Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Mining Indaba Conference 2012
35 slides from Peninsula Energy's conference presentation, Feb 9, 2012
Slide 1: Company Presentation – Companies Announcement cover letter
For personal use only 8 February 2012 Companies Announcement Office Via Electronic Lodgement COMPANY PRESENTATION Please find attached a copy of the presentation scheduled to be made by Peninsula Energy Limited's Executive Chairman, Mr John (Gus) Simpson at the Mining Indaba Conference in Cape Town,
Slide 2: For personal use only
For personal use only 8-Feb-12 1
Slide 3: Disclaimer
Disclaimer For personal use only 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 Presentati
Slide 4: Competent Person
Competent Person For personal use only The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information p compiled byy Mr Alfred Gillman and Mr George g van der Walt. Mr Gillman is a Fellow of the Australian Institute of Mining g and Metal
Slide 5: Uranium Supply
Uranium Supply For personal use only • Kazakhstan ISL U3O8 Production Growth: 2000 5mlbs 2000, 2008 18mlbs 2008, 2009 36mlbs 2009, 2011 44mlbs 2011, • Megatons to Megawatts program: Uranium recovery from nuclear weapons – US utilities - end of 2013 24Mmlbs • Fukushima more likely to impact supply ra
Slide 6: Uranium Demand
Uranium Demand For personal use only Reactor Units and Market Demand Forecasts by Region 2010 U308 2015 U308 2020 U308 2025 U308 2030 U308 Reactor Demand Reactor Demand Reactor Demand Reactor Demand Reactor Demand Region Units mlbs/pa Units mlbs/pa Units mlbs/pa Units mlbs/pa Units mlbs/pa North Ame
Slide 7: China, India & Eastern Europe Nuclear Build Out Plan
China, India & Eastern Europe Nuclear Build Out Plan For personal use only The industrialisation/urbanisation of China, India and Eastern Europe is about the low cost power generation, as that scales up it is increasingly about low emissions power and for the 21st Century that’s about nuclear power.
Slide 8: Long Term Uranium Price
Long Term Uranium Price For personal use only $150 © UxC $135 Long-Term vs Spot Composite Scenario $120 Historical Spot Ux U3O8 Price $105 $90 Historical Ux Long-Term U3O8 Price $75 $60 $45 $ $30 $15 $0 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 Composite Uranium Price Projection, U
Slide 9: Corporate
Corporate For personal use only Share Price 5000 0.14 Shares on issue 2,136m 4800 0.12 Share price $0.06 Market capitalisation $116m 4600 0.1 Cash balance $20m 4400 0.08 Debt $0 Enterprise value $96m 4200 0.06 Equity Facility $100m 0.04 4200 Shareholding 0.02 PEN – Daily Line Chart (Close) Directors
Slide 10: Directors and Management
Directors and Management For personal use only Board of Directors • Executive Chairman Gus Simpson Strong leadership, corporate and project management skills • Executive Director - Operations Malcolm James Strong corporate project mgmt and financing experience • Technical Director Alf Gillman Highly
Slide 11: Business Plan – 10mlbs per annum before 2025
Business Plan – For personal use only 10mlbs per annum before 2025 • To commence ISR production at Lance Projects, Wyoming in 2012/13* building to 2 2.2mlbs 2mlbs U3O8 p.a. p a over 3 years (Plant capacity 3mlbs p p.a.) a) • Continue to develop the mineral potential at: – Wyoming y g 95-145mlbs U3O8
Slide 12: Market Valuation Analysis - Uranium Producers
