Peninsula Energy Limited · ASX:PEN
Peninsula Energy — 121 Mining Investment Conference 2017
37 slides from Peninsula Energy's conference presentation, May 10, 2017
Slide 1: Company Presentation cover letter
For personal use only 10 May 2017 Companies Announcement Office Via Electronic Lodgement COMPANY PRESENTATION Please find attached a copy of a presentation to be made by Peninsula Energy Limited's Managing Director/CEO, Mr Wayne Heili at the 121 Mining Investment conference in London today. A copy o
Slide 2: A long life mine positioned for growth
For personal use only A long life mine positioned for growth 121 Conference │ London │ 10-11 May 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: Summary
Summary For personal use only Globally significant resource base totalling 110.6¹ million pounds U3O8 Producing Uranium at the flagship Lance Project in Wyoming, USA Strong U3O8 sales contract book ensures revenues over the next decade Well funded with supportive major shareholders World c
Slide 5: Board of Directors
Board of Directors For personal use only • The Board completed a planned transition at the end of March, 2017 • Mr Wayne Heili replaced Mr John (Gus) Simpson as MD & CEO • Mr Warwick Grigor and Mr Richard Lockwood retired • Mr David Coyne joined the Board as Finance Director • The new Peninsula Boar
Slide 6: Corporate Overview
Corporate Overview Capital Structure Share Price & Volume History For personal use only Shares on issue 229m Price Volume (m) (A$/share) Share price (4-May-17) $0.355 0.90 2.0 Market capitalisation A$81m 0.80 Enterprise Value A$93m 0.70 1.5 Cash and Security Deposits (31-Mar-17) US$17m 0.60 0.50 1.0
Slide 7: Relative Resource Valuation
Relative Resource Valuation For personal use only • Significant valuation upside for Peninsula when aligning with producer peer group EV/Total Resource (US$/lb) (US$/lb. U3O8) 8.0 7.0 6.0 5.0 Producer Average: 3.69 4.0 3.0 Average: 3.37 2.0 1.0 0.0 Cameco Ur-Energy Peninsula Energy Fuels Paladin Ene
Slide 8: Uranium Market Themes
Uranium Market Themes For personal use only • Production Restraint is becoming a common theme • The big miners have cut back production by 10-15% in CY17 • Kazatomprom, Cameco, AREVA, Paladin, more • Demand for carbon-free nuclear power continues to grow • Utilities have >800 m lbs U3O8 of uncovered
Slide 9: Kazatomprom is Changing its Strategy
Kazatomprom is Changing its Strategy Kazatomprom is shifting its behaviour to become a price maker rather than a For personal use only price taker, and here’s how they’re doing it: 1. Trading House Kazakatom (THK) The key objectives of 2. Supply cuts: 10% in 2017 Kazatomprom’s strategy include “treb
Slide 10: Uranium Supply Will Not Meet Demand
Uranium Supply Will Not Meet Demand For personal use only • No matter whose data you look at, it is clear that uranium supply is not projected to keep up with demand over the next decade World Uranium Supply and Demand Forecasts U3O8 m lbs 300 250 Today 200 150 100 50 0 2012A 2013A 2014A 2015A 2016E
Slide 11: Demand Trends
Demand Trends For personal use only • Utilities have been avoiding the term market and drawing down inventories 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 201
Slide 12: The Uranium Price & Equities Recovery
The Uranium Price & Equities Recovery • The uranium price recovery will be driven by: For personal use only 1. Change in behaviour of the major producers 2. Change in behaviour of buyers 3. Market shift in favour of suppliers as inventories fall • Uranium equities will rise dramatically on commodity
Slide 13: The Strategy
The Strategy For personal use only • Develop long-life, low-cost assets underpinned by strong sales contracts • Optimise the production scale of the Lance Project • Advance Karoo Projects as secondary uranium source • Grow the project pipeline • Expand relationships with US and International utiliti
Slide 14: Lance ISR Project | Wyoming, USA
For personal use only Lance ISR Project │ Wyoming, USA PENINSULA ENERGY LIMITED 13
Slide 15: Premier Uranium Jurisdiction
Premier Uranium Jurisdiction For personal use only • Wyoming is a premier uranium extraction jurisdiction, hosting multiple ISR operations PENINSULA ENERGY LIMITED 14
Slide 16: Significant Resource Potential
Significant Resource Potential • 53.7m lbs JORC (2012) compliant resource base (51.2Mt at 476ppm U3O8) For personal use only offers long mine life with existing infrastructure Exploration Target: 158- 217m lbs (169-196mt at 426- 530ppm U3O8) Existing JORC Resource: 53.7mlbs Please note that in accor
Slide 17: Production Results
Production Results • Following operating strategy announced in 4Q16 For personal use only • Three new Header Houses (#’s 5, 6 &7) commissioned • Two of the three new houses now contributing to production • HH #7 in re-circulation prior to production • Flow rates stabilized. Quarterly Production Poun
Slide 18: Production Planning
