Proactiveinvestors United Kingdom Peninsula Energy Ltd https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Peninsula Energy Ltd RSS feed en Mon, 17 Jun 2019 00:09:10 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Peninsula Energy Ltd insulated from the challenging uranium price ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/6488/peninsula-energy-ltd-insulated-from-the-challenging-uranium-price-6488.html Tue, 29 Nov 2016 16:12:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/6488/peninsula-energy-ltd-insulated-from-the-challenging-uranium-price-6488.html <![CDATA[News - Peninsula Energy Ltd provides roadmap to NYSE MKT listing ]]> https://www.proactiveinvestors.co.uk/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.

 

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Wed, 10 Aug 2016 13:00:00 +0100 https://www.proactiveinvestors.co.uk/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 ]]> https://www.proactiveinvestors.co.uk/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 +0100 https://www.proactiveinvestors.co.uk/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 ]]> https://www.proactiveinvestors.co.uk/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 +0100 https://www.proactiveinvestors.co.uk/companies/news/165186/peninsula-energy-ltd-enters-agreement-to-advance-karoo-uranium-70257.html
<![CDATA[News - Peninsula Energy Ltd: Uranium production trending up ]]> https://www.proactiveinvestors.co.uk/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 +0100 https://www.proactiveinvestors.co.uk/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 ]]> https://www.proactiveinvestors.co.uk/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 +0100 https://www.proactiveinvestors.co.uk/companies/news/160723/peninsula-energy-ltd-rodman-renshaw-reiterates-a225-price-target-70175.html
<![CDATA[News - Peninsula Energy Ltd powers towards NYSE MKT Listing ]]> https://www.proactiveinvestors.co.uk/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 +0100 https://www.proactiveinvestors.co.uk/companies/news/160722/peninsula-energy-ltd-powers-towards-nyse-mkt-listing-69903.html
<![CDATA[News - Peninsula Energy Ltd continues to accelerate uranium production at Lance Projects ]]> https://www.proactiveinvestors.co.uk/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 +0100 https://www.proactiveinvestors.co.uk/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 ]]> https://www.proactiveinvestors.co.uk/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 +0100 https://www.proactiveinvestors.co.uk/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 ]]> https://www.proactiveinvestors.co.uk/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 +0100 https://www.proactiveinvestors.co.uk/companies/news/160719/peninsula-energy-ltd-us-nuclear-regulatory-commission-rules-in-favour-69607.html
<![CDATA[News - Peninsula Energy Ltd delivers first uranium as Lance ramp up continues ]]> https://www.proactiveinvestors.co.uk/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 +0100 https://www.proactiveinvestors.co.uk/companies/news/160718/peninsula-energy-ltd-delivers-first-uranium-as-lance-ramp-up-continues-69020.html
<![CDATA[News - Peninsula Energy Ltd is BM Capital Markets top uranium pick ]]> https://www.proactiveinvestors.co.uk/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 +0100 https://www.proactiveinvestors.co.uk/companies/news/160717/peninsula-energy-ltd-is-bm-capital-markets-top-uranium-pick-68703.html
<![CDATA[News - Peninsula Energy Ltd's chairman John Harrison buys shares on-market ]]> https://www.proactiveinvestors.co.uk/companies/news/160716/peninsula-energy-ltds-chairman-john-harrison-buys-shares-on-market-68424.html Peninsula Energy Ltd's (ASX:PEN) non-executive chairman, John Harrison, has bought 20,000 shares on market for $15,675, which is an average entry price of around $0.78.

Harrison has a wealth of experience and resource sector knowledge acquired over a 45 year career, including 20 years of investment banking in London.

He has developed an extensive international contact base advising companies across a range of commodities, including uranium, and raising more than £500 million in equity capital in the process.

Peninsula is currently producing uranium from the Lance Projects in Wyoming, U.S.

Recently the company raised $15 million in funding from its major shareholders, Resource Capital Fund (RCF) and Pala Investments Ltd, to drive expansion and reduce future cash costs by US$9-10 a pound.

Under these agreements, RCF VI and Pala have each provided Peninsula with a convertible loan facility, with participation in proportion to their existing shareholdings in the company.

Resource Capital Fund VI has a stake of 21.6% and Pala Investments a 12.2% shareholding in Peninsula, respectively.

 

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, 04 May 2016 11:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160716/peninsula-energy-ltds-chairman-john-harrison-buys-shares-on-market-68424.html
<![CDATA[News - Peninsula Energy Ltd funding to drive Lance uranium project expansion ]]> https://www.proactiveinvestors.co.uk/companies/news/160715/peninsula-energy-ltd-funding-to-drive-lance-uranium-project-expansion-68267.html Peninsula Energy Ltd (ASX:PEN) has raised $15 million in funding from its major shareholders, Resource Capital Fund and Pala Investments Ltd to drive expansion and reduce future cash costs by US$9-10 a pound at its producing Lance uranium projects in Wyoming.

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.

The Lance Projects development plan envisages a three stage ramp-up strategy:

- Stage 1 – production rate of between 500,000 and 700,000 lbs U3O8 per annum;
- Stage 2 – production rate of 1,200,000 lbs U3O8 per annum; and
- Stage 3 – production rate of 2,300,000 lbs U3O8 per annum.

With these announcements today, Peninsula shares are out of a suspension on the ASX.

Funds raised will be used for 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.


Convertible loan agreements

Under these agreements, RCF VI and Pala (Lenders) have each provided Peninsula with a convertible loan facility, with participation in proportion to their existing shareholdings in the company.

Resource Capital Fund VI has a stake of 21.6% and Pala Investments a 12.2% shareholding in Peninsula, respectively.

The US$15 million total loan amount is comprised of a US$9.63 million convertible loan provided by RCF VI and a US$5.37 million convertible loan provided by Pala.

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 at a conversion price that is the lower of $0.80 per share or the price of any equity raised prior to repayment.

The Convertible Loans will bear interest at the rate of 8% per annum, payable quarterly in arrears in cash or shares at the Lenders election.

Maturity date of the Convertible Loans is 22 April 2017.

An arrangers fee of 2% of the amount available under the Convertible Loans is also payable in cash or in fully paid ordinary shares using a conversion price of $0.80 per share.


Planned Revenue Streaming Facility (RSF)

The RSF will allow commencement of Stage 2 development at the Lance Projects. This will include the engineering and construction of the Stage 2 Central Processing Plant (CPP), increasing the ion exchange capacity and bringing the elution, precipitation, drying and packaging processes in-house.

Significantly, this phase of the expansion is forecast to reduce cash operating costs by US$4-5/lb U3O8.

Additional Stage 2 construction, funded by the RSF, will include a further seven header houses and associated wellfield production units. Ramp-up to Stage 2 production rates are forecast to further reduce cash operating costs by US$5-6 per pound U3O8.

Expansion of well field capacity in Stage 2 has been timed to coincide with the ramp-up in delivery commitments under existing and expected new long term uranium concentrate sale and purchase agreements.


Board changes

Peninsula has appointed highly regarded mining executive Mark Wheatley as a non-executive director with extensive uranium and ISR experience. Neil Warburton has retired from his role as non-dxecutive director to pursue other business ventures.

John Harrison, currently a non-executive director will replace Richard Lockwood as non-executive chairman who is experiencing increased time pressure from his other business commitments. He will remain as a non-executive director of Peninsula.



Analysis

Peninsula currently has 75% of Stage 1 and 54% of Stage 2 production over the next 10 years committed under five term agreements with investment grade US and European utilities.

Peninsula currently has 7.9 million pounds of U3O8 under contract with major utilities located in the United States and Europe.

Projected revenue under these existing long term contracts has expanded to US$440 million. These contracts provide a large earnings stream to the company whilst allowing it to retain significant quantities of planned U3O8 production for future contracting during periods of anticipated improved uranium prices.

Expansion to Stage 2 will generate increased operating margins, (both in aggregate and on a per pound basis), and it is projected that the Company will be profitable at Stage 2 steady state production.

The strong support from major shareholders RCF and Pala is indicative of the future growth in Peninsula's future EBITDA in 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 weighted average delivery price for the five contracts over the next 10 years is US$56/lb U3O8 and at steady state production rates the Stage 2 expansion of the Lance Projects is forecast to reduce all-in sustaining cash costs from US$41/lb to US$31-32/lb.

Production ramp up at Lance continues with a 3.3% average daily head grade increase over last 40 days.

The Board changes provides a strong platform to expand and support MD Gus Simpson as the Lance projects move into a higher production gear.


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, 26 Apr 2016 10:56:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160715/peninsula-energy-ltd-funding-to-drive-lance-uranium-project-expansion-68267.html
<![CDATA[News - Peninsula Energy Ltd finalising documentation for project expansion funding ]]> https://www.proactiveinvestors.co.uk/companies/news/160714/peninsula-energy-ltd-finalising-documentation-for-project-expansion-funding-68203.html Peninsula Energy Ltd (ASX:PEN) has been granted additional time by the ASX to outline details of project expansion funding, with the extension of a voluntary suspension.

Peninsula said that it is now finalising the documentation in preparation for signing which it expects to complete on or before 26th April 2016.

 

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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Thu, 21 Apr 2016 13:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160714/peninsula-energy-ltd-finalising-documentation-for-project-expansion-funding-68203.html
<![CDATA[News - Peninsula Energy Ltd given additional time for project expansion funding ]]> https://www.proactiveinvestors.co.uk/companies/news/160713/peninsula-energy-ltd-given-additional-time-for-project-expansion-funding-68092.html Peninsula Energy Ltd (ASX:PEN) has been granted additional time by the ASX to outline details of project expansion funding, with the extension of a voluntary suspension.

Peninsula said that it anticipates that it will be in position to make this announcement to the market on or before Thursday 21 April, 2016.

Peninsula recently received proposals, and executed one non-binding term sheet, for an Income Streaming facility to fund expansion at the Lance uranium project, located in the Powder River Basin, Wyoming, U.S.

 

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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Fri, 15 Apr 2016 12:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160713/peninsula-energy-ltd-given-additional-time-for-project-expansion-funding-68092.html
<![CDATA[News - Peninsula Energy Ltd granted more time to outline project expansion funding ]]> https://www.proactiveinvestors.co.uk/companies/news/160712/peninsula-energy-ltd-granted-more-time-to-outline-project-expansion-funding-67952.html Peninsula Energy Ltd (ASX:PEN) has been granted additional time by the ASX to outline details of project expansion funding, with the extension of a voluntary suspension.

Peninsula said that it anticipates that it will be in position to make this announcement to the market on or before Friday 15 April, 2016.

Peninsula recently received proposals, and executed one non-binding term sheet, for an Income Streaming facility to fund expansion at the Lance uranium project, located in the Powder River Basin, Wyoming, U.S.

 

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 Apr 2016 12:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160712/peninsula-energy-ltd-granted-more-time-to-outline-project-expansion-funding-67952.html
<![CDATA[News - Peninsula Energy Ltd given additional time to finalise funding ]]> https://www.proactiveinvestors.co.uk/companies/news/160711/peninsula-energy-ltd-given-additional-time-to-finalise-funding-67820.html Peninsula Energy Ltd (ASX:PEN) has been granted additional time by the ASX to outline details of project expansion funding, with the extension of a voluntary suspension.

Peninsula said that it anticipates that it will be in position to make this announcement to the market on or before Friday 8 April, 2016.

Peninsula recently received proposals, and executed one non-binding term sheet, for an Income Streaming facility to fund expansion at the Lance uranium project, located in the Powder River Basin, Wyoming, U.S.