Market Valuation Analysis - Uranium Producers For personal use only Market Cap Per Pound of Production: Annuall A Jan 31, J 31 2012 Pre Fukushima P F k hi Production 2011 Market Cap Market Cap Company (approx. U3O8 lbs) (US$millions) (US$millions) Cameco 21 700 000 21,700,000 9 147 9,147 14 324 14,3
Slide 13: Lance Projects – Location & Wyoming Uranium
Lance Projects- Location & Wyoming Uranium For personal use only Currently y Licenced Christensen‐Irigaray Sweetwater Lance Project Smith Ranch Ranch‐Highland Highland Lost Creek In Permitting Ross Hank & Nichols Jab & Antelope Moore Ranch 12
Slide 14: Lance Projects – Development Model
Lance Projects – De elopment Model Development For personal use only • 41.4mlbs U3O8 JORC compliant resource Tonnes Ore U3O8 U3O8 Grade Resource Cl ifi ti Classification (M) kg (M) lbs (M) (ppm U3O8) Measured 3.6 1.7 3.7 479 Indicated 7.8 3.0 7.5 433 Total M+I 11.5 4.7 11.2 448 Inferred 33.1 13.7 30
Slide 15: Lance Projects – DFS Expanded Economic Study
Lance Projects- DFS Expanded Economic Study For personal use only US$ per lb US$ / Year Steady State Production Revenue (2011 base escalated at 2.6%) $62.58 $164 million Assumptions Operating cash cost (C1) $11.93 $26 million ISR mining with centralised plant Royalties y & Tax $10.80 $ $24 million $
Slide 16: Lance Projects – Exploration Potential
Lance Projects – Exploration Potential For personal use only
Slide 17: Resource Growth Trend
Resource Growth-Trend Growth Trend For personal use only 1,106 No. PEN holes 45000000 Inferred 4,738 No. NuBeth holes 40000000 Indicated Measured 805 4,738 35000000 30000000 600 4,738 30,178,789 25000000 lbs U3O8 281 22 454 321 22,454,321 20000000 4,738 15,955,169 15000000 10000000 11,130,000 6,681,
Slide 18: Drilling Post June 2011 Resource Upgrade
Drilling Post June 2011 Resource Upgrade For personal use only Hole ID Easting Northing Total Intercept ft over From (ft) GT Peak Depth (ft) PFN U3O8 grade Concentration ppm Grade RMR1730 501106 4934667 920 15.5'@1530ppm 830.75 2.37 4'@5160ppm RMR1531 500813 4935919 880 21'@830ppm 714.75 1.74 11.5'
Slide 19: Lance Projects – Strategic Partner & Uranium Sales
Lance Projects – Strategic Partner & Uranium Sales For personal use only • First sale contract USA utility: Feb 2011 WAP $75.60 per lb, 7 year contract – first delivery 2013 & 5.5% planned production • Boswell Capital: May 2011 Specialist uranium advisory group, group ongoing role evaluating juniors
Slide 20: Lance Projects – Permitting
Lance Projects – Permitting For personal use only Mine permitting on schedule D Deep Di Disposall Wells W ll • DDW feasibility study completed • Licence application lodged • Licence granted 30 March 2011 • Aquifer is deemed exempt NRC Source Material Licence • Technical reports completed • Environme
Slide 21: Lance Projects – Proposed Development Schedule
Lance Projects – Proposed Development Schedule For personal use only 2009 2010 2011 2012 2013 Permitting (subject to regulatory approval) Resource Definition Scoping Study/ PFS / DFS/EES Project Financing Construction Construction, Commissioning, Production Expanded Resource Drilling 20
Slide 22: Business Plan – 10mlbs per annum before 2025
Business Plan – For personal use only 10mlbs per annum before 2025 • To commence ISR production at Lance Projects, Wyoming in 2012/13* building to 2 2.2mlbs 2mlbs U3O8 p.a. p a over 3 years (Plant capacity 3mlbs p p.a.) a) • Continue to develop the mineral potential at: – Wyoming y g 95-145mlbs U3O8
Slide 23: Karoo Projects – Location
Karoo Projects – Location For personal use only 8-Feb-12 22
Slide 24: Karoo Projects – Regional Geology