Production Planning • Tightly Controlled Development Activities and Costs For personal use only • Seven header houses operating • House #8 is under construction and is due online in Q2 CY2017 • Well drilling is active in house #9 • Technical Team Focussed on Optimising Operating Parameters • Filtrat
Slide 19: Karoo Projects | South Africa
For personal use only Karoo Projects │ South Africa PENINSULA ENERGY LIMITED 18
Slide 20: Karoo Projects, South Africa
Karoo Projects, South Africa • 56.9m lbs eU3O8 at 1,108ppm JORC (2012) compliant resource (23.3Mt at For personal use only 1,108ppm) • Located approximately 400- 600km E-NE of Cape Town • 4,650 km2 over Permian sandstones • 322 km2 of freehold land covers majority of historic mineralisation • Owners
Slide 21: Karoo Development Path
Karoo Development Path For personal use only • Karoo Pre-Feasibility Study • DRA Global South Africa is completing the study • Continuing to refine mining and processing methodologies • DRA’s Global investment partner Concentrate Capital Partners funding the PFS • Significant resource potential • Ka
Slide 22: Peninsula Uranium Limited | London
For personal use only Peninsula Uranium Limited│ London PENINSULA ENERGY LIMITED 21
Slide 23: Uranium Sales and Marketing Strategy
Uranium Sales and Marketing Strategy For personal use only • Peninsula Uranium Limited (PUL) is a dedicated uranium sales and marketing subsidiary • Building on existing utility relationships • Aligning utility contracts with Peninsula’s production capacity • Progressively commit production to term
Slide 24: Substantial Utility Term Sales Contracts
Substantial Utility Term Sales Contracts For personal use only • Utility term sales contracts underpin Peninsula’s business Average sales price of US$54/lb 5-Year Sales Profile U3O8 (‘000 lbs) 700 600 500 400 300 200 100 0 2017 2018 2019 2020 2021 PENINSULA ENERGY LIMITED 23
Slide 25: Uranium Sales
Uranium Sales For personal use only • CY2017 Y-T-D 250,000 pounds U3O8 sold at an average US$54/lb 150,000 lbs purchased Contracted to purchase a further 300,000 lbs p.a. over next 3 years at average cost of US$25/lb 100,000 lbs of Lance Production PENINSULA ENERGY LIMITED 24
Slide 26: Conclusion
For personal use only Conclusion PENINSULA ENERGY LIMITED 25
Slide 27: Peninsula Energy Investment Highlights
Peninsula Energy Investment Highlights Very strong committed cash margins secured For personal use only Sales and purchases at fixed prices Significant contract sales book that supports long-term revenue outlook Average sale price US$54/lb Forecasting cash positive Q2 CY2017 Maintaining
Slide 28: Contact Details
For personal use only Contact Details REGISTERED OFFICE Unit 17, Level 2, 100 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 27
Slide 29: Appendix - Lance Exploration Target
Appendix 1 - 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 30: Appendix - Lance Exploration Target
Appendix 1 - 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
Slide 31: Appendix - Karoo Exploration Target
Appendix 2 - Karoo Exploration Target Additional Disclosure For personal use only Basis of the Exploration Target The Exploration Target is based on a combination of Exploration Results and proposed exploration programs. Please note that in accordance with Clause 17 of the JORC (2012) Code, the pote
Slide 32: Appendix - Karoo Exploration Target
Appendix 2 - Karoo Exploration Target Additional Disclosure For personal use only This resource tonnage is distributed over a cumulative strike length of 23km representing approximately 0.80 million tonnes/km. The Exploration Target is based on a combination of: • the total cumulative prospective st
Slide 33: Appendix - Lance JORC Resource
Appendix 3 - Lance JORC Resource For personal use only Grade (ppm Mineability eU3O8 Recovery Recovered U3O8 Classification Tonnes eU3O8(lbs) U3O8) factor (lbs) factor (lbs) 50.4% 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
Slide 34: Appendix - Karoo JORC Resource
Appendix 4 - 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 35: Appendix - Board of Directors
Appendix 5 - Board of Directors For personal use only John Harrison, Non-Executive Chairman: Mr Harrison brings to Peninsula a wealth of experience and resource sector knowledge acquired over a 45 year career including 20 years of investment banking in London. During this time Mr Harrison has develo
Slide 36: Appendix - Management
Appendix 5 - Management Extensive experience in mine development & uranium sales For personal use only Wayne Heili Mr Heili has spent the majority of his 30-year professional career in the uranium mining industry, most recently Managing Director & CEO serving as President/CEO and Director of NYSE an
Slide 37: Appendix - U3O8 In-Situ Recovery Process
Appendix 6 - U3O8 In-Situ Recovery Process ISR is a proven U3O8 recovery method For personal use only MU1 HH1-4 MU2 HH5-7 MU1 HH1-4 MU2 HH5-10 MU3 HH11-17 Source: World Nuclear Association PENINSULA ENERGY LIMITED 36
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