Hartleys has penned a research report on ASX-listed Peninsula Energy (ASX: PEN).
"Peninsula is entering a period of increased activity, during which we expect strong newsflow related to significant catalysts. The newsflow is predominantly related to its 100% owned In Situ Recovery uranium projects located in Wyoming, USA (“Lance Projects”).
The Company has an exceptional track record of delivering on its goals and we expect this next phase of activity to be no different.
Dec 2010 – Lodging of Permitting Applications
Peninsula has recently conducted a site visit for the Nuclear Regulatory Commission (”NRC”). The Company has been conducting quarterly meetings with the NRC and the Wyoming Department of Environmental Quality (“WDEQ”) and is on track to submit the crucial permitting applications required to mine and process uranium at its Lance Projects.
Jan 2011 – Permitting Review and Acceptance
The site visit mentioned above was the first such visit to site by the NRC to any project and the feedback on how PEN is running its operation and assembling its permitting applications was very positive. The review and acceptance of the permitting applications indicates that the documents have been properly constructed and that there are no significant omissions. This process can take up to 90 days; however, due to PEN’s proactive approach in involving the NRC and WDEQ at an early stage, this timeframe may be shortened.
Jan 2011 - Cornerstone Investor Possible
The Company has flagged that it plans to bring in a strategic cornerstone investor to assist with funding of the Lance Projects. Predicting the timing of such negotiations can be tricky; however, we believe it is possible for a deal to be made in the near term.
Jan 2011 - Resource Upgrade
Peninsula continues to progress the expansion and definition of its resource at its two most advanced projects, Ross and Barber. Drilling results to date have been good, as per our expectation. Significantly, the Company is currently employing two diamond drill rigs to take core in order to more accurately determine the Vanadium potential at Lance.
Feb 2011 – Completion of Definitive Feasibility
The Company is on track to complete its Definitive Feasibility Study ““DFS”) in February 2011. The Pre-Feasibility Study showed robust economics and we expect the DFS will support the commencement of development of the project.
This may enable PEN to order long lead items and start some pre-construction activity. Full construction cannot commence until applications are granted.
Uranium Price Up 45% in Last 6 Months (US$42/lb to US$61/lb)
The entire sector is currently being re-rated due to increasing uranium prices resultant from recognition of the shift in the global energy supply equation towards nuclear power. PEN is in an enviable position, having a mature project on the cusp of development and first production scheduled for mid 2012.
With strong newsflow likely over the next few months, we expect further share price appreciation and believe that it is an ideal time to invest.
Hartleys said we continue to recommend Peninsula Energy Ltd as a Buy with a 3-month price target of 9cps."