Peninsula Energy Limited · ASX:PEN
Peninsula Energy — 2013 Diggers and Dealers Mining Forum
32 slides from Peninsula Energy's conference presentation, Aug 7, 2013
Slide 1: ASX announcement cover letter for company presentation
For personal use only 7 August 2013 Companies Announcement Office Via Electronic Lodgement COMPANY PRESENTATION Please find attached a copy of the presentation to be made by Peninsula Energy Limited's Executive Chairman, Mr John (Gus) Simpson at the 2013 Diggers and Dealers Mining Forum in Kalgoorli
Slide 2: ASX's Next Uranium Producer - 2013 Company Presentation
For personal use only ASX’s NEXT URANIUM PRODUCER 2013 Company Presentation
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: Power Generation and Industrialisation
Power Generation and Industrialisation For personal use only • The 19th century industrial revolution in Western Europe and North America saw 200 million people move from an agrarian based economy to a urban/industrial world. It was followed by the eradication of famine and epidemics and it precipit
Slide 5: The World Demands More Energy
The World Demands More Energy For personal use only • Governments and experts the world over know that the revolutionary non-polluting 24:7 base load power source is nuclear. This is the case in Europe (163), North America (123), Russia (33), S. Korea (23) and Japan (58) • 1700 million of world popu
Slide 6: Current and Future Reactors: Electricity Generation and Uranium Consumption
Current and Future Reactors: Electricity Generation and Uranium Consumption For personal use only Nuclear Generation Capacity will increase from 374,108 Mwe currently to 623,662 MWe in next decade Annual Uranium Demand will increase from 177mlbs to 280mlbs by 2020, with an additional 374mlbs needed
Slide 7: World Uranium Production vs Consumption
World Uranium Production vs Consumption For personal use only For more than 20 years, uranium consumption has exceeded primary production, but excess recycled material has maintained • Down blended a state of slight oversupply. This material has been made up of weapons grade three sources of seconda
Slide 8: Business Plan
Business Plan For personal use only • Mirror the requirements of the power utilities • Power utilities want security of supply – This means multiple suppliers with multiple sources in different jurisdictions that are preferably in stable secure countries – Supply partner with long life mines in USA,
Slide 9: 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 10: Corporate Overview
Corporate Overview For personal use only Capitalisation Share price history Shares on issue 2,960m Share price 2.7c Market capitalisation US$78m Cash US$12m Enterprise value US$66m Shareholding Shares % holding Pala Investments 577m 19.49% BlackRock Funds 293m 9.89% Gus Simpson 91m 3.07% HSBC 70m 2.
Slide 11: Directors
Directors For personal use only Board of Directors Gus Simpson Strong strategic leader, extensive background in resources, corporate Executive Chairman finance and management; 25 years experience in USA, Asia, Africa and Australia Alfred Gillman Experienced geologist with strong exploration and reso
Slide 12: Management
Management For personal use only Management Corporate & USA Gus Simpson Strong strategic leader, extensive background in resources, corporate finance and Executive Chairman management; 25 years experience in USA, Asia, Africa and Australia Alfred Gillman Experienced geologist with strong exploration
Slide 13: Management RSA
Management Management RSA For personal use only Glenn Black Senior management engineer; 30 years experience with De Beers in mine construction and COO, CEO South Africa operations in Africa John Simpson Senior mining engineer , 40 years experience, 20 years of which were at a senior mine Mining Engi
Slide 14: Projects Overview
Projects Overview For personal use only Emerging uranium producer with established project pipeline • Flagship Lance Projects in Wyoming Lance Wyoming USA • 2.2mlbs U3O8p.a. ramping up over 4 years • US$305 million pre-tax NPV at current uranium prices • Low Capex • JORC Resource of 54mlbs U3O8 • Ex
Slide 15: Uranium Mining in Wyoming
Uranium Mining in Wyoming For personal use only WYOMING VERY SUPPORTIVE OF URANIUM EXTRACTION 14
