Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Investor Presentation (September 2023)
33 slides from Peninsula Energy's investor presentation, Sep 5, 2023
Slide 1: Ross and Kendrick Areas Life of Mine Plan Update
R OSS AND K ENDR ICK A R E A S LIFE OF MINE PL A N UPD ATE S e p t e m b e r 2 0 23 C o r p o ra t e P r e s e n t a t i o n ASX:PEN; OTCQB:PENMF 1
Slide 2: Important Notice & Disclaimer
Im p o r t a nt N ot i c e & D i s cl a i m e r This Presentation contains summary information about the current activities of Peninsula Energy Limited (the “Company”) as at the date of this Presentation. The information in this Presentation is of a general nature and does not purport to be complete
Slide 3: Disclaimer & Competent Person
D i s cl a i m e r & Co m p et e nt Pe r s o n The distribution of this Presentation in jurisdictions outside Australia may be restricted by law and any such restrictions should be observed. In particular, this Presentation may not be distributed or released in the United States. Any failure to comp
Slide 4: Cautionary & Inferred Resources Notice
Ca u t i o n a r y & In fe r re d R e s o u rc e s N ot i c e The August 2023 Life of Mine plan (LoM) completed for the Ross and Kendrick Production Areas within the Lance Projects includes Measured and Indicated resources, and based on historical experience at Lance, utilizes a resource conversion
Slide 5: The Peninsula Advantage
T HE P ENINS UL A A D VA N TAGE PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 5
Slide 6: Independent, Long-Term Uranium Production
In d e p e n d e nt , Lo n g - Te r m Ura n i u m P ro d u c t i o n Flagship Lance A Robust Expanded Production, Early ISR Project Production Plan Positive Cash Flow One of the largest US Detailed and resilient Life of Independent uranium projects, with a Mine (LoM) plan developed for 2Mlb per annu
Slide 7: Key Details of Revised Production and LoM Plan
Key D et a il s of R e v i s e d Pro d u c t i o n a n d Lo M Pl a n Key Operational Outcomes • Production scheduled to commence in late CY24 LoM Model Uranium ISR Plant Flowrate 5,000 GPM Capacity • Revised strategy delivers a robust development plan, including an Dry Yellowcake (U3O8) Production C
Slide 8: Timeline to Operational Restart
T i m e li n e t o O p e ra t i o n a l R e s t a r t • The current Lance Project facilities at Ross were constructed in 2015 and operated from 2016 through mid-2019 • Current plant capacity of 0.82 Mlbs U3O8 per year loaded on resins, but licensed to produce up to 3.0 Mlbs U3O8 per year • Productio
Slide 9: Developing Lance at an Opportune Time
D e v e l o p i n g La n c e a t a n O p p o r t u n e T i m e Nuclear power gaining momentum as a critical part of the green energy mix • Growing global recognition of the important role nuclear power will play in meeting decarbonization targets • Nuclear energy provides high capacity-factor, carbo
Slide 10: Uranium Price Continues to Strengthen
Ura ni u m Pr i c e Co nt i n u e s t o St re n g t h e n • Supply/demand imbalance remains Uranium Price 70 • Robust growth forecasts for uranium demand due to 60 the critical requirement of nuclear energy in meeting 50 global decarbonization targets 40 • The reported uranium spot 30 price closed a
Slide 11: Sustainability Focus
S u s t a i n a b ili ty Fo c u s Peninsula’s inaugural Sustainability Report is built around the pillars of Employees, Environment, Social and Governance (“EESG”) • 2022 Report Sustainability highlights: ✓ Business Ethics • No lost-time or recordable injuries for more than 5 years • Rollout of ISO
Slide 12: Corporate Overview
Co rp o ra t e O v e r v i e w 1,257m A$0.091 A$114m Nil US$21.5m 210 klbs Shares on Issue Share Price Market Term Debt Cash U3O8 Inventory (04 Sep 2023) (04 Sep 2023) Capitalisation (30 June 2023) (30-June 2023) Board of Directors Share Price Performance Management Team Mr John Harrison Non-Executi
Slide 13: The Lance Uranium In-Situ Recovery Project
T HE L A N CE UR A NIUM IN - SI T U R EC O V ER Y P R O JECT PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 13
Slide 14: Lance – A Premier Uranium Project & Location
La n c e – A Pre mi e r Ura ni u m Pro j e c t & Lo c a t i o n Located in Wyoming USA, a leading US uranium extraction jurisdiction PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 14
Slide 15: The Lance Projects
T h e La n c e Pro j e c t s • Ross • Fully licensed Uranium ISR production facility • Estimated Resource of 5.9 Mlbs U3O8 • 4.1 Mlbs estimated to be produced • 2 Previously operated Mine Units (MU-1 and MU-2), with potential for an additional 2-3 Mine Units • MU-3 under development, monitor well in
Slide 16: Ross and Kendrick Resource Estimate
R o s s a n d Ke n d r i c k R e s o u rc e Es t i m a t e “One of the largest US Uranium ISR Projects known” ✓ 53.7Mlbs U3O8 of JORC (2012) Resources1 Lance Projects Resource Estimate as at 31 Dec 20211 ✓ Exploration Target of 104 – 163 Mlbs U3O8 based on a combination of past exploration results a
Slide 17: New Life of Mine Plan for Ross and Kendrick
NE W LIFE O F MINE P L A N FO R R O S S A ND K END R I CK PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 17
