Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Q4 2017 Earnings Presentation
19 slides from Peninsula Energy's earnings presentation, Feb 6, 2018
Slide 1: Quarterly Results Webcast Presentation
For personal use only 6 February 2018 Companies Announcement Office Via Electronic Lodgement PENINSULA ENERGY LIMITED QUARTERLY RESULTS WEBCAST PRESENTATION Peninsula Energy Limited (Peninsula) held an investor update webcast including the attached presentation to cover the December 2017 quarter at
Slide 2: December 2017 Quarter Results
December 2017 Quarter Results For personal use only Webcast │ 6 February 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 • Quarterly Highlights 1. Headline News Flow 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 & CEO Mr David Co
Slide 5: Headline News Flow
Headline News Flow For personal use only • Sales & Marketing • US$19 million cash receipts announced • No sales in December quarter • Lance Projects • Production results improved for third consecutive quarter • Low pH transformation initiative • Karoo Divestment Process 4
Slide 6: Unlocking Value from Sales Contracts
Unlocking Value from Sales Contracts For personal use only • Peninsula gained US$19m through uranium contract transaction in 2018 • Sold a portion of 2018 - 2021 delivery commitments to a third-party • Sold interest in a closely matched purchase agreement • Revenue represents 26% of current market c
Slide 7: Lance - Improved Production Results
Lance - Improved Production Results • 12% Increase on prior Quarter Production For personal use only • 38,828 lbs produced in the quarter • 23,270 lbs dried & drummed in the quarter • Continued operations in first two mine units • Header house #9 commenced production operations Quarterly Production
Slide 8: Unlocking the Full Potential of Lance
Unlocking the Full Potential of Lance • Low pH ISR transformation initiative For personal use only High Potential to transform the performance and cost profile Potential White Paper available at website: www.pel.net.au Short Permit and licence amendments expected within two years Timeline Co
Slide 9: Low pH ISR Leads the Way
Low pH ISR Leads the Way • All 1st quartile uranium operations globally are in-situ recovery (ISR) For personal use only facilities that utilize a low pH lixiviant U3O8 Price (US$/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 • Formal divestment process underway For personal use only 56.9 million pounds eU3O8 (23.3mt at 1,108 ppm) Large JORC (2012) compliant resource² Resource Ownership: Peninsula 74% and BEE Partners 26% Internal PFS Significant work in the way of technical studies ha
Slide 11: Quarter over Quarter Cost Reductions
Quarter over Quarter Cost Reductions For personal use only • Committed to continued sustainable cost reductions Payments for: Actual Actual Actual Actual F'cast (US$'000) Mar Qtr CY17 Jun Qtr CY17 Sep Qtr CY17 Dec Qtr CY17 Mar Qtr CY18 Exploration & Evaluation 285 213 270 185 350 Development & PPE 1
Slide 12: Strong Corporate Financial Position
Strong Corporate Financial Position Cash Balances and Movement For personal use only 14.0 12.0 10.0 8.0 US$' million 6.0 4.0 2.0 0.0 30 Sep 17 Net Sales Production Uranium Explor. & Corp & Finance Misc US 31 Dec 17 Inventory Proceeds Costs Purchased Devel Other Costs Finance Finance • No sales or pu
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 (31-Jan-18) $0.410 0.90 2.0 Market capitalisation (31-Jan-18) A$95m 0.80 Enterprise Value A$112m 0.70 1.5 Cash and Security Deposits (
Slide 14: Uranium Market Overview
Uranium Market Overview For personal use only • Uranium Market Insight • Spot market is currently oversupplied • Production restraint is occurring • Term price has been flat • Future demand projections remain strongly positive • Market rebalancing is occurring now Source: The Ux Consulting Company,
Slide 15: Uranium Market Themes
Uranium Market Themes 1. Supply: Production restraint has become a common theme For personal use only • The big miners continue reducing production target levels • Cameco suspended world’s largest uranium mine (~14mlbs p.a.) • “Optimization” and “cost reduction” efforts are prevalent industry-wide •
Slide 16: Peninsula Energy's Defining Strengths
Peninsula Energy’s Defining Strengths World Class • Experienced technical, financial and commercial team For personal use only 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 17: 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 16
Slide 18: 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 19: 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