Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Investor Presentation (March 2024)
32 slides from Peninsula Energy's investor presentation, Mar 19, 2024
Slide 1: On Track to Become a World Class Uranium Producer
O N T R A CK TO B EC O ME A W O R LD CL A SS UR A NIUM PR O D U CER IN A T IER - 1 JUR IS D I CT I O N M a r c h 2 0 24 ASX:PEN; OTCQB:PENMF 1
Slide 2: Important Disclosures and Disclaimers
Im p o r t a nt D i s cl o s ure s a n d D i s cl a im e r s Summary Cautionary & Inferred Resources Notice This Presentation contains summary information about the current activities of Peninsula Energy Limited (the “Company”) as at the date of this Presentation. The information in this Presentatio
Slide 3: Company Highlights
Co m p a ny Hi g hli g h t s Lance Projects: A world-class, scalable, near-term uranium production asset in a tier-1 jurisdiction Construction on-track for production in late Q4 2024 Funded to production, securing additional funding to support ramp-up phase Favourable uranium market dynamics Multipl
Slide 4: Corporate Overview
Co rp o ra t e O v e r v i e w A$232m A$0.105 2,110m 353.2m US$58.0m Nil Market Share Price Shares on Issue Options 1 Cash Term Debt Capitalisation (As of 14 Mar 2024) (14 Mar 2024) (26 Feb 2024) (Pro-forma Feb 2024) Board of Directors Share Price Performance 90 0.25 Mr John Harrison Non-Executive C
Slide 5: November 2023 Equity Raising
N o v e m b e r 2023 Eq ui ty R a i s i n g • The completed equity funding allows the Company to continue plant and wellfield construction at Lance and maintain a schedule to restart production in late 2024 • A$60.0 (US$39.01) million equity raise comprising: • A$50.0 million Institutional Placement
Slide 6: Experienced Management Team
Ex p e ri e n c e d Ma n a g e m e nt Te a m Experienced in design, construction and operation of Uranium ISR facilities in Wyoming, USA Wayne Heili Willie Bezuidenhout Managing Director VP – Corporate Development Mr Heili has spent the bulk of his 35+-year professional career in the Accomplished Ch
Slide 7: Sustainability Focus
S u s t a in a b ili ty Fo c u s Peninsula’s inaugural Sustainability Report is built around the pillars of Employees, Environment, Social and Governance (“EESG”) • 2023 Report Sustainability highlights: • No lost-time or recordable injuries for more than 6 years • Rollout of ISO 14001 & ISO 9001 ce
Slide 8: Market Update and Offtake Contracts
M A R K ET UP D AT E A ND O FFTA K E C O N T R A CTS PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 8
Slide 9: Uranium Supply / Demand Balance and Price Forecast
Ura ni um S u p p ly / D e m a n d B a l a n c e a n d P r i c e Fo re c a s t UxC projects a cumulative supply gap of 983 Mlbs in the next 15 years • UxC is a leading uranium price reporting agency and • The UxC Mid forecast is based on their base case market forecaster demand and mid-case supply s
Slide 10: Developing Lance at an Opportune Time
D e v e l o p in g La n c e a t a n O p p o r t un e T i m e Nuclear power gaining momentum as a critical part of the green energy mix • Growing global recognition of the important role Uranium Concentrate Production in U.S. nuclear power will play in meeting decarbonization targets 6.0 U.S. Uranium
Slide 11: Uranium Spot Price Continues to Strengthen
Ura ni um S p o t P r i c e Co nt i n u e s t o St re n g t h e n • The reported uranium spot price Uranium Price reached a recent high of 120 US$107/lb. • Robust growth forecasts for 100 uranium demand due to the critical requirement of nuclear 80 energy in meeting global decarbonization targets US
Slide 12: Offtake Contracts & Sales Profile
O fft a k e Co nt ra ct s & S a l e s P rof il e Sales Profile Offtake Contracts 2,000 • Peninsula has 6 existing offtake contracts 1,800 covering ~40% of production over LOM 1,600 • Committed to deliver 6.0 Mlbs between 2025 and 2033 1,400 Uranium Sold (000's lbs) • Strong leverage to Uranium spot
Slide 13: The Lance Uranium In-Situ Recovery Project
T HE L A N CE UR A NIUM IN - SI T U R EC O V ER Y P R O JECT PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 13
Slide 14: Lance – A Premier ISR Uranium Project & Location
La n c e – A P re mi e r ISR Ura ni u m P ro j e c t & Lo c a t i o n Located in Wyoming USA, a leading US uranium extraction jurisdiction PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 14
Slide 15: In-Situ Recovery (ISR) Method
In - S i t u R e c o v e r y ( ISR ) M et h o d Concept Design Low-pH ISR is a proven, efficient and effective method to recover uranium from the underground environment • Eco-friendly uranium recovery method • Temporary surface disturbance, no ground excavations and tailings generated • Chemically
Slide 16: The Lance ISR Project Background
