Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Q1 2018 Earnings Presentation
21 slides from Peninsula Energy's earnings presentation, May 2, 2018
Slide 1: Quarterly Results Webcast Presentation announcement
For personal use only 2 May 2018 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 1 May 2018 including the attached presentation to cover the
Slide 2: March 2018 Quarter Results
March 2018 Quarter Results For personal use only Webcast │ 2 May 2018 ASX:PEN
Slide 3: Disclaimer & Competent Person
Disclaimer & Competent Person 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 containe
Slide 4: Agenda
Agenda For personal use only • Highlights of the Quarter 1. Quarterly Activity Summary 2. Lance Production Results 3. Unlocking the Potential at Lance 4. Costs & Cash Flow Analysis 5. Uranium Market 6. Investment Highlights Column Leach Test Apparatus at Lance Mr Wayne Heili – Managing Director & CE
Slide 5: Quarterly Activity Summary
Quarterly Activity Summary • Corporate For personal use only • Significant revenues supporting positive cash flow • Convertible note debt partly repaid and extended by 2 years • Sales & Marketing • 125,000 lbs U3O8 sold (revenue of US$5.4 million) • US$19.0 million net proceeds received from contrac
Slide 6: Unlocking Value from Sales Contracts
Unlocking Value from Sales Contracts For personal use only • US$19 million (net) generated through contract transaction • Advances cash receipts from future dates to present • Reduces delivery obligations during Lance transition process • Significant contract portfolio carries through year 2030 • Up
Slide 7: Lance - Improved Production Results
Lance - Improved Production Results • 12% Increase on prior Quarter Production For personal use only • 43,638 lbs produced in the quarter • 72,864 lbs dried & drummed in the quarter • Continued operations in first two mine units • Header house #10 construction nearing completion Quarterly Production
Slide 8: Unlocking the Full Potential of Lance
Unlocking the Full Potential of Lance • Low pH ISR transformation initiative For personal use only High ✓ Potential to transform the performance and cost profile Potential ✓ Permit to Mine amendment request submitted Short ✓ Permit and licence amendments expected mid-CY2019 Timeline ✓ Continued prod
Slide 9: Low pH ISR Leads the Way
Low pH ISR Leads the Way • All 1st quartile uranium operations globally are in-situ recovery (ISR) For personal use only facilities that utilize a low pH lixiviant U3O8 Price (US$/lb) Low pH ISR Production All other operations 90 80 70 60 50 40 30 20 10 0 0 20 40 60 80 100 120 140 160 U3O8 (mlbs) Da
Slide 10: Karoo Projects – South Africa
Karoo Projects – South Africa • All development and progression activities suspended For personal use only Divestment ✓ No satisfactory offers made to Peninsula during sale process Status ✓ Reflects market view of hard rock uranium assets today Retention ✓ Fully explored by Peninsula Option ✓ Cost o
Slide 11: Quarterly Cost Performance
Quarterly Cost Performance For personal use only • March quarter impacted by annual payments under service agreements Payments for: Actual Actual Actual Actual F'cast (US$'000) Jun Qtr CY17 Sep Qtr CY17 Dec Qtr CY17 Mar Qtr CY18 Jun Qtr CY18 Exploration & Evaluation 213 270 185 169 300 Development &
Slide 12: Strong Corporate Financial Position
Strong Corporate Financial Position Available Cash(1) Balances and Movement For personal use only 35.0 30.0 25.0 US$' million 20.0 15.0 10.0 5.0 0.0 31 Dec 17 Contract Sales Uranium Production Explor. & Corp & Finance Misc US Surety 31 Mar 18 Sale Proceeds Purchases Costs Devel Other Costs Finance I
Slide 13: Corporate Overview
Corporate Overview Capital Structure Share Price & Volume History Ticker: ASX:PEN For personal use only Shares on issue* 232m Price (A$/share) Volume (m) Share price (4-Apr-18) A$0.230 0.60 2.0 Market capitalisation (4-Apr-18) A$53m 0.50 Enterprise Value (4-Apr-18) A$52m 1.5 Cash and Security Deposi
Slide 14: Uranium Market Overview
Uranium Market Overview For personal use only • Uranium Market Insight • Uranium is sold in two ways • Spot market has supply overhang • Term market remains quiet • Both prices are well below industry’s average cost of production • Producers increasing spot buying Source: The Ux Consulting Company,
Slide 15: Uranium Market Themes
Uranium Market Themes For personal use only Supply: Production restraint has become a common theme • The big miners continue reducing production target levels • Producers are unwinding their inventories Demand: The need for carbon- free nuclear power remains strong • Demand forecasts continue to sho
Slide 16: Uranium Market Themes
Uranium Market Themes For personal use only • Increasing Political Activity Involving Nuclear Fuel Trade 1. Section 232 of the US Trade Expansion Act Petition • US Dept. of Commerce expected to take up investigation • Potential remedies could bolster price for US production 2. US Dept of Energy susp
Slide 17: Peninsula Energy's Defining Strengths
Peninsula Energy’s Defining Strengths For personal use only World Class • Experienced technical, financial and commercial team Management • Generating improving quarter over quarter results Large Scale • Long-life Lance Project in USA Project • The Lance Project contains resources of 53.5 mlbs of U3
Slide 18: Questions & Answers
For personal use only Questions & Answers 17
Slide 19: Contact Details
For personal use only 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 18
Slide 20: Appendix - Lance JORC Resource
Appendix 1 - Lance JORC Resource For personal use only Tonnes Classification U3O8(kg) Grade (ppm U3O8) U3O8(lbs) (million) Measured 3.7 2.0 489 4.3 Indicated 10.0 5.1 466 12.7 Inferred 37 17.5 463 36.5 Total 50.7 24.6 473 53.5 ISR Reserves are determined after well field development drilling ¹JORC T
Slide 21: Appendix - Karoo JORC Resource
Appendix 2 - Karoo JORC Resource JORC Compliant Resource March 2014 For personal use only Classification Cut-off: eU3O8(ppm) Tonnes (million) eU3O8 (ppm) eU3O8 (million lbs) Indicated 600 8.0 1,242 21.9 Inferred 600 15.3 1,038 35 Total 600 23.3 1,108 56.9 Classification Sector Cut-Off: eU3O8 (ppm) T