiveinvestors.com.au/companies/news/160723/peninsula-energy-ltd-rodman-renshaw-reiterates-a225-price-target-70175.html
<![CDATA[News - Peninsula Energy Ltd powers towards NYSE MKT Listing ]]> http://www.proactiveinvestors.com.au/companies/news/160722/peninsula-energy-ltd-powers-towards-nyse-mkt-listing-69903.html Peninsula Energy Ltd (ASX:PEN) is progressing in its current process to dual list on the New York Stock Exchange (NYSE).

Listing on the NYSE exposes Peninsula’s U.S. based producing uranium projects to the world’s largest capital market and institutional fund managers.

The company believes it has cleared the key outstanding items received to date and is awaiting its Form 20-F to be declared effective by the SEC.

Subject to Form 20-F being declared effective and final clearances from the NYSE, Peninsula aims to complete the listing process in 2H 2016.


Background

Peninsula’s plan is to be a uranium producer with multiple sources of supply in established mining economies with low cost, long life mines.

Peninsula’s primary focus is ramping up production at its uranium Lance Projects located in the U.S. state of Wyoming.

The company also has a 74% interest in the 7,800 square kilometres located in South Africa, the Karoo Projects.

Peninsula also intends to acquire one of several projects it has identified in Australia or Canada.


Lance Projects

Effective production at the Lance Projects commenced in March 2016 with construction completed on-schedule and on-budget.

The Lance Projects have a 3 stage production profile building to 2.3 million pounds of uranium per annum by 2020, which is when Stage 3 plans to begin.

Stage 1 is on track and aims to produce 700,000 pounds of uranium by H1 2017 through 7 header houses.

The current JORC-2012 compliant resource is 53.7 million pounds of uranium with expansion potential to create over 70 years of mine life.

The project has strong economics with an internal rate of return (IRR) of 36% and average cash cost of US$29.16 per pound.

The Lance Projects’ all-in sustaining cash cost (AISC) will reduce from $41 to $31-32 per pound as the project enters Stage 2 during the second half of 2017.


Stage 2 financing

Peninsula continues to work on a funding package for the company’s Stage 2 expansion and has been progressing negotiations on a revenue streaming facility as the primary component of this package.

Revenue streaming is a non-dilutive mechanism that sees a proportion of future sales revenue being exchanged for a one-off upfront cash payment that is to be used for development or expansion capital expenditure.

The proportion of future sales revenue only applies for a finite time period and finite quantity of annual production.

Technical and commercial due diligence has now been completed by the funding party, and Peninsula and this party are working together to finalise a binding agreement in the near term.


Karoo Projects financing

Peninsula see the Karoo Projects as their second production centre as per their long term strategy to create multiple sources of supply.

Karoo has a JORC compliant resource of 23.3 million tonnes grading 1,108ppm for 56.9 million pounds of uranium.

Peninsula has been negotiating with a number of parties to secure a strategic investment partner to accelerate the project through the completion of feasibility studies.

At this stage legal and technical due diligence has been completed by two groups, one of whom has put forward a proposal with the other expected to lodge a proposal shortly.

The company is also continuing negotiations with a third party who previously submitted a term sheet, which is subject to ongoing finalisation of investment structure and due diligence.


Broker spotlight

Peninsula has drawn research coverage from five investment banks and research houses, with recently published reports including:

Rodman & Renshaw Research: Buy rating – A$2.25 price target
BMO Capital Markets: Outperform rating – A$1.00 price target
Dundee Capital Markets: Buy rating - A$1.80 price target