 

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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Fri, 01 Apr 2016 15:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160711/peninsula-energy-ltd-given-additional-time-to-finalise-funding-67820.html
<![CDATA[News - Peninsula Energy Ltd granted extension to outline project expansion funding ]]> https://www.proactiveinvestors.co.uk/companies/news/160710/peninsula-energy-ltd-granted-extension-to-outline-project-expansion-funding-67736.html Peninsula Energy Ltd (ASX:PEN) has been granted additional time by the ASX to outline details of project expansion funding, with the extension of a voluntary suspension.

Peninsula said that it anticipates that it will be in position to make this announcement to the market on Friday 1 April 2016.

Peninsula recently received proposals, and executed one non-binding term sheet, for an Income Streaming facility to fund expansion at the Lance uranium project, located in the Powder River Basin, Wyoming, U.S.

 

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, 29 Mar 2016 12:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160710/peninsula-energy-ltd-granted-extension-to-outline-project-expansion-funding-67736.html
<![CDATA[News - Peninsula Energy Ltd to update on project expansion funding ]]> https://www.proactiveinvestors.co.uk/companies/news/160709/peninsula-energy-ltd-to-update-on-project-expansion-funding-67667.html Peninsula Energy Ltd (ASX:PEN) has been granted additional time to finalise a capital raising, in the form of a voluntary suspension.

It is expected the voluntary suspension will be lifted on or before Thursday 24 March 2016.

Peninsula recently received proposals, and executed one non-binding term sheet, for an Income Streaming facility to fund expansion at the Lance uranium project, located in the Powder River Basin, Wyoming, U.S.

 

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, 23 Mar 2016 10:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160709/peninsula-energy-ltd-to-update-on-project-expansion-funding-67667.html
<![CDATA[News - Peninsula Energy Ltd to reveal project expansion funding ]]> https://www.proactiveinvestors.co.uk/companies/news/160708/peninsula-energy-ltd-to-reveal-project-expansion-funding-67619.html Peninsula Energy Ltd (ASX:PEN) has been granted a trading halt by the ASX pending details on project expansion funding.

Peninsula recently received proposals, and executed one non-binding term sheet, for an Income Streaming facility to fund expansion at the Lance uranium project, located in the Powder River Basin, Wyoming, U.S.

Income Streaming is a non-dilutive mechanism that sees a proportion of future sales revenue, over a finite time period, being exchanged for a one-off upfront cash payment that is to be used for additional capital expenditure.

Typically this would involve less than 5% of the produced material over the specific time period, structured to afford a commercial return to the provider but also to minimise the cashflow impact to the company.

The halt will remain in place until the opening of trade on Wednesday 23rd March 2016, or earlier if an announcement is made to the market.

 

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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Mon, 21 Mar 2016 13:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160708/peninsula-energy-ltd-to-reveal-project-expansion-funding-67619.html
<![CDATA[News - Peninsula Energy Ltd adds fifth uranium sale contract for Lance projects ]]> https://www.proactiveinvestors.co.uk/companies/news/160707/peninsula-energy-ltd-adds-fifth-uranium-sale-contract-for-lance-projects-67531.html Peninsula Energy Ltd (ASX:PEN) has clinched its fifth sale of uranium concentrate for the Lance uranium project in Powder River Basin, Wyoming to a utility company.

The fifth long term sale and purchase contract signed by Peninsula, believed to be with a major European utility is for delivery of 4.0 million pounds of U3O8 over a 10-year period commencing at the end of 2020.

Peninsula has a Total of 7.9 million pounds of U3O8 under contract for delivery to major utilities located in the United States and Europe. Total revenue over the life of these contacts is US$440,000,000.

Today's agreement also contemplates increasing the quantity to 50% of annual Lance production from 2026 onwards.

Peninsula's managing director Gus Simpson has left open terms relating to the increased quantities to be negotiated in 2022, when prevailing market conditions should be more favourable for producers.

The contracts do provide a substantial earnings stream to Peninsula, underpinning short term Lance project development.

This enables Peninsula to retain significant quantities of planned U3O8 production for future periods of anticipated improvement in uranium prices.

Significantly, the weighted average delivery price for the five contracts over the next 10 years is US$56 per pound of U3O8.

This compares very favourably to the US$45 per pound of U3O8 weighted average delivered price achieved over the past decade by the four largest publicly traded uranium mining companies: Cameco Corporation, Energy Resources Australia, Paladin Energy and Uranium One.

It takes Peninsula further down the road as a global, sustainable, low-cost uranium concentrate producer at Lance.


Stage 1 production - 75% committed

During the period 2016 - 2021, 75% of Stage 1 production from Lance is committed to long term contracts.

Under the existing sale agreements, 54% of annual Stage 2 production is committed during the next 10 years. This de-risks the expansion at the Lance Projects, while allowing for additional sales contracts to be struck when prices are higher in future years.

Managing director and CEO Gus Simpson said: “Over the past five years Peninsula has been focussed on demonstrating to United States and European utilities its capacity to become a reliable long term supplier of uranium.

"The establishment of good relations with end-users with end-users has provided a significant long term revenue stream that underpins the Company’s development in the short term and provides a solid basis for its long term growth”.


Streaming agreements

Peninsula is look toward Income Streaming as a means of financing future expansion plans.

The company has received proposals and executed one non-binding term sheet for an Income Streaming facility to fund expansion at Lance.

Income Streaming is a non-dilutive mechanism that sees a proportion of future sales revenue, over a finite time period, being exchanged for a one-off upfront cash payment that is to be used for additional capital expenditure.

Typically this would involve less than 5% of the produced material over the specific time period, structured to afford a commercial return to the provider but also to minimise the cashflow impact to the company.


Uranium prices

Improvement in uranium prices is expected by most analysts to be driven by the increased use of nuclear power as a means of cost effective carbon free baseload power generation.

Currently, there are 440 operable nuclear power reactors globally, capable of generating 384 GWe of carbon free electricity per annum.

A further 65 reactors are currently under construction and an additional 510 reactors are planned or proposed in the future.

Operating reactors will consume approximately 170 million pounds of U3O8 in 2016 with a forecast growth rate of 4% p.a.

This growth is led by China, India and Russia, and supported by countries such as the United Arab Emirates, South Africa and Saudi Arabia. All of these countries are seeking increased quantities of reliable carbon-free baseload power generation.


Analysis

The fifth sales contract should provide additional security to future revenue and potentially de-risks expansion plans.

It also enables future uncontracted Stage 2 and Stage 3 production capacity to capitalise on higher future uranium prices.

Its substantial portfolio of long term contracts at prices that provide a significant margin over all-in sustaining costs of production and at average prices higher than Cameco Corporation, Energy Resources Australia, Paladin Energy and Uranium One should drive the market valuation of Peninsula higher.

Finalization of the pending NYSE listing should improve liquidity and access to capital, as well as a potential re-rating as Lance proceeds.


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, 15 Mar 2016 14:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160707/peninsula-energy-ltd-adds-fifth-uranium-sale-contract-for-lance-projects-67531.html
<![CDATA[News - Peninsula Energy Ltd signs uranium contract with European utility ]]> https://www.proactiveinvestors.co.uk/companies/news/160706/peninsula-energy-ltd-signs-uranium-contract-with-european-utility-67461.html Uranium producer Peninsula Energy Ltd (ASX:PEN) has clinched a long term uranium concentrate sale and purchase agreement with a major European utility and nuclear industry leader diversifying its client portfolio.

The agreement is for the sale and purchase of 4.0 million pounds of U3O8 from the Lance Projects over a 10 year period beginning at the end of 2020 and contemplates increasing this to 50% of annual mine production from 2026 onwards.

Lance is located in Wyoming in the U.S., and has significant mine life upside given untapped exploration potential.

The project already has a 54 million pound resource base and licenced mining rate of 3 million pounds annually, which allows the ability to increase production quickly.

No pre-stripping or mining development required, and production wells access the ore body directly.

Gus Simpson, managing director and CEO, commented:

“Peninsula is very pleased to execute this contract as it adds geographical diversity to our sales portfolio.

"It is an important vote of confidence in our projects, management and ability to deliver uranium well into the future.

"In addition we have worked with the utility for several years during the evaluation period and we anticipate a long and mutually beneficial relationship."


Analysis

The securing of such a significant contract is an achievement for the company and comes after several years of negotiation and extensive due diligence on Peninsula and its projects.

It also delivers on the company strategy of aligning with major utilities requirements.

While price and annual quantities are subject to commercial confidentiality, the terms of the agreement provide certainty of sale and a committed revenue stream.

This agreement and the establishment of a long term relationship with this large customer is a major catalyst for the company, underpinning stage 2 production levels and its long term plan to become a significant and profitable global supplier of uranium.

Uranium market outlook

There are several key drivers for a potential lift in the uranium price in 2016/17, such as:

- Return of utility contracting;
- Japanese restarts increasing;
- China construction – domestic;
- China construction – export;
- India – strategic reserve established; and
- Strong global demand growth.

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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Fri, 11 Mar 2016 11:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160706/peninsula-energy-ltd-signs-uranium-contract-with-european-utility-67461.html
<![CDATA[News - Peninsula Energy has high grade uranium hits in South Africa ]]> https://www.proactiveinvestors.co.uk/companies/news/160705/peninsula-energy-has-high-grade-uranium-hits-in-south-africa-67211.html Peninsula Energy (ASX:PEN) has recorded high-grade, near-surface uranium intercepts from a re-logging of existing drill holes completed during December 2015 to February 2016 at the Rietkuil project area at Peninsula’s Karoo Projects in South Africa.

Re-logging is occurring in areas that are outside the existing JORC resource of 56.9 million pounds of uranium defined in 2014.

Hence the re-logging and results obtained will be included in an update of the Karoo resource.

While Peninsula’s uranium producing Lance Project in Wyoming is rightfully the focus of attention, with a NYSE MKT listing in train, Karoo could provide Peninsula with production from South Africa over time.

As well, it would assist to ease the burden of the chronic power shortages in South Africa.

Best intercepts from the re-logging included: 9.5 feet at 2,408 parts per million uranium oxide equivalent from 37.9 feet; 8.9 feet at 2,422 parts per million uranium oxide equivalent from 27.6 feet and 6.6 feet at 2,800 parts per million uranium oxide equivalent from 47.4 feet.


RSA on nuclear road

This upbeat news flow could not come at a more opportune time, as South Africa gears up for nuclear expansion to add to the two nuclear reactors which provide about 5% of the country’s electricity supply.

In 2014, South Africa agreed to a US$10 billion nuclear contract with Russia’s state nuclear energy firm Rosatom as a first step towards achieving South Africa’s nuclear goals.

Peninsula’s announcement comes just days after South African President Jacob Zuma committed to a target of 9.6GWe by 2030, with the first new reactor coming online in 2030.

South Africa’s physical and psychological shift towards nuclear energy consumption should provide tailwinds for uranium mining in the country, creating an opportunity for the high-grade Rietkuil projects.

The Rietkuil project contains a resource of 23.3 million tonnes of ore containing 56.9 million pounds of uranium at a grade of 1,108 parts per million uranium oxide.


Exploration target

But given the expansive land package at Rietkuil, Peninsula has outlined an exploratory resource growth target of 250-350 million pounds of uranium.


Analysis

While operations at Lance continue to be the focus for Peninsula, Karoo provides a very handy high grade project that is primed and likely timed to be developed as nuclear expansion momentum builds in South Africa.

A pre-feasibility study is underway.
 
The re-logging of earlier drill holes should result in a significant increase in the Karoo resource base. Activities supporting the application for the grant of a mining license for Karoo are continuing.

