Peninsula Energy Limited · ASX:PEN
Peninsula Energy — BMO Capital Markets 2016 Global Metals & Mining Conference
43 slides from Peninsula Energy's conference presentation, Feb 29, 2016
Slide 1: Company Presentation - BMO Capital Markets 2016 Conference
For personal use only 29 February 2016 Companies Announcement Office Via Electronic Lodgement COMPANY PRESENTATION Please find attached a copy of the presentation by Peninsula Energy Limited for the BMO Capital Markets 2016 Global Metals & Mining Conference in Miami, Florida, USA. A copy of the pres
Slide 2: Construction Completed, Production Ramping Up
For personal use only CONSTRUCTION COMPLETED PRODUCTION RAMPING UP
Slide 3: Disclaimer & Competent Person
Disclaimer & Competent Person For personal use only 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 containe
Slide 4: Production Ramping Up & Positioned for Growth
Production Ramping Up & Positioned for Growth For personal use only Uranium production commenced Strong fundamentals Project expansion underpin growth to lift production in uranium market Experienced board Committed offtake and management above market prices Advancing second project in South Africa
Slide 5: Nuclear Provides Significant Baseload in Developed Nations
Nuclear Provides Significant Baseload in Developed Nations For personal use only United States of America Western Europe Russia Korea / Japan Renewables Other Renewables Other Renewables Other Renewables Other 7% 2% 9% 4% Hydro 0% 3% Hydro 3% 7% 6% 6% Nuclear Hydro Nuclear Hydro 19% Nuclear 16% 16%
Slide 6: Disproportionate Mix of CO2 producing Fossil Fuels in Developing Nations
Disproportionate Mix of CO2 producing Fossil Fuels in Developing Nations For personal use only China India Middle East Eastern Europe Other Nuclear Renewables Other Nuclear Hydro Coal Renewables Other Renewables 0% 2% 5% 2% 3% 2% 0% 4% 1% 3% Hydro Hydro Nuclear Hydro 17% 11% 18% 11% Oil Gas 2% Gas 3
Slide 7: Uranium Supply/Demand - Today
Uranium Supply/Demand - Today For personal use only Global Uranium Supply vs. Demand (mlbs/yr) Source: UxC, WNA, IAEA, NIW, Raymond James Ltd. 6
Slide 8: Price Outlook
Price Outlook For personal use only Near Term Long Term Many reasons to expect price increase Expect increase to $60-70 by 2017-19 in 2016/17: to support required new mines: - Return of utility contracting - Need reasonable risk-adjusted return on new projects well in advance of - Japanese restarts
Slide 9: US & EU Utility Contract & Spot Volumes
US & EU Utility Contract & Spot Volumes For personal use only • Spot price draws the attention of the investment community • Reality is that Term market volumes far outweigh Spot volumes • Pre-GFC and pre-Fukushima utilities committed to buy significant volumes under Term contracts • Term contract a
Slide 10: Business Plan
Business Plan For personal use only Peninsula’s plan is to be a uranium producer with multiple sources of supply in established mining economies with low cost, long life mines backed up by a sophisticated, well-recognized marketing arm dealing directly with the utility companies • Production commenc
Slide 11: Corporate Overview
Corporate Overview For personal use only Capital Structure 1 year share price & volume history Shares on issue 176m Share price $1.00 Market capitalisation $176m Cash $6.3m Undrawn Inventory Finance US$13.0m Shareholding* % holding Resource Capital Fund VI 21.6% Pala Investments 12.2% BlackRock Fund
Slide 12: Company Overview - Management
Company Overview - Management For personal use only Peninsula team has extensive experience in mine development Management Corporate & USA Gus Simpson Strong strategic leader, extensive background in resources, corporate finance and Managing Director/CEO management; 25 years’ experience in USA, Asia
Slide 13: Uranium Mining in Wyoming
Uranium Mining in Wyoming For personal use only Wyoming very supportive of uranium extraction – multiple ISR operations in region 12
Slide 14: Rapid Resource Growth at Lance
