Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Investor Presentation (January 2019)
32 slides from Peninsula Energy's investor presentation, Jan 29, 2019
Slide 1: Presentation cover letter - January 2019
For personal use only 29 January 2019 Companies Announcement Office Via Electronic Lodgement PENINSULA ENERGY LIMITED PRESENTATION – JANUARY 2019 Please find attached a copy of a presentation to be made by Peninsula Energy Limited’s Managing Director/CEO Mr Wayne Heili at investor sessions in Europe
Slide 2: Expanding U.S. Uranium Production Capacity
EXPANDING U.S. URANIUM PRODUCTION CAPACITY For personal use only Corporate Presentation │ January 2019 PENINSULA ENERGY LIMITED ASX:PEN
Slide 3: Disclaimer & Competent Person
Disclaimer & Competent Person 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 For personal use only completeness of the material contained in the Presentation and nothing 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: A Prime Uranium Investment Opportunity
A Prime Uranium Investment Opportunity For personal use only Investment Criteria Peninsula Active US uranium production assets – low pH transformation in progress Long term sales contract protection Direct exposure to Section 232 outcomes Strong leverage to rising uranium market price Ability to rap
Slide 6: Corporate Overview
Corporate Overview Capital Structure Share Price & Volume History Ticker: ASX:PEN For personal use only Shares on issue* 245m Price (A$/share) Volume (m) Share price (18-Jan-19) A$0.180 0.50 7.5 7.0 Market capitalisation (18-Jan-19) A$44m 0.45 6.5 Enterprise Value (18-Jan-19) A$58m 0.40 6.0 5.5 Avai
Slide 7: Strategy – Realising the Inherent Value
Strategy – Realising the Inherent Value • Develop and operate long-life, low-cost production assets For personal use only underpinned by long-term product sales contracts Sales & • Valuable long term sales contracts provide financial foundation Marketing - Source of current/ongoing cash revenues Cor
Slide 8: Investment Upside – Low EV / lb vs Peers
Investment Upside – Low EV / lb vs Peers US$ per lb EV/lb Resource Imminent share price re-rate events in 2019 For personal use only 3.0 2.5 2.0 • Completion of low pH permit amendments 1.5 1.0 0.5 • Completion of low pH field trial - • US Section 232 decision Resources UEC Energy Ur Energy Peninsul
Slide 9: Lance ISR Project │ Wyoming, USA
For personal use only Lance ISR Project │ Wyoming, USA - Wyoming is a “can do” state PENINSULA ENERGY LIMITED 8
Slide 10: Lance - Our Flagship Project
Lance - Our Flagship Project For personal use only • Lance holds the largest defined uranium resource of any currently Exceptional producing project in the United States Asset • 53.9M lbs U3O8 JORC (2012) compliant resource base2 • Peninsula developed the Lance Project from conception to a Home-grow
Slide 11: Premier US Uranium Project
Premier US Uranium Project • Wyoming is a premier US uranium extraction jurisdiction, hosting For personal use only multiple licensed facilities Powder River Basin WYOMING, USA Lance Regional Setting Lance Permit Areas PENINSULA ENERGY LIMITED 10
Slide 12: Lance – Maintaining Production Capacity
Lance – Maintaining Production Capacity • Demonstrating cost control while continuing production during low pH For personal use only transition • FY19 production guidance of 90,000 – 110,000 lbs • Production significantly cut back to preserve developed well fields for low pH operations • Tightly con
Slide 13: Lance Projects Operating History
Lance Projects Operating History 90 Actual Alkaline (HH1 to HH9) vs Expected Alkaline in 2014 Study For personal use only 80 70 • Production commenced Dec-2015 60 Percent Recovered 50 • Current mining operations use an 40 alkaline lixiviant 30 20 10 • Uranium recoveries using alkaline HH1-9 Avg 0 no
Slide 14: Unlocking the Full Potential of Lance
Unlocking the Full Potential of Lance • Low pH ISR transformation initiative is being actively advanced For personal use only • Set to transform the performance and cost profile High Potential • Feasibility Study released in September 2018 • Low pH field demonstration commenced in December 2018 • Pe
Slide 15: Timeline for Low pH ISR Transformation
Timeline for Low pH ISR Transformation Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 For personal use only CY17 CY17 CY18 CY18 CY18 CY18 CY19 CY19 CY19 CY19 CY20 CY20 CY20 CY20 Alkaline ISR Operations Ongoing Laboratory Testwork Feasibility Study Regulatory Approval Process Low pH Transition CAPEX Low p
Slide 16: Lance Low pH Field Demonstration
Lance Low pH Field Demonstration For personal use only • Approved by regulators in Nov-2018 • Trial operations started Dec-2018 • Three production patterns in test area • Planned 6-month test duration Sulfuric Acid Addition Pump Test Pattern Map (in MU-1) PENINSULA ENERGY LIMITED 15
Slide 17: Lance Low pH FS Summary
Lance Low pH FS Summary LOM Production Financial Metrics For personal use only • 33.4 million lbs U3O8 • LOM AISC of US$31.77/lb • 17 year minelife • NPV8 US$157M at US$49/lb Three Stage Expansion Plan Capacity Expansion Production AISC Stage Year Mlbs/yr CAPEX Cost $/lb. $/lb. Stage 1 2019 1.15 $5.