Peninsula’s flagship Lance in-situ recovery project in the U.S. continues to perform to expectation.

The low cost ISR processing technique, as well as long term contracts struck by Peninsula when uranium prices were far higher provides the platform for Lance to be a highly profitable operation.


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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Fri, 26 Feb 2016 09:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160705/peninsula-energy-has-high-grade-uranium-hits-in-south-africa-67211.html
<![CDATA[News - Peninsula Energy nears uranium expansion approval ]]> https://www.proactiveinvestors.co.uk/companies/news/160704/peninsula-energy-nears-uranium-expansion-approval-66843.html Peninsula Energy's (ASX:PEN) U.S. operating subsidiary Strata Energy has tracked new permitting progress with local nuclear regulators as it advances a project expansion at the Lance uranium operations.

During 2015, Strata submitted a request to the Nuclear Regulatory Commission to amend its existing license to include the Kendrick expansion area within the Ross permit area at Lance.

The NRC initiated its acceptance review of the expansion request in September 2015 and has now notified Strata that the application is complete and has been accepted for detailed technical and environmental review.

Kendrick is adjacent to Ross and under the current life of mine plan is scheduled to come online during the 2019 calendar year to supply uranium to the central processing plant.

As the application is an amendment to the existing license, the review timing is expected to be reduced given the exhaustive technical and environmental review process already conducted by the NRC at Ross.

This progress has coincided with advances in Peninsula’s efforts to list its American Depositary Shares on the New York Stock Exchange – MKT.

The listing will provide access to an active market well versed in the benefits of nuclear power generation.

Average daily turnover of uranium peer companies dual listed on a U.S. stock exchange consistently exceeds the liquidity levels achieved on their non-U.S. exchange by a factor of 4 to 7 times.


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, 03 Feb 2016 14:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160704/peninsula-energy-nears-uranium-expansion-approval-66843.html
<![CDATA[News - Peninsula Energy clears way for listing on NYSE MKT ]]> https://www.proactiveinvestors.co.uk/companies/news/160703/peninsula-energy-clears-way-for-listing-on-nyse-mkt-66790.html Newest uranium producer Peninsula Energy (ASX:PEN) has filed an amended registration statement with the United States Securities and Exchange Commission to clear the way for listing of Peninsula shares on a U.S. stock exchange.

The updated registration included changes to reflect the company is now in production as well as other requested information.

Peninsula is seeking a secondary listing of American Depositary Shares on the NYSE MKT.

The ramp up at Peninsula's Lance in-situ recovery uranium project in Wyoming, U.S.A is on track with production well flow-rates slightly above expectation.

Since the start of production uranium head grades are increasing daily in line with expectation and several production wells are already producing uranium concentrations in excess of the rates used in the life of mine (LOM) production forecasting.


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, 02 Feb 2016 10:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160703/peninsula-energy-clears-way-for-listing-on-nyse-mkt-66790.html
<![CDATA[News - Peninsula Energy: A$2.60 price target from Rodman & Renshaw ]]> https://www.proactiveinvestors.co.uk/companies/news/160702/peninsula-energy-a260-price-target-from-rodman-renshaw--66771.html Peninsula Energy (ASX:PEN) has been rated a Buy and given a A$2.60 price target after New York based Rodman & Renshaw initiated research coverage on the uranium producer. Current share price is $0.935.

Here is a summary of the report:

Emerging ISR Producer with Scalability

Peninsula Energy presents a unique opportunity. Peninsula, based in Australia, owns the Lance Projects located in Wyoming and is focused on developing an In-Situ Recovery (ISR) uranium powerhouse.

In our view, the low cost ISR processing technique, coupled with high priced long-term contracts positions Peninsula as a viable uranium producer despite spot uranium prices hovering around $35 per pound.

Management began signing long term contracts for production at Lance in 2011 when uranium prices were significantly higher than today. The firm currently has contracts in place totaling 7.8 million pounds at an average price of $59 per pound through 2020.

Therefore, the average price Peninsula is expected to receive throughout the remainder the decade is significantly higher than the current long-term price of approximately $45 per pound, which we feel locks in margin and de-risks operations as a whole.

In our view, Peninsula's long-term contracts and low cost ISR operations position the firm to thrive despite lower spot uranium prices.

First production was reached in 2015. In December 2015, the firm brought its Ross Permit Area (located within the Lance Projects) online with ISR production commencing.

We currently estimate average cash costs of just $22 per pound during Stage 1, generating an impressive gross margin of approximately 63%. Further, Lance hosts a significant resource base totaling 53.6 million pounds, including 4.5 million pounds in Measured, 12.6 million pounds in Indicated and 36.5 million pounds in Inferred resources.

We note that while the majority of resources are Inferred, the firm currently has six drill rigs operating, which we feel could ultimately increase resources while upgrading the existing resource base.

The Lance Projects are scalable. The Lance Projects are currently being developed in a three-stage approach with Stage 1 recently completed. Moreover, Stage 1 provides Lance with production capabilities totaling 600-800,000 pounds per year, which is expected to be sourced from the Ross Permit Area.

Stages 2 and 3 are expected to bring total capacity to 1.2 and 2.3 million pounds per annum, respectively. In our view, the staged expansion approach at Lance should allow the firm to not only smooth out capital requirements but finance a portion of Stage 2 ($35 million) and Stage 3 ($78) million with cash flow from operations. We view this strategy as prudent as capital requirements for incremental expansions can be completed depending on market conditions at the time.

We are initiating coverage on Peninsula Energy with a Buy rating and A$2.60 per share price target. Our valuation is based on a DCF of operations at the Lance Projects utilizing a 10% discount rate and an average uranium sales price of $59 per pound (per PEN's long term contracts) through 2020 and $60 per pound thereafter.

Further, we add in-situ value for resources at Peninsula's Karoo Projects in South Africa. Additionally, we utilize a staged approach with respect to expansion at Lance with Stage 2 coming online in 2018 and Stage 3 following in 2020.

We view Peninsula's average long-term contract price of $59 per pound as significant, and believe the firm should enjoy the benefits of strong margins relative to peers without contractual commitments despite weaker uranium prices.

 

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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Fri, 29 Jan 2016 13:43:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160702/peninsula-energy-a260-price-target-from-rodman-renshaw--66771.html
<![CDATA[News - Peninsula Energy uranium production exceeding expectations ]]> https://www.proactiveinvestors.co.uk/companies/news/160701/peninsula-energy-uranium-production-exceeding-expectations-66683.html The ramp-up at Peninsula Energy's (ASX:PEN) Lance in-situ recovery (ISR) uranium project in the U.S. is well on track with production well flow-rates slightly above expectation.

After starting production last month, flow rates have averaged in excess of the forecast level of 20 gallons per minute.

This supports Peninsula's expectation with regard to the affirmative permeability of the ore body, a fundamental factor in any ISR operation.

ISR is a cost-effective solution mining method characterised by extraction via boreholes drilled into the deposit.

Since the start of production uranium head grades are increasing daily in line with expectation and several production wells are already producing uranium concentrations in excess of the rates used in the life of mine (LOM) production forecasting.

The Central Processing Plant and well field systems are all operating better than expected during early production ramp up. Sampling to date is showing the capture rate of uranium on resin in the ion exchange columns is also well in excess of expectation.


Deep Disposal Well

Prior to operational use of the Deep Disposal Well (DDW), 168,000 gallons of buffer solution was injected into the DDW.

Flow rates during injection of the solution ranged between 80 and 120gpm – a phenomenal rate, much better than expected and significantly better than seen in other ISR DDWs in the state of Wyoming, where Lance is located.

The performance of this DDW is expected to enable the company to defer the timing of additional DDWs, potentially reduce the number of DDWs required and lower the forecast LOM capital expenditure.

DDWs are used at ISR projects to manage waste water.


Recent progress

Operational ramp-ups at Lance have followed quickly on the start of production at the site last month and the first U.S. deliver of uranium to a power utility earlier this month.

The delivery under the company's wholly owned subsidiary Strata Energy realised a sale and purchase agreement established in February 2011, which entailed the supply of 1.15 million pounds of U3O8 from Lance.

This contract will see Peninsula supply U3O8 over seven years at escalated fixed price, fixed quantity and term.

Peninsula has 1.9 million pounds of U3O8 contracted to utilities at a weighted average price approaching US$60 per pound, which is well above the current spot price (US$34.75 per pound).

This is estimated to represent about 40% of Lance’s stage-1 production per annum.


Analysis

Strong production performance metrics at Lance in its early stages of operation are beneficial in removing key risks associated with ISR project costs going forward.

Strong flow rates and steady uranium recoveries increasing in line with expectation are contributing to a picture of a project with potential to further enhance economics ahead of expected uranium price increases.

A smooth run so far for the CPP and associated systems also bodes well for this outlook.

Operating costs are expected to be curbed dramatically as Lance operations advance, with an initial all-in cost forecast of US$41 per pound scheduled to drop to $29 per pound by stage 3.

Toll treating, meanwhile, is expected to be brought in-house in later stages, resulting in even lower operating costs and greater economies of scale.

Also, the weighted average price for U3O8 in Peninsula’s utility contracts is already estimated to approach US$60 per pound.

The recent pull back in the Peninsula share price provides a buying opportunity for a producer that after ramp up will be profitable at long term uranium prices.

A pending NYSE MKT listing will add new path to re-rating of the stock.


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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Fri, 22 Jan 2016 10:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160701/peninsula-energy-uranium-production-exceeding-expectations-66683.html
<![CDATA[News - Peninsula Energy leadership take up shares ]]> https://www.proactiveinvestors.co.uk/companies/news/160700/peninsula-energy-leadership-take-up-shares-66514.html On the heels on its first uranium deliver to a U.S. power utility, Peninsula Energy has made a strong show of internal confidence with two directors consolidating their stake in the company.

Peninsula directors John (Gus) Simpson and Warwick Grigor have exercised options in the company, with a combined value of A$128,000.

Simpson acquired about 66,700 shares valued at $80,000 while Grigor acquired 40,000 shares worth $48,000.

The uptake comes as the market anticipates some positive newsflow out of the burgeoning uranium operator, including an update on ambitions to list on the New York Stock Exchange – MKT.

Peninsula’s new status as a producing uranium company with active sales channels is expected to drive increasing revenues in the medium term on the back of price hikes for the nuclear fuel connected to growing demand from Asia’s expanding reactor fleets.

Peninsula has 1.9 million pounds of U3O8 contracted to utilities at a weighted average price approaching US$60 per pound, which is well above the current spot price (US$34per pound).

This is estimated to represent about 40% of stage-1 production per annum at the company’s Lance operations in the U.S.


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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Mon, 11 Jan 2016 13:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160700/peninsula-energy-leadership-take-up-shares-66514.html
<![CDATA[News - Peninsula Energy makes first uranium delivery in industry landmark ]]> https://www.proactiveinvestors.co.uk/companies/news/160699/peninsula-energy-makes-first-uranium-delivery-in-industry-landmark-66431.html Peninsula Energy's (ASX:PEN) first U.S. delivery of the nuclear fuel to a power utility would be the envy of many a global uranium production company.

The delivery under the company's wholly owned subsidiary Strata Energy realises a sale and purchase agreement established in February 2011, which entailed the supply of 1.15 million pounds of U3O8 from the Lance project in the western state of Wyoming.

This contract will see Peninsula supply U3O8 over seven years at escalated fixed price, fixed quantity and term.

Peninsula has 1.9 million pounds of U3O8 contracted to utilities at a weighted average price approaching US$60 per pound, which is well above the current spot price (US$34.50 per pound).