Rapid Resource Growth at Lance For personal use only Lance JORC - 2012 Resource (53.7mlbs U3O8 ) 60 Inferred 50 37 Indicated 37 Measured 40 Million lbs U3O8 30 30 22 16 20 13 11 11 10 7 8 6 4 4 4 4 4 5 0 Mar02010 Jul 2010 Jan 2011 Jul 2011 Mar 2012 Dec 2012 Peninsula Holes 281 600 805 1,106 1,854 2,
Slide 15: Lance – Exploration Target
Lance – Exploration Target For personal use only Large Resource potential: 70+ years mine life • Current JORC-2012 Compliant Resource 53.7mlbs¹ U3O8 (51.2Mt at 476ppm U3O8) • 13 historic resources • 22 roll fronts extend for a combined linear strike length of 194 miles (312km) • Exploration Target 1
Slide 16: Lance Exploration Target Additional Disclosure
Lance Exploration Target Additional Disclosure For personal use only Exploration Target The Lance Projects cover a significant proportion of the Powder River Basin Basin Cretaceous sandstones of Wyoming, which are believed to represent an Exploration Target of between 158 and 217mlbs U3O8 which incl
Slide 17: Lance Exploration Target Additional Disclosure
Lance Exploration Target Additional Disclosure For personal use only Basis of Grade and Tonnage Range Determination With a database of approximately 7,500 drillholes together with several decades of geological research the level of exploration activity on which the Exploration Target is based, is co
Slide 18: Scalable Production Development
Scalable Production Development For personal use only • Lance Projects JORC - 2012 Code compliant 54 million¹ lb. resource base and licenced mining rate of 3 million lbs. p.a. allows the ability to increase production quickly – No pre-stripping or mining development required – Production wells acces
Slide 19: Scalable Plant Layout
Scalable Plant Layout For personal use only Green = Stage 1 development Blue = Stage 2 & 3 development Red = Optional future equipment to increase CPP capacity to 3.0mlbs pa 18
Slide 20: Lance – Financial Metrics
Lance – Financial Metrics For personal use only Strong economics: IRR of 36% and average cash cost US$29.16/lb Key financial metrics 1 Progressive cost improvement US$/lb Unlevered NPV 8% US$288m All-in Sustaining Costs 3 Cashflow positive H2 2016 IRR 36% Feasibility Study (Apr 12) $36.60 Stage 1 CA
Slide 21: Production and Cost Profile
Production and Cost Profile For personal use only Klbs U3O8 Production Profile USD/lb All-in-Costs 2,500 50 Delivery Commitments under Signed Contracts 2,000 40 Inventory 41 1,500 30 30 29 1,000 20 500 10 0 0 2016 2017 2018 2019 2020 2021 2022 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 • Ramp-u
Slide 22: Stage Operating Performance to Date
Stage 1 Operating Performance to Date For personal use only • Well Fields – Injection of O2 and CO2 commenced at 1st header house unit on 2 December 2015 – Production wells are consistently flowing at above the forecast rate of 20gpm – Consistent flow rates have substantially confirmed permeability
Slide 23: Stage Operating Performance to Date
Stage 1 Operating Performance to Date For personal use only • Central Processing Plant – Operating to design specification – Initial capture rate of uranium on resin in ion exchange columns is exceeding expectations (tested grab sample shows 12 lbs uranium per cu.ft. resin vs forecast of 6 lbs/cu.ft
Slide 24: Sales and Marketing Strategy
Sales and Marketing Strategy For personal use only • Strategy – Align Peninsula with major utilities requirements – Progressively commit production to term contracts – Optimise revenue & reduce pricing risk • Peninsula Uranium Limited (UK) – Peninsula has established Peninsula Uranium Limited (PUL),
Slide 25: Stage Development – Significant Reduction in Cost per lb for the Group
Stage 2 Development – Significant Reduction in Cost per lb for the Group For personal use only 60 PEN Delivered Contract Price (CY16-CY20) 50 Current Term Price 40 Current Spot Price US$/lb 30 20 10 0 Stage 1 Stage 2 Lance Projects AISC Resource Replacement Sales & Marketing Corporate • Lance Projec
Slide 26: Karoo Projects Overview
