Slide 1: Company Presentation cover letter - Mining Indaba
For personal use only 5 February 2013 Companies Announcement Office Via Electronic Lodgement COMPANY PRESENTATION Please find attached a copy of the presentation made by Peninsula Energy Limited's Executive Chairman, Mr John (Gus) Simpson at the Mining Indaba Conference in Cape Town, South Africa on
Slide 2: 2013 Indaba Presentation - Emerging Producer
For personal use only 2013 Indaba Presentation EMERGING PRODUCER
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: The World Needs Energy
The World Needs Energy For personal use only • Expanding economies require more energy • 1.7billion of world population without electricity Source: International Energy Agency 3
Slide 5: Electricity Demand Growing
Electricity Demand Growing For personal use only Electricity Demand* (TWh**) 35,000 31,722 30,000 25,000 20,000 17,217 Non-OECD OECD 15,000 10,084 10,000 5,000 0 1990 2009 2035 E * Electricity demand is calculated as the total gross electricity generated less own use in the production of electricity
Slide 6: Long Term Demand Increasing
Long Term Demand Increasing For personal use only TWh 80 net new reactors by 2021 600 65 currently under construction 511 500 Other* 431 China 400 India 300 Russia + E. Europe** 200 Asia Americas 100 Europe 0 2012 2021 *Iran, Pakistan, South Africa, Turkey and UAE **Armenia, Belarus and Ukraine 5
Slide 7: New Uranium Supply Required
New Uranium Supply Required For personal use only Required New Supply of 440mlbs U3O8 over next 10 year 2,500 Required Supply 2,000 Existing Secondary Mlbs – 10 years Supply 1,500 Existing Primary Production 1,000 Strategic Inventory Building 500 World Consumption 0 World Demand World Supply 6
Slide 8: Company Overview
Company Overview For personal use only • Emerging uranium producer with established project pipeline • Flagship projects in Wyoming (Lance) and South Africa (Karoo) Lance • JORC Resource of 54mlbs U3O8 • 2.2mlbs U3O8 pa ramping up over 3.5 years • Low Capex - Initial development expenditure US$78m •
Slide 9: Business Plan
Business Plan For personal use only • PRODUCTION TARGET 10mlbs U3O8 – BEFORE 2022 • From USA, RSA and Australia • Commence ISR production at Lance Projects, Wyoming in C13-C14 building to 2.2mlbs U3O8 pa over 3.5 years (plant capacity 3mlbs pa) • Develop conventional mining and milling operation at
Slide 10: Implied Market Valuation
Implied Market Valuation For personal use only Production Market cap Pre-Fukushima Market cap Company 2011A Market cap (US$/lb prod) market cap (US$/lb prod) (U3O8 lbs) Cameco 22.4m US$8,400m 375 US$14,324m 639 Paladin 5.7m US$ 962m 169 US$ 3,677m 645 Uranium One 10.7m US$2,590m 242 US$ 5,704m 533 P
Slide 11: Corporate Overview
Corporate Overview For personal use only Capitalisation Share price history Shares on issue 2,952m Share price 4.1c Market capitalisation US$121m Available Cash US$ 42m Debt US$ 22m Enterprise value US$123m Shareholding Shares % holding Pala Investments 577m 19.85% BlackRock Funds 293m 10.00% Gus Si
Slide 12: Directors and Management
Directors and Management For personal use only Board of Directors Gus Simpson Strategic leadership, background in resources, corporate finance and management; 25 Executive Chairman years experience Malcolm James Strong corporate finance and resources background; 25 years experience Executive Directo
Slide 13: Uranium Mining in Wyoming
Uranium Mining in Wyoming For personal use only WYOMING VERY SUPPORTIVE OF URANIUM EXTRACTION 12
Slide 14: Lance – Development Model
Lance – Development Model For personal use only • Building a 2.2mlbs per year ISR operation • ISR is a low cost non-disruptive method of recovering uranium as yellow cake • Inclusive of – Ion exchange facility – centralised resin stripping, drying and packaging plant at Ross (CPP) – Remote ion excha
Slide 15: Lance – Process Schematic
Lance – Process Schematic For personal use only
Slide 16: Lance – Financials
Lance – Financials For personal use only Capex by Prod. Phase US$ Financials – Steady State US$ pa US$/lb Phase 1 : month1-mth18 Gross revenue US$179m US$70.00* Ross Production Unit US$56m Royalties and indirect taxes US$20m US$9.26 (750klbs pa) Operating costs US$28m US$12.83 Phase 2 : mth12-mth30
Slide 17: Project Funding
Project Funding For personal use only • $21.5m in treasury • $22m Notes from Blackrock Funds • $70m Wyoming IDB application; 7 year term; low interest rate bonds • $80m notes; Blackrock first-right-refusal • $165m net would see Wyoming project funded to profitability HIGH DEGREE OF FUNDING VISABILIT