This is estimated to represent about 40% of Lance’s stage-1 production per annum.

The latest sales milestone follows the start of in-situ uranium recovery (ISR) operations at Lance's Ross permit area last month, where production well flowrates continue to be good.

Ross constitutes the largest JORC-compliant ISR resource in the U.S. at 54 million pounds of U3O8.

The initial phase of full production will include a total of seven header houses in operation.

Peninsula has four significant uranium concentrate sale and purchase agreements in place for a major portion of production over the first five years of operations.

These committed sales contracts substantially increase revenue certainty whilst allowing a significant amount of planned production to be free for future contracting in what is expected to be in an environment of increasing prices.


Financial progress

Peninsula’s first U3O8 deliver also follows quickly on a US$15 million investment form Investec Bank to assist in covering inventory and other general costs over the next two years as production and revenues increase.

Peninsula has entered into an agreement with the bank for the finance facility following discussions with a number of other similar financial service providers, with the Investec terms and interest rates deemed much more attractive than any other proposal presented to the company.

Given the contractual norms within the uranium industry of quarterly and bi-annual uranium delivery schedules under term contracts, the new finance facility provides Peninsula with additional funding flexibility should it be required.

Key terms of the deal include a 2-year secured facility comprised of a US$7.5 million inventory finance facility drawable against uranium inventory delivered to conversion facilities and a US$7.5 million revolving loan facility which is re-drawable and repayable at Peninsula’s discretion.


U.S. listing

This investment and renewed momentum at Lance has also coincided with advances in Peninsula’s efforts to list its American Depositary Shares on the New York Stock Exchange – MKT.

The listing will provide access to an active market well versed in the benefits of nuclear power generation.

Average daily turnover of uranium peer companies dual listed on a U.S. stock exchange consistently exceeds the liquidity levels achieved on their non-U.S. exchange by a factor of 4 to 7 times.


Analysis

The milestone is a tremendous achievement and represents Peninsula’s entry into a uranium market expected to drive increasing revenues in the medium term on the back of price hikes related to growing demand from Asia’s expanding nuclear reactor fleets.

Importantly, Lance’s status as an efficient ISR operation as well as Peninsula’s costing optimisations and sales contract terms have positioned the company to be profitable at the long term contract uranium prices.

Operating costs will be curbed dramatically as Lance operations advance, with an initial all-in cost forecast of US$41 per pound scheduled to drop to $29 per pound by stage 3.

Toll treating, meanwhile, is expected to be brought in-house in later stages, resulting in even lower operating costs and greater economies of scale.

Also, the weighted average price for U3O8 in Peninsula’s utility contracts is already estimated to approach US$60 per pound.

We see the upcoming NYSE MKT listing as "the" catalyst for a re-rating of Peninsula stock, as U.S. funds and U.S. investors twig to the newest uranium producer with a North American uranium producing asset listed in their own backyard.

Uranium companies with a listing on a U.S. stock exchange benefit from a higher relative valuation than companies that do not have a U.S. listing.

Comparable ISR companies with a U.S. listing outperform companies that do not have a U.S. listing by a factor of 2 to 3 times enterprise value per pound of measured and indicated resource.


Home to the world’s largest nuclear power generation fleet, the U.S. also provides access to the largest pool of capital globally and access to an active and sophisticated investment market well versed in the benefits of nuclear power generation and the contribution that uranium makes to the nuclear fuel cycle.



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, 05 Jan 2016 11:22:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160699/peninsula-energy-makes-first-uranium-delivery-in-industry-landmark-66431.html
<![CDATA[News - Peninsula Energy reveals high-grade uranium at Karoo in South Africa ]]> https://www.proactiveinvestors.co.uk/companies/news/160698/peninsula-energy-reveals-high-grade-uranium-at-karoo-in-south-africa-66343.html Peninsula Energy (ASX:PEN) has revealed very high-grade near surface intercepts from further radiometric re-logging of UCEX drill holes at the Rietkuil project area.

Rietkuil is 40 kilometres west of Beaufort West at Peninsula’s Karoo Projects in South Africa.

Results from further radiometric re-logging of existing drill holes completed in November and December 2015 include:

- 9.4 ft at 3,725 ppm eU3O8 from 47.6 ft;
- 4.1 ft at 4,659 ppm eU3O8 from 46.4 ft;
- 3.1 ft at 4,145 ppm eU3O8 from 33.0 ft;
- 3.9 ft at 3,032 ppm eU3O8 from 36.9 ft; and
- 4.6 ft at 2,553 ppm eU3O8 from 141.0 ft.

Intercepts will add to the existing JORC Resources.

Peninsula said that results from all blocks investigated to date have demonstrated very high grade mineralisation at shallow depths with a further 44 significant intersections returned from 91 historic holes at Blocks D(W) and D(E) during November and December 2015.

Overall 119 significant intersections have been returned from a total of 320 re-logged holes since mid-2014.

Re-logging is occurring in holes originally drilled by Union Carbide Exploration Corporation (UCEX) during the 1970’s and continues to successfully validate the location and grade of the mineralisation that was delineated by UCEX at that time.

Probing and re-logging is occurring in areas that are outside the existing JORC Resource and information from this work will be included in an updated resource for the Karoo Projects.

This will follow any additional evaluation work that may be required.


Rietkuil history

The Rietkuil deposit was the first major uranium occurrence to be discovered in the Karoo by UCEX in 1970 and is located in the upper-most sandstones of the Abrahamskraal formation.

 

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, 23 Dec 2015 12:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160698/peninsula-energy-reveals-high-grade-uranium-at-karoo-in-south-africa-66343.html
<![CDATA[News - Peninsula Energy bags $15M from Investec ahead of uranium production ]]> https://www.proactiveinvestors.co.uk/companies/news/160697/peninsula-energy-bags-15m-from-investec-ahead-of-uranium-production-66021.html Peninsula Energy (ASX:PEN) has secured US$15 million in financing from Investec Bank to assist in covering inventory and other general costs over the next two years as production and revenues increase at the company’s Lance uranium project in the US.

The news follows immediately on a game-changing approval from U.S. authorities clearing Lance to be the world's next global uranium producer, with cashflow expected by next year.

Peninsula has entered into an agreement with the bank for the finance facility following discussions with a number of other similar financial service providers, with the Investec terms and interest rates deemed much more attractive than any other proposal presented to the company.

Given the contractual norms within the uranium industry of quarterly and bi-annual uranium delivery schedules under term contracts, the new finance facility provides Peninsula with additional funding flexibility should it be required.

Key terms of the deal include a 2-year secured facility comprised of a US$7.5 million inventory finance facility drawable against uranium inventory delivered to conversion facilities and a US$7.5 million revolving loan facility which is re-drawable and repayable at Peninsula’s discretion.

At current US-dollar LIBOR interest rates, the facility’s all-in interest rate is less than 6% per annum over the 24 month term.

The funds will underpin accelerating development of Lance, which hosts 305 line kilometres of identified roll fronts on the northeast flank of the Powder River Basin in the state of Wyoming.

Lance properties cover more than 46 square miles but more than 90% of drilling has been concentrated on the project’s Ross permit area, suggesting enormous upside in further regional development.

Based on the historic conversion rate from roll front length to a drill-defined resource, the mineralised potential of Lance, in addition to the established resource, is assessed at between 104 and 163 million pounds of U3O8.


Project momentum

Peninsula’s move to secure this financing for the next two years of Lance development work adds confidence to a project delivery rollout that has marked some important milestones in recent weeks.

Most recently, Peninsula became was cleared by the U.S. Nuclear Regulatory Commission (NRC) last week to begin in-situ recovery (ISR) operations at Ross, including wellfield injection and production circuits as well as works related to ion exchange columns, water disposal pathways and transportation of resins for further offsite processing.

Ross constitutes the largest JORC-compliant ISR resource in the U.S. at 54 million pounds of U3O8.
 
The approval to begin production activities at this site followed a comprehensive inspection process by the NRC last month, which determined Peninsula’s U.S. operating subsidiary Strata Energy had satisfied required conditions related to safety and environmental standards.

In preparation for production activities at Ross, Strata has completed significant infrastructure construction at the site, trained qualified staff and established operational processes and protocols.

Peninsula is expected to produce at a stage-1 rate of 600,000 to 800,000 pounds of U3O8 per annum, with one well already fully operational and six more planned to sequentially ramp up, establishing a seven-well operation.

Operating costs will be curbed dramatically as this rollout takes shape, with an initial all-in cost forecast of US$41 per pound scheduled to drop to $29 per pound by stage 3.

Stage-1 capital costs are planned to be minimised to $33 million with toll treatment.

Toll treating, however, is expected to be brought in-house in later stages, resulting in lower operating costs and greater economies of scale.


Expanded investment drive

Renewed momentum in bringing Ross into production has also coincided with advances in Peninsula’s efforts to list its American Depositary Shares on the New York Stock Exchange – MKT.

The move is expected to provide further impetus to a near-term valuation re-rating for Peninsula as well as direct access and much greater visibility of the company’s uranium business in the world’s largest debt and equity markets.

The company has filed a registration statement to register its ordinary shares with the U.S. Securities and Exchange Commission (SEC).

Once this form is declared effective by the SEC, it allows foreign issuers to register securities with the SEC for trading on a U.S. stock exchange pursuant to applicable U.S. securities laws.

Peninsula’s registration filing with the SEC and forthcoming U.S. stock exchange listing is expected to provide a number of benefits to the company.

Home to the world’s largest nuclear power generation fleet, the U.S. also provides access to the largest pool of capital globally and access to an active and sophisticated investment market well versed in the benefits of nuclear power generation and the contribution that uranium makes to the nuclear fuel cycle
 

Analysis

This finance facility provides Peninsula with short-term funding flexibility as production at Lance ramps up following a landmark approval from the NRC.

This financing is important since it will smooth out the company’s operating cash balance despite the often lumpy nature of uranium deliveries and associated cash receipts.

It is encouraging that the company was able to secure the most attractive terms from a prestigious international specialist banking and asset management group such as Investec, which provides a diverse range of financial products and services to a niche client base in three principal markets, the UK, South Africa and Australia.

Peninsula has delivered steady development process at Lance this year, culminating last week in confirmation that the project was government-authorised and operationally ready to generate revenues for the company via the efficient non-mining ISR uranium extraction method.

Given the underexplored nature of much of the Lance property holdings, the current resource could be tripled as uranium markets heat up and a U.S. stock market listing for Peninsula takes shape.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 07 Dec 2015 12:04:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160697/peninsula-energy-bags-15m-from-investec-ahead-of-uranium-production-66021.html
<![CDATA[News - Peninsula Energy gets uranium production green light at Lance ]]> https://www.proactiveinvestors.co.uk/companies/news/160696/peninsula-energy-gets-uranium-production-green-light-at-lance-65918.html Peninsula Energy (ASX:PEN) has achieved a major milestone in becoming a uranium producer after being cleared by local authorities to begin in-situ recovery (ISR) operations on its Lance property in the U.S.

The authorisation from the U.S. Nuclear Regulatory Commission (NRC) allows Lance’s Ross permit area to pursue wellfield injection and production circuits as well as works related to ion exchange columns, water disposal pathways and transportation of resins for further offsite processing.

Ross constitutes the largest JORC-compliant ISR resource in the U.S. at 54 million pounds of U3O8.
 
The approval to begin production activities at this site followed a comprehensive inspection process by the NRC last month, which determined Peninsula’s U.S. operating subsidiary Strata Energy had satisfied required conditions related to safety and environmental standards.

In preparation for production activities at Ross, Strata has completed significant infrastructure construction at the site, trained qualified staff and established operational processes and protocols.