Karoo Projects – Regional Geology For personal use only 8-Feb-12 Poortjie Teekloof Member F Formation ti Moordenaars/ Loxton Members Abrahamskraal Davidskolk Formation Member Stratigraphic Column 23
Slide 25: Karoo Projects – Mineral Potential
Karoo Projects – Mineral Potential For personal use only Exploration Tonnes Grade U3O8 P t ti l Potential ( ) (m) ( (ppm U3O8) ( lb ) (mlbs) Range From To From To From To Total 36 60 1,200 1,400 90 150 Historic Tonnes Grade Total Mineralisation (ppm eU3O8 ) (eU3O8 mllbs) Site 22 860,000 1,480 2.8 Si
Slide 26: Site Uranium Potential
Site 29 Uranium Potential For personal use only • 108km2 of Prospective Poortjie Sandstone • 308 holes drilled by Union Carbide B • Drill-defined 600,000 lbs U3O8 at 1,107 ppm A A • 214 RC twin and exploration holes completed in 2011 • 167 historic holes drilled re-probed • Drilling confirmed high g
Slide 27: Site Cross Section
Site 29 Cross Section For personal use only A B Diagrammatic composite section 181 intercepts >200ppm, 70 >1,000ppm 26
Slide 28: Site Uranium Potential
Site 22 Uranium Potential For personal use only 2.8mlbs U3O8 at 1 480 1,480ppm • GT7 prospect 2.8mlbs 2 8mlbs drill-defined eU3O8 • 707 historic percussion holes drilled by JCI • 118 RC holes and 4 diamond holes in 2011 • 160 historic holes drilled re probed re-probed • Stacked uranium bearing chann
Slide 29: Site Core Hole Cross Section
Site 22 Core Hole Cross Section For personal use only 86 intercepts >1,000ppm, 272 intercepts >200ppm 28
Slide 30: Site Uranium Potential
Site 45 Uranium Potential For personal use only 25km • 4.3mlbs drill-defined eU3O8 • 400 historic hi t i drilled d ill d by b JCI • 340 km2 prospective Davidskolk formation • 16 historic holes p probed in 2011 • Stacked uranium bearing channels • Potential 15mlbs U3O8 • Numerous un-tested U3O8 occur
Slide 31: Karoo Projects – Project Schedule
Karoo Projects – Project Schedule For personal use only 2010 2011 2012 2013 2014 2015 2016 2017 Resource Definition (JORC conversion) Internal Conceptual C S Study Ext. Scoping Study PFS/BFS Construction Commissioning Production Expanded Resource Drilling 30
Slide 32: Karoo Projects – Development Model
Karoo Projects – Development Model For personal use only • Multiple open-pits; with central processing facility at Site 29 • All sites within road road-hauling hauling distance • Planning production in 2016/2017 • Continue to delineate > 120mlbs of uranium mineralisation Process flow sheet 31
Slide 33: Karoo Projects – Conceptual Study
Karoo Projects – Conceptual Study For personal use only US$ per lb US$ / Year Assumptions Revenue $65-75 $191 million Capex Amortisation $3.4 $11.6 million • Open-pit mining with Financing cost $1.0 $3.3 million conventional milling Operating Costs $28.5 $76.1 million • Central Ce a processing p oce
Slide 34: Investment Highlights
Investment Highlights For personal use only • Emerging uranium producer listed on the (ASX:PEN) with established project pipeline • DFS expanded profit projections $66 million pre-tax per annum • 42mlbs JORC Compliant Resource and growing • Targeting 2.2mlbs U3O8 pa from Wyoming 2012 /13 • Targeting
Slide 35: Targeted Milestones
Targeted Milestones For personal use only • April 2010: Initial JORC compliant resource at Lance • May 2010: Pre-feasibility study completed • July 2010: Revised JORC compliant resource • Dec 2010: Submit final licence applications • Jan 2011: 2nd revised JORC compliant resource • Feb 2011