Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Corporate Update (October 2023)
26 slides from Peninsula Energy's corporate update, Oct 9, 2023
Slide 1: Peninsula Energy's Ross and Kendrick Areas Life of Mine Plan Update
PENINSUL A ENER GY ’ S R OSS A ND K ENDR ICK A R E A S LIFE OF MINE PL A N UPD ATE O c t o b e r 2 0 23 ASX:PEN; OTCQB:PENMF 1
Slide 2: Important Notice & Disclaimer
Im p o r t a nt N o t i c e & D i s cl a i m e r This Presentation contains summary information about the current activities of Peninsula Energy Limited (the “Company”) as at the date of this Presentation. The information in this Presentation is of a general nature and does not purport to be complet
Slide 3: Disclaimer & Competent Person
D i s cl a i m e r & Co m p et e nt P e r s o n The distribution of this Presentation in jurisdictions outside Australia may be restricted by law and any such restrictions should be observed. In particular, this Presentation may not be distributed or released in the United States. Any failure to com
Slide 4: Cautionary & Inferred Resources Notice
Ca u t i o n a r y & In fe r re d R e s o u rc e s N o t i c e The August 2023 Life of Mine plan (LoM) completed for the Ross and Kendrick Production Areas within the Lance Projects includes Measured and Indicated resources, and based on historical experience at Lance, utilizes a resource conversion
Slide 5: A Compelling Uranium Proposition
A C O MPELLIN G UR A NIUM PR O P OSITIO N PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 5
Slide 6: Independent, Long-Term Uranium Production
In d e p e n d e nt , Lo n g - Te r m Ura ni u m P ro d u c t i o n Flagship Lance Growing Lance A Robust ISR Project in Size and Scale Production Plan One of the largest US Resource growth potential Detailed and resilient Life of uranium projects, with a Mine (LoM) plan developed for through furthe
Slide 7: Corporate Overview
Co rp o ra t e O v e r v i e w 1,257m A$0.13 A$163.5m Nil US$12.5m 210 klbs Shares on Issue Share Price Market Term Debt Cash U3O8 Inventory (6 Oct 2023) (6 Oct 2023) Capitalisation (30 Sept 2023) (30 Sept 2023) Board of Directors Share Price Performance Management Team Mr John Harrison Non-Executiv
Slide 8: Developing Lance at an Opportune Time
D e v e l o p i n g La n c e a t a n O p p o r t u n e T i m e Nuclear power gaining momentum as a critical part of the green energy mix • Growing global recognition of the important role nuclear power will play in meeting decarbonization targets • Nuclear energy provides high capacity-factor, carbo
Slide 9: Uranium Price Continues to Strengthen
Ura ni u m P r i c e Co nt i n u e s t o St re n g t h e n • Supply/demand imbalance remains Uranium Price 80 • Robust growth forecasts for uranium demand due to 70 the critical requirement of nuclear energy in meeting 60 global decarbonization targets 50 • The reported uranium spot price closed at
Slide 10: Sustainability Focus
S u s t a i n a b ili ty Fo c u s Peninsula’s Annual Sustainability Report is built around the pillars of Employees, Environment, Social and Governance (“EESG”) ✓ Business Ethics • 2023 Report Sustainability highlights: • Recipient of Wyoming Governors Safety Award (2 consecutive ✓ Community years),
Slide 11: Lance – A Premier Uranium Project & Location
La n c e – A P re mi e r Ura ni u m P ro j e c t & Lo c a t i o n Located in Wyoming USA, a leading US uranium extraction jurisdiction PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 11
Slide 12: The Lance Projects
T h e La n c e P ro j e c t s • Ross Production Project Area • Fully licensed Uranium ISR production facility • Estimated Resource of 5.9 Mlbs U3O8 • 4.1 Mlbs estimated to be produced • 2 Previously operated Mine Units (MU-1 and MU-2), with potential for an additional 2-3 Mine Units • MU-3 under dev
Slide 13: Lance Resource Estimate
La n c e R e s o u rc e Es t i m a t e “One of the largest US Uranium ISR Projects known” Lance Projects Resource Estimate as at 31 Dec 20211 Classification Tonnes U3O8 Grade U3O8 ✓ 53.7Mlbs U3O8 of JORC (2012) Resources1 (million) (Mkg) (ppm U3O8) (Mlbs) ✓ Exploration Target of 104 – 163 Mlbs U3O8
Slide 14: Timeline to Operational Restart
