Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Investor Presentation (May 2024)
51 slides from Peninsula Energy's investor presentation, May 16, 2024
Slide 1: On Track to Become a World Class Uranium Producer in a Tier-1 Jurisdiction
ON TRACK TO BECOME A WORLD CLASS URANIUM PRODUCER IN A TIER-1 JURISDICTION A$106 MILLION EQUITY RAISING P R E S E N TAT I O N 16 May 2024 Not for distribution or release in the United States ASX:PEN; OTCQB:PENMF 1
Slide 2: Important Disclosures and Disclaimers
Important Disclosures and Disclaimers Summary Not an offer This Presentation contains summary information about the current activities of Peninsula Energy Limited (the “Company”) as at the date of this Presentation. By attending an investor presentation or briefing, or by accepting, accessing or rev
Slide 3: Important Disclosures and Disclaimers
Important Disclosures and Disclaimers Cautionary & Inferred Resources Notice (continued) You acknowledge and agree that the eligibility of investors for the purpose of the Offer is determined by reference to a The August 2023 Life of Mine plan (LoM) completed for the Ross and Kendrick Production Are
Slide 4: Company Highlights
Company Highlights Lance Projects: A world-class, scalable, near-term uranium production asset in a tier-1 jurisdiction Plant and wellfield preparations on-track for commissioning in late 2024 Fully underwritten equity raise fully funds Lance to projected positive free cash flow, expected in Q3 2025
Slide 5: Equity Raising Overview
EQUITY RAISING OVERVIEW PENINSULA ENERGY ASX:PEN; OTCQB:PENMF Not for distribution or release in the United States 5
Slide 6: Equity Raising Overview
Equity Raising Overview • Peninsula are seeking to undertake a fully underwritten A$105.9 million equity raising (“Offer”) comprising: Offer Structure ‐ An institutional placement of 528.5 million New Shares to raise approximately A$52.9 million (“Placement”); and and Size ‐ A 1 for 4 pro rata accel
Slide 7: Sources and Uses of Funds
Sources and Uses of Funds Set out below are the indicative sources and uses of funds until Q3 2025, when the Company expects to achieve sustainable positive free cash flow2 Uses of Funds Total US$m1 ▪ This offer (net of fees) fully funds estimated Lance cash Pre-Production CAPEX 52.2 requirements to
Slide 8: Indicative Timetable
Indicative Timetable Event1 Date Trading halt and Placement and Institutional Entitlement Offer opens Before open on Thursday, 16 May 2024 Placement and Institutional Entitlement Offer closes 10:00am (Sydney time) on Friday, 17 May 2024 Trading halt lifted and announcement of successful Placement an
Slide 9: Group Funding Analysis
Group Funding Analysis Projected Group Funding Requirement 31 March 2024 (US$m) • US$68.8m additional funding required (including costs of the Offer) to sustainable positive cash flows which Peninsula expects to be achieved in Q3 2025 ‐ Includes discretionary cash buffer allowance of US$12.5m ‐ Fund
Slide 10: Remaining Capital to Sustainable Cash Generation
Remaining Capital to Sustainable Cash Generation Remaining CAPEX to First Production (April’24 - Dec’24) US$m Remaining Plant CAPEX 35.4 Remaining General CAPEX 2.0 52.2 Remaining Wellfield CAPEX 13.2 CAPEX Contingency 1.6 Ramp-up CAPEX to Positive Cash Generation Plant CAPEX 0.7 General CAPEX 1.6 1
Slide 11: Debt Funding Status
Debt Funding Status • Peninsula will continue to pursue debt discussions to provide working capital, balance sheet flexibility and assist funding growth initiatives • BurnVoir Corporate Finance has been appointed as financial adviser to assist in arranging debt facilities to support working capital
Slide 12: The Lance Uranium In-Situ Recovery Project
THE LANCE URANIUM IN-SITU RECOVERY PROJECT PENINSULA ENERGY ASX:PEN; OTCQB:PENMF Not for distribution or release in the United States 12
Slide 13: Lance – A Premier ISR Uranium Project & Location
Lance – A Premier ISR Uranium Project & Location Located in Wyoming USA, a leading US uranium extraction jurisdiction PENINSULA ENERGY ASX:PEN; OTCQB:PENMF INVESTOR PRESENTATION NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 13
