Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) Ltd has reported significant progress at its Lance Project in Wyoming, with construction of Phase II of the Central Processing Plant (CPP) nearing completion and commissioning scheduled to begin in June 2025.
“We are being deliberate and disciplined in our approach to bring Lance back into production, with multiple workstreams underway to address the key matters necessary to set Peninsula up for success,” Peninsula Energy’s managing director and CEO, George Bauk said.
“Firstly, we have reached agreement with our EPC contractor for the completion of the CPP Phase II. We are in advanced negotiations with our offtake customers regarding their sales contracts. As part of the reset plan, we have restructured the organisation and are actively engaged in discussions with both debt and equity providers. Importantly, we remain focused on the successful completion and commissioning of the CPP.
“We are making good progress on all these workstreams and are enthusiastic about being in a position to produce dry yellowcake in the coming months. We will have more information about the way forward for the Company and the Lance Project, including production guidance, as this important work is finalised.”
EPC dispute settled
A key milestone has been the formal settlement of all outstanding claims with construction contractor Samuel EPC.
Under the terms of the settlement, Peninsula will pay a total of US$4.75 million—comprising US$2 million in cash, US$2 million in shares (pending shareholder approval), and a US$750,000 milestone payment contingent on the successful delivery of yellowcake production by 30 June 2025.
Production guidance and offtake plans
Revised production guidance for calendar years 2026 and 2027 is being finalised, with Peninsula signalling lower output than previously forecast. The company is seeking interim debt funding and preparing for a capital raise to support its revised development plan, with cash reserves standing at US$13 million as of 31 May 2025.
Peninsula is renegotiating offtake agreements in response to the delay in CPP delivery and adjustments to its life-of-mine projections. Cost-saving measures have been implemented, including personnel reductions and organisational restructuring.
On the personnel front, David Hofeling has been promoted to General Manager of Operations, while Frederic Guerin will step down as Chief Operating Officer in July. Discussions are ongoing to retain Guerin in an advisory capacity.
Despite these operational advances, Peninsula’s shares remain in voluntary suspension as the company finalises contract negotiations and updated production plans.