Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Investor Presentation (January 2017)
39 slides from Peninsula Energy's investor presentation, January 2017
Slide 1: The 21st Century is the Nuclear Century
ASX:PEN The 21st Century is the Nuclear Century January 2017
Slide 2: 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 completeness of the material contained in the Presentation and nothing contained in the Presentation
Slide 3: Global Energy Consumption Growth
Global Energy Consumption Growth World Energy Consumption Growth to 2040 Greenhouse Gas Emissions Source: Global X Source: EIA • Developing countries will require cost effective, reliable, low carbon emission power to supply growing industrial and household energy needs • Growth in global nuclear ge
Slide 4: Urbanisation and Economic Advancement Driving Electricity Demand
Urbanisation and Economic Advancement Driving Electricity Demand No. of Years to Increase Urbanisation Rate from 14,000 Electricity Usage (kWh per Capita) 20% to 55% of Total Population 12,000 10,000 Great Britain 8,000 kWh United States 6,000 4,000 China 2,000 0 0 20 40 60 80 100 120 2004 2005 2006
Slide 5: Power Supply in Developed and Developing Economies
Power Supply in Developed and Developing Economies USA China W. Europe India Russia Middle East Korea/Japan Nuclear Plants Europe USA Korea/Japan Russia China India M. East Other Total Operating 144 99 68 36 35 22 1 43 448 Under Construction 4 4 6 7 20 5 4 8 58 Planned & Proposed 52 42 20 48 177 64
Slide 6: Impact of emissions and growing government support
Impact of emissions and growing government support Beijing Smog on 1 Jan 2017 Source: The Guardian, 1 Jan 2017 Source: China Daily, 31 Dec 2016 Source: Reuters Government support for nuclear power to combat emissions • The Chinese Government is aiming to double its nuclear capacity by 2020 • New Yor
Slide 7: Expansion of Nuclear Power Generation
Expansion of Nuclear Power Generation Actual & Forecast Nuclear Generating Capacity 600 500 Installed Capacity (GWe) 400 300 200 100 0 2010 2015 2020 2025 2030 Nth America/W. Europe Russia/E. Europe Asia (excl China) China Rest of World • Industrialised nations currently operate the largest fleets o
Slide 8: Baseload Fuel Types and Power Generation Costs – Strategic Mix
Baseload Fuel Types and Power Generation Costs – Strategic Mix Average Annual Cost (CAPEX & OPEX) to Produce Fuel as a Proportion of Operating Costs 1GW Electricity 800 25 years USD'million p.a. (per 1GW capacity) 700 600 40 years 500 400 OPEX 40 years 300 OPEX 200 OPEX 100 CAPEX CAPEX CAPEX 0 Coal
Slide 9: Nuclear Power is the Solution for Low Emission Baseload Power
Nuclear Power is the Solution for Low Emission Baseload Power 6.0 Nuclear Power Plant Overnight Construction Levelised Costs of Electricity for Generating 100 Costs (CAPEX) Plants in China1 90 5.0 80 USD'billion per GWe 4.0 70 USD /MWh 60 3.0 50 40 2.0 30 20 1.0 10 0.0 0 Europe United States Asia (e
Slide 10: Uranium Supply and Demand
Uranium Supply and Demand • Typically uranium is purchased via private treaty agreements. These are effectively take or pay, 5-11 years duration and at a premium to current market • Historically term contract volumes far outweigh spot contract volumes but not from Q2 2012 – 2017 • From mid-2012 onwa
Slide 11: Uranium Producers Performance
Uranium Producers Performance 2007-2016 Producer market capitalisations from 2007-2016 Market Cap (US$m) U3O8 (US$/lb) 20,000 120 18,000 100 16,000 14,000 80 12,000 10,000 60 8,000 40 6,000 4,000 20 2,000 - 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Cameco Uranium One Paladin ERA Spot Price
Slide 12: Kazatomprom to Balance the Market
Kazatomprom to Balance the Market Kazatomprom’s Historical Production ~40% of world production U3O8 klbs 60,000 The key objectives of 50,000 Kazatomprom’s strategy include "…trebling the 40,000 company's value…" - Mr. 30,000 Umirzak Shukeyev, Chairman of Kazakhstan's Sovereign 20,000 Wealth Fund 10,
Slide 13: Historic Uranium Sales
Historic Uranium Sales Term and Spot Contract Volumes (mlbs U3O8) (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 Term Contracts (LHS) Spot Contract (LHS) Annual Uranium Consumption (LHS) Term Uranium Price (RHS) Source:
Slide 14: Price Recovery
Price Recovery • Uranium price recovery will be driven by: – Increased Term Contracting due to Kazakh changes in sales & marketing strategy (SWF involvement) http://www.kazpravda.kz/en/interviews/view/transformation-of-kazatomprom/ – Increased enrichment activity which will lead to a normalisation o
Slide 15: Significant Price Uplift when Term Contracting Returns
Significant Price Uplift when Term Contracting Returns Rebased Commodity Price Forecasts 3.00 2.50 2.00 Met Coal (Jan '16) Iron Ore (Dec '15) 1.50 Nickel (Feb '16) Copper (Feb '16) Uranium (Nov'16) 1.00 0.50 -20 -15 -10 -5 0 5 10 15 Time from minimum price (months) • Met coal, iron ore, nickel and c
Slide 16: Strategic Overview