Slide 14: The Lance Projects – Wyoming, USA
The Lance Projects – Wyoming, USA • Ross Production Project Area • Fully licensed Uranium ISR production project • Home of the project facilities and central process plant • Estimated remaining Resource of 6.4 Mlbs U3O8 • 2 previously operated Mine Units (MU-1 and MU-2), with potential for an additi
Slide 15: The Lance ISR Projects Background
The Lance ISR Projects Background Initial Construction & Operation: 2015-2018 Mine Unit 2 at Lance Lance Satellite Plant Ion Exchange System • The Project is licensed to produce up to 3.0 Mlbs U3O8 per year. The plant was first constructed in 2015 as a satellite facility producing uranium-loaded ion
Slide 16: Lance Project JORC Resource
Lance Project JORC Resource U3O8 U3O8 Tonnage Metal Grade Permit Area (Mtonnes) (ppm U3O8) (Ktonnes) M lbs Ross One of the Largest US Uranium ISR Measured 1.5 0.8 510 46 1.7 Indicated 3.1 1.4 3.1 Projects Known Inferred 1.5 0.7 0 450 1.5 Total 6.1 2.9 470 6.4 Kendrick Measured 1.2 0.6 540 1.4 • 58.0
Slide 17: Significant Potential Exploration Upside
S I G N I F I C A N T P O T E N T I A L E X P L O R AT I O N U P S I D E PENINSULA ENERGY ASX:PEN; OTCQB:PENMF Not for distribution or release in the United States 17
Slide 18: Lance Projects Exploration Upside
Lance Projects Exploration Upside Peninsula’s Exploration Success • Exploration Target of 104 – 163 Mlbs eU3O8 ‐ Based on a combination of past exploration results and Ross Area proposed exploration programmes1 • Greater than 300 linear km of redox fronts (mapped in red) • Fronts defined by wide spa
Slide 19: Dagger Project Introduced in 2023
Dagger Project Introduced in 2023 Dagger Project Location in Proximity to Lance New High Grade Satellite Deposit ✓ Opportunity to expand production rate through Satellite In- Situ Recovery operation ✓ 6.9 Mlbs U3O8 of JORC (2012) Inferred Resources1 ✓ >2x the Grade of U3O8, compared to Lance Resourc
Slide 20: Site Preparations at Lance
S I T E P R E PA R AT I O N S AT L A N C E PENINSULA ENERGY ASX:PEN; OTCQB:PENMF Not for distribution or release in the United States 20
Slide 21: Lance Project Upgrade Activities (2019 - Present)
Lance Project Upgrade Activities (2019 -Present) 1. Transition to low-pH recovery - Complete Process Plant Stage-2 Upgrade • Low-pH uranium in-situ recovery is the most widely utilized method for uranium production ➢ Previous U3O8 Processing Toll “Dry • The Company completed comprehensive field-scal
Slide 22: Plant Expansion Design
Plant Expansion Design Plant Expansion Update • Plant design capacity to be expanded up to 2.0 Mlbs U3O8 per year1 in 2024 • Design incorporates ability for future expansion to 3.0 Mlbs/yr • Plant capability to be expanded to include resin processing/elution, precipitation, filtration and product dr
Slide 23: Construction Progress at Lance
Construction Progress at Lance Plant Expansion Update • Samuel appointed Engineering/Procurement/Construction Management (EPCM) contractor • Samuel is intimately familiar with the Project and site construction requirements given historical involvement with the project • Site preparation and procurem
Slide 24: MU-3 Construction Progress
MU-3 Construction Progress Wellfield Development Update • Mine Unit 3 (MU-3) is the first production wellfield at Lance specifically designed for the low-pH in-situ recovery method. • MU-3 is anticipated to be operationally available in 3Q-2024 • 10 drilling rigs actively installing production patte
Slide 25: Estimated Timeline to Production Restart
Estimated Timeline to Production Restart Activity Indicative Date Commencement of Plant Expansion Construction May 2024 Resource Expansion Drilling May-Aug 2024 MU-3, First Header House Installation Complete August 2024 Commence Wellfield Pre-conditioning Q3 2024 Plant Commissioning/Low pH-ISR Produ
Slide 26: Life of Mine Plan and Offtake Contracts
