Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Investor Presentation (November 2017)
37 slides from Peninsula Energy's investor presentation, Nov 14, 2017
Slide 1: Peninsula Energy Presentation (ASX cover letter)
For personal use only 14 November 2017 Companies Announcement Office Via Electronic Lodgement PENINSULA ENERGY PRESENTATION Peninsula Energy Limited (Peninsula) is presenting at shareholder and investor sessions hosted by Proactive Investors in Melbourne today and Sydney tomorrow, as advised on 3 No
Slide 2: Unlocking the Full Potential
UNLOCKING THE FULL POTENTIAL For personal use only Corporate Presentation│ Wyoming │ November 2017 PENINSULA ENERGY LIMITED ASX:PEN
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: Uranium Market Overview
Uranium Market Overview For personal use only • Uranium Market Correction • Market currently oversupplied • Production restraint is occurring • Cameco suspend production at Key Lake (~14m lbs p.a.) on 8 Nov 17 • Term price has been flat • Spot price has been range bound • Future utility demand proje
Slide 5: Peninsula Energy's Defining Strengths
Peninsula Energy’s Defining Strengths • World class technical, financial and commercial team For personal use only World Class Management • Supportive major shareholders Large Scale • The Lance Projects contain resources of 53.5 mlbs of U3O8¹ Project • ‘Game Changing’ low pH lixiviant being evaluate
Slide 6: Board and Management Team
Board and Management Team 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 (Hink) Barker, Non-Executive Director Nuclear Fuel Mark
Slide 7: Corporate Overview
Corporate Overview Capital Structure Share Price & Volume History For personal use only Shares on issue 232m Price Volume (m) (A$/share) Share price (27-October-17) $0.285 0.90 2.0 Market capitalisation A$66m 0.80 Enterprise Value A$78m 0.70 1.5 Cash and Security Deposits (30-Sep-17) US$11.8m 0.60 0
Slide 8: Peer Comparison
Peer Comparison k lbs U3O8 m lbs U3O8 Contracted Volume Resource Base For personal use only 10,000 120 54 8,000 100 6,000 80 60 4,000 50 40 2,000 41 20 - 0 US$m US$ per lb 180 Market Capitalisation 2.5 Market Cap / Resource Base 160 2.0 140 120 1.5 100 80 1.0 60 40 0.5 20 0 - Note: Market capitalisa
Slide 9: Strategy – Unlocking the Value
Strategy – Unlocking the Value • Develop long-life, low-cost assets underpinned by strong product For personal use only sales contracts Existing Operations • Continue existing Lance operations under alkaline leach Step Change • Continue low pH research and apply for license amendments at Lance • Con
Slide 10: Lance ISR Project | Wyoming, USA
For personal use only Lance ISR Project │ Wyoming, USA PENINSULA ENERGY LIMITED 9
Slide 11: Premier Uranium Jurisdiction
Premier Uranium Jurisdiction • Wyoming is a premier uranium extraction jurisdiction, For personal use only hosting multiple ISR operations PENINSULA ENERGY LIMITED 10
Slide 12: Large Scale Resource: +20 years mine life
Large Scale Resource: +20 years mine life • 53.5m lbs JORC (2012) compliant resource base¹ (50.7Mt at 473ppm For personal use only U3O8) offers long mine life with existing infrastructure Exploration Target: 158-217m pounds (169-196mt at 426-530ppm U3O8) Existing JORC Resource: 53.5m pounds Please n
Slide 13: Production Results
Production Results • Operational Performance is being aligned to the contract book For personal use only • Nine Header Houses operating • Production rate sustained at ~400 pounds day Quarterly Production and Expenditure lbs U3O8 US$'million 60,000 4.5 4.0 50,000 3.5 40,000 3.0 2.5 30,000 2.0 20,000
Slide 14: 'Game Changing' Low pH ISR Initiative
‘Game Changing’ Low pH ISR Initiative For personal use only ✓ Extremely positive testing results using low pH solutions The Potential ✓ Potential to transform the performance and cost profile in line with the global industry leading ISR projects PENINSULA ENERGY LIMITED 13
Slide 15: Low pH = High Potential
Low pH = High Potential 1. Lance mineral better suited for low pH ISR process For personal use only • Cretaceous aged deposition with low carbonate content • Secondary alteration reduces ease of access to uranium mineral for alkaline ISR 2. Guided by laboratory results • Multiple laboratory tests co
Slide 16: Low pH ISR = Low Production Cost
Low pH ISR = Low Production Cost • Low pH ISR has the potential to place the Lance Project in the first quartile For personal use only of the global uranium production cost curve U3O8 Price (US$/lb) Low pH ISR Production All other operations 90 80 70 60 50 40 30 20 10 0 0 20 40 60 80 100 120 140 160
Slide 17: 'Game Changing' Low pH ISR Initiative
‘Game Changing’ Low pH ISR Initiative For personal use only ✓ Extremely positive testing results using low pH solutions The Potential ✓ Potential to transform the performance and cost profile in line with the global industry leading ISR projects ✓ Continue alkaline ISR operations until transition Ti
Slide 18: Timeline for Low pH ISR Transformation
Timeline for Low pH ISR Transformation 2017 2018 2019 2020 For personal use only Alkaline ISR Operations On-going Laboratory Test Work Engineering Studies Regulatory Approval Process Design Revision Low pH Operations PENINSULA ENERGY LIMITED 17
Slide 19: 'Game Changing' Low pH ISR Initiative