These price targets represent significant upside from the current share price of A$0.69.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 19 Jul 2016 15:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/160722/peninsula-energy-ltd-powers-towards-nyse-mkt-listing-69903.html
<![CDATA[RNS press release - Record Order Book drives expansion of premises ]]> http://www.proactiveinvestors.com.au/companies/rns/160719pen5582e/ Tue, 19 Jul 2016 07:00:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160719pen5582e/ <![CDATA[RNS press release - Holdings in Company ]]> http://www.proactiveinvestors.com.au/companies/rns/160715pen3157e/ Fri, 15 Jul 2016 09:31:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160715pen3157e/ <![CDATA[RNS press release - Holding(s) in Company ]]> http://www.proactiveinvestors.com.au/companies/rns/160714pen2023e/ Thu, 14 Jul 2016 10:55:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160714pen2023e/ <![CDATA[RNS press release - Director Dealing ]]> http://www.proactiveinvestors.com.au/companies/rns/160714pen1326e/ Thu, 14 Jul 2016 07:00:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160714pen1326e/ <![CDATA[News - Peninsula Energy Ltd continues to accelerate uranium production at Lance Projects ]]> http://www.proactiveinvestors.com.au/companies/news/160721/peninsula-energy-ltd-continues-to-accelerate-uranium-production-at-lance-projects-69760.html Peninsula Energy Ltd (ASX:PEN) continues with the ramp up of uranium production from its Lance Projects located in the U.S. state of Wyoming.

During the June quarter, 29,000 pounds of uranium was produced.

The rate of production continues to accelerate with 7,000 pounds of uranium produced in the first 10 days of July alone.

The current rate of ramp up at the Lance Projects supports the targeted Stage 1 production level of 600,000 to 700,000 pounds per annum in the first half of 2017.

Gus Simpson, managing director, commented: “The last 5 weeks have seen the rate of uranium production increase dramatically and augurs well for the Lance Projects to meet the expectations of the company going forward”.


June quarter

During the June quarter, 28,858 pounds of uranium were extracted from the Lance Projects, an increase of almost 20,000 pounds over the March quarter.

A 7-day plant outage adversely impacted June production by an estimated 3,000 pounds.

June production was primarily from header houses 1 and 2.

Header houses 3 and 4 were commissioned during the June quarter - meaningful quantities of uranium from both header houses commenced during July.

Header houses 1 and 2 are now producing uranium at 105% of steady state target rates.

55,000 pounds of uranium was delivered during the June quarter under existing long term uranium concentrate sale and purchase agreements at an average realised price of US$62.80 per pound.

Uranium for these deliveries was purchased on-market.


Lance Projects

Effective production at the Lance Projects commenced in March 2016 with construction completed on-schedule and on-budget.

The Lance Projects have a 3 stage production profile building to 2.3 million pounds of uranium per annum by 2020, which is when Stage 3 plans to begin.

Stage 1 is on track and aims to produce 700,000 pounds of uranium by H1 2017 through 7 header houses.

The current JORC-2012 compliant resource is 53.7 million pounds of uranium with expansion potential to create over 70 years of mine life.

The project has strong economics with an internal rate of return (IRR) of 36% and average cash cost of US$29.16 per pound.

The Lance Projects’ all-in sustaining cash cost (AISC) will reduce from $41 to $31-32 per pound as the project enters Stage 2 during the second half of 2017.


Analysis

A strong June quarter and evidence of a stronger September quarter shows that Peninsula is well placed to deliver on its production expansion strategy at the Lance Projects.

The company has a low risk, clear path to production expansion with an estimated US$17.50 per pound margin over all-in costs at the project’s Stage 2 steady state.

Projected revenue under existing long term contracts at Lance is an estimated US$445 million

Peninsula is leveraged to further upside at Lance through production growth, exploration and the uranium price.

Peninsula maintains strong financial support from the strong institutional shareholder base, which includes Resource Capital Funds, Pala Investments and BlackRock Funds.

Tightening supply and increasing demand is expected to support a growing uranium sector.

Peninsula has drawn research coverage from five investment banks and research houses, with recently published reports including:

Rodman & Renshaw Research: Buy rating – A$2.25 price target
BMO Capital Markets: Outperform rating – A$1.00 price target
Dundee Capital Markets: Buy rating - $1.80 price target

These price targets represent significant upside from the current share price of A$0.65.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 12 Jul 2016 13:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/160721/peninsula-energy-ltd-continues-to-accelerate-uranium-production-at-lance-projects-69760.html
<![CDATA[News - Peninsula Energy Ltd: HC Wainwright reiterates Buy Recommendation ]]> http://www.proactiveinvestors.com.au/companies/news/160720/peninsula-energy-ltd-hc-wainwright-reiterates-buy-recommendation-69688.html Peninsula Energy Ltd (ASX:PEN) has attracted a A$2.25 price target from Rodman & Renshaw, a subsidiary of H.C. Wainwright & Co.