Based on the results of the preoperational inspection, the NRC staff has determined that Ross is physically ready for ISR operations up to the ion exchange columns.

At the time of the preoperational inspection, the NRC noted that Strata plans to ship uranium-loaded resins to a nearby mill, an NRC-licensed site, for further processing.

Peninsula is expected to produce at a stage-1 rate of 600,000 to 800,000 pounds of U3O8 per annum, with one well already fully operational and six more planned to sequentially ramp up, establishing a seven-well operation.

Operating costs will be curbed dramatically as this rollout takes shape, with an initial all-in cost forecast of US$41 per pound scheduled to drop to $29 per pound by stage 3.

Stage-1 capital costs are planned to be minimised to $33 million with toll treatment.

Toll treating, however, is expected to be brought in-house in later stages, resulting in lower operating costs and greater economies of scale.

Lance is expected to be cashflow positive in 2016 with its production ramp-up coinciding with a tightening uranium market.


About Lance

Lance hosts 305 line kilometres of identified roll fronts on the northeast flank of the Powder River Basin in the state of Wyoming.

A proprietary database of historic drilling and pilot plant data in this region was acquired by Peninsula in 2007, defining a then relatively unknown uranium district of which Peninsula is now the dominant mineral rights holder.

Unlike most ISR projects, Peninsula’s mineral resources are located on contiguous landholdings that the company controls. This allows Peninsula to develop Lance in a cost-effective manner, without having to incur infrastructure and facility development costs that would otherwise be required if the landholdings were not contiguous.

Lance properties cover more than 46 square miles but more than 90% of drilling has been concentrated on the Ross permit, suggesting enormous upside in further regional development.

Based on the historic conversion rate from roll front length to a drill-defined resource, the mineralised potential of Lance, in addition to the established resource, is assessed at between 104 and 163 million pounds of U3O8.


U.S. listing

Renewed momentum in bringing Ross into production has coincided with advances in Peninsula’s efforts to list its American Depositary Shares on the New York Stock Exchange – MKT.

The move is expected to provide further impetus to a near-term valuation re-rating for Peninsula as well as direct access and much greater visibility of the company’s uranium business in the world’s largest debt and equity markets.

The company has filed a registration statement to register its ordinary shares with the U.S. Securities and Exchange Commission (SEC).

Once this form is declared effective by the SEC, it allows foreign issuers to register securities with the SEC for trading on a U.S. stock exchange pursuant to applicable U.S. securities laws.

Peninsula’s registration filing with the SEC and forthcoming U.S. stock exchange listing is expected to provide a number of benefits to the company.

Home to the world’s largest nuclear power generation fleet, the U.S. also provides access to the largest pool of capital globally and access to an active and sophisticated investment market well versed in the benefits of nuclear power generation and the contribution that uranium makes to the nuclear fuel cycle.


Analysis

Government approvals are always a major milestone in the uranium space, but official clearance for production at Lance is especially positive for Peninsula since initial cashflows could underpin continued development of the project’s massive potential for low-risk expansion.

As the next global uranium producer, this approval is a game changer, propelling Peninsula as a very near term cashflow producer next year.

Operationally, the NRC inspection also confirms and validates the operation-ready status of Lance’s Ross property, which is now primed for ISR output up to the ion exchange columns.

The fact that Ross is an ISR operation an important factor in project economics since this non-mining method of uranium extraction is universally regarded as the most efficient operating model.

Given the underexplored nature of much of the Lance property holdings, the current resource could be tripled as uranium markets heat up and a U.S. stock market listing for Peninsula takes shape.

A North American listing is important for Peninsula since it improves potential to integrate the company’s business strategy into the massive U.S. nuclear market as macro factors improve the sector’s economics.

A tightening supply situation and new demand is expected to lift the whole uranium sector and further enhance the economics of Lance. 

Peninsula shares have been performing well on this outlook, with the stock last trading 10.1% up at A$1.30, or 62% higher than a low reached in September and 81% higher than the beginning of the calendar year. This is just the start as the North American investor market gets on board the stock in 2016.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 01 Dec 2015 13:35:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160696/peninsula-energy-gets-uranium-production-green-light-at-lance-65918.html
<![CDATA[News - Peninsula Energy advances U.S. listing as uranium production nears ]]> https://www.proactiveinvestors.co.uk/companies/news/160695/peninsula-energy-advances-us-listing-as-uranium-production-nears-65623.html Peninsula Energy (ASX:PEN) has achieved major progress in advancing plans to list its American Depositary Shares (ADR's) on the New York Stock Exchange - MKT as the countdown to Q4 2015 Lance production approaches.

The move is expected to provide further impetus to a near-term valuation re-rating for Peninsula as well as direct access and much greater visibility of the company’s uranium business in the world’s largest debt and equity markets.

The company has filed a registration statement to register its ordinary shares with the U.S. Securities and Exchange Commission (SEC).

Once this form is declared effective by the SEC, it allows foreign issuers to register securities with the SEC for trading on a U.S. stock exchange pursuant to applicable U.S. securities laws.

Peninsula is seeking a secondary listing of American Depositary Shares on the NYSE -MKT.

Peninsula’s registration filing with the SEC and forthcoming U.S. stock exchange listing is expected to provide a number of benefits to the company.

Home to the world’s largest nuclear power generation fleet, the U.S. also provides access to the largest pool of capital globally and access to an active and sophisticated investment market well versed in the benefits of nuclear power generation and the contribution that uranium makes to the nuclear fuel cycle.

In conjunction with its U.S. broking advisors, Peninsula has initiated a systematic and worldwide institutional awareness program that will run over the next four weeks.

In keeping with this plan and to establish a significant shareholder base and liquidity in North America, it will be followed in the new year by an extensive U.S. regional high-net-worth and retail roadshow program that will become a quarterly feature of the company’s ongoing business plan.


Production ready

Lance is set to produce at a stage-1 rate of 600,000 to 800,000 pounds of U3O8 per annum, with one well already fully operational and six more planned to sequentially ramp up, establishing a seven-well operation.

Operating costs will be curbed dramatically as this rollout takes shape, with an initial all-in cost forecast of US$41 per pound scheduled to drop to $29 per pound by stage 3.

Stage-1 capital costs are planned to be minimised to $33 million with toll treatment.

Toll treating, however, is expected to be brought in-house in later stages, resulting in lower operating costs and greater economies of scale. 

A deep disposal well has been commissioned and is operational, with performance tracking better than forecast.

Resin stripping, drying and packaging will be done at the Irigarary plant to reduce initial capex and commissioning risk.

Also, a pre-production inspection by the U.S. Nuclear Regulatory Commission was successfully conducted earlier this month.

Lance is expected to be cashflow positive in 2016 with its production ramp-up coinciding with a tightening uranium market.


Uranium market

Confidence in the uranium markets that will drive Lance is not only rooted in the significant U.S. domestic nuclear market.

Price increases for uranium in a tighter global supply-demand scenario are expected to unfold over 2016 with the restart of Japanese reactors and massive reactor construction efforts in China.

Also, India has indicated a strategic interest in expanding its nuclear market as sector M&A activity increases and global utility contracting appears to be rebounding.

More long-term drivers of the sector are expected to result in a price range of US$60-70 per pound by 2017-18 with strong global demand growth.

This demand will be compounded by insufficient new mine development and declining secondary supply sources, generating a significant deficit by the end of the decade.


Analysis

Peninsula’s steps toward a North American listing are important as they assert the company’s potential to integrate its business strategy into the massive U.S. nuclear market as macro factors improve the economics of the global uranium sector.

A NYSE MKT listing of its ADR's should see a re-rating of the company relative to its North American peers at a time when it is transitioning Lance into an operational mine with no debt obligations.

Peninsula is ready to begin production this year at Lance with a clear, low-risk path to expansion.

The project benefits from significant production volumes in term contracts and enviable operational metrics that will further streamline with project ramp-up.

This is expected to result in significant operating margins even at the current uranium price.  Weighted average prices for deliveries made under signed term contracts between 2016 and 2020 is US$59/lb U3O8 – well above current prices.

A tightening supply situation and new demand is expected to lift the whole uranium sector and further enhance the economics of Lance. 

Peninsula shares have been performing well on this outlook, with the stock last trading at A$1.14, or 34% higher than a low reached in September and 50% higher than the beginning of the calendar year.

Yet this is significantly below intrinsic value of Peninsula's producing Lance projects.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 16 Nov 2015 15:49:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/160695/peninsula-energy-advances-us-listing-as-uranium-production-nears-65623.html
<![CDATA[News - Peninsula Energy returns to normal trading post consolidation ]]> https://www.proactiveinvestors.co.uk/companies/news/160694/peninsula-energy-returns-to-normal-trading-post-consolidation-65000.html Peninsula Energy (ASX:PEN) has now completed a 40 for 1 consolidation, and today, 9th October 2015, will once again be back on the ASX boards trading as ASX:PEN, rather than the recent ASX:PENDA during the consolidation period.

Peninsula is on the cusp of uranium production from its Lance Projects in Wyoming, U.S.

The milestone event of first production is expected this month, which will be followed by a listing on the NYSE MKT exchange, which has the potential to create a positive re-rating of the stock.


Valuation

In early 2015, Proactive Investors calculated an Enterprise Value/Pound attributable to Lance and Karoo of $392.1 million, or $2.40 per share (pre-consolidation $0.06 per share target).

We believe that Karoo has potential to rival Langer Heinrich and that potential will play out over the next 3-18 months.

Lance provides the near term potential as production and further development work are underway.

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, 09 Oct 2015 11:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160694/peninsula-energy-returns-to-normal-trading-post-consolidation-65000.html
<![CDATA[News - Peninsula Energy completes share consolidation ]]> https://www.proactiveinvestors.co.uk/companies/news/160693/peninsula-energy-completes-share-consolidation-64896.html Peninsula Energy (ASX:PEN) has completed the 40 for 1 share consolidation of its listed ordinary shares on the Australian Securities Exchange ahead of a listing on the NYSE MKT later this year.

On 24th September, shareholders approved the consolidation during the extraordinary general meeting. The company now has 173,422,794 ordinary shares.

Last trade was $1.00, under code ASX:PENDA.

Peninsula is planning to list its shares and options on the NYSE MKT, a market designed to support younger, high-growth companies at around the time of first uranium production in Wyoming.

In September, the company cleared a key regulatory milestone to enable commencement of production at the Lance Projects in Wyoming after the U.S. Environmental Protection Agency approved an aquifer exemption surrounding the deep disposal well at the Ross Permit Area.

First uranium production is expected to begin in October with Stage 1 output expected to be circa 700,000 pounds per annum.

 

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, 05 Oct 2015 12:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160693/peninsula-energy-completes-share-consolidation-64896.html
<![CDATA[News - Peninsula Energy rated rising star and speculative buy: broker ]]> https://www.proactiveinvestors.co.uk/companies/news/160692/-peninsula-energy-rated-rising-star-and-speculative-buy-broker-64687.html Peninsula Energy (ASX:PEN) is the subject of a research review by Patersons Securities.

Here is an excerpt of the report:

PEN is on the cusp of uranium production from its Lance Projects in Wyoming, USA. The Company expects to commence first uranium production in October 2015.

This milestone event should be followed shortly thereafter by a listing on the NYSE MKT exchange, which has the potential to create a positive re-rating of the stock.

Furthermore, PEN’s Karoo project in South Africa has the potential to be positively impacted as South Africa continues to move towards a nuclear future to help solve the country’s electricity generation issues which continue to impact that economy.

