Peninsula Energy Limited · ASX:PEN
Peninsula Energy — H.C. Wainwright & Co. 21st Annual Global Investment Conference 2019
29 slides from Peninsula Energy's conference presentation, Sep 9, 2019
Slide 1: Peninsula Energy Limited Presentation – September 2019
9 September 2019 Companies Announcement Office Via Electronic Lodgement PENINSULA ENERGY LIMITED PRESENTATION – SEPTEMBER 2019 Please find attached a presentation to be made by Peninsula Energy Limited’s (Peninsula) Managing Director/CEO Mr Wayne Heili at the H.C Wainwright & Co. 21st Annual Global
Slide 2: Expanding U.S. Uranium Production Capacity
EXPANDING U.S. URANIUM PRODUCTION CAPACITY Corporate Presentation │ September 2019 – HC Wainwright Conference PENINSULA ENERGY LIMITED 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: 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: A Prime Uranium Investment Opportunity
A Prime Uranium Investment Opportunity Investment Criteria Peninsula Significant US uranium production asset – with a major project transformation in progress Experienced technical, commercial & financial team Ability to rapidly expand production rates Low current CAPEX requirements Strong leverage
Slide 6: Corporate Overview
Corporate Overview Capital Structure Share Price & Volume History Ticker: ASX:PEN Shares on issue* 250m Price (A$/share) Volume (m) Share price (29-Aug-19) A$0.170 0.35 10.0 9.5 Market capitalisation (29-Aug-19) A$43m 9.0 0.30 8.5 Enterprise Value (29-Aug-19) A$60m 8.0 7.5 Available Cash (30-Jun-19)
Slide 7: Investment Upside – Low EV / lb vs Peers
Investment Upside – Low EV / lb vs Peers US$ per lb EV/lb Resource 3.0 30% to 70% discount to US ISR Peers 2.5 2.0 • Offers significant upside opportunities 1.5 1.0 0.5 - Resources UEC Energy Ur Energy Peninsula Fuels Energy Boss lbs U3O8 8,000 Offtake Contracts & Avg Price Peer group leading contra
Slide 8: The Uranium Market
The Uranium Market 300 250 mlbs/yr U3O8 200 150 100 50 0 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E 2034E 2035E 2018 Secondary Supplies Existing Mines Forecast New Mines Total Demand PENINSULA ENERGY LIMITED 7 Source: UxC
Slide 9: Supply Factors Favour Higher Prices
Supply Factors Favour Higher Prices The current market prices are well below the average cost of production globally Global Production Restraint Peninsula’s Lance Project is Leveraged to Rising Prices • The world’s producers cut primary production to 138M lbs in 2018 – off ~30M lbs/year • Kazakhst
Slide 10: Demand Factors Favour Higher Prices
Demand Factors Favour Higher Prices The global concern over climate change has led to greater support for expanding carbon-free nuclear power generation Strong Demand Fundamentals Uncovered Requirements • Nuclear energy growth has pushed demand beyond pre-Fukushima (2011) levels • Primary demand e
Slide 11: U.S. Nuclear Fuel Market Catalyst
U.S. Nuclear Fuel Market Catalyst • Section 232 Concluded with No Decisive Action • President Trump concluded the Section 232 Investigation in mid-July • No market actions were taken • Nuclear Fuel Working Group was formed with 90-Day review objective • Nuclear Fuel Working Group • Charged to comple
Slide 12: Lance ISR Project │ Wyoming, USA
Lance ISR Project │ Wyoming, USA - Wyoming is a “can do” state PENINSULA ENERGY LIMITED 11
Slide 13: Lance – A Premier US Uranium Project
Lance – A Premier US Uranium Project • Wyoming is a leading US uranium extraction jurisdiction, hosting multiple projects. Lance is one of the largest in size and scale. Powder River Basin WYOMING, USA Lance Regional Setting Lance Permit Areas PENINSULA ENERGY LIMITED 12
Slide 14: Lance - Our Flagship Project
Lance - Our Flagship Project • Lance holds the largest defined uranium resource of any Exceptional currently producing project in the United States Asset • 53.9M lbs U3O8 JORC (2012) compliant resource base2 • Peninsula developed the Lance Project from its conception Home-grown into a producing asse
Slide 15: Lance – Limiting Production During Period of Market Uncertainty
Lance – Limiting Production During Period of Market Uncertainty Exercising spending discipline • Production activities scaled down to preserve developed well fields for low pH operations • Tightly controlled production expenditures Quarterly Production and Expenditure lbs U3O8 US$'million 80,000 3