Slide 18: Key Financial Outcomes
Key Fi n a n ci a l O u t c o m e s Project remains economically attractive and financial returns are consistent with 2022 DFS expectations Key results include : LoM Project Revenue (real) Payback period of 3.5 years US$ 988M from August 2025 Project forecast to become cash flow positive AISC (Real)
Slide 19: Life of Mine Production Basis
Li fe of Mi n e Pro d u c t i o n B a s i s • Estimated Ross & Kendrick (“R&K”) Production Life of 10 years • LoM model production of 14.8 Mlbs U3O8 from R&K Areas • Total R&K resource base of 21.8 Mlbs U3O8 • Does not include the Barber Area with a resource of 31.9Mlb, highlighting significant grow
Slide 20: Production Profile & Plant Flow Rate
Pro d u c t i o n Prof il e & Pl a nt Fl o w R a t e • 2.0 Mlb p.a. production plant provides the platform for a faster ramp-up to substantial rates • Production profile based on detailed mining, metallurgical and scheduling factors • 2025 production level projected at ~1.1 Mlbs • Steady state produ
Slide 21: CAPEX Profile – Ross and Kendrick Projects
C A PEX PR O FILE – R o s s a n d Ke n d r i c k Pro j e c t s Life of Mine CAPEX (US$ M - from July 2023) 285.9 Life of Mine CAPEX (US$/lb) 19.36 Remaining CAPEX to First Production (Dec’24) US$ M Remaining Plant CAPEX 19.3 Remaining General CAPEX 5.1 53.4 Remaining Wellfield CAPEX 25.4 CAPEX Conti
Slide 22: Unit Cost Outcomes (Un-escalated)
Uni t Co s t O u t c o m e s ( Un - e s c a l a t e d ) Direct Operating Cost (“C1”) • Direct OPEX of $21.69/lb U3O8 includes all project level non-CAPEX costs and contingencies from July 2023 to end of production • Restoration and Rehabilitation costs are not included in Direct OPEX $/lb U3O8 • Roy
Slide 23: Sales Price Basis
S a l e s Pr i c e B a s i s Peninsula’s Sales Contract Book • LOM financial model uses an average Real 2023$ un- escalated sales price of $55.00 per pound for contracted sales • Contracted sales represent 34% of the total projected LoM production from Ross and Kendrick Uncontracted Uranium Selling
Slide 24: Revised LoM to 2022 DFS Comparison
R e v i s e d Lo M t o 2022 D FS Co m p a r i s o n Key Ross & Kendrick Operational Outcomes 2022 DFS Revised LoM Comments Uranium ISR Plant Flowrate Capacity 6,250 GPM 5,000 GPM LoM based on 4 trains of IX columns; DFS based on 5 sets Dry Yellowcake (U3O8) Production Capacity 2.0Mlbs p.a 2.0Mlbs p.
Slide 25: Group Funding Analysis
Gro u p Fu n di n g A n a ly s i s $160 Group Funding Need (US$ M) • Up to $95 million additional funding required to reach sustainable $140 positive monthly cash flows • Lower early revenue from no $120 period of toll milling operations has biggest impact $100 • Now incorporates all group costs • I
Slide 26: Uranium Sales and Inventory
UR A NIUM S A LES A ND IN V EN TO R Y PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 26
Slide 27: Peninsula’s Key Differentiator
Pe ni n s ul a ’ s Key D i ffe re nt i a to r “An established uranium sales contract book” • A junior uranium company with a track record of meeting delivery requirements since 2016 • Sales contracts in place for up to 4.95 Mlbs U3O8 currently under contract for delivery between now and the end of 2
Slide 28: A Compelling Uranium Proposition
A C O MPELLIN G UR A NIUM PR O P OSITIO N PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 28
Slide 29: The Peninsula Advantage
T h e Pe ni n s ul a A d va nt a g e Flagship Lance Project located in a tier-one mining and uranium jurisdiction Lance is a long-life operation, with excellent resource and life-of-mine growth upside at Barber Production restart set for late 2024, positive cash flow generated within first year of o
Slide 30: Contact Details
Co nt a c t D et a il s REGISTERED OFFICE Units 32/33, Level 3 22 Railway Road Subiaco, Western Australia 6008 Australia Phone: +61 8 9380 9920 www.pel.net.au FURTHER INFORMATION Wayne Heili Managing Director/CEO US Office Phone: +1 (307) 467-9401 email: info@pel.net.au 30
Slide 31: Appendix – Resources
A p p e n di x 1 – R e s o u rc e s Lance Projects Resource Estimate as at 31 December 20211 Classification Tonnes U3O8 Grade U3O8 (million) (Mkg) (ppm U3O8) (Mlbs) Measured 3.4 1.7 491 3.7 Indicated 11.1 5.5 496 12.1 Inferred 36.2 17.2 474 37.8 Total 50.7 24.3 480 53.7 1) JORC Table 1 included in a
Slide 32: Appendix - Lance Exploration Target Additional Disclosure
A p p e n di x 2 - La n c e Ex p l o ra t i o n Ta rg et A d di t i o n a l D i s cl o s u re Exploration Target1 The Lance Projects cover a significant proportion of the Powder River Basin mobs Cretaceous sandstones of Wyoming, which are believed to represent an Exploration Target of between 104 an
Slide 33: Appendix - Lance Exploration Target Additional Disclosure
A p p e n di x 2 - La n c e Ex p l o ra t i o n Ta rg et A d di t i o n a l D i s cl o s u re Basis of Grade and Tonnage Range Determination The level of exploration activity on which the Exploration Target is based is considered to be high due to the combination of a database of approximately 7,500
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