Therefore, with a number of catalysts approaching, we rate PEN a Speculative Buy. We note PEN shareholders will vote for a 40 for 1 share consolidation on 24 September 2015.

Recommendation: Speculative Buy

Investment Highlights

Production Imminent:

The construction of the Lance Project infrastructure and process plant is on target for first production in October 2015 and remains within the budgeted US$33m.

In September 2015, the US Nuclear Regulatory Commission (NRC) will conduct a final pre-operational inspection of the project, which should allow PEN to receive all the necessary approvals to allow first uranium production to commence in October.

PEN is expected to increase production to the Stage 1 rate of 700,000lbpa of uranium. A successful ramp-up will allow PEN to commence Stage 2 of the Project, which requires an additional US$35m in capital and will essentially double the Stage 1 production rate.

Stage 3 requires US$78m, however, a large proportion is anticipated to be sourced from Stage 1 & 2 cashflows. We note that PEN has 1.9Mlb U3O8 contracted to utilities at a weighted average price approaching US$60/lb, which is well above the current spot price (US$37/lb). We estimate this represents about 40% of Stage 1 production per annum.

NYSE MKT Listing to Provide Potential Re-rating:

We see PEN's proposed secondary listing on the NYSE MKT exchange as a positive, which should allow for a re-rating of the stock. Based on our analysis, PEN is trading at a much lower multiple than the other uranium companies on the exchange when we compare production assets.

Furthermore, the US is the natural market for PEN given that its main project is in Wyoming, and it should assist in its direct negotiations with the US utilities.

South Africa to Commence Reactor Builds:

In May 2015, South Africa started the process to procure a nuclear fleet to generate 9,600MW (8 Nuclear Reactors). This news is particularly timely for PEN which is looking to develop its Karoo uranium project which has a sizable resource of 56.9Mlb U3O8 with excellent grades (1108ppm U3O8).

The procurement process is expected to be completed by April 2016, with construction as early as 2017.

Valuation:

We have determined a Net Asset Value (NAV) for PEN of $0.06/sh. The majority of our sum-of-the parts valuation is related to the Company’s Lance Projects in Wyoming, USA.

Our assumptions for the project are based on the three stage scalable production development plan as outlined in October 2014. In total, the Lance Projects have an estimated 20 year mine life with total production of 28Mlb U3O8 which assumes a 53% conversion from mineral resources (54Mlb) into recoverable material.

The All-in sustaining cash cost is estimated at sub-US$30/lb U3O8 (uninflated).

 

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, 23 Sep 2015 08:09:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160692/-peninsula-energy-rated-rising-star-and-speculative-buy-broker-64687.html
<![CDATA[News - Peninsula Energy gains aquifer clearance for Lance uranium projects ]]> https://www.proactiveinvestors.co.uk/companies/news/160691/-peninsula-energy-gains-aquifer-clearance-for-lance-uranium-projects-64370.html Near term uranium producer Peninsula Energy (ASX:PEN) has cleared a key regulatory milestone to enable commencement of production at the Lance Projects in Wyoming.

The U.S. Environmental Protection Agency has approved an aquifer exemption surrounding the deep disposal well at the Ross Permit Area of the Lance Uranium Projects.

In September 2015, the U.S. Nuclear Regulatory Commission will conduct a final pre-operational inspection of the project which will allow Peninsula to receive all the necessary approvals to allow first uranium production to commence in October.

Stage 1 production is expected to be circa 700,000 pounds per annum.

Wholly owned subsidiary Strata Energy Inc. successfully completed the DDW to a depth of 8,607 feet at the RPA.

Strata subsequently requested to the Wyoming Department of environmental Quality to include a portion of the Flathead aquifer that surrounds the DDW.

The EPA approved “a non-substantial program revision to include exemption of a portion of the Flathead formation surrounding the Ross DDW”.
 
Specifically, the depths and extent of the aquifer exemptions are “the portion of the Flathead formation one-quarter mile from the Ross DDW No.2 wellbore and at approximate depths of 8,277 to 8,565 feet below ground surface”.

The approval is based on the aquifer that does not currently serve as a source of drinking water, and the aquifer is situated at a depth or location which makes recovery of water for drinking water purposes economically or technologically impractical.

Peninsula managing director and CEO Gus Simpson stated, “The EPA deep disposal well aquifer exemption clears a significant regulatory milestone for the commencement of production at the Lance Projects”.


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, 04 Sep 2015 16:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160691/-peninsula-energy-gains-aquifer-clearance-for-lance-uranium-projects-64370.html
<![CDATA[News - Peninsula Energy in share consolidation ahead of NYSE MKT listing ]]> https://www.proactiveinvestors.co.uk/companies/news/160690/peninsula-energy-in-share-consolidation-ahead-of-nyse-mkt-listing-64219.html Pending U.S. uranium producer Peninsula Energy (ASX:PEN) will conduct a 40 for 1 share consolidation of its listed ordinary shares and options ahead of a listing on the NYSE MKT later this year.

Key dates for shareholders for the share consolidation are as follows:

Effective Date: Monday September 28, 2015
Record Date: Wednesday September 30, 2015
Issue Date: Thursday October 8, 2015

A key reason for the share consolidation is the large number of issued ordinary shares of 6,936,327,999.

After the reorganisation, this will be reduced to 173,408,200 ordinary shares.

The consolidation is timely as Peninsula will look to list its shares and options on the NYSE MKT, a market designed to support younger, high-growth companies at around the time of first uranium production in Wyoming.

U.S. listed peer companies trade at higher multiples in the U.S. and the consolidation will "increase" the share price to a level that enables North American fund managers to gain an exposure to the stock.

Based on the closing price of $0.026 yesterday, the consolidation would imply a post consolidation price of $1.04.


Two new uranium sale contracts

Earlier in the month Peninsula executed two forward uranium concentrate sale and purchase contracts with major U.S. power utilities to supply uranium from its Lance Projects in Wyoming.

These committed sales contracts will substantially increase revenue certainty whilst allowing an appropriate level of planned production free for future contracting in an increasing price environment.

These sale agreements further de-risk the cashflow profile for Stage 1.This follows earlier sales contracts struck in previous years believed to be at prices ranging from US$50 - $73/lb U3O8.

U.S, power utilities will also need to find additional feed sources for their nuclear reactors and are likely to prefer domestic material such as Lance for security of supply.

 

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, 28 Aug 2015 07:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160690/peninsula-energy-in-share-consolidation-ahead-of-nyse-mkt-listing-64219.html
<![CDATA[News - Peninsula Energy executes two more uranium sale contracts ]]> https://www.proactiveinvestors.co.uk/companies/news/160689/peninsula-energy-executes-two-more-uranium-sale-contracts-64189.html Peninsula Energy (ASX:PEN) has executed two forward uranium concentrate sale and purchase contracts with major U.S. power utilities for supply from its soon to be producing Lance Projects in Wyoming.

Peninsula is on the cusp of uranium production from Lance Projects and expects to commence first uranium production in October 2015.

These committed sales contracts will substantially increase revenue certainty whilst allowing an appropriate level of planned production free for future contracting in an increasing price environment.

Under the agreement Peninsula will deliver 1,935,000 pounds of U3O8 with deliveries commencing in 2016 to the utilities.

While the contract price was not disclosed the utilities will pay term contract prices reported by uranium industry commentators during the first half of 2015.

This would be well above the current spot price for U3O8.

This takes to four the number of significant agreements in place for a major portion of the U3O8 that Peninsula wants contracted over the next five years.

Peninsulas’ managing director/CEO Gus Simpson commented:

“We are very pleased to add two more contracts to Peninsula’s forward sale position, guaranteeing a significant proportion of the Company’s revenue stream at better than market when production commences at the Lance Projects.”


Ramp up to production at Lance Projects

In September 2015, the US Nuclear Regulatory Commission will conduct a final pre-operational inspection of the project which will allow Peninsula to receive all the necessary approvals to allow first uranium production to commence in October.

Stage 1 production is expected to be in the order of 700,000 pounds per annum.

Stage 2 of the Project would require an additional capital expenditure and would largely double the Stage 1 production rate.


NYSE MKT listing

Peninsula is deftly timing the listing with first production from Lance Projects in 2H 2015.

Given that Peninsula is trading at a much lower multiple than the other uranium companies and listed peers on the exchange on production assets, this event is likely to trigger a re-rating for Peninsula well above current market cap.


Analysis

These sale agreements further de-risk the cashflow profile for Stage 1.This follows earlier sales contracts struck in previous years believed to be at prices ranging from US$50 - $73/lb U3O8.

U.S, power utilities will also need to find additional feed sources for their nuclear reactors and are likely to prefer domestic material such as Lance for security of supply.

While attention is understandably on Lance Projects and Peninsula as the next uranium producer, we would not discount value adding progress at its Karoo project in South Africa.

South Africa will require a significant amount of nuclear power to offset chronic electricity supply issues.

We remain confident of our price target of $0.06.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 26 Aug 2015 08:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160689/peninsula-energy-executes-two-more-uranium-sale-contracts-64189.html
<![CDATA[News - Peninsula Energy to reveal uranium sales contracts ]]> https://www.proactiveinvestors.co.uk/companies/news/160688/peninsula-energy-to-reveal-uranium-sales-contracts-64141.html Peninsula Energy (ASX:PEN) has been granted a trading halt by the ASX, pending details of uranium sales contract(s).

Peninsula remains on-track to become the next uranium producer in Q4 2015 from the Lance Uranium Projects in Wyoming, U.S.

The company will also dual-list in New York in coming months - subject to all regulatory and shareholder approvals.

The halt will remain in place until the opening of trade on Wednesday 26th August 2015, or earlier if an announcement is made to the market.

 

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, 25 Aug 2015 07:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160688/peninsula-energy-to-reveal-uranium-sales-contracts-64141.html
<![CDATA[News - Peninsula Energy's uranium hits exceed expectations at Lance ]]> https://www.proactiveinvestors.co.uk/companies/news/160687/peninsula-energys-uranium-hits-exceed-expectations-at-lance-64025.html Peninsula Energy (ASX:PEN) has intersected high grade uranium from mining development drilling within Mine Unit 1 at the company's Lance Uranium Projects in Wyoming, U.S.

The company said intercepts within Mine Unit 1 continue to meet or exceed resource grade expectations.

Also, construction of the (CPP) and initial wellfields is on schedule and on budget.

Peninsula remains on-track to become the next uranium producer in Q4 2015 from Lance. The company will also dual-list in New York in coming months - subject to all regulatory and shareholder approvals.

The listing will provide access to an active market well versed in the benefits of nuclear power generation.

Added to this, average daily turnover of uranium peer companies dual-listed on a U.S. stock exchange consistently exceed the liquidity levels achieved on their non-US exchange by factor of 4 to 7 times.


Latest drilling results include:

- 2.5ft at 4,680ppm U3O8 from 447.5ft; 9.0ft at 1,000ppm U3O8 from 414.5ft; 9.0ft at 750ppm U3O8 from 469.5ft; and 7.0ft at 890ppm U3O8 from 402.5ft.

Another highlight for the company is that 99% of all monitoring, injection and production wells completed have passed mechanical integrity testing.

Gus Simpson, managing director and CEO of Peninsula, commented: “It is very pleasing to see the continued success at each project stage building layer on layer.

"It is testimony to the quality of the assets we have, the planning that has gone into their development and the dedicated execution of those plans by the whole team."


Mine Unit 1 Drilling Program

During the period 13 July 2015 to present, Peninsula’s wholly owned subsidiary Strata Energy Inc. completed 37 mining wells at the Lance Projects.

