Sign up Australia
Proactive Investors - Run By Investors For Investors

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

Amendment applications are expected to be submitted early next month.
Drums of uranium
The company expects a fourth successive quarter of increased production

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.

View full PEN profile View Profile

Peninsula Energy Ltd Timeline

Related Articles

Golden Arrow Resources continuing towards production in Argentina
October 04 2017
In May, the group formed a joint venture, which combines the Chinchillas project with Silver Standard's producing Pirquitas operation in Argentina
australian and south africa flags detailing company's projects
April 12 2018
The company is fast-tracking its application for full-scale mining rights across the WBP.
lithium in periodic table
January 17 2018
Ironridge has an extensive West African and Australian exploration portfolio

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use