Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Q4 2018 Earnings Presentation
16 slides from Peninsula Energy's earnings presentation, Feb 5, 2019
Slide 1: Peninsula Energy Quarterly Results Webcast Presentation
6 February 2019 Companies Announcement Office Via Electronic Lodgement PENINSULA ENERGY LIMITED QUARTERLY RESULTS WEBCAST PRESENTATION Peninsula Energy Limited (Peninsula) advises that it held an investor update webcast on 5 February 2019 including the attached presentation to cover the December 201
Slide 2: December 2018 Quarter Results
December 2018 Quarter Results Webcast │ 5 February 2019 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 • Highlights of the Quarter 1. Lance Results and Activities 2. Low pH Permitting Progress 3. Low pH Field Demonstration 4. Low pH FS Highlights 5. Quarterly Costs & Cash Flow Analysis 5. Uranium Market 6. Investment Highlights Tank for low pH field demonstration Mr Wayne Heili – Managing Dire
Slide 5: Lance – Maintaining Production During Transition
Lance – Maintaining Production During Transition • December Quarter Production • 20,364 lbs produced in the quarter – lost 9 days due to plant pipe failure • 14,445 lbs dried & drummed in the quarter • 100,000 lbs U3O8 sold on 1 October 2018; US$4.5m sales proceeds • Controlled production expenditur
Slide 6: Low pH Permitting Status
Low pH Permitting Status • Permit and License amendments progressing in line with original timing expectations Agreement Effective 1 October 2018 State State of Wyoming has primacy over both Permit to Mine and Source Material and by-product License Permit to WDEQ completed their review Mine
Slide 7: Low pH Field Demonstration
Low pH Field Demonstration • Approved by regulators in Nov-2018 • Trial operations started Dec-2018 • Three production patterns in test area • Planned 6-month test duration Sulfuric Acid Addition Pump Test Pattern Map (in MU-1) 6
Slide 8: Lance Low pH FS Highlights
Lance Low pH FS Highlights • 33.4m lbs U3O8 • LOM AISC of $31.77/lb LOM Financial Production Metrics • 17 year minelife • NPV8 $157m at $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 $40.58 Stage 2 2024 2.
Slide 9: Quarterly Cost Performance Review
Quarterly Cost Performance Review • Spending discipline continues Payments for: Actual Actual Actual Actual F'cast (US$'000) Mar Qtr CY18 Jun Qtr CY18 Sep Qtr CY18 Dec Qtr CY18 Mar Qtr CY19 Exploration & Evaluation 169 197 159 394 150 Development & PPE 786 491 327 432 500 Production 3,219 2,457 2,73
Slide 10: Robust Financial Position
Robust Financial Position Available Cash(1) Balances and Movement 14.0 12.0 10.0 8.0 US$' million 6.0 4.0 2.0 0.0 30 Sep 18 Uranium US Office Production Explor. & Corp & Finance Misc US Other 31 Dec 18 Sale Sale Costs Devel Other Costs Finance • Outflows for Dec Qtr lower than forecast • Sales proce
Slide 11: Uranium Market Overview
Uranium Market Overview • The uranium markets have reached a critical point • Uranium is sold in spot & term markets • Spot market up sharply since mid-2018 • Spot market supply depth is being tested by producer/investor buying • Term market is now expected to open up • Both markets are still well b
Slide 12: Flexible Sales Strategy
Flexible Sales Strategy • CY2018 completed deliveries of 225,000 lbs of U3O8 • Some deliveries in 2019 and 2020 have flexible origin clauses allowing seller optionality • Contracted to purchase 225,000 lbs U3O8 as needed – fixed purchase prices with average cost of $23.69/lb U3O8 • No “negative” exp
Slide 13: Investment Upside – Low EV / lb vs Peers
Investment Upside – Low EV / lb vs Peers US$ per lb 3.0 EV/lb Resource Imminent share price re-rate events in 2019 2.5 2.0 • Completion of low pH permit amendments 1.5 1.0 0.5 • Completion of low pH field trial - • US Section 232 decision Resources UEC Energy Ur Energy Peninsula Fuels Energy Boss 20
Slide 14: A Prime Uranium Investment Opportunity
A Prime Uranium Investment Opportunity Investment Criteria Peninsula Active US uranium production assets – low pH transformation in progress Long term sales contract protection Direct exposure to Section 232 outcomes Strong leverage to rising uranium market price Ability to rapidly expand production
Slide 15: Questions & Answers
PENINSULA@) Questions & Answers
Slide 16: 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 15