T h e La n c e ISR P ro j e ct B a c kg ro u n d Initial Construction & Operation: 2015-2018 Mine Unit 2 at Lance Lance Satellite Plant Ion Exchange System • The Project is licensed to produce up to 3.0 Mlbs U3O8 per year. It was first constructed in 2015 as a satellite facility producing uranium-lo
Slide 17: The Lance Projects – Wyoming, USA
T h e La n c e P ro j e c t s – W y o m i n g , US A • Ross Production Project Area • Fully licensed Uranium ISR production project • Home of the project facilities and central process plant • Estimated remaining Resource of 5.9 Mlbs U3O8 • 2 previously operated Mine Units (MU-1 and MU-2), with pote
Slide 18: Lance Project JORC Resource
La n c e P ro j e c t J O R C R e s o u rc e Grade Average Average Permit Area (ppm U3O8) U3O8 lbs Thickness (ft) GT Ross Measured 510 1.7 9.2 0.47 Indicated 460 2.6 9.2 0.42 “One of the Largest US Uranium ISR Inferred 450 1.7 9.2 0.41 Projects Known” Total 6.1 Kendrick Measured 535 1.4 10.3 0.55 •
Slide 19: Lance Projects Exploration Upside
La n c e P ro j e c t s Ex p l o ra t i o n Up s i d e Peninsula’s Exploration Success • Exploration Target of 104 – 163 Mlbs eU3O8 • Based on a combination of past exploration results Ross Area and proposed exploration programmes1 • Greater than 300 linear km of redox fronts (mapped in red) • Front
Slide 20: Dagger Project Introduced in 2023
D a g g e r P ro j e ct Int ro d u c e d i n 2023 Dagger Project Location in Proximity to Lance New High Grade Satellite Deposit Opportunity to expand production rate through Satellite In-Situ Recovery operation 6.9 Mlbs U3O8 of JORC (2012) Inferred Resources1 >2x the Grade of U3O8, compared t
Slide 21: Lance Project Upgrade Activities (2019 - Present)
La n c e P ro j e c t Up g ra d e A c t i v i t i e s ( 2019 - Pre s e nt ) 1. Transition to low-pH recovery - Complete • The Company conducted comprehensive field Previous demonstrations of the low-pH recovery chemistry in U3O8 Processing Toll “Dry 2020 and 2021, which delivered greater recoverie
Slide 22: August 2023 Life-of-Mine (LoM) Plan – Key Details
A u g u s t 2023 Li fe - o f - Mi n e ( Lo M ) Pl a n – Key D et a il s Estimated Total Production LoM Revenues Key Operational Outcomes 5,000 gallon per 14.8Mlbs $988M Uranium ISR Plant Flowrate Capacity minute (GPM) Annual U3O8 Production Capacity Up to 2.0 Mlbs NPV8 (Real, unlevered) IRR (Real) E
Slide 23: Potential to Become One of the Largest U.S. Uranium Producers
Po t e nt i a l t o B e c o m e o n e o f t h e La rg e s t U . S . Ura ni u m P ro d u c e r s August 2023 Ross and Kendrick LOM Model Production & Flow rate 2,000 8,000 1,750 7,000 1,500 6,000 Captured on resin (lbs'000) • Estimated 14.8 Mlbs produced over 10-year Flow Rates to Plant (GPM) Life-of
Slide 24: Construction Progress at Lance
Co n s t r u c t i o n P ro g re s s a t La n c e Plant Expansion Update • Planned plant capacity and capability expansion in 2024. Design production capacity of 2.0 Mlbs U3O8 per year of dry yellowcake • Detailed engineering and procurement work ongoing • Identified and ordered long lead items for
Slide 25: MU-3 Construction Progress
MU - 3 Co n s t r u c t i o n P ro g re s s Wellfield Development Update • Mine Unit 3 (MU-3) is the first production wellfield at Lance specifically designed for the low-pH in-situ recovery method. • MU-3 is anticipated to be operationally available in 2024 • Significant milestone achieved – Comple
Slide 26: Timeline to Production Restart
T i m e li n e t o P ro d u c t i o n R e s t a r t Activity Indicative Date Selection of Plant Construction Contractor March 2024 Commencement of Plant Expansion Construction April 2024 Resource Expansion Drilling May-Aug 2024 MU-3, First Header House Installation Complete August 2024 Additional Fu
Slide 27: An Emerging Near-Term Uranium Producer
A N EMER GIN G NE A R - T ER M UR A NIUM P R O D U CER PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 27
Slide 28: Company Milestones for 2024
Co m p a ny Mil e s t o n e s fo r 2024 Initiation of plant expansion construction and subsequent progress reports Wellfield development activity updates for Mine Unit-3 and beyond Resource expansion drilling activities at Lance and Dagger Securing additional funding to support production ramp-up ph
Slide 29: An Independent, Long-Term Uranium Producer
A n In d e p e n d e nt , Lo n g - Te r m Ura n i u m P ro d u c t i o n Flagship Lance Growing Lance A Robust ISR Project in Size and Scale Production Plan One of the largest US Resource growth potential Detailed and resilient Life of uranium projects, with a through further exploration Mine (LoM)
Slide 30: Contact Details
Co nt a ct D et a il s REGISTERED OFFICE Units 32/33, Level 3 22 Railway Road Subiaco, Western Australia 6008 Australia Phