viewPeninsula Energy Ltd

Peninsula Energy Ltd provides roadmap to NYSE MKT listing

Peninsula has appointed Roth Capital Partners LLC to support the company’s plan to dual list on the New York Stock Exchange.


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.


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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Quick facts: Peninsula Energy Ltd

Price: 0.091 AUD

Market: ASX
Market Cap: $28.67 m

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Gus Simpson, managing director of US-focused uranium miner Peninsula Energy Ltd (ASX:PEN), brings Proactive Investors up to date on the company’s progress in the USA, where the company recently started production. The company is still in the ramp-up period, but the important thing is it has...

on 29/11/16

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