Slide 1: Peninsula Energy Limited Quarterly Results Webcast Presentation
1 November 2017 Companies Announcement Office Via Electronic Lodgement PENINSULA ENERGY LIMITED QUARTERLY RESULTS WEBCAST PRESENTATION Peninsula Energy Limited (Peninsula) held an investor update webcast including the attached presentation to cover the June quarter at Midday AEST (9.00am AWST) today
Slide 2: September Quarter Results 2017
September Quarter Results 2017 Webcast │ 1 November 2017 ASX:PEN
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: Agenda
Agenda • Quarterly Highlights 1. Headline News Flow 2. Lance Production Results 3. Realising the Potential at Lance 4. Karoo Project 5. Costs & Cash Flow Analysis 6. Uranium Market 7. Investment Highlights Plant Connection to Wellfield Trunklines Upgrade – September 2017 Mr Wayne Heili – Managing Di
Slide 5: Headline News Flow
Headline News Flow • Lance Projects – Project Transformation Initiative • Lab tests indicate that using a low pH solution could transform the operating performance and cost profile • Karoo Divestment • Formal process is underway • Targeting an outcome by the end of CY’17 • Sales & Marketing • US$6.6
Slide 6: Lance - Improved Production Results
Lance - Improved Production Results • 13% Increase on prior Quarter Production • 34,568 lbs produced in the quarter • 42,665 lbs dried & drummed in the quarter • Quarterly Activities • 5-day scheduled shutdown to upgrade trunk line connection to process plant • Header house #8 commenced uranium prod
Slide 7: Unlocking the Full Potential of Lance
Unlocking the Full Potential of Lance Lance Project holds a 53.5 million pound JORC compliant High resource¹ Potential Potential to transform the performance and cost profile using low pH ISR process Permit and licence amendments in under two years Short Timeline Continued alkaline ISR opera
Slide 8: Low pH ISR = Low Production Cost
Low pH ISR = Low Production Cost • Low pH ISR has the potential to place the Lance Project in the first quartile of the global uranium production cost curve U3O8 Price Low pH ISR Production All Other Production (US$/lb) 90 80 70 60 50 40 30 20 10 0 0 20 40 60 80 100 120 140 160 U3O8 (mlbs) Source: U
Slide 9: Timeline for Low pH ISR Transformation
Timeline for Low pH ISR Transformation 2017 2018 2019 2020 Continue Alkaline ISR Operations On-going Laboratory Test Work Engineering Studies Regulatory Approval Process Design Revision Low pH Operations 8
Slide 10: Karoo Projects Divestment Underway
Karoo Projects Divestment Underway • Highly valuable resource with a significant amount of data available Large 56.9 million pounds eU3O8 (23.3mt at 1,108 ppm) Resource JORC (2012) compliant resource² Internal PFS Significant work in the way of technical studies have been Completed completed for
Slide 11: Quarter over Quarter Cost Reductions
Quarter over Quarter Cost Reductions • Committed to continued sustainable cost reductions Payments for: Actual Actual Actual F'cast (US#039;000) Mar Qtr CY17 Jun Qtr CY17 Sep Qtr CY17 Dec Qtr CY17 Exploration & Evaluation 285 213 270 350 Development & PPE 1,435 2,258 1,106 450 Production 4,130 3,149 2,
Slide 12: Strong Corporate Financial Position
Strong Corporate Financial Position Cash Balances and Movement 20.0 18.0 16.0 14.0 12.0 US#039; million 10.0 8.0 6.0 4.0 2.0 0.0 30 Jun 17 Net Sales Production Uranium Explor. & Corp & Finance Misc US 30 Sep 17 Inventory Proceeds Costs Purchased Devel Other Costs Finance Finance • $6.6 million cash rec
Slide 13: Uranium Market Overview
Uranium Market Overview • Uranium Market Correction • Market currently oversupplied • Term price has been flat • Spot price is becoming range bound • Production restraint is occurring • Future utility demand projections remain positive • Long term contracts that supported excess production are falli
Slide 14: Peninsula Energy Investment Highlights
Peninsula Energy Investment Highlights • Continued Improvement in Quarter over Quarter Results Large Uranium Long life flagship project advanced into production stage Resource Sales agreements extending out to 2030 with above market Long Term pricing structures Revenue Strong committed cash ma
Slide 15: Contact Details
Contact Details REGISTERED OFFICE Unit 32/33, Level 3, 22 Railway Road Subiaco, Western Australia 6008 Australia www.pel.net.au info@pel.net.au FURTHER INFORMATION Wayne Heili Managing Director +61 8 9380 9920 14
Slide 16: Appendix - Lance JORC Resource
Appendix 1 - Lance JORC Resource Tonnes Classification U3O8(kg) Grade (ppm U3O8) U3O8(lbs) (million) Measured 3.7 2.0 489 4.3 Indicated 10.0 5.1 466 12.7 Inferred 37 17.5 463 36.5 Total 50.7 24.6 473 53.5 ISR Reserves are determined after well field development drilling ¹JORC Table 1 included in an
Slide 17: Appendix - Karoo JORC Resource
Appendix 2 - Karoo JORC Resource JORC Compliant Resource March 2014 Classification Cut-off: eU3O8(ppm) Tonnes (million) eU3O8 (ppm) eU3O8 (million lbs) Indicated 600 8.0 1,242 21.9 Inferred 600 15.3 1,038 35 Total 600 23.3 1,108 56.9 Classification Sector Cut-Off: eU3O8 (ppm) Tonnes (million) eU3O8