Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Investor Presentation (December 2019)
33 slides from Peninsula Energy's investor presentation, Dec 10, 2019
Slide 1: U.S. Uranium Investment Opportunity
ASX Listed - U.S. Uranium Investment Opportunity Equity Raising Presentation │ 10 December 2019 CODE : PEN Not for release to US wire services or distribution in the United States
Slide 2: Important Notice
Important Notice This investor presentation (Presentation) is dated 10 December 2019 and has been prepared by Peninsula Energy Limited (“Peninsula” or the “Company”) in connection with the issue of a prospectus (Prospectus) for a renounceable entitlement offer to its existing shareholders (Entitleme
Slide 3: Disclaimer & Competent Person
Disclaimer & Competent Person This Presentation is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, adequacy, reliability, relevance or completeness of any statements, estimates or opinions or other information containe
Slide 4: 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% (inferred to indicated or greater). The purpose of the Feasibility Study is to demonstrate the Lance Projects economic via
Slide 5: Equity Raising & Size
Equity Raising & Size • A$9.1 million equity raising comprising: Institutional placement that raised A$7.0million (“Placement”); and Offer Structure and A 1 for 20 pro-rata renounceable entitlement offer to raise approx. A$2.1 Size million (“Entitlement Offer”) to existing eligible shareholders
Slide 6: Equity Raising Overview
Equity Raising Overview • New Shares will rank equally in all respects with Peninsula’s existing shares Ranking • New Shares issued under the Placement will be allotted after the Record Date and will not be eligible to participate in the Entitlement Offer Cornerstone • 6 of the Company’s existing in
Slide 7: Indicative Timetable
Indicative Timetable Key Event Date(1) Announcement of the Equity Raise 29 November 2019 Lodge Prospectus with ASIC and ASX 2 December 2019 “Ex” date for Entitlement Offer 4 December 2019 Record Date for Entitlement Offer 5 December 2019 Placement Allotment Date 9 December 2019 Entitlement Offer Ope
Slide 8: Use of Proceeds
Use of Proceeds Net proceeds raised from the Placement and Entitlement Offer will be primarily applied to the Lance Projects for the purposes of ongoing site costs (including retention of key staff for restart readiness) and low pH de-risking and optimisation activities De-risking and optimisation a
Slide 9: The No.1 ASX-Listed Uranium Investment Opportunity
The No.1 ASX-Listed Uranium Investment Opportunity Only US uranium ISR mine authorised to use industry leading low pH solution Transition to low pH solution is low cost and underway Ready for rapid re-start to be first to respond to improving market Largest contiguous US uranium ISR mineral resource
Slide 10: Corporate Overview
Corporate Overview Capital Structure Share Price & Volume History Ticker: ASX:PEN Shares on issue* 295m Price (A$/share) Volume (m) Share price (9-Dec-19) A$0.170 0.35 10.0 9.5 Market capitalisation (9 Dec-19) A$50m 0.30 9.0 8.5 8.0 Enterprise Value (9-Dec-19) A$66m 7.5 0.25 7.0 Available Cash (31-O
Slide 11: Debt Reduction Terms Agreed
Debt Reduction Terms Agreed Binding agreement reached with Lenders (1) Debt Reduction Proceeds from uranium contract monetisation, when completed, of ~US$10-11m to be applied to reduce debt Revised maturity date of 22 April 2021 if monetisation Term & complete by 30 Apr 2020 (31 Oct 2020 otherwise)
Slide 12: Investment Upside – Low EV / lb vs Peers
Investment Upside – Low EV / lb vs Peers US$ per lb EV/lb Resource 2.5 30% to 65% discount to US ISR Peers 2.0 1.5 Offers significant upside opportunities 1.0 0.5 - Resources UEC Energy Ur Energy Peninsula Fuels Energy Boss lbs U3O8 Peer group leading contract revenue Offtake Contracts & Avg Price 8
Slide 13: The Uranium Market
The Uranium Market 300 250 mlbs/yr U3O8 200 150 100 50 0 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E 2034E 2035E 2018 Secondary Supplies Existing Mines Forecast New Mines Total Demand PENINSULA ENERGY LIMITED 13 Source: UxC
Slide 14: Solid Growth in Uranium Demand
Solid Growth in Uranium Demand Operable Reactors Reactors Under Construction Planned Reactors USA China China France UAE Russia China South Korea India Japan India United Kingdom Russia Egypt USA South Korea Turkey Russia Canada USA Japan Ukraine Uzbekistan Bangladesh Germany Hungary Belarus United
Slide 15: Improving Supply Side Fundamentals
Improving Supply Side Fundamentals Significant supply reductions(1) Substantial CAPEX to re-start idled 180 mine capacity(2) 160 140 McArthur River US$70m (2 yrs.) Langer Heinrich US$80m Million lbs U3O8 120 100 Honeymoon US$68m 80 60 40 CAPEX to develop new projects is not 20 currently available or
Slide 16: When will the Uranium Price Improve?
