Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Investor Presentation (June 2020)
31 slides from Peninsula Energy's investor presentation, Jun 4, 2020
Slide 1: Transformational Equity Raise
Not for release to US wire services or distribution in the United States Transformational Equity Raise 4 June 2020 CODE : PEN
Slide 2: Important Notice
Important Notice This investor presentation (Presentation) is dated 4 June 2020 and has been prepared by Peninsula Energy Limited (“Peninsula” or the “Company”) in connection with the issue of a prospectus (Prospectus) for a renounceable entitlement offer to its existing shareholders (Entitlement Of
Slide 3: Disclaimer & Competent Person
Disclaimer & Competent Person This presentation is provided on the basis that the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Presentation
Slide 4: Cautionary & Inferred Resources Notice
Cautionary & Inferred Resources Notice The Feasibility Study completed for the Lance Projects includes measured and indicated resources and an assumed resource conversion of 60% (inferred to indicated or greater). The purpose of the Feasibility Study is to demonstrate the Lance Projects economic via
Slide 5: Transformational Equity Raise
Transformational Equity Raise A$40.3m underwritten renounceable entitlement offer to support Peninsula as it transforms the Lance Project, located in Wyoming USA Peninsula - To emerge as a debt-free, cashed-up uranium company, with a market capitalisation of ~A$81m Led by a team with outstanding tec
Slide 6: Equity Raise – Key Details & Use of Funds
Equity Raise – Key Details & Use of Funds Issue Framework Use of Funds Shares on Issue 315.0m Debt Repayment & Accrued Coupons A$27.3 m Share Price A$0.130 G&A and Equity Raise Costs A$8.7m Market Capitalisation A$41.0m Early Prep Work on Low pH Transition A$4.3m Debt A$26.0m A$40.3m Available Cash
Slide 7: Equity Raise – Timetable
Equity Raise – Timetable Event Trading halt lifted / Transaction Announced Thursday, 4 June 2020 Prospectus Lodged Thursday, 4 June 2020 Appendix 3B Lodged Thursday, 4 June 2020 Despatch letters to Eligible and Ineligible Shareholders Friday, 5 June 2020 Ex date Tuesday, 9 June 2020 Entitlements are
Slide 8: Proven U3O8 Technical & Operational Experience
Proven U3O8 Technical & Operational Experience Peninsula is led by a highly experienced Board of Directors, with a broad mix of skills across investment banking, metallurgical and chemical engineering, nuclear and corporate finance Mr John Harrison (Non-Executive Chairman) Mr Wayne Heili (Managing D
Slide 9: Lance Uranium In-Situ Recovery (ISR) Project Wyoming, USA
Lance Uranium In-Situ Recovery (ISR) Project Wyoming, USA PENINSULA ENERGY LIMITED 8
Slide 10: A Tier-One, Long-Life Operation
A Tier-One, Long-Life Operation Lance is one of the largest US uranium projects in size and scale Largest defined Resource amongst current US ISR uranium mining projects 53.6M lbs U3O8 JORC (2012) compliant resource base 1 Lance is licensed to produce up to 3M lbs U3O8 per annum Current (Stage-1) pl
Slide 11: A Standout Mining Jurisdiction
A Standout Mining Jurisdiction Wyoming is a leading US uranium extraction jurisdiction, hosting multiple projects Prime location to leverage US uranium market (largest global market) and US government purchases Powder River Basin WYOMING, USA Lance Regional Setting Lance Permit Areas PENINSULA ENERG
Slide 12: Preparing Lance for Low pH Operations
Preparing Lance for Low pH Operations PENINSULA ENERGY LIMITED 12
Slide 13: Applying Industry-Leading Low pH Process
Applying Industry-Leading Low pH Process Historically US uranium Lance was originally licensed for alkaline ISR ISR projects utilised alkaline Laboratory testing in 2017 proved operational costs and production at Lance would significantly benefit from a low pH process extraction method Low pH IS
Slide 14: Key Low pH ISR Activities Completed
Key Low pH ISR Activities Completed AUTHORISED Only uranium project in the US permitted for the low pH method COMPLETED - all key low pH ISR demonstration activities in 2020 Phase 1 Phase 2 Phase 3 Phase 4 Completed Authorised Completed Authorised Field Commercial Field Regulatory Demonstration of u
Slide 15: Further Technical De-risking & Optimisation Steps
Further Technical De-risking & Optimisation Steps • Drill rig on-site to complete remaining wellfield activity required for new field demonstration Q2 ‘20 • Further round of column leach tests Q3 ‘20 • Further de-risk • Enhance • Low pH ion low pH future ops exchange transition resin Q4 ‘20 • Permit
Slide 16: An Established Uranium Contract Book