The broker has reiterated its Buy Recommendation. Peninsula last traded at A$0.55 per share. The following is an extract from the report.


Fifth Long-Term Contract Provides Price Stability


Production at Lance starting to ramp-up.

Since commencing production at the Lance Projects in December 2015, three of the seven header houses envisioned for Stage 1 have come online as management continues to ramp towards full-scale production.

We expect the remaining header houses to come online during 2H16, which will complete Stage 1 of the production ramp-up.

We expect the completion of Stage 1 to provide the firm with production capabilities totaling 600,000 - 800,000 pounds per year, which we think should serve as a springboard towards completion of Stage 2.

The $35 million Stage 2 expansion, which includes an additional seven header houses, is expected to bring total production capacity to 1.2 million pounds per annum.

Moreover, while the firm has yet to provide production guidance for 2016, we continue to expect approximately 300,000 pounds of production and expect to receive greater visibility with respect to production once results from CY2Q16 are announced.


Funding for Stage 2 expansion ongoing.

During the first quarter, Peninsula announced the closing of a $15.0 million convertible loan with existing investors (RCF and Pala) in addition to a term sheet for a $25 million streaming facility.

Combined, these funds should allow the company to complete the approximate $35 million Stage 2 expansion at Lance.

While the streaming facility has yet to close, due diligence is well underway and we expect this facility to provide a portion of the capital required to complete the Stage 2 expansion.

Not only is the Stage 2 expansion expected to increase production capacity to 1.2 million pounds per annum, it should also drastically reduce operating costs.

The expansion should bring processing in-house, rather than through a toll milling agreement.

This, coupled with the realization of economies of scale, leads us to believe all-in sustaining costs (AISC) could fall from $41 per pound to just over $30 per pound—a greater than 25% decrease in costs at the site.


Long-term contracts to provide price stability.

With the addition of another long-term sales agreement with a European utility company, Peninsula now has five contracts in place totaling 7.9 million pounds over the next decade.

We highlight the average price of $56 per pound under these contracts, which is significantly higher than current spot prices of around $27 per pound.

In short, we continue to believe Peninsula’s higher-priced contracts should provide investors with downside protection with respect to spot uranium prices, while the firm's staged development strategy provides upside through an increased production profile.


We are reiterating our Buy rating, while modestly lowering out PT to A$2.25 from A$2.60.

We note that our slightly decreased price target is primarily a reflection of accounting for the firm’s recent capital raise below our prior valuation.

Our valuation remains predicated on a DCF of operations at Lance utilizing a 10% discount rate, which we expect to revisit following additional long-term production
details from Peninsula.

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

In our opinion, these contracts ultimately should allow Peninsula to not only survive, but thrive in the current uranium price environment.

Risks.

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

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 08 Jul 2016 09:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/160720/peninsula-energy-ltd-hc-wainwright-reiterates-buy-recommendation-69688.html
<![CDATA[News - Peninsula Energy Ltd: U.S. Nuclear Regulatory Commission rules in favour ]]> http://www.proactiveinvestors.com.au/companies/news/160719/peninsula-energy-ltd-us-nuclear-regulatory-commission-rules-in-favour-69607.html Peninsula Energy Ltd (ASX:PEN) has advised that the Commissioners of the United States Nuclear Regulatory Commission (NRC) have ruled in favour of the company and denied a petition to appeal by the Natural Resources Defence Council and the Powder River Basin Resource Council (together, the Joint Intervenors).

The Joint Intervenors petitioned to appeal against the Atomic Safety and Licensing Board’s (ASLB) previous dismissal of all remaining environmental contentions (EC) brought against the Lance Projects Central Processing Plant and Ross Project Area in Wyoming U.S.