Karoo Projects Overview For personal use only JORC (2012) Compliant resource 56.9m² lbs eU3O8 (23.3Mt at 1,108ppm) • Located in the Karoo region of RSA, approx. 400km to 600km E-NE of Cape Town • Known uranium and molybdenum mineralised province • 7,800 km2 over Permian sandstones • 32,176 hectares
Slide 27: Karoo Projects Scoping Study
Karoo Projects Scoping Study For personal use only Positive Karoo scoping study; Pre-Feasibility study underway • Scoping Study completed on Karoo Eastern Sector Projects in South Africa – Combined open cast and decline mining – Acid processing route is the most efficient and cost effective – Decisi
Slide 28: Karoo Exploration Target Additional Disclosure
Karoo Exploration Target Additional Disclosure For personal use only Basis of the Exploration Target The Exploration Target is based on a combination of Exploration Results and proposed exploration programs. Please note that in accordance with Clause 17 of the JORC (2012) Code, the potential quantit
Slide 29: Karoo Exploration Target Additional Disclosure
Karoo Exploration Target Additional Disclosure For personal use only This resource tonnage is distributed over a cumulative strike length of 23km representing approximately 0.80 million tonnes/km. The Exploration Target is based on a combination of: • the total cumulative prospective strike length o
Slide 30: Investment Highlights
Investment Highlights For personal use only • Peninsula has now commenced production at the Lance Projects • The Company has a low risk, clear path to production expansion • Significant production volume in Term contracts • Substantial operating margins over the current uranium price • Strong financ
Slide 31: Appendices
For personal use only APPENDICES 30
Slide 32: Appendix - Lance JORC Resource
Appendix 1 - Lance JORC Resource For personal use only Grade Recovered eU3O8 Mineability eU3O8 Recovery Classification Tonnes (ppm U3O8 (lbs) (lbs) factor (lbs) factor U3O8) 50.4% Measured 495 4,520,159 0.8 3,616,128 0.8 2,892,902 4,142,950 Indicated 11,532,135 497 0.8 10,112,761 0.8 8,090,209 12,64
Slide 33: Appendix - Karoo JORC Resource
Appendix 2 - Karoo JORC Resource For personal use only JORC compliant Resource March 2014 Large resource potential – 100+ year mine life Classification eU3O8 (ppm) Tonnes eU3O8 eU3O8 CUT-OFF (million) (ppm) (million lbs) Indicated 600 8 1,242 21.9 Inferred 600 15.3 1,038 35 Total 600 23.3 1,108 56.9
Slide 34: Resin Loading Commissioning
Resin Loading Commissioning For personal use only Resin Transfer Equipment 33
Slide 35: Reverse Osmosis Plant Commissioning
Reverse Osmosis Plant Commissioning For personal use only Reverse Osmosis Equipment 34
Slide 36: Ion Exchange Column Commissioning
Ion Exchange Column Commissioning For personal use only 35
Slide 37: Plant and Well Fields Commissioning
Plant and Well Fields Commissioning For personal use only Flowing water through plant 36
Slide 38: NRC Pre-Production Inspection
NRC Pre-Production Inspection For personal use only Completed 25 November 37 NRC inspection inside CPP
Slide 39: Lance Stage Construction Complete
Lance Stage 1 Construction Complete For personal use only Pipe racks and ion exchange column Ion exchange columns Piping inspection Piping and valves from waste tank to DDW 38
Slide 40: Lance Stage Construction Complete
Lance Stage 1 Construction Complete For personal use only Completed CPP building 39
Slide 41: Lance Stage Construction Complete
Lance Stage 1 Construction Complete For personal use only Resin transfer water pumps installed in CPP Chemistry lab Controls for carbon dioxide storage tank Spectrometer unit in chemistry lab 40
Slide 42: Well Field Development
Well Field Development For personal use only Trunkline from CPP to well fields Inside header house Oxygen injection system Inside completed header house at first mining unit Main trunk-line installed from CPP to wellfields 41
Slide 43: Well Field Development Drilling
Well Field Development Drilling For personal use only Production well drilling 42
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