Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Investor Presentation (June 2020)
34 slides from Peninsula Energy's investor presentation, Jun 12, 2020
Slide 1: Shareholder Briefing
12 June 2020 For personal use only SHAREHOLDER BRIEFING Peninsula Energy Limited (Peninsula or the Company) advises that it held a webcast and teleconference this morning regarding the Company’s A$40.3 million fully underwritten renounceable entitlement offer (see ASX announcement 4 June 2020), incl
Slide 2: Equity Raise Shareholder Briefing
For personal use only Not for release to US wire services or distribution in the United States Equity Raise Shareholder Briefing 12 June 2020 CODE : PEN
Slide 3: Important Notice
Important Notice This investor presentation (Presentation) is dated 12 June 2020 and has been prepared by Peninsula Energy Limited (“Peninsula” or the “Company”) For personal use only in connection with the issue of a prospectus (Prospectus) for a renounceable entitlement offer to its existing share
Slide 4: 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, For personal use only reliability, relevance or completeness of the material contained in the Presentation and nothing containe
Slide 5: Cautionary & Inferred Resources Notice
Cautionary & Inferred Resources Notice The Feasibility Study completed for the Lance Projects includes measured and indicated resources and an assumed resource conversion of 60% For personal use only (inferred to indicated or greater). The purpose of the Feasibility Study is to demonstrate the Lance
Slide 6: Peninsula – All the Right Attributes
Peninsula – All the Right Attributes Peninsula to emerge as a debt free, well-funded uranium mining company For personal use only Peninsula is led by a highly-experienced and proven team with outstanding technical, operational and uranium markets experience Supported by a well established sales cont
Slide 7: Proven U3O8 Technical & Operational Experience
Proven U3O8 Technical & Operational Experience Peninsula is led by a highly experienced Board of Directors, with a broad mix of skills across investment banking, metallurgical and chemical engineering, nuclear For personal use only and corporate finance Mr John Harrison (Non-Executive Chairman) Mr W
Slide 8: Why Undertake a Large Equity Raise Now?
Why Undertake a Large Equity Raise Now? Peninsula has carried ~ US$17 million of debt since 2016 which is due for For personal use only repayment in October 2020 Debt has been restructured and maturity extended multiple times Our proposed partial monetisation valuation has diminished in light of rec
Slide 9: Equity Raise Details
Equity Raise Details For personal use only Issue Framework Shares on Issue 315.0m Share Price on 28 May 2020 A$0.130 Market Capitalisation on 28 May 2020 A$41.0m Debt A$26.0m Available Cash (as of 31 Mar 2020) A$7.2m Renounceable Entitlements Offer – Fully Underwritten Rights Issue Terms 9 for 5 Iss
Slide 10: Use of Proceeds
Use of Proceeds For personal use only Use of Funds Debt Repayment & Accrued Coupons A$27.3m Equity Raise Expenses (Estimated) A$2.8m Working Capital A$5.9m Early Prep Work on Low pH Transition A$4.3m A$40.3m PENINSULA ENERGY LIMITED 9
Slide 11: Equity Raise – Timetable
Equity Raise – Timetable Event For personal use only Trading halt lifted / Transaction Announced Thursday, 4 June 2020 Prospectus Lodged Thursday, 4 June 2020 Appendix 3B Lodged Thursday, 4 June 2020 Despatch letters to Eligible and Ineligible Shareholders Friday, 5 June 2020 Ex date Tuesday, 9 June
Slide 12: What does this CR mean for the Company?