Gus Simpson, managing director and chief executive officer for Peninsula, commented:

"The company is pleased that the Commissioners deliberation of the facts support the findings of the comprehensive studies completed by the company and the reviews of these conducted by multiple government agencies."


Details

In its January 2015 ruling the ASLB determined that the contentions raised by the Joint Intervenors were unable to be substantiated by the evidence presented.

In denying the petition to appeal the previous dismissal, the NRC Commissioners have reiterated that the Joint Intervenors are unable to substantiate the claims upon which the contentions are based.

Contentions raised by the Joint Intervenors were originally heard by the ASLB between 28 September 2014 and 1 October 2014.

The issues under consideration at the time were whether the final Supplemental Environmental Impact Statement (SEIS) issued by the NRC failed to or inadequately addressed certain aspects of groundwater conditions.

The NRC Commissioners found that the SEIS did address groundwater conditions adequately and have now dismissed the petition to appeal.


Uranium production

In June 2016 Peninsula delivered its first drummed uranium from the Lance Projects in the U.S. state of Wyoming.

The first shipment delivered to the conversion facility contained 16,000 pounds of uranium.

Revenue of US$120 million is forecast from delivery commitments of 2.15 million pounds of U3O8 over the next 5 years alone.


Production ramp up

Lance expects to achieve targeted Stage 1 production of 600,000-700,000 pounds of uranium in 1H 2017.

Production to date indicates 200,000-300,000 pounds of uranium will be produced for 2016.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 04 Jul 2016 14:00:00 +1000 http://www.proactiveinvestors.com.au/companies/news/160719/peninsula-energy-ltd-us-nuclear-regulatory-commission-rules-in-favour-69607.html
<![CDATA[RNS press release - Grant of Options ]]> http://www.proactiveinvestors.com.au/companies/rns/160620pen6976b/ Mon, 20 Jun 2016 12:06:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160620pen6976b/ <![CDATA[RNS press release - New Contract Award and Trading Update ]]> http://www.proactiveinvestors.com.au/companies/rns/160616pen3366b/ Thu, 16 Jun 2016 07:00:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160616pen3366b/ <![CDATA[News - Peninsula Energy Ltd delivers first uranium as Lance ramp up continues ]]> http://www.proactiveinvestors.com.au/companies/news/160718/peninsula-energy-ltd-delivers-first-uranium-as-lance-ramp-up-continues-69020.html Peninsula Energy Ltd (ASX:PEN) has delivered its first drummed uranium from the Lance Projects in the U.S. state of Wyoming.

The first shipment delivered to the conversion facility contained 16,000 pounds of uranium.

Shipments are expected to continue regularly going forward as the production ramp up continues.

The fourth header house, used in the mining of uranium, is coming online in early June, 2016.

Revenue of US$120 million is forecast from delivery commitments of 2.15 million pounds of U3O8 over the next 5 years alone.

 
Production ramp up

Lance expects to achieve targeted Stage 1 production of 600,000-700,000 pounds of uranium in 1H 2017.

Production to date indicates 200,000-300,000 pounds of uranium will be produced for 2016.

The company expects the fourth header house online in June, the fifth header house online in the September quarter and the remaining two header houses by the end of 2016.


Recent capital raising

During April, Peninsula raised $15 million in funding from its major shareholders, Resource Capital Fund and Pala Investments Ltd.

Funding is to drive expansion and reduce future cash costs by US$9-10 a pound at Lance.

In addition, it has a term sheet in hand for a streaming financing facility for US$25 million for Stage 2 expansion at Lance that is signed and due diligence is at an advanced stage.


Analysis

The first delivery of drummed uranium is a positive sign in the ongoing development of production at the Lance Projects.

Peninsula has contracted 75% of Stage 1 production at an average price of US$56 per pound, which reduces downside risk.

The Stage 2 expansion of the Lance Projects is forecast to reduce all-in sustaining cash costs from US$41 per pound to US$31-32 per pound.