These injection and production wells are for the first production header house within Mine Unit 1.


Analysis

Peninsula Energy is positioned for a valuation uplift as it lists on the NYSE in Q4 2015 and onto the radars of North American investors and fund managers.

What does a U.S. dual-listing provide a uranium company?

Peninsula would receive a number of benefits from listing in the U.S., as the country is the largest generator of nuclear power in the world.

- The U.S. provides access to the largest pool of capital globally, and an active market well versed in the benefits of nuclear power generation.

- Average daily turnover of uranium peer companies dual listed on a U.S. stock exchange consistently exceed the liquidity levels achieved on their non-U.S. exchange by factor of 4 to 7 times.

- Uranium companies with a listing on a U.S. stock exchange benefit from a higher relative valuation than companies that do not have a U.S. listing.

- Comparable In-Situ Recovery companies with a U.S. listing outperform companies that do not have a U.S. listing by a factor of 2 to 3 times enterprise value per pound of measured and indicated resource.

Also, it is worth noting that many U.S. investors are not able to invest in non-US listed companies.

 

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, 17 Aug 2015 10:10:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160687/peninsula-energys-uranium-hits-exceed-expectations-at-lance-64025.html
<![CDATA[News - Peninsula Energy appoints non-executive director ]]> https://www.proactiveinvestors.co.uk/companies/news/160686/peninsula-energy-appoints-non-executive-director-63788.html Peninsula Energy (ASX:PEN) has appointed nuclear fuel executive Harrison (Hink) Barker as a non-executive director.

Until recently, he was a senior manager at Dominion Resources (NYSE:D) where he worked for over 40 years, primarily with commercial and technical responsibilities for fossil and nuclear fuel.

Dominion is a large producer and transporter of electricity in the United States, with a portfolio of approximately 24,600 megawatts of generation.

This includes six operating nuclear power plants, located in both regulated and merchant markets, with an annual average requirement of 2.7 million pounds of uranium.

Since 1992, Barker was manager of nuclear fuel procurement at Dominion with managerial oversight of Dominion’s procurement of nuclear fuel and the related processing steps of conversion from U3O8 to UF6, enrichment of UF6, and fabrication of nuclear fuel bundles for power generation.

He is a former chairman of the Nuclear Energy Institute’s Utility Fuel Committee and the World Nuclear Fuel Market Trade Association. He also served on an Advisory Board to American Uranium Corporation when it developed the Wyoming Reno Creek uranium deposit.

John (Gus) Simpson, managing director, said:

“Hink is a valued addition to the Board, bringing an extensive understanding of the U.S. nuclear power generation fuel supply requirements.

“Hink’s knowledge and connections with U.S. nuclear utilities will assist the company in its goal to directly partner with them as a dependable, efficient, long term supplier of uranium fuel.”

Peninsula, which is on track to start uranium production from its Lance Projects in Q4 2015, recently received a Buy recommendation with a share price target of $0.04 from UK broker RFC Ambrian.

The company is also progressing a listing on the New York Stock Exchange.

PEN last traded at $0.024.

 

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, 03 Aug 2015 15:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160686/peninsula-energy-appoints-non-executive-director-63788.html
<![CDATA[News - Peninsula Energy receives Buy, $0.04 price target from RFC Ambrian ]]> https://www.proactiveinvestors.co.uk/companies/news/160685/peninsula-energy-receives-buy-004-price-target-from-rfc-ambrian-63637.html Peninsula Energy (ASX:PEN) remains the subject of a Buy recommendation with a share price target of $0.04 from UK broker RFC Ambrian. PEN last traded at $0.024.

RFC noted the timely submission of the wellfield package as a milestone to receiving full permitting given that final U.S. Nuclear Regulatory Commission approvals are one of the key steps towards achievement of uranium production.

It anticipates first production in October 2015 to be the principal catalyst for a re-rating of the shares.

Construction of the Central Processing Plant and initial wellfields at the Lance Projects in Wyoming continue to progress as scheduled.

Its submissions to the NRC and the Wyoming Department of Environmental Quality have also demonstrated that the ore zone aquifers are effectively isolated from the overlying and underlying aquifers.

Peninsula had cash of A$38 million at the end of May 2015, with debt of $1 million.

 

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, 27 Jul 2015 15:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160685/peninsula-energy-receives-buy-004-price-target-from-rfc-ambrian-63637.html
<![CDATA[News - Peninsula Energy delivers on project milestone, road to Q4 uranium production ]]> https://www.proactiveinvestors.co.uk/companies/news/160684/peninsula-energy-delivers-on-project-milestone-road-to-q4-uranium-production-63606.html Peninsula Energy (ASX:PEN) has ticked off another milestone as the company remains on on-track to become the next ASX-listed uranium producer in Q4 2015 from its Lance Projects in Wyoming, U.S.

Construction of the Central Processing Plant (CPP) and initial wellfields continues to progress as scheduled.

Peninsula's wholly owned subsidiary, Strata Energy, Inc. has submitted the wellfield data package for Mine Unit 1 to the US Nuclear Regulatory Commission (NRC) and the Wyoming Department of Environmental Quality (WDEQ).

This is a major milestone for the company.

As part of its pre-operational license requirements, Strata is required to submit to the NRC and WDEQ the Wellfield Data Package for their respective review and approval prior to the commencement of production.

Submission of the Wellfield Data Package follows the completion of installation of all Mine Unit 1 monitor wells, well pump tests and four rounds of baseline water sampling.

Ralph Knode, Strata CEO, commented: “Submitting the Wellfield Data Package is a major achievement for the project team and follows a significant amount of site activity over the past 3 to 4 months.

"CPP and wellfield construction activities continue to progress as planned, and preparations for the commencement of operations are well advanced.”


Submission details

Peninsula said that in making the submission to the NRC and the WDEQ, Strata has validated through testing that the hydrological aspects of the Mine Unit 1 orebody and its perimeter will function in a manner consistent with previous pump tests and modelling.

This includes demonstrating that the ore zone aquifers are effectively isolated from the overlying and underlying aquifers.

Water quality information obtained from pre-production baseline water sampling will also be used to set upper control limits for all monitor wells during production and set restoration standards during future groundwater restoration and rehabilitation of depleted wellfields.


Analysis

As Peninsula ticks off the milestones at Lance, it further de-risks the project on the path to uranium production in Q4 2015.

Construction of the Central Processing Plant and initial wellfields continues to progress as scheduled.

Peninsula's subsidiary has also submitted the wellfield data package for Mine Unit 1 to the US Nuclear Regulatory Commission and the Wyoming Department of Environmental Quality, which is part of its pre-operational license requirements.

Peninsula had cash of A$38 million at the end of May 2015, with debt of $1 million.

Why is a New York listing important?

Peninsula will be the next ASX-listed uranium producer, and will also move to list on the New York Stock Exchange.

The New York listing could dramatically improve the company's liquidity and valuation, and is expected to be completed in October this year.

The listing will provide access to an active market well versed in the benefits of nuclear power generation.

 

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, 23 Jul 2015 09:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160684/peninsula-energy-delivers-on-project-milestone-road-to-q4-uranium-production-63606.html
<![CDATA[News - Peninsula Energy acquires satellite uranium project for Lance ]]> https://www.proactiveinvestors.co.uk/companies/news/160683/peninsula-energy-acquires-satellite-uranium-project-for-lance-63472.html Peninsula Energy (ASX:PEN) has entered into a binding agreement to acquire the previously producing Hauber Uranium Project in Wyoming from Aldershot Resources (TSX:ALZ).

The company is focused on completion of construction and commissioning of the Lance Projects, which remains on budget and on schedule to start production in the second half of 2015.

Hauber produced approximately 2.6 million pounds U3O8 at an average grade of 2,200ppm U3O8 during the 1950’s and 60’s.   

Its high historic mining grade and proximity to the Lance Projects’ Central Processing Plant led to its identification as a strategic regional opportunity.

This has the potential to be developed as a future satellite operation that could utilise the additional 700,000 pound per annum U3O8 capacity that has been licensed at the Lance CPP.   

Under the agreement, Peninsula has acquired 44 mineral claims covering 1,760 acres just 15 miles to the north-northeast of the Lance Projects.

It is required to make a cash payment of US$20,000 and will be responsible for all future ongoing costs for maintaining the properties in good standing and for all future exploration and development funding.   

Over the coming months Peninsula will conduct a detailed analysis of the acquired data and will develop an exploration and delineation drilling program for future execution.


Hauber Project

Hauber is situated in the Black Hills area of Wyoming.

The Black Hills are a broad uplift spanning approximately 150 miles in length in a north north-west to south south-east direction and 50 miles wide.

The dome was uplifted during the Laramide Orogeny and consists of a Precambrian granitic and metamorphic core surrounded by outwardly dipping Palaeozoic and Mesozoic strata.

Uranium is hosted in the Lower Cretaceous Inyan Kara Group.

Previous project holders have undertaken extensive drilling within the Hauber properties and the surrounding regional area.

Data for approximately 5,000 drill holes from Hauber and the surrounding region, along with maps, gamma logs and chemical assay information has been received by Peninsula as part of the acquisition.   

In 2011, testing by Bayswater Uranium Corporation indicated the mineralised host sandstones have ranging from 600 to over 2400 millidarcies, within the accepted range for in-situ recovery mining.


Analysis

Peninsula Energy has further strengthened its position as the largest uranium mineral rights holder in the northeast Powder River Basin of Wyoming, U.S., with the acquisition of the Hauber Uranium Project.

The acquisition cost is negligible at just US$20,000, but has the potential to be developed as a future satellite operation that could utilise the additional 700,000 pound per annum U3O8 capacity that has been licensed at the Lance CPP.

During the 1950’s and 60’s Hauber was a uranium producing project, and produced 2.6 million pounds U3O8 at an average grade of 2,200ppm U3O8.

Share price catalysts

A key catalyst for Peninsula would be the acquisition of another satellite deposit, which could potentially add mine feed stock for a longer, or higher output, at Lance

There are several more ore bodies that are currently being reviewed though the company is certainly in no hurry given that they are all stranded and not large enough to justify a standalone development.

Peninsula also remains on track to be the next ASX-listed uranium producer with its Lance Projects still on schedule and on budget for uranium production in the second half of 2015.

 

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, 15 Jul 2015 12:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160683/peninsula-energy-acquires-satellite-uranium-project-for-lance-63472.html
<![CDATA[News - Peninsula Energy hits high grade uranium at Lance ]]> https://www.proactiveinvestors.co.uk/companies/news/160682/peninsula-energy-hits-high-grade-uranium-at-lance-63413.html Peninsula Energy (ASX:PEN) has discovered high grade uranium from development drilling at the Lance Uranium Projects in Wyoming, U.S.

Peninsula will be the next ASX-listed uranium producer, and will also move to list on the New York Stock Exchange.

Drilling intersected the high grade uranium within and outside Mine Unit 1.

Adding interest, intercepts within Mine Unit 1 meet or exceed resource grade expectations, which augurs well for production from this mining zone.

Highlights include:

- 8.5ft at 1,690ppm U3O8 from 364.5ft (GT 1.44);
- 19.5ft at 650ppm U3O8 from 459ft (GT 1.27);
- 11.5ft at 660ppm U3O8 from 433ft (GT 0.76); and
- 14ft at 540ppm U3O8 from 454ft (GT 0.76).

Gus Simpson, managing director and CEO, commented: “As development progresses at Lance MU1 we are seeing consistent support for the estimates generated in the Feasibility work.

"This combined with better than expected drilling results augurs well for future production."