L I F E O F M I N E P L A N A N D O F F TA K E C O N T R A C T S PENINSULA ENERGY ASX:PEN; OTCQB:PENMF Not for distribution or release in the United States 26
Slide 27: Ross and Kendrick August 2023 Life-of-Mine (LoM) Plan – Key Details
Ross and Kendrick August 2023 Life -of-Mine (LoM) Plan – Key Details1 Estimated Total Production LoM Revenues Key Operational Outcomes 5,000 gallon per 14.8Mlbs $988m Uranium ISR Plant Flowrate Capacity minute (GPM) Annual U3O8 Production Capacity Up to 2.0 Mlbs NPV8 (Real, unlevered) IRR (Real) Est
Slide 28: Potential to Become one of the Largest U.S. Uranium Producers
Potential to Become one of the Largest U.S. Uranium Producers August 2023 Ross and Kendrick LOM Model Production & Flow rate 2,000 8,000 1,750 7,000 • Estimated 14.8 Mlbs produced over 10-year Life-of-Mine 1,500 6,000 Captured on resin (lbs'000) Flow Rates to Plant (GPM) • Lance production target of
Slide 29: Offtake Contracts & Sales Profile
Offtake Contracts & Sales Profile Sales Profile Offtake Contracts 2,000 • Peninsula has 6 existing offtake contracts covering 1,800 ~40% of production over LOM 1,600 • Committed to deliver 6.0 Mlbs between 2025 and 2033 1,400 Uranium Sold (000's lbs) • Strong leverage to Uranium spot price upside 1,
Slide 30: Corporate Overview
C O R P O R AT E O V E R V I E W PENINSULA ENERGY ASX:PEN; OTCQB:PENMF Not for distribution or release in the United States 30
Slide 31: Corporate Overview
Corporate Overview A$244m A$0.115 2.12b 342.6m US$49.6m Nil Market Cap. Share Price Shares on Issue Options1 Cash2 Term Debt (15 May 2024) (15 May 2024) (15 May 2024) (15 May 2024) (31 Mar 2024) Board of Directors Share Price Performance Mr John Harrison Non-Executive Chairman 140 0.25 120 Daily Vol
Slide 32: Experienced Management Team
E x p e r i e n c e d M a n a g e m e n t Te a m Experienced in design, construction and operation of Uranium ISR facilities in Wyoming, USA Wayne Heili Willie Bezuidenhout Managing Director Interim CFO, VP – Corporate Development Mr Heili has spent the bulk of his 35+-year professional career in th
Slide 33: Sustainability Focus
Sustainability Focus Peninsula’s Sustainability Report is built around the pillars of Employees, Environment, Social and Governance (“EESG”) • 2023 Report Sustainability highlights: • No lost-time or recordable injuries for more than 6 years • Rollout of ISO 14001 & ISO 9001 certification processes
Slide 34: Contact Details
Contact Details REGISTERED OFFICE Units 32/33, Level 3 22 Railway Road Subiaco, Western Australia 6008 Australia Phone: +61 8 9380 9920 www.pel.net.au FURTHER INFORMATION Wayne Heili Managing Director/CEO email: info@pel.net.au 34 Not for distribution or release in the United States
Slide 35: Appendix – Resources
Appendix 1 – Resources Lance Projects Resource Estimate as at 31 December 20231 Classification Tonnes U3O8 Grade U3O8 (million) (Mkg) (ppm U3O8) (Mlbs) Measured 3.3 1.7 510 3.8 Indicated 11.0 5.6 510 12.4 Inferred 38.3 18.9 490 41.7 Total 52.6 26.3 500 58.0 Dagger Resource Estimate as at 23 October
Slide 36: Appendix - Lance Exploration Target
A p p e n d i x 2 - L a n c e E x p l o r a t i o n Ta r g e t Additional Disclosure Exploration Target1 The Lance Projects cover a significant proportion of the Powder River Basin. Cretaceous sandstones of Wyoming, which are believed to represent an Exploration Target of between 104 and 163 Mlbs eU
Slide 37: Appendix – Risk Factors
Appendix 3 – Risk Factors Company Specific Risks Uranium Mining Risks The Company’s uranium projects are located in the State of Wyoming, USA. Uranium mining in Wyoming is subject to licensing regulation by the WDEQ. Whilst exploration and mining for uranium is currently permitted in the State of Wy
Slide 38: Appendix – Risk Factors
Appendix 3 – Risk Factors Operational risk The operations of the Company may be affected by various factors, including, failure to achieve predicted grades in exploration and recovery; operational and technical difficulties encountered in recovery; difficulties in constructing, commissioning, and op