What does this CR mean for the Company? Peninsula will be in the strongest financial position it has been in years. For personal use only ~US$10 million available cash balance The Company will no longer be burdened by debt Eliminating ~US$2 million/year in debt service costs Preserving the full sale
Slide 13: Lance Uranium In-Situ Recovery (ISR) Project
For personal use only Lance Uranium In-Situ Recovery (ISR) Project Wyoming, USA PENINSULA ENERGY LIMITED 8
Slide 14: A Tier-One, Long-Life Operation
A Tier-One, Long-Life Operation Lance is one of the largest US uranium projects in size and scale For personal use only Largest defined Resource amongst current US ISR uranium mining projects 53.6M lbs U3O8 JORC (2012) compliant resource base 1 Lance is licensed to produce up to 3M lbs U3O8 per annu
Slide 15: A Standout Mining Jurisdiction
A Standout Mining Jurisdiction Wyoming is a leading US uranium extraction jurisdiction, hosting multiple For personal use only projects Prime location to leverage US uranium market (largest global market) and US government purchases Powder River Basin WYOMING, USA Lance Regional Setting Lance Permit
Slide 16: Applying Industry-Leading Low pH Process
Applying Industry-Leading Low pH Process Historically US uranium Lance was originally licensed for alkaline ISR For personal use only ISR projects utilised alkaline Laboratory testing in 2017 proved operational costs and production at Lance would significantly benefit from a low pH process extra
Slide 17: Funded Activities Plan
Funded Activities Plan For personal use only • Drill rig on-site to complete remaining wellfield preparation for new field demonstration Q2 ‘20 • Further rounds of laboratory core leach testing Q3 ‘20 Further de-risk Optimise future Early Stage low low pH ISR operations pH transition Q4 ‘20 • New pi
Slide 18: A Valuable Uranium Sales Portfolio
A Valuable Uranium Sales Portfolio For personal use only PENINSULA ENERGY LIMITED 17
Slide 19: Established and Proven Relationships
Established and Proven Relationships For personal use only The only junior uranium producer with long-term sales contracts extending to 2030 Five sales agreements with major utilities across both the US and Europe Up to 5.5M lbs of deliveries Weighted sales price between US$51-53/lb U3O8 Near-term c
Slide 20: A Dynamic Uranium Market
A Dynamic Uranium Market For personal use only PENINSULA ENERGY LIMITED 19
Slide 21: Uranium Market Disruptions
Uranium Market Disruptions The COVID-19 Pandemic has resulted in an unprecedented upheaval in the For personal use only global uranium market Uranium demand has been quite resilient; however production disruptions have been significant; Global uranium leader Kazatomprom recently announced major mine
Slide 22: Key US NFWG Report Findings
Key US NFWG Report Findings US DOE “Strategy to Restore American Nuclear Energy Leadership” For personal use only A comprehensive outline of potential actions designed to revive the capabilities of the US uranium mining, milling and conversion industries Key NFWG Policy Recommendations Establish US
Slide 23: Fully-Funded, Right-Team, Right Location
Fully-Funded, Right-Team, Right Location Company is debt free and fully funded to meet all ongoing low pH ISR de-risking For personal use only and optimisation activities into CY2022 Cash-flow generated by strong existing contract book Immediate focus on de-risking, optimising and delivering long-te
Slide 24: Questions & Answers
For personal use only Questions & Answers
Slide 25: Contact Details
For personal use only Contact Details REGISTERED OFFICE Suite 22, 44 Kings Park Road West Perth, Western Australia 6005 Australia www.pel.net.au info@pel.net.au FURTHER INFORMATION Wayne Heili Managing Director +61 8 6263 4461 David Coyne Finance Director / CFO +61 8 6263 4461 PENINSULA ENERGY LIMIT
Slide 26: Appendix – Resources & Competent Person Statement
Appendix 1 – Resources & Competent Person Statement For personal use only Lance Projects Resource Estimate as at 31 December 2018 Tonnes Classification U3O8(kg) Grade (ppm U3O8) U3O8(lbs) (million) Measured 3.4 1.7 487 3.7 Indicated 11.1 5.5 495 12.1 Inferred 36.2 17.2 474 37.8 Total 50.7 24.4 479 5
Slide 27: Appendix – Key Risks
Appendix 2 – Key Risks Uranium Mining Risks The Company's uranium project is located in the state of Wyoming, USA. Whilst exploration and mining for uranium is currently permitted in Wyoming For personal use only there is no guarantee that it will be permitted in the future. Low pH Uranium Recovery
Slide 28: Appendix – Key Risks
Appendix 2 – Key Risks Foreign Exchange Risks The Company and its Shareholders are exposed to the fluctuations and volatility of currency exchange rates. For personal use only Service Providers, Agents and Contractors There is a risk that the actions of agents, contractors and services providers use
Slide 29: Appendix – Key Risks
Appendix 2 – Key Risks Third Party Risk For personal use only If the Company fails to meet its obligations in terms of product quantity, quality or timing, there may be a risk that contracts are terminated. This may have a material adverse effect upon the Company's financial performance and results
Slide 30: Appendix – Key Risks
Appendix 2 – Key Risks Market Conditions Commodity prices fluctuate and are affected by many factors beyond the control of the Company. Changes in the price of uranium can have a For personal use only significant impact on the economic performance of a project. Commodity Price Risk Volatility in com
Slide 31: Appendix – International Offer Restrictions
Appendix 3 – International Offer Restrictions This document does not constitute an offer of New Shares and Entitlements in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares and the Entitlements may not be offered or
Slide 32: Appendix – International Offer Restrictions
Appendix 3 – International Offer Restrictions Hong Kong For personal use only WARNING: The contents of this document have not been reviewed by any Hong Kong regulatory authority. You are advised to exercise caution in relation to the offer. If you are in doubt about any contents of this document, yo
Slide 33: Appendix – International Offer Restrictions
Appendix 3 – International Offer Restrictions Switzerland For personal use only The Entitlements and the New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange or on any other stock exchange or regulated trading facility in Switzerland. Neither this do
Slide 34: Appendix – International Offer Restrictions
Appendix 3 – International Offer Restrictions United States For personal use only This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The Entitlements and the New Shares have not been, and will not be, registered under the US Sec