Drilling details

Peninsula’s wholly owned subsidiary Strata Energy Inc. has completed the installation of a series of monitor/baseline wells within the initial mining unit (Mine Unit 1) at the Lance Projects.

Strata is using these wells to develop site-specific ground water quality data and to perform aquifer pump tests.

Delineation drilling has also been conducted to optimise the well field patterns and design within Mine Unit 1.

Peninsula advises that both the monitor well drilling and delineation drilling have intersected high grade uranium mineralisation within the ore zone of Mine Unit 1, with several high grade holes also being recorded outside of Mine Unit 1.

During the period February 2015 to present, Strata completed 56 monitoring/baseline wells, 19 delineation holes and 7 mining wells at the Lance Projects.

The vast majority of these holes were drilled within and around Mine Unit 1

Peninsula said that as expected, a number of the holes were barren, consistent with the company’s understanding of the Mine Unit 1 ore resource boundaries.


Analysis

As development progresses at Lance MU1, Peninsula is seeing consistent support for the parameters in the Feasibility work.

This combined with better than expected drilling results augurs well for future production.

Peninsula will be the next ASX-listed uranium producer, and will also move to list on the New York Stock Exchange.

The New York listing could dramatically improve the company's liquidity and valuation, and is expected to be completed in October this year.

The listing will provide access to an active market well versed in the benefits of nuclear power generation.

Peninsula had cash of approximately A$38 million as at the end of May with debt of just $1 million.

On today's drill results, who said a pre-production company cannot keep pulling rabbits out of a hat?

And they are big rabbits considering these high grade hits during development drilling include some that are better than expected.

 

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, 13 Jul 2015 11:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160682/peninsula-energy-hits-high-grade-uranium-at-lance-63413.html
<![CDATA[News - Peninsula Energy appoints chairman as it closes on uranium production ]]> https://www.proactiveinvestors.co.uk/companies/news/160681/peninsula-energy-appoints-chairman-as-it-closes-on-uranium-production-63098.html Peninsula Energy (ASX:PEN) is on track to start uranium production in the second half of 2015 from its Lance Projects in Wyoming and has appointed Richard Lockwood as its non-executive chairman with effect from 1st July 2015.

John (Gus) Simpson has moved to an expanded role as managing director and chief executive officer of the company and executive chairman of Peninsula Uranium Limited.

Peninsula Uranium Limited is the company’s dedicated uranium sales and marketing arm.

As part of the board changes, Alfred Gillman will step down as a non-executive director with effect from 1st July 2015 though he remains available to the company on a consulting basis for technical and project related matters.

“The board welcomes Richard to Peninsula as chairman. He is a highly respected figure in the both the global resources sector and broader investment community,” Simpson said.

“His appointment brings considerable uranium industry knowledge and financial market expertise to the board and we are very pleased to have him join the Peninsula group.”

Peninsula has engaged an independent remuneration consultant (BDO) to benchmark all key management personnel remuneration within the Group against industry peers.

This will ensure that a significant portion of executive remuneration is directly linked with the company’s performance by aligning short term and long term incentives with the achievement of its short term and long term strategic objectives, which are focused on growth in shareholder value.


Richard Lockwood

Lockwood has over 50 years’ experience in the funds management and mining investment sectors across the UK, Australia, and South Africa.

He has extensive involvement with the uranium sector via institutional investment markets including being the founder of specialist uranium investment fund Geiger Counter Ltd.

Lockwood also played a pivotal role at board level and was a director of AIM-listed uranium company Kalahari Minerals, which held a 42.74% interest in Extract Resources. Extract Resources was the owner of the Husab uranium project in Namibia.

Kalahari Minerals and Extract Resources were taken over by China Guandong Nuclear Power Corporation in 2012 for US$2 billion.

He is a director of London based Arlington Group Asset Management Limited and was previously the senior resources fund manager at CQS Asset Management Ltd having merged his New City Investment Management group with CQS in 2007.

Lockwood was also previously a non-executive director at A-CAP Resources Limited (ASX:ACB), which targets the development of uranium and coal projects in Botswana.


Lance In-Situ Recovery (ISR) project

Peninsula’s Lance Projects in the Powder River Basin of Wyoming have JORC ISR Resources of 53.7 million pounds of U3O8, the largest of its kind in North America.

It also has significant exploration targets estimated at 158 - 217 million pounds of U3O8.

The Projects are fully permitted for U3O8 production at the rate of 3 million pounds per year, and in Stage One will produce 500,000 - 700,000 pounds of U3O8 per year, constituting 10% of U.S. U3O8 production.

Lance is scalable and can ramp up production to maximum permitted levels (3 million pounds of U3O8 per year) as demand and pricing for uranium increase and maintain a mine life that will span many decades.

The company recently completed the deep disposal well ahead of schedule.

This is significant as it was the major cost over-run risk to the Project but it was completed at a cost of US$3.3 million.

Significantly, other project start ups in Wyoming have had to complete up to three DDW’s before achieving the required disposal rate.

In early June, Peninsula noted that Central Process Plant (CPP) construction and wellfield development activities continue to progress to both cost forecasts and time schedules.

All ion exchange columns and pressure vessel tanks have been installed in the CPP.

Cladding of the building housing the site workshop, laboratory and administration office have been completed and are now undergoing internal build-out and finishing.

In May, Peninsula started the application process to list its shares on the New York Stock Exchange (NYSE-MKT), giving it access to the world’s largest capital market and institutional fund managers.

Baseline water sampling is now complete at the project and final documentation of the complete wellfield package is in progress.  This is due to be submitted to the NRC and Wyoming Department of Environmental Quality for their review in less than 2 weeks.



Analysis

The board refresh at Peninsula Energy reflects its upcoming transition towards becoming the next ASX-listed uranium producer.

Construction and development activities are progressing on track while the move to list on the New York Stock Exchange could dramatically improve its liquidity and valuation.

Over the course of the next month, external cladding of the CPP will be completed and internal piping, electrical, instrumentation and controls will commence.
   
Other milestones include the commencement of development drilling within Mine Unit 1.

Peninsula had cash of approximately A$38 million as at the end of May with debt of just $1 million.

Proactive maintains its 12-18 month price target of $0.16.



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, 24 Jun 2015 10:42:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160681/peninsula-energy-appoints-chairman-as-it-closes-on-uranium-production-63098.html
<![CDATA[News - Peninsula Energy shares rally to fresh 12-month high ]]> https://www.proactiveinvestors.co.uk/companies/news/160680/peninsula-energy-shares-rally-to-fresh-12-month-high-62857.html Peninsula Energy's (ASX:PEN) shares rallied another 7.1% to close at $0.03 yesterday, after hitting an intra day high of $0.031, which was a fresh 12-month high for the company.

Over 30 million shares changed hands worth around $900,000, which followed on from 24 million trading the previous session.

The valuation of the company has almost doubled in the past two months.

Peninsula is on track to become the next ASX-listed uranium producer, and is on budget and on time for the landmark first production in the second half of 2015 from its Lance Projects in Wyoming, U.S.

In May, Peninsula started the application process to list its shares on the New York Stock Exchange (NYSE-MKT), giving it access to the world’s largest capital market and institutional fund managers.

The impending listing on the NYSE-MKT is one of the reasons that institutional fund managers and overseas investors have an increased appetite for Peninsula.

Peers listed on a U.S. stock exchange have increased liquidity compared to their non-U.S. exchange by a factor of 4 to 7 times and outperform their non-U.S. listed companies by 2-3 times enterprise value per pound of measured and indicated resource.

The Lance Projects are fully permitted for U3O8 production at the rate of 3 million pounds per year, and in Stage One will produce 500,000 - 700,000 pounds of U3O8 per year, constituting 10% of U.S. U3O8 production.

The project is scalable and can ramp up production to maximum permitted levels (3,000,000 pounds of U3O8 per year) as demand and pricing for U3O8 increase and maintain a mine life that will span many decades.


Valuation

Proactive has estimated a 12-18 month price target of $0.16, and initiated a Speculative Buy on the company in January 2015 when the stock was trading at $0.019.

Based on the close of $0.03 yesterday, Peninsula is up 58% since our Buy Recommendation.

 

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, 11 Jun 2015 10:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160680/peninsula-energy-shares-rally-to-fresh-12-month-high-62857.html
<![CDATA[News - Peninsula Energy completes deep disposal well at Lance Projects ]]> https://www.proactiveinvestors.co.uk/companies/news/160679/peninsula-energy-completes-deep-disposal-well-at-lance-projects-62692.html Peninsula Energy (ASX:PEN) is on budget and on time for the landmark first production of uranium in the second half of 2015 from its Lance Projects in Wyoming, USA.

Wholly owned U.S. subsidiary Strata Energy Inc. has successfully completed the deep disposal well (DDW) for the stage 1 Lance In-Situ Recovery (ISR) project.

Drilling of the DDW commenced in March 2015 and was drilled to a target depth of 8,607 feet ahead of schedule.

This is significant as it was the major cost over-run risk to the Project but it was completed at a cost of US$3.3 million.

Significantly, other project start ups in Wyoming have had to complete up to three DDW’s before achieving the required disposal rate.

In May, Peninsula started the application process to list its shares on the New York Stock Exchange (NYSE-MKT), giving it access to the world’s largest capital market and institutional fund managers.

Strata Energy Chief Executive Officer Ralph Knode said: “Successful completion of the deep disposal well marks a significant milestone in the construction and development activities for the Lance Projects.

"Also completion of the DDW earlier than scheduled allows the project team to focus on the remaining CPP construction, production wellfield development and pre-operational readiness activities.”


Further detail

An 18-hour performance test of the DDW demonstrated an injection rate of 35 gallons per minute (gpm), well in excess of the 20 gpm requirement for stage 1 operations.

The 35 gpm injection rate was achieved using a pump pressure of only 27 pounds per square inch (psi) while the well is approved for pumping pressure of up to 1,000psi. Simulation modelling also confirmed the expectation that the DDW will be available for approximately 10 years use.

The Central Process Plant (CPP) construction and wellfield development activities continue to progress to both cost forecasts and time schedules. All ion exchange columns and pressure vessel tanks have been installed in the CPP.
 
Cladding of the building housing the site workshop, laboratory and administration office have been completed and are now undergoing internal build-out and finishing.

The third round of wellfield baseline water sampling for Ross Permit Area Mine Unit 1 was completed on June 1.

The fourth and final round of baseline water sampling will be completed on June 15, enabling the wellfield package to be submitted to the U.S. Nuclear Regulatory Commission and Wyoming Department of Environmental Quality for review and final approval prior to the commencement of operations.


Analysis

With the company moving to list on the NYSE-MKT with an initial application information to the NYSE as the first step in the listing process, it is a good time to be a Peninsula Energy investor.

Peers listed on a U.S. stock exchange have increased liquidity compared to their non-U.S. exchange by a factor of 4 to 7 times and outperform their non-U.S. listed companies by 2-3 times enterprise value per pound of measured and indicated resource.

After raising $69.4 million in February 2015 to underwrite Lance into production it is on track and budget to be the next uranium producer.

The Projects are fully permitted for U3O8 production at the rate of 3 million pounds per year, and in Stage One will produce 500,000 - 700,000 pounds of U3O8 per year, constituting 10% of U.S. U3O8 production.

The Project is scalable and can ramp up production to maximum permitted levels (3,000,000 pounds of U3O8 per year) as demand and pricing for U3O8 increase and maintain a mine life that will span many decades.

Proactive has estimated a 12-18 month price target of $0.16.

 

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 Jun 2015 09:07:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/160679/peninsula-energy-completes-deep-disposal-well-at-lance-projects-62692.html