Slide 16: Lance – Resource
Lance – Resource For personal use only Classification Tonnes Grade eU3O8 Mineability eU3O8 Recovery Recovered (ppm U3O8) (lbs) factor (lbs) factor eU3O8 (lbs) Measured 4,142,950 495 4,520,159 0.8 3,616,128 0.8 2,892,902 Indicated 11,532,135 497 12,640,951 0.8 10,112,761 0.8 8,090,209 M+Ind 15,675,08
Slide 17: Lance – Rapid Resource Growth
Lance – Rapid Resource Growth For personal use only 60,000,000 2,250 No. PEN Holes Inferred 1,854 4,738 No. NuBeth Holes 4,738 50,000,000 Indicated Measured 1,106 4,738 40,000,000 805 36,513,114 4,738 36,783,402 lbs U3O8 30,000,000 600 4,738 30,178,789 22,454,321 20,000,000 281 4,738 15,955,169 12,6
Slide 18: Lance – Development Model
Lance – Development Model For personal use only • ISR is a low cost non-disruptive method of recovering uranium as yellow cake • Building a 2.2mlbs per year ISR operation • Inclusive of – Ion exchange facility – centralised resin stripping, drying and packaging plant at Ross (CPP) – Remote ion excha
Slide 19: ISR Process Flow
ISR Process Flow For personal use only PROVEN TECHNOLOGY – ISR PRODUCES 42% OF WORLD URANIUM 18
Slide 20: Lance – Financials
Lance – Financials For personal use only Capex by Product. Phase US$ Financial Metrics – Steady State US$ pa US$/lb Gross revenue 178m 62.33* Phase 1: months 1- 18 Ross Production Unit 69m Royalties and indirect taxes 17m 7.83 750klbs pa Operating costs 18m 8.29 Phase 2: months 18 - 36 Restoration a
Slide 21: Project Funding
Project Funding For personal use only • $12m Cash • $22m undrawn Notes from BlackRock Funds for pre-licence construction • Senior secured debt discussions with 3 resource banks • Wyoming IDB application being completed, 7-8 year low interest bonds • Secondary debt discussion with 3 financial groups;
Slide 22: Lance – Permitting Schedule
Lance – Permitting Schedule For personal use only • Green granted Blue awaiting final grant • NRC Source Material Licence − Technical reports completed − Environmental reports completed − Licence application deemed complete − Environmental and technical review complete − BLM acknowledged NRC lead −
Slide 23: Lance – Uranium Sales
Lance – Uranium Sales For personal use only • PEN Marketing company formed • First sale contract entered into in February 2011 – USA utility – WAP $75.60 per lb – 7 year contract – first delivery Q4 2014 • Planned sales structure – 40-50% to a strategic partner taking an investment in Peninsula Ener
Slide 24: 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 23
Slide 25: 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 26: 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 27: Karoo JORC Code-compliant Resource
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 Total 600 21.7 1,040 50.1 Note: Totals may not sum
Slide 28: Karoo – Development Model
Karoo – Development Model For personal use only Open Pit and Decline Mining • Multiple production faces Alkaline Added Water Added with central processing facility at Rystkuil • All sites within hauling distance • Planning development in 2016/2017 • Continue to delineate 250-350mlbs Exploration Targ
Slide 29: 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/C1
Slide 30: Karoo Exploration Potential
Karoo Exploration Potential For personal use only Western Sector U3O8 Mo Deposit Tonnage Average Average Grade U3O8 U3O8 Average Mo (kg) Mo (lbs) Thickness (m) (%U3O8) (kg) (lbs) Grade (%Mo) Site 22 914,000 1 0.14 1,280,000 2,811,000 Site 45 3,151,000 1 0.07 2,206,000 4,863,000 Reitkuil 1,270,000 1
Slide 31: Investment Analysis
Investment Analysis For personal use only • Peninsula is the ASX’s next uranium producer • The Company has a low risk, clear path to production • It has significant margins at the current uranium price • Strong financial support from a first tier shareholder base • Good visibility on Project Funding
Slide 32: Appendix: Chinese Uranium Imports
Appendix: Chinese Uranium Imports For personal use only During past 4 years, China has spent over US$6 billion to import large quantities of uranium, with 44% of Kazakhstan production going to China, far in excess of their current requirements. Kazakhstan’s huge increase in uranium production largel
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