Peninsula is leveraged to further upside at Lance through production growth, exploration and the uranium price.

Projected revenue under existing long term contracts at Lance is an estimated US$440 million.

The strong support from major shareholders RCF and Pala is indicative of the future growth ahead in earnings through Stage 2.

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

The recent capital raising will fund general well field development activities at the Lance Projects, resource development drilling, final stage 2 engineering design, feasibility studies at the Karoo Projects in South Africa and for general working capital purposes.

Peninsula was recently ascribed a price target of A$1.00 as part of an initiation report by broker BMO Capital Markets. Peninsula shares are currently trading at $0.60.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 03 Jun 2016 10:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/160718/peninsula-energy-ltd-delivers-first-uranium-as-lance-ramp-up-continues-69020.html
<![CDATA[RNS press release - New Contract Awards worth in excess of ]]> http://www.proactiveinvestors.com.au/companies/rns/160601pen8377z/ Wed, 01 Jun 2016 07:14:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160601pen8377z/ <![CDATA[News - Peninsula Energy Ltd is BM Capital Markets top uranium pick ]]> http://www.proactiveinvestors.com.au/companies/news/160717/peninsula-energy-ltd-is-bm-capital-markets-top-uranium-pick-68703.html Peninsula Energy Ltd (ASX:PEN) has been ranked as BM Capital Markets top uranium pick.

The following is an extract from a research report.


How to Bake a Yellow Cake

Peninsula (Top Pick) rated Outperform (Speculative); Target Price A$1.00.

Its favourably priced contract book brings with it protection from lower near-term spot uranium prices, with production growth in stages offering the main catalyst, together with attractive trading multiples.

Peninsula offers production growth, which should drive higher trading multiples, backed up by its favourable sales contracts, as well as attractive exploration upside, which is not fully reflected in its share price.


Key Pros and Cons

+ In production and ramping up to Stage 1 of 500–700klbpa U3O8 permitted to 3Mlbpa, but plans currently to Stage 3 of 2.3Mlbpa.

+ In situ leach mining has a relatively low environmental impact. Staged expansions allow market flexibility. Technically competent management.

+ Well contracted production at an average price of US$56/lb covering 75% of the first stage of production, reducing downside risk.

+ Could be a regional consolidator.

+ Comps well on EV/EBITDA and P/E multiples.

− Higher-cost operation in initial phases, but costs more than covered by uranium contract price. Mid costs longer-term.

− Limited scalability, beyond 2.3Mlbpa U3O8 Stage 3 target at this point without further wellfields.

− Funding for Stage 2 expansion contingent on conversion of convertible bond and streaming agreement/additional debt.


Protect Margins Though Contracting

Focus on companies with favourable contracts: Much of the world’s uranium supply is contracted between the supplier and utility in advance of delivery, which insulates producers to some degree from fluctuations of the spot price and protects profit margins if higher than spot.

The upside: Margins for the well-contracted companies are relatively well protected, particularly given >50% of the global total cost curve is currently under water at spot price of US$28/lb U3O8.

On this basis, Peninsula and Cameco score the best, with both companies generating attractive multiples even in the lower price environment.

For this reason, both companies are lower-risk investments than non-contracted companies.


Target Price Methodology

Our target price of A$1.00 for Peninsula reflects a 75/25 blend of P/NPV (long term – 0.9x) and 2017E EV/EBITDA (short term – 9x) multiples.

We estimate that Peninsula is likely to receive the highest uranium price out of the producers under our coverage, remaining at ~US$50/lb or more on our forecast.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 19 May 2016 09:30:00 +1000 http://www.proactiveinvestors.com.au/companies/news/160717/peninsula-energy-ltd-is-bm-capital-markets-top-uranium-pick-68703.html
<![CDATA[RNS press release - Directorate Change ]]> http://www.proactiveinvestors.com.au/companies/rns/160518pen6073y/ Wed, 18 May 2016 12:00:00 +1000 http://www.proactiveinvestors.com.au/companies/rns/160518pen6073y/