Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Q3 2019 Earnings Presentation
18 slides from Peninsula Energy's earnings presentation, Nov 12, 2019
Slide 1: Quarterly Results Webcast Presentation
12 November 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 7 November 2019 including the attached presentation to cover the September 2
Slide 2: ASX Listed - U.S. Uranium Investment Opportunity
ASX Listed - U.S. Uranium Investment Opportunity September 2019 Quarter Webcast | 07 November, 2019 CODE : 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 Corporate Overview Debt Reduction/Debt Restructure Peninsula’s Sales Portfolio Lance Project Highlights Lance Project Low-pH Transition Progress The Uranium Markets Investment Highlights Flagship asset: Lance Projects in-situ recovery uranium mine in Wyoming, USA Use of nuclear power continue
Slide 5: Corporate Overview
Corporate Overview Capital Structure Share Price & Volume History Ticker: ASX:PEN Shares on issue* 250m Price (A$/share) Volume (m) Share price (28-Oct-19) A$0.200 0.35 10.0 9.5 9.0 Market capitalisation (28-Oct-19) A$50m 0.30 8.5 8.0 Enterprise Value (28-Oct-19) A$67m 7.5 0.25 7.0 Available Cash (3
Slide 6: Debt Reduction Terms Agreed
Debt Reduction Terms Agreed Agreement reached with Lenders1 Debt Reduction Proceeds from uranium contract monetisation, when completed, of ~US$10-11m to be applied to reduce debt Revised maturity date of 22 April 2021 if monetisation Term & complete by 30 Apr 2020 (31 Oct 2020 otherwise) Coupon Stra
Slide 7: Sales Contract Portfolio (Pre-monetization)
Sales Contract Portfolio (Pre-monetization) Five sales agreements with major utilities ➢ Weighted sales price between US$51-53/lb U3O8 ➢ Contract portfolio carries through year 2030 Up to 6.2 million pounds U3O8 remaining under contract ➢ 4.2 million lbs U3O8 committed deliveries ➢ Up to 1.9 million
Slide 8: Lance ISR Project │ Wyoming, USA
Lance ISR Project │ Wyoming, USA A Premier US Uranium Project PENINSULA ENERGY LIMITED 7
Slide 9: Lance – Fully Licensed and Developed
Lance – Fully Licensed and Developed Lance holds the largest defined uranium resource of any Exceptional recently producing project in the United States Asset 53.6M lbs U3O8 JORC (2012) compliant resource base2 Lance is licensed to produce up to 3M lbs U3O8 per annum Scalable ➢ Would be the #1 ISR p
Slide 10: Low pH Transition at Lance
Low pH Transition at Lance Regulatory Benchmarks ➢ Completed major amendments for low pH ISR ➢ Steady Progression of Implementation Plan Low pH Technical De-risking & Optimisation ➢ Conduct low pH resin optimisation test work and studies ➢ Evaluate design improvements for fines removal methods ➢ Rev
Slide 11: Low pH Implementation Plan
Low pH Implementation Plan ✓ Field Demonstrations of Mining and Initial Restoration Phase 1 ✓ Complete ✓ Commercial use of low pH in MU’s 1 & 2 Phase 2 ✓ Authorised ✓ Field groundwater restoration demonstration Phase 3 ✓ Interim Restoration Report (IRR) for WDEQ approval ✓ Ongoing Activity ✓ Upon ap
Slide 12: 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 11 Source: UxC
Slide 13: Solid Growth in Uranium Demand
Solid Growth in Uranium Demand Operable Reactors Reactors Under Construction Planned Reactors USA China China France UAE Russia China South Korea India Japan India United Kingdom Russia Egypt USA South Korea Turkey Russia Canada USA Japan Ukraine Uzbekistan Bangladesh Germany Hungary Belarus United
Slide 14: Improving Supply Side Fundamentals
Improving Supply Side Fundamentals Significant supply reductions1 Substantial CAPEX to re-start idled 180 mine capacity2 160 140 McArthur River US$70m (2 yrs.) Langer Heinrich US$80m Million lbs U3O8 120 100 Honeymoon US$68m 80 60 40 CAPEX to develop new projects is not 20 currently available or war
Slide 15: When will the Uranium Price Improve?
When will the Uranium Price Improve? No one knows for sure, but watch for these signals: When regulatory certainty returns to the US When mining companies purchase rather than produce, reducing the amount of Utilities can go to the market with confidence physical uranium available for utility needs
Slide 16: Conclusion
Conclusion Conclusion PENINSULA ENERGY LIMITED 15
Slide 17: Take-Away Points
Take-Away Points U.S. Peninsula is positioned to benefit from U.S. Government Domestic initiatives and ongoing corporate activities Producer The only low pH uranium ISR project in the U.S. Long Life Lance has the largest defined ISR uranium resource in the US Project with clear visibility and short
Slide 18: 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 17