Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Q1 2019 Earnings Presentation
15 slides from Peninsula Energy's earnings presentation, Apr 24, 2019
Slide 1: March 2019 Quarter Results
March 2019 Quarter Results Webcast │ 24 April 2019 ASX:PEN
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: Agenda
Agenda • Highlights of the Quarter 1. Lance Results and Activities 2. Low pH Permitting Approvals 3. Low pH Field Demonstration Success 4. Quarterly Costs & Cash Flow Analysis 5. Uranium Market 6. Investment Highlights Field Trial Area in MU-1 Mr. Wayne Heili – Managing Director & CEO 3
Slide 4: Lance – Maintaining Production During Transition
Lance – Maintaining Production During Transition • March Quarter Production • 15,413 lbs produced in the quarter – injection of alkaline chemicals ceased • 23,325 lbs dried & drummed in the quarter • 106,000 lbs U3O8 sold on 1 April 2019; US$3.65m sales proceeds in June quarter • Controlled producti
Slide 5: Low pH Permitting Approvals
Low pH Permitting Approvals • Permit and License amendments – significant milestones achieved during the March quarter Agreement State of Wyoming has primacy over both Permit to Mine State and Source Material and By-product License Permit to Mine PTM amendment approved in March 2019 Source Pre
Slide 6: Low pH Field Demonstration Success
Low pH Field Demonstration Success • Mining phase successfully completed • U3O8 head grade tracked ahead of FS parameters during 1st 3 pore volumes • Flow rates maintained during low pH mining phase • Initial restoration phase has commenced Sulfuric Acid Addition Pump Test Pattern Map (in MU-1) 6
Slide 7: Quarterly Cost Performance Review
Quarterly Cost Performance Review • Spending discipline continues Payments for: Actual Actual Actual Actual F'cast (US$'000) Jun Qtr CY18 Sep Qtr CY18 Dec Qtr CY18 Mar Qtr CY19 Jun Qtr CY19 Exploration & Evaluation 197 159 394 31 100 Development & PPE 491 327 432 456 700 Production 2,457 2,739 2,502
Slide 8: Robust Financial Position
Robust Financial Position Available Cash(1) Balances and Movement 12.0 10.0 8.0 US$' million 6.0 4.0 2.0 0.0 31 Dec 18 Surety Production Explor. & Corp & Other Finance Costs Misc US Other 31 Mar 19 Reduction Costs Devel Finance • Outflows for March Qtr lower than forecast • US$2.8m surety bond decre
Slide 9: Major Current US Producer Market Catalyst
Major Current US Producer Market Catalyst • The Section 232 Investigation • The US Dept of Commerce (DOC) has investigated the adverse national security impacts related to excessive importation of uranium • The DOC report and recommendations COMPLETED on 14 April 2019 • The report has not been made
Slide 10: Uranium Market Overview
Uranium Market Overview • The long-term market was in a “wait and see” mode in March 2019 quarter • The spread between the spot & term markets is at historically thin levels • Spot market up >30% since April-2018 • Spot market volumes at record highs • Term market volumes correspondingly suppressed
Slide 11: Flexible Sales Strategy
Flexible Sales Strategy • CY2018 completed deliveries of 225,000 lbs of U3O8 • Deliveries in 2019 and 2020 have flexible origin clauses allowing seller optionality • Contracted to purchase 225,000 lbs U3O8 as needed – fixed purchase prices with average cost of $23.69/lb U3O8 • No “negative” exposure
Slide 12: Investment Upside – Low EV / lb vs Peers
Investment Upside – Low EV / lb vs Peers US$ per lb 3.5 EV/lb Resource Imminent share price re-rate events in 2019 3.0 2.5 • Completion of low pH Permit amendments 2.0 – First re-rate event occurred with approval of 1.5 1.0 Permit to Mine Amendment 0.5 – Second catalyst pending with Source - Materia
Slide 13: A Prime Uranium Investment Opportunity
A Prime Uranium Investment Opportunity Investment Criteria Peninsula Active US uranium production asset – with major project transformation in progress Long term sales contract protection Strong leverage to rising uranium market prices Direct exposure to Section 232 outcomes Ability to rapidly expan
Slide 14: Questions & Answers
PENINSULA@) Questions & Answers
Slide 15: Contact Details
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 15