Slide 16: Unlocking the Full Potential of Lance
Unlocking the Full Potential of Lance Peninsula is leading the US Industry by transitioning to low-pH ISR High • Set to transform the project performance and cost profile Potential • Feasibility Study released in September 2018 • Two main regulatory approvals now completed Short Timeline • Plant a
Slide 17: Lance Low pH FS Summary
Lance Low pH FS Summary LOM Production Financial Metrics • 33.4 million lbs U3O8 • LOM AISC of US$31.77/lb • 17 year mine life • NPV8 US$157M at US$49/lb Three Stage Expansion Plan Capacity Expansion Production AISC Stage Year Mlbs/yr CAPEX Cost $/lb. $/lb. Stage 1 2019 1.15 $5.3M $14.67 $40.58 Stag
Slide 18: Low pH Regulatory Approvals
Low pH Regulatory Approvals • The Lance Project, Ross Permit Area is Licensed for Low pH ISR • The ONLY US ISR Project authorized to use this industry leading method Permit to Amendment approved on 20 March, 2019 Mine Source Materials Amendment approved on 31 July, 2019 License PENINSULA ENERGY
Slide 19: Low pH Implementation Plan
Low pH Implementation Plan Field Trial Demonstrations Phase 1 Successfully lower pH to 2.0 S.U. - Complete Raise pH back to 5.0 S.U. – Complete On approval of Interim Operations Report confirming Phase Phase 2 1 success, authorized to use low pH in MU’s 1 & 2 Field groundwater restoration
Slide 20: Low pH Field Demonstration Success
Low pH Field Demonstration Success Phase 1 Status • Mining phase successfully completed • Initial restoration phase successfully completed • Initial restoration target was pH of 5.0 S.U. • Area pH level is now above 5.0 S.U. • On track to submit Interim Operations Report in 3Q of CY19 • Helped ident
Slide 21: Lance Low pH Transition Planning
Lance Low pH Transition Planning • Regulatory Benchmarks • Submit Phase 1 Report in 3Q 2019 • Progress and complete Phase 3 demonstrations during 2nd half CY2019 • Low pH Technical Optimisation • Conduct low pH resin optimisation test work and studies • Evaluate design improvements for fines removal
Slide 22: Uranium Sales Portfolio
Uranium Sales Portfolio PENINSULA ENERGY LIMITED 21
Slide 23: Long-Term Contract Portfolio
Long-Term Contract Portfolio • Five sales agreements with major utilities • Weighted sales price between US$51-53/lb U3O8 • Contract portfolio carries through year 2030 • Up to 6.3 million pounds U3O8 remaining under contract • 4.4 million lbs U3O8 committed deliveries • Up to 1.9 million lbs U3O8 o
Slide 24: Conclusion
Conclusion PENINSULA ENERGY LIMITED 23
Slide 25: Delivering on Expectations
Delivering on Expectations Amendment • Permit to Mine amendment granted Progression • Source Material License amendment granted Technical • Commence next stage of restoration in low pH field demonstration Progression Optimisation/ • Evaluating potential process improvements to deliver greater De-Ris
Slide 26: Peninsula Energy Take-Away Points
Peninsula Energy Take-Away Points U.S. Domestic • Peninsula is positioned to benefit from ongoing corporate Producer initiatives and current market developments • Lance has the largest defined US uranium resource with clear Long Life visibility and short timeline to production Project • Low pH trans
Slide 27: 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 David Coyne Finance Director / CFO +61 8 9380 9920 PENINSULA ENERGY LIMITED 26
Slide 28: Appendix - Board and Management
Appendix 1 - Board and Management Board John Harrison, Non-Executive Chairman Capital Markets Wayne Heili, Managing Director & CEO Exec. Leadership & Technical David Coyne, Finance Director & CFO Finance & Risk Management Harrison Barker, Non-Executive Director Nuclear Fuel Markets Mark Wheatley, No
Slide 29: Appendix – Resources & Competent Person Statement
Appendix 2 – Resources & Competent Person Statement Lance Projects Resource Estimate as at 31 December 2017 Tonnes Classification U3O8(kg) Grade (ppm U3O8) U3O8(lbs) (million) Measured 3.8 1.8 488 3.9 Indicated 10.9 5.4 495 11.9 Inferred 36.3 17.3 476 38.1 Total 51.0 24.5 479 53.9 1) JORC Table 1 in
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