An Established Uranium Contract Book PENINSULA ENERGY LIMITED 16
Slide 17: Established and Proven Relationships
Established and Proven Relationships Five sales agreements with major utilities across both the US and Europe Weighted sales price between US$51-53/lb U3O8 The only junior uranium producer with long-term sales contracts extending to 2030 Current contracts in place for up to 5.5M lbs at US$51-$53 / l
Slide 18: A Dynamic Uranium Market
A Dynamic Uranium Market PENINSULA ENERGY LIMITED 18
Slide 19: Uranium Market Disruptions
Uranium Market Disruptions The COVID-19 Pandemic has resulted in an unprecedented upheaval in the global uranium market Uranium demand has been quite resilient; however production disruptions have been significant; Global uranium leader Kazatomprom recently announced major mine-site restrictions Cam
Slide 20: Key US NFWG Report Findings
Key US NFWG Report Findings US DOE “Strategy to Restore American Nuclear Energy Leadership” A comprehensive outline of potential actions designed to revive the capabilities of the US uranium mining, milling and conversion industries Key NFWG Policy Recommendations Establish US Uranium Reserve with b
Slide 21: Fully-Funded, Right-Team, Right Location
Fully-Funded, Right-Team, Right Location Company is debt free and fully funded to meet all ongoing low pH ISR de-risking and optimisation activities into CY2022 Peninsula is led by a highly-experienced and proven team with outstanding technical, operational and uranium experience Cash-flow generated
Slide 22: Contact Details
Contact Details REGISTERED OFFICE Suite 22, 44 Kings Park Road West Perth, Western Australia 6005 Australia www.pel.net.au info@pel.net.au FURTHER INFORMATION Wayne Heili Managing Director +61 8 6263 4461 David Coyne Finance Director / CFO +61 8 6263 4461 PENINSULA ENERGY LIMITED 22
Slide 23: Appendix 1 – Resources & Competent Person Statement
Appendix 1 – Resources & Competent Person Statement Lance Projects Resource Estimate as at 31 December 2018 Tonnes Classification U3O8(kg) Grade (ppm U3O8) U3O8(lbs) (million) Measured 3.4 1.7 487 3.7 Indicated 11.1 5.5 495 12.1 Inferred 36.2 17.2 474 37.8 Total 50.7 24.4 479 53.6 1) JORC Table 1 in
Slide 24: Appendix – Key Risks
Appendix 2 – Key Risks Uranium Mining Risks The Company's uranium project is located in the state of Wyoming, USA. Whilst exploration and mining for uranium is currently permitted in Wyoming there is no guarantee that it will be permitted in the future. Low pH Uranium Recovery The Company is transit
Slide 25: Appendix – Key Risks
Appendix 2 – Key Risks Foreign Exchange Risks The Company and its Shareholders are exposed to the fluctuations and volatility of currency exchange rates. Service Providers, Agents and Contractors There is a risk that the actions of agents, contractors and services providers used by the Company in an
Slide 26: Appendix – Key Risks
Appendix 2 – Key Risks Third Party Risk If the Company fails to meet its obligations in terms of product quantity, quality or timing, there may be a risk that contracts are terminated. This may have a material adverse effect upon the Company's financial performance and results of operations. Risks A
Slide 27: Appendix – Key Risks
Appendix 2 – Key Risks Market Conditions Commodity prices fluctuate and are affected by many factors beyond the control of the Company. Changes in the price of uranium can have a significant impact on the economic performance of a project. Commodity Price Risk Volatility in commodity markets may mat
Slide 28: Appendix – International Offer Restrictions
Appendix 3 – International Offer Restrictions This document does not constitute an offer of New Shares and Entitlements in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares and the Entitlements may not be offered or
Slide 29: Appendix – International Offer Restrictions
Appendix 3 – International Offer Restrictions Hong Kong WARNING: The contents of this document have not been reviewed by any Hong Kong regulatory authority. You are advised to exercise caution in relation to the offer. If you are in doubt about any contents of this document, you should obtain indepe
Slide 30: Appendix – International Offer Restrictions
Appendix 3 – International Offer Restrictions Switzerland The Entitlements and the New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other o
Slide 31: Appendix – International Offer Restrictions
Appendix 3 – International Offer Restrictions United States This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The Entitlements and the New Shares have not been, and will not be, registered under the US Securities Act of 1933 or