Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Investor Presentation (November 2015)
23 slides from Peninsula Energy's investor presentation, Nov 10, 2015
Slide 1: Shareholder Update
SHAREHOLDER UPDATE 10 – 12 November
Slide 2: 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 3: Update Agenda
Update Agenda Commencement of uranium production in USA NYSE - MKT Committed sale Listing agreements above market prices Strong Board and fundamentals Management supporting growth Additions in uranium market Advancing Karoo Projects in South Africa 3
Slide 4: Lance Stage 1 - Production Ready
Lance Stage 1 - Production Ready Stage 1 production rate of 600 - 800,000 lbs U3O8 p.a. – CPP fully permitted for 3mlb p.a. – Ion Exchange Circuit and Reverse Osmosis Plant complete – Pressure testing/commissioning ongoing – 7 header houses (production well units) no.1 fully operational and sequenti
Slide 5: Lance Stage 1 Construction Complete
Lance Stage 1 Construction Complete Completed CPP building 5
Slide 6: Scalable Plant Layout
Scalable Plant Layout Green = Stage 1 development Blue = Stage 2 & 3 development Red = Optional future equipment to increase CPP capacity to 3.0mlbs pa 6
Slide 7: Lance Stage 1 Construction Complete
Lance Stage 1 Construction Complete Pipe racks and ion exchange column Ion exchange columns Piping inspection Piping and valves from waste tank to DDW 7
Slide 8: Lance Stage 1 Construction Complete
Lance Stage 1 Construction Complete Resin transfer water pumps installed in CPP Chemistry lab Controls for carbon dioxide storage tank Spectrometer unit in chemistry lab 8
Slide 9: NRC Pre-Production Inspection
NRC Pre-Production Inspection Conducted 2 – 5 November NRC inspection inside CPP 9
Slide 10: Well Field Development Drilling
Well Field Development Drilling Production well drilling 10
Slide 11: Well Field Development
Well Field Development Inside header house Trunkline from CPP to well fields Oxygen Injection System Inside completed header house at first mining unit Main trunk-line installed from CPP to wellfields 11
Slide 12: Lance Production and Cost Profile
Lance Production and Cost Profile Klbs U3O8 Production Profile USD/lb All-in-Costs 2,500 50 2,000 40 41 1,500 30 30 29 1,000 20 500 10 0 0 2016 2017 2018 2019 2020 2021 2022 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 • Ramp-up of U3O8 production to coincide with • Toll treatment for Stage 1 – m
Slide 13: Existing Contracts Underpin Revenue
Existing Contracts Underpin Revenue • Peninsula Sales & Marketing Strategy – Align Peninsula with major utilities requirements – Progressively commit production to term contracts, optimise revenue & reduce pricing risk – Minimise exposure to the spot market • Term Contract Status – 1,000,000 lbs con
Slide 14: Uranium Price Outlook
Uranium Price Outlook Near Term Long Term Many reasons to expect price increase Expect US$60-70/lb by 2017/18E to in 2016: support required new mines: - Return of utility contracting - Need reasonable risk-adjusted return on new projects well in advance of - Japanese restarts shortfall - China const
Slide 15: China Power Generation Growth - Transition to Cleaner Energy
China Power Generation Growth - Transition to Cleaner Energy 250 200 Nuclear currently provides 2% of China electricity No. of Reactors 150 Projected to increase to at least 9% within 15 100 220 years 43 50 New 5-year Plan (2016-2020) – Chinese 22 government to invest US$100bn to 29 0 construct 7 ne
Slide 16: Uranium is a Small Component of Nuclear Power Generation Costs
Uranium is a Small Component of Nuclear Power Generation Costs Fuel as a Proportion of Operating Costs US Electricity Production Costs - 2013 2013 5.0 4.0 Cents per Kwh 3.0 Fuel 2.0 Fuel Fuel 1.0 O&M O&M O&M 0.0 Coal Gas Nuclear Source: Nuclear Energy Institute; updated August 2014 Source: US Energy
Slide 17: Nuclear Power Plants – Development
Nuclear Power Plants – Development Inhibitors to Growth in Nuclear Power Providing the Solution 1. Hardware (eg, Westinghouse, Toshiba) Nuclear CAPEX $5.5bn/GW Components Export proven reactor component parts Gas CAPEX $1.0bn/GW Innovation Develop and roll-out Small Modular Reactors Coal CAPEX $2.5b
Slide 18: Karoo Projects Overview
Karoo Projects Overview JORC (2012) Compliant resource 56.9m2 lbs eU3O8 (23.3mt at 1,108ppm eU3O8) • Located in the Karoo region of RSA, approx. 400km to 600km E-NE of Cape Town • Known uranium and molybdenum mineralised province • 7,800 km2 over Permian sandstones • 32,176 hectares of freehold land
Slide 19: Recent Board Additions
Recent Board Additions Richard Lockwood: Non-Executive Chairman Mr Lockwood has over 50 years’ experience in the funds management and mining investment sectors across the United Kingdom, Australia, and South Africa. He has extensive involvement with the uranium sector and was previously a Director o
Slide 20: NYSE MKT Secondary Listing
NYSE MKT Secondary Listing • BMO & Pareto are bankers to the secondary listing • Looking for Sophisticated shareholders to move a proportion of existing shares to ADRs • Form 20-F complete; to be lodged end of this week • Global institutional awareness roadshow underway • Major USA retail shareholde
Slide 21: Investment Highlights
Investment Highlights • Peninsula to commence production Q4 2015 at the Lance Projects • The Company has a low risk, clear path to production expansion • Significant production volumes in term contracts • Significant operating margins over the current uranium price • Strong financial support from fi
Slide 22: Appendix - Lance JORC Resource
Appendix 1 - Lance JORC Resource Grade Recovered eU3O8 Mineability eU3O8 Recovery Classification Tonnes (ppm U3O8 (lbs) (lbs) factor (lbs) factor U3O8) 50.4% Measured 495 4,520,159 0.8 3,616,128 0.8 2,892,902 4,142,950 Indicated 11,532,135 497 0.8 10,112,761 0.8 8,090,209 12,640,951 M+Ind 15,675,085
Slide 23: Appendix - Karoo JORC Resource
Appendix 2 - Karoo JORC Resource Classification eU3O8 (ppm) Tonnes eU3O8 eU3O8 CUT-OFF (million) (ppm) (million lbs) Indicated 600 8 1,242 21.9 Inferred 600 15.3 1,038 35 Total 600 23.3 1,108 56.9 Classification Sector eU3O8 (ppm) Tonnes eU3O8 eU3O8 CUT-OFF (million) (ppm) (million lbs) Eastern 600
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