Slide 39: Appendix – Risk Factors
Appendix 3 – Risk Factors Regulation change risk The introduction of new legislation or amendments to existing legislation by governments, developments in existing common law, or the respective interpretation of the legal requirements in any of the legal jurisdictions which govern the Company’s oper
Slide 40: Appendix – Risk Factors
Appendix 3 – Risk Factors Service providers, agents and contractors There is a risk of financial failure or default by agents, contractors, and service providers to which the Company is or may become a party, or the insolvency or managerial failure by any of the contractors used by the Company in an
Slide 41: Appendix – Risk Factors
Appendix 3 – Risk Factors Provision of surety bonds The Company is required to place certain amounts on deposit with the WDEQ to act as surety for future restoration and rehabilitation obligations. To fulfil this requirement, the Company uses surety bonds provided by an insurance company for 100% of
Slide 42: Appendix – Risk Factors
Appendix 3 – Risk Factors Environmental Risk The operations and proposed low pH activities of the Company are subject to laws and regulations concerning the environment. As with most mining operations, the Company's activities are expected to have an impact on the environment. It has been Company po
Slide 43: Appendix – Risk Factors
Appendix 3 – Risk Factors Commodity Price Risk The demand for, and the price of, commodities are highly dependent on a variety of factors, including international supply and demand, the price and availability of substitutes, actions taken by governments and global economic and political developments
Slide 44: Appendix – Risk Factors
Appendix 3 – Risk Factors Market Conditions Unlike other commodities, uranium does not trade on an open market. Contracts are negotiated privately by buyers and sellers. Changes in the price of uranium can have a significant impact on the economic performance of the Company's projects. The marketabi
Slide 45: Appendix – International Offer Restrictions
Appendix 4 – International Offer Restrictions This Presentation does not constitute an offer of new fully paid ordinary shares (“New Shares”) in the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may no
Slide 46: Appendix – International Offer Restrictions
Appendix 4 – International Offer Restrictions Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission
Slide 47: Appendix – International Offer Restrictions
Appendix 4 – International Offer Restrictions United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and M
Slide 48: Appendix – Summary of Underwriting Agreement
Appendix 5 – Summary of Underwriting Agreement • The Company has entered into an underwriting agreement with the joint lead managers (the Joint Lead Managers ) pursuant to which the Joint Lead Managers have been appointed as joint lead managers, bookrunners and underwriters of this Offer on the term
Slide 49: Appendix – Summary of Underwriting Agreement
Appendix 5 – Summary of Underwriting Agreement • the Company or a subsidiary is insolvent or likely to become insolvent; • any material adverse change occurs; • a new circumstance arises which is a matter adverse to investors in the Offer shares and which would have been required by the Corporations
Slide 50: Appendix – Summary of Underwriting Agreement
Appendix 5 – Summary of Underwriting Agreement • any of the following market disruption events occur: • trading of all securities quoted on ASX, the London Stock Exchange, the Hong Kong Stock Exchange, the New York Stock Exchange, the NASDAQ or the Toronto Stock Exchange is suspended or limited in a
Slide 51: Appendix – Summary of Underwriting Agreement
Appendix 5 – Summary of Underwriting Agreement • the ASX Small Ordinaries Index (‘XSO’) and/or the UxC Index closes on: • any two successive Business Days between the institutional opening date and the retail settlement date, as set out in the timetable; or • on the business day before the instituti