Slide 18: FS Outcomes – LOM CAPEX Profile
FS Outcomes – LOM CAPEX Profile For personal use only $80 CAPEX Profile (US$'M) $70 • Transition US$5.3M $60 $50 • Stage 2 exp. 2023/24 $40 • Stage 3 exp. 2025/26 $30 $20 • Tight +/- 5 to 10% range $10 of CAPEX accuracy $0 CY2018 CY2019 CY2020 CY2021 CY2022 CY2023 CY2024 CY2025 CY2026 CY2027 CY2028
Slide 19: FS Outcomes: All-in Sustaining Cash Costs
FS Outcomes: All-in Sustaining Cash Costs for LOM and by Stage 45 For personal use only 40.58 40 35 Wellfield CAPEX, 31.77 13.36 31.52 30.36 30 Wellfield CAPEX, Wellfield CAPEX, Wellfield CAPEX, US$/lb U3O8 25 10.25 Royalties, 5.83 12.31 10.52 20 R&R, 3.06 Royalties, 5.93 G&A, 3.66 Royalties, 5.73 R
Slide 20: Lance Feasibility Study Take-Away Points
Lance Feasibility Study Take-Away Points • Over 12 months of laboratory tests completed Technical For personal use only • More rigorous test basis than prior alkaline FS Basis • Almost 50% of global uranium mined using this method Favourable • Carbonate content <2.0% - great for use of mild acid • 5
Slide 21: The Uranium Market
The Uranium Market For personal use only 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 20 Source: UxC
Slide 22: Uranium Market Overview
Uranium Market Overview For personal use only • The uranium markets have reached a turning point • Uranium is sold in spot & term markets • Spot market up sharply since mid-2018 • Spot market supply depth is being tested by producer/investor buying • Term market activity expected to open up in 2019
Slide 23: Both Supply & Demand Factors Favour Higher Uranium Prices in 2019
Both Supply & Demand Factors Favour Higher Uranium Prices in 2019 Supply: Global supply restraint Demand: New demand is driving the For personal use only market up • The producers keep reducing production target levels – now off 20% or 30M lbs • Primary producers are buying big spot U3O8/yr volumes;
Slide 24: Uranium Sales Portfolio
For personal use only Uranium Sales Portfolio PENINSULA ENERGY LIMITED 23
Slide 25: Long-Term Contract Portfolio
Long-Term Contract Portfolio For personal use only • Five sales agreements with global customer base • Weighted sales price between US$51-53/lb U3O8 • Contract portfolio carries through year 2030 • Up to 6.4 million pounds U3O8 remaining under contract • 4.5 million pounds U3O8 committed deliveries
Slide 26: Mid-Term Sales Profile
Mid-Term Sales Profile For personal use only • Near and mid-term sales contracts underpin Peninsula’s business • CY2018 completed deliveries of 225,000 lbs of U3O8 5-Year Sales Profile (*) U3O8 (Klbs) 500 450 400 350 300 250 200 150 100 50 0 CY2019 CY2020 CY2021 CY2022 CY2023 (*) Committed deliverie
Slide 27: Conclusion
For personal use only Conclusion “Peninsula will be one of the most exciting uranium production companies to follow in 2019.” Wayne Heili – CEO PENINSULA ENERGY LIMITED 26
Slide 28: Next Steps for Peninsula
Next Steps for Peninsula For personal use only Amendment • Permit to Mine public comment period ends in late Jan’19 Progression • Source Material License amendment request under review Testing & • Conduct low pH field demonstration in H1 CY2019 Planning • Continue alkaline based mining at reduced ra
Slide 29: Peninsula Energy Take-Away Points
Peninsula Energy Take-Away Points U.S. Domestic For personal use only • Peninsula is well positioned to benefit from current market trends Producer and initiatives, including Section 232 outcomes Long Life • Lance has the largest defined US uranium resource currently in Project production • Low pH t
Slide 30: 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 David Coyne Finance Director / CFO +61 8 9380 9920 PENINSULA ENERGY
Slide 31: Appendix - Board and Management
Appendix 1 - Board and Management For personal use only Board 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 Mar
Slide 32: Appendix – Resources & Competent Person Statement
Appendix 2 – Resources & Competent Person Statement Lance Projects Resource Estimate as at 31 December 2017 For personal use only Tonnes Classification U3O8(kg) Grade (ppm U3O8) U3O8(lbs) (million) Measured 3.8 1.8 488 3.9 Indicated 10.9 5.4 495 11.9 Inferred 36.3 17.3 476 38.1 Total 51.0 24.5 479 5
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