When will the Uranium Price Improve? No one knows for sure, but watch for these signals: When regulatory certainty returns to the US When mining companies purchase rather than produce, reducing the amount of Utilities can go to the market with confidence physical uranium available for utility needs
Slide 17: Lance ISR Project │ Wyoming, USA
Lance ISR Project │ Wyoming, USA A Premier US Uranium Project PENINSULA ENERGY LIMITED 17
Slide 18: Lance – In a Favourable Jurisdiction
Lance – In a Favourable Jurisdiction Wyoming is a leading US uranium extraction jurisdiction, hosting multiple projects; and Lance is one of the largest in size and scale. Powder River Basin WYOMING, USA Lance Regional Setting Lance Permit Areas PENINSULA ENERGY LIMITED 18
Slide 19: Lance – Fully Licensed and Developed
Lance – Fully Licensed and Developed Lance holds the largest defined uranium resource of any Exceptional recently producing project in the United States Asset 53.6M lbs U3O8 JORC (2012) compliant resource base(1) Lance is licensed to produce up to 3M lbs U3O8 per annum Scalable Would be the #1 ISR
Slide 20: Unlocking the Full Potential of Lance
Unlocking the Full Potential of Lance Peninsula is leading the US industry by transitioning to low-pH ISR Transform the future performance and cost profile High Potential Feasibility Study released in September 2018 Two main regulatory approvals now completed Short Timeline Plant and wellfield modif
Slide 21: Lance Low pH FS Summary
Lance Low pH FS Summary LOM Production Financial Metrics 33.4 million lbs U 3O8 LOM AISC of US$31.77/lb 17 year mine life NPV8 US$157M at US$49/lb Three Stage Transition & Expansion Plan Capacity Expansion Production AISC Stage Year Mlbs/yr CAPEX Cost $/lb. $/lb. Stage 1 0 1.15 $5.3M $14.67 $40.58 S
Slide 22: Low pH Implementation Plan
Low pH Implementation Plan Field Demonstrations of Mining and Initial Restoration Phase 1 Complete Commercial use of low pH in MU’s 1 & 2 Phase 2 Authorised Field groundwater restoration demonstration Phase 3 Interim Restoration Report (IRR) for WDEQ approval Ongoing Activity Upon ap
Slide 23: Low pH Transition at Lance
Low pH Transition at Lance Regulatory Benchmarks Completed major amendments for low pH ISR Progress & complete Phase 3 demonstrations during 2nd half CY2019 Low pH Technical De-risking & Optimisation Conduct low pH resin optimisation test work and studies Evaluate design improvements for fin
Slide 24: Uranium Sales Portfolio
Uranium Sales Portfolio PENINSULA ENERGY LIMITED 24
Slide 25: Only US Uranium Mining Company with a Long-Term Contract Portfolio
Only US Uranium Mining Company with a Long-Term Contract Portfolio Five sales agreements with major utilities Weighted sales price between US$51-53/lb U3O8 Contract portfolio carries through year 2030 Up to 6.2 million pounds U3O8 remaining under contract(1) 4.2 million lbs U3O8 committed deli
Slide 26: Conclusion
Conclusion Conclusion PENINSULA ENERGY LIMITED 26
Slide 27: Take-Away Points
Take-Away Points U.S. Peninsula is positioned to benefit from U.S. Government Domestic initiatives and ongoing corporate activities Producer The only low pH uranium ISR project in the U.S. Long Life Lance has the largest defined ISR uranium resource in the US Project with clear visibility and short
Slide 28: 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 David Coyne Finance Director / CFO +61 8 9380 9920 PENINSULA ENERGY LIMITED 28
Slide 29: Appendix - Board and Management
Appendix 1 - Board and Management Board of Directors John Harrison, Non-Executive Chairman Capital Markets Wayne Heili, Managing Director & CEO Exec. Leadership & Technical David Coyne, Finance Director & CFO Finance & Risk Management Harrison Barker, Non-Executive Director Nuclear Fuel Markets Mark
Slide 30: Appendix – Resources & Competent Person Statement
Appendix 2 – Resources & Competent Person Statement 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 53.6 1) JORC Table 1 in
Slide 31: Appendix – Key Risks
Appendix 3 – 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 there is no guarantee that it will be permitted in the future. Low pH Uranium Recovery The Company is transit
Slide 32: Appendix – Key Risks
Appendix 3 – Key Risks Foreign Exchange Risks The Company and its Shareholders are exposed to the fluctuations and volatility of currency exchange rates. Service Providers, Agents and Contractors There is a risk that the actions of agents, contractors and services providers used by the Company in an
Slide 33: Appendix – Key Risks
Appendix 3 – Key Risks Exploration Risks There can be no guarantee that the Company's planned exploration and evaluation programs will lead to positive exploration and evaluation results and the delineation of a commercial deposit or further, a commercial uranium mining operation. Insurance Risk Ins
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