Slide 18: Lance – Permitting Schedule
Lance – Permitting Schedule For personal use only • Deep Disposal Wells − DDW feasibility study completed − Licence application deemed complete − Environmental and technical review completed − Licence granted March 2011 • NRC Source Material Licence − Technical reports completed − Environmental repo
Slide 19: Lance – Uranium Sales
Lance – Uranium Sales For personal use only • First sale contract entered into in February 2011 – USA utility – WAP $75.60 per lb – 7 year contract – first delivery 2013 • Planned sales structure – 40% to a strategic partner taking an investment in Peninsula Energy – 30% to 3-4 utilities on long-ter
Slide 20: Lance – Development Schedule
Lance – Development Schedule For personal use only 2012 2013 PROJECT EVALUATION ✔ ✔ ✔ ENGINEERING / PROCUREMENT ✔ ✔ PERMITTING Deep Disposal Wells ✔ Permit To Mine ✔ Source Material License (SML) ✔ FUNDING Equity - $10/$14m ✔ ✔ Project Debt - $20/$150m ✔ CONSTRUCTION Pre SML License ✔ Post SML Licen
Slide 21: Lance – Exploration Potential
Lance – Exploration Potential For personal use only • 13 Historic resources • 22 roll fronts extend for a combined linear strike length of 194 miles (312km) • Exploration potential 158-217mlbs U3O8 LARGE RESOURCE POTENTIAL - 70+ YEARS MINE LIFE 20
Slide 22: Lance – Rapid Resource Growth
Lance – Rapid Resource Growth For personal use only 60,000,000 2,250 No. PEN Holes Inferred 1,854 4,738 No. NuBeth Holes 4,738 50,000,000 Indicated Measured 1,106 4,738 40,000,000 805 36,513,114 4,738 36,783,402 lbs U3O8 30,000,000 600 4,738 30,178,789 22,454,321 20,000,000 281 4,738 15,955,169 12,6
Slide 23: Karoo Projects
Karoo Projects For personal use only Located in the Karoo region of RSA, approx. 400km to 600km E-NE of Cape Town 7,800 km2 over Permian sandstones 32,176 hectares of freehold land Freehold land covers majority of historic mineralisation Known uranium and molybdenum mineralised province Ownership: P
Slide 24: Karoo – Geological Setting
Karoo – Geological Setting For personal use only • Sandstones of the Adelaide Subgroup (Beaufort Group) • Extends from NE of Western Cape, across SE of Northern Cape, and into Free State • Stretches east to Cradock in the Eastern Cape includes smaller satellite area located to the ENE of Bloemfontei
Slide 25: Karoo – Development Model
Karoo – Development Model For personal use only Historic Completed 2011-12 Planned 2013-14 • Drill-defined 99mlbs U3O8 • 1,245 holes re-probed or drilled by • JORC Code-compliant resource at 1,050 ppm Peninsula for QAQC and JORC 50mlbs U3O8 • 9,850 holes drilled by resource estimate • High grade 1,0
Slide 26: Karoo JORC Code-compliant Resource
Note: Totals may not sum exactly due to rounding. Karoo JORC Code-compliant Resource For personal use only Maiden JORC Code-compliant Resource January 2013* Classification eU3O8 Tonnes eU3O8 eU3O8 (ppm) (millions) (ppm) (million lbs) CUT-OFF Indicated 600 6.9 1,020 15.7 Inferred 600 14.8 1,050 34.4
Slide 27: Karoo – Development Model
Karoo – Development Model For personal use only Open Pit and Decline Mining • Multiple production faces with central processing facility at Rystkuil Alkaline Added Water Added • All sites within hauling distance • Planning development in 2016/2017 • Continue to delineate 150-250 mlbs of uranium mine
Slide 28: Karoo – Development Schedule
Karoo – Development Schedule For personal use only 2010 2011 2012 2013 2014 2015 2016 2017 Resource Definition ✔ (JORC conversion) Internal Conceptual Study Ext. Scoping Study ✔ PFS/BFS Project Financing Construction Commissioning Production Expanded Resource ✔ ✔ Drilling DEVELOPMENT TARGET C16/C17
Slide 29: Investment Analysis
Investment Analysis For personal use only • The uranium sector is coming off a historic low • Increased demand and tightening supply will lift the whole uranium sector • Uranium producers attract a significant premium • Peninsula is a near term uranium producer with high liquidity, high margins and
Slide 30: Corporate
Corporate For personal use only ASX: PEN, PENOC Head Office Unit 17, Level 2 Peninsula Energy Limited 100 Railway Road ABN 67 062 409 303 Subiaco WA 6008 Telephone: +61 8 9380 9920 Directors Facsimile: +61 8 9381 5064 Gus Simpson - Executive Chairman Malcolm James - Executive Director Website Alf Gi