‘Game Changing’ Low pH ISR Initiative For personal use only ✓ Extremely positive testing results using low pH solutions The Potential ✓ Potential to transform the performance and cost profile in line with the global industry leading ISR projects ✓ Continue alkaline ISR operations until transition Ti
Slide 20: Funding for the Transition
Funding for the Transition For personal use only 1. CAPEX and OPEX • TREC Inc. contracted to identify requirements and estimate capital and operating costs • Current facilities generally built with appropriate materials of construction • Expectation of low capital funding requirement 2. Ongoing Prod
Slide 21: Unlocking the Full Potential of Lance
Unlocking the Full Potential of Lance For personal use only ✓ Lance Project holds a large scale uranium resource High Potential ✓ Potential to transform the performance and cost profile using low pH ISR process ✓ Permit and licence Amendments in under two years Short Timeline ✓ Continued alkaline IS
Slide 22: Karoo Projects | South Africa
For personal use only Karoo Projects │ South Africa PENINSULA ENERGY LIMITED 21
Slide 23: Karoo Projects Divestment Underway
Karoo Projects Divestment Underway • Highly valuable resource with a significant amount of data available For personal use only Large ✓ 56.9 million pounds eU3O8 at 1,108 ppm JORC (2012) Resource compliant resource² (23.3mt at 1,108ppm) Internal PFS ✓ Significant work in the way of technical studies
Slide 24: Uranium Sales & Marketing
For personal use only Uranium Sales & Marketing PENINSULA ENERGY LIMITED 23
Slide 25: Uranium Sales and Marketing Strategy
Uranium Sales and Marketing Strategy For personal use only • Significant contract portfolio carries through year 2030 • Current Mark-to-Market value of up to ~US$250m • Projected revenue of up to US$415 million remaining under contract • Up to 7.6 million pounds U3O8 remaining under contract through
Slide 26: Substantial Long Term Sales Contracts
Substantial Long Term Sales Contracts For personal use only • Long term sales contracts underpin Peninsula’s business • Average sales price of US$54 per pound U3O8 (Klbs) 5-Year Sales Profile 700 600 500 400 300 200 100 0 2017 2018 2019 2020 2021 PENINSULA ENERGY LIMITED 25
Slide 27: Uranium Marketing
Uranium Marketing For personal use only • CY2017 deliveries completed at an average of US$54/lb • CY2018 forecast deliveries of 500,000 lbs of U3O8 2017 Deliveries 193,000 lbs of Lance Contracted to purchase a Production further 300,000 lbs p.a. over next 3 years at average cost of US$25/lb 190,000
Slide 28: The Uranium Market
The Uranium Market For personal use only U3O8 (m pounds) 300 250 200 150 100 50 0 2012A 2013A 2014A 2015A 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E Secondary Supplies Existing Mines Forecast New Mines Total Demand PENINSULA ENERGY LIMITED 27 Source: Tr
Slide 29: Uranium Market Themes
Uranium Market Themes 1. Production Restraint has become a common theme For personal use only • The big miners continue reducing production target levels • Cameco suspend production at Key Lake (~14m lbs p.a.) on 8 Nov 2017 • Kazakhstan 10% production cut January 2017 • “Optimization” and “cost redu
Slide 30: Demand Trends
Demand Trends For personal use only • Utilities have been avoiding the term market since 2012 Term and Spot Market Contract Volumes U3O8 m lbs USD/lb 300 100 250 80 200 60 150 40 100 20 50 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Term Contracts (LHS) Spot C
Slide 31: Conclusion
For personal use only Conclusion PENINSULA ENERGY LIMITED 30
Slide 32: Peninsula Energy Investment Highlights
Peninsula Energy Investment Highlights • Continued improvement in Quarter over Quarter results For personal use only Large Uranium ✓ Long life flagship project advanced into production stage Resource ✓ Sales agreements extending out to 2030 with above market Long Term pricing structures Revenue ✓ St
Slide 33: 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 PENINSULA ENERGY LIMITED 32
Slide 34: Appendix - Lance JORC Resource
Appendix 1 - Lance JORC Resource For personal use only Tonnes Classification U3O8(kg) Grade (ppm U3O8) U3O8(lbs) (million) Measured 3.7 2.0 489 4.3 Indicated 10.0 5.1 466 12.7 Inferred 37 17.5 463 36.5 Total 50.7 24.6 473 53.5 ISR Reserves are determined after well field development drilling ¹JORC T
Slide 35: Appendix - Karoo JORC Resource
Appendix 2 - Karoo JORC Resource JORC Compliant Resource March 2014 For personal use only Classification Cut-off: eU3O8(ppm) Tonnes (million) eU3O8 (ppm) eU3O8 (million lbs) Indicated 600 8.0 1,242 21.9 Inferred 600 15.3 1,038 35 Total 600 23.3 1,108 56.9 Classification Sector Cut-Off: eU3O8 (ppm) T
Slide 36: Appendix - Lance Exploration Target
Appendix 3 - Lance Exploration Target Additional Disclosure Exploration Target For personal use only The Lance Projects cover a significant proportion of the Powder River Basin Basin Cretaceous sandstones of Wyoming, which are believed to represent an Exploration Target of between 158 and 217mlbs U3
Slide 37: Appendix - Lance Exploration Target
Appendix 3 - Lance Exploration Target Additional Disclosure Basis of Grade and Tonnage Range Determination For personal use only With a database of approximately 7,500 drillholes together with several decades of geological research the level of exploration activity on which the Exploration Target is
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