Strategic Overview To be a uranium producer from multiple sources in established jurisdictions with low cost, long life mines delivering directly to utilities Production at Lance ISR • Construction completed on-schedule and on-budget project, Wyoming • Production commenced in Q4 2015 • Building to 2
Slide 17: Lance Projects, Wyoming USA
Lance Projects, Wyoming USA JORC (2012) Compliant resource 53.7m lbs U3O8 • Production commenced on 2 December 2015 • In-situ Recovery (ISR) mining • Located in the North-East section of the Powder River Basin, Wyoming USA – Proven uranium ISR production region • 100% owned by Peninsula Energy Limit
Slide 18: Planned Scalable Production
Planned Scalable Production Production Profile All In Cash Cost1 Klbs U3O8 60 2,500 PEN Weighted 50 Contract Price 2,000 US$/lb U3O8 Produced 40 Stage 3 1,500 Stage 2 Term Price 30 1,000 Stage 1 Spot Price 20 500 10 0 Stage 1 Stage 2 Stage 3 0 Stage 1 Stage 1.5 Stage 2 Lance Projects AISC Sales & Ma
Slide 19: Progressive Contracting Strategy Protects Peninsula in Current Market
Progressive Contracting Strategy Protects Peninsula in Current Market 5-Year Offtake Contract Profile Klbs U3O8 800 • Peninsula has a dedicated sales and marketing team in place 600 • Over the past 5 years, significant time has been spent building relationships with utilities 400 • Peninsula strateg
Slide 20: Karoo Projects, South Africa
Karoo Projects, South Africa • Ownership: Peninsula 74% and BEE Partners 26% • Located approximately 400-600km E-NE of Cape Town • 4,650 km2 over Permian sandstones • 322 km2 of freehold land covers majority of historic mineralisation • Known uranium and molybdenum mineralised province • Scoping Stu
Slide 21: Investment Highlights
Investment Highlights Peninsula is producing uranium at its Lance Projects The bottom line is insulated from spot price volatility with significant production volume in Term Contracts The Company has a low risk, clear path to production expansion Strong financial support from first-tier shar
Slide 22: Uranium Producers Performance
Uranium Producers Performance 2007-2016 Producer market capitalisations from 2007-2016 Market Cap (US$m) U3O8 (US$/lb) 20,000 120 18,000 100 16,000 14,000 80 12,000 10,000 60 8,000 40 6,000 4,000 20 2,000 - 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Cameco Uranium One Paladin ERA Spot Price
Slide 23: 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 Gus Simpson Managing Director +61 8 9380 9920 Contact Details 23
Slide 24: Appendices
PENINSULA#, EN stern | Appendices
Slide 25: Appendix 1 - Lance Exploration Target Additional Disclosure
Appendix 1 - Lance Exploration Target Additional Disclosure Exploration Target 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 U3O8 which includes 54ml
Slide 26: Appendix 1 - Lance Exploration Target Additional Disclosure
Appendix 1 - Lance Exploration Target Additional Disclosure Basis of Grade and Tonnage Range Determination 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 based, is considered
Slide 27: Appendix 2 - Karoo Exploration Target Additional Disclosure
Appendix 2 - Karoo Exploration Target Additional Disclosure 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 potential quantity and gra
Slide 28: Appendix 2 - Karoo Exploration Target Additional Disclosure
Appendix 2 - Karoo Exploration Target Additional Disclosure 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 strike length of the und
Slide 29: Appendix 3 - Lance JORC Resource
Appendix 3 - Lance JORC Resource 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 8,090,209 Measured & 15,675
Slide 30: Appendix 4 - Karoo JORC Resource
Appendix 4 - Karoo JORC Resource JORC Compliant Resource March 2014 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) Tonnes (million) eU3O8
Slide 31: Appendix 5 - Board of Directors
Appendix 5 - Board of Directors 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 developed an extensive inter
Slide 32: Appendix 6 - Management
Appendix 6 - Management Extensive experience in mine development & uranium sales Gus Simpson Strong strategic leader, 9 years working in all aspects of the uranium business, extensive background in Managing Director/CEO resources, corporate finance and management; 25 years’ experience in USA, Asia,
Slide 33: Lance Plant Housing
Lance Plant Housing Completed CPP building 33
Slide 34: Lance Plant
Lance Plant Pipe racks and ion exchange column Ion exchange columns Piping inspection Piping and valves from waste tank to DDW 34
Slide 35: Lance Plant
Lance Plant Resin transfer water pumps installed in CPP Chemistry lab Controls for carbon dioxide storage tank Spectrometer unit in chemistry lab 35
Slide 36: Well Field Development Drilling
Well Field Development Drilling Production well drilling 36
Slide 37: Well Field Development
Well Field Development Trunkline from CPP to well fields Inside header house Oxygen injection system Inside completed header house at first mining unit Main trunk-line installed from CPP to wellfields 37
Slide 38: Ion Exchange Columns
lon Exchange Columns PENINSULA ENERGY iver 38
Slide 39: Loaded Resin Trailer
Loaded Resin Trailer Resin Transfer Equipment 39
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