Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Q1 2019 Earnings Presentation
16 slides from Peninsula Energy's earnings presentation, Apr 29, 2019
Slide 1: Quarterly Results Webcast Presentation (ASX announcement cover letter)
For personal use only 29 April 2019 Companies Announcement Office Via Electronic Lodgement PENINSULA ENERGY LIMITED QUARTERLY RESULTS WEBCAST PRESENTATION Peninsula Energy Limited (Peninsula) advises that it held an investor update webcast on 24 April 2019 including the attached presentation to cove
Slide 2: March 2019 Quarter Results
March 2019 Quarter Results For personal use only Webcast │ 24 April 2019 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: Agenda
Agenda For personal use only • Highlights of the Quarter 1. Lance Results and Activities 2. Low pH Permitting Approvals 3. Low pH Field Demonstration Success 4. Quarterly Costs & Cash Flow Analysis 5. Uranium Market 6. Investment Highlights Field Trial Area in MU-1 Mr. Wayne Heili – Managing Directo
Slide 5: Lance – Maintaining Production During Transition
Lance – Maintaining Production During Transition • March Quarter Production For personal use only • 15,413 lbs produced in the quarter – injection of alkaline chemicals ceased • 23,325 lbs dried & drummed in the quarter • 106,000 lbs U3O8 sold on 1 April 2019; US$3.65m sales proceeds in June quarter
Slide 6: Low pH Permitting Approvals
Low pH Permitting Approvals • Permit and License amendments – significant milestones achieved For personal use only during the March quarter Agreement State of Wyoming has primacy over both Permit to Mine State and Source Material and By-product License Permit to Mine PTM amendment approved in M
Slide 7: Low pH Field Demonstration Success
Low pH Field Demonstration Success • Mining phase successfully completed For personal use only • U3O8 head grade tracked ahead of FS parameters during 1st 3 pore volumes • Flow rates maintained during low pH mining phase • Initial restoration phase has commenced Sulfuric Acid Addition Pump Test Patt
Slide 8: Quarterly Cost Performance Review
Quarterly Cost Performance Review • Spending discipline continues For personal use only Payments for: Actual Actual Actual Actual F'cast (US$'000) Jun Qtr CY18 Sep Qtr CY18 Dec Qtr CY18 Mar Qtr CY19 Jun Qtr CY19 Exploration & Evaluation 197 159 394 31 100 Development & PPE 491 327 432 456 700 Produc
Slide 9: Robust Financial Position
Robust Financial Position Available Cash(1) Balances and Movement For personal use only 12.0 10.0 8.0 US$' million 6.0 4.0 2.0 0.0 31 Dec 18 Surety Production Explor. & Corp & Other Finance Costs Misc US Other 31 Mar 19 Reduction Costs Devel Finance • Outflows for March Qtr lower than forecast • US$
Slide 10: Major Current US Producer Market Catalyst
Major Current US Producer Market Catalyst • The Section 232 Investigation For personal use only • The US Dept of Commerce (DOC) has investigated the adverse national security impacts related to excessive importation of uranium • The DOC report and recommendations COMPLETED on 14 April 2019 • The rep
Slide 11: Uranium Market Overview
Uranium Market Overview • The long-term market was in a “wait and see” mode in March For personal use only 2019 quarter • The spread between the spot & term markets is at historically thin levels • Spot market up >30% since April-2018 • Spot market volumes at record highs • Term market volumes corre
Slide 12: Flexible Sales Strategy
Flexible Sales Strategy • CY2018 completed deliveries of 225,000 lbs of U3O8 • Deliveries in 2019 and 2020 have flexible origin clauses allowing seller For personal use only optionality • Contracted to purchase 225,000 lbs U3O8 as needed – fixed purchase prices with average cost of $23.69/lb U3O8 •
Slide 13: Investment Upside – Low EV / lb vs Peers
Investment Upside – Low EV / lb vs Peers US$ per lb EV/lb Resource Imminent share price re-rate events in 2019 For personal use only 3.5 3.0 2.5 • Completion of low pH Permit amendments 2.0 – First re-rate event occurred with approval of 1.5 1.0 Permit to Mine Amendment 0.5 – Second catalyst pending
Slide 14: A Prime Uranium Investment Opportunity
A Prime Uranium Investment Opportunity For personal use only Investment Criteria Peninsula Active US uranium production asset – with major project transformation in progress Long term sales contract protection Strong leverage to rising uranium market prices Direct exposure to Section 232 outcomes Ab
Slide 15: Questions & Answers
For personal use only Questions & Answers 14
Slide 16: 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 15