T i m e li n e t o O p e ra t i o n a l R e s t a r t • The current Lance Project facilities at Ross were constructed in 2015 and operated from 2016 through mid-2019 • Current plant capacity of 0.82 Mlbs U3O8 per year loaded on resins, but licensed to produce up to 3.0 Mlbs U3O8 per year • Productio
Slide 15: Production Profile & Plant Flow Rate
P ro d u c t i o n P rof il e & Pl a nt Fl o w R a t e • 2.0 Mlb p.a. production plant provides the platform for a faster ramp-up to substantial rates • Production profile based on detailed mining, metallurgical and scheduling factors • 2025 production level projected at ~1.1 Mlbs • Steady state pro
Slide 16: Ross and Kendrick Project Level CAPEX Estimate
R o s s a n d Ke n d r i c k P ro j e c t Le v e l C A PEX Es t i m a t e Remaining CAPEX to First Production (Dec’24) US$ M Remaining Plant CAPEX 19.3 Remaining General CAPEX 5.1 53.4 Remaining Wellfield CAPEX 25.4 CAPEX Contingency 3.6 Ramp-up CAPEX to Positive Cash Generation (Aug’25) General CAP
Slide 17: Lance Unit Cost Outcomes
La n c e Uni t Co s t O u t c o m e s ( Un - e s c a l a t e d ) Direct Operating Cost (“C1”) • Direct OPEX of $21.69/lb U3O8 includes all project level non-CAPEX costs and contingencies from July 2023 to end of production • Restoration and Rehabilitation costs are not included in Direct OPEX $/lb U
Slide 18: Key Financial Outcomes of August 2023 LoM Plan
Key Fi n a n ci a l O u t c o m e s of AU GUST 2023 LO M PL A N Project remains economically attractive and financial returns are consistent with 2022 DFS expectations Key results include : LoM Project Revenue (Real) Payback period of 3.5 years US$ 988M from August 2025 Project forecast to become ca
Slide 19: Sales Price Basis and Sensitivity
S a l e s P r i c e B a s i s a n d S e n s i t i v i ty Peninsula’s Sales Contract Book • LoM financial model uses an average Real 2023$ un- escalated sales price of $55.00 per pound for ~5 Mlbs of contracted sales • Contract portfolio balances base-escalated and market pricing mechanisms • Contrac
Slide 20: Group Funding Analysis
Gro u p Fu n di n g A n a ly s i s • Up to $95 million additional funding required for PEN Group to reach sustainable positive monthly cash flows • Now incorporates all group costs • Includes discretionary cash buffer allowance of $12.5 million • Funding can be progressive • not all needed in a lump
Slide 21: Group Funding Solution
Gro u p Fu n di n g S o l u t i o n Funding Strategy – secure the most cost competitive and value maximizing option • PEN is assessing various funding options, including debt, equity, product prepayments and inventory sales. • PEN’S funding objectives are to secure the most cost effective and value
Slide 22: The Peninsula Advantage
T h e P e ni n s ul a A d va nt a g e Flagship Lance Project located in a tier-one mining and uranium jurisdiction Lance is a long-life operation, with excellent resource and life-of-mine growth upside at Barber Production restart set for late 2024, positive cash flow generated within first year of
Slide 23: Contact Details
Co nt a c t D et a il s REGISTERED OFFICE Units 32/33, Level 3 22 Railway Road Subiaco, Western Australia 6008 Australia Phone: +61 8 9380 9920 www.pel.net.au FURTHER INFORMATION Wayne Heili Managing Director/CEO US Office Phone: +1 (307) 467-9401 email: info@pel.net.au 23
Slide 24: Appendix 1 – Resource Estimate
A p p e n di x 1 – R e s o u rc e s Lance Projects Resource Estimate as at 31 December 20211 Classification Tonnes U3O8 Grade U3O8 (million) (Mkg) (ppm U3O8) (Mlbs) Measured 3.4 1.7 491 3.7 Indicated 11.1 5.5 496 12.1 Inferred 36.2 17.2 474 37.8 Total 50.7 24.3 480 53.7 1) JORC Table 1 included in a
Slide 25: Appendix 2 - Lance Exploration Target Additional Disclosure
A p p e n di x 2 - La n c e Ex p l o ra t i o n Ta rg et A d di t i o n a l D i s cl o s u re Exploration Target1 The Lance Projects cover a significant proportion of the Powder River Basin mobs Cretaceous sandstones of Wyoming, which are believed to represent an Exploration Target of between 104 an
Slide 26: Appendix 2 - Lance Exploration Target Additional Disclosure
A p p e n di x 2 - La n c e Ex p l o ra t i o n Ta rg et A d di t i o n a l D i s cl o s u re Basis of Grade and Tonnage Range Determination The level of exploration activity on which the Exploration Target is based is considered to be high due to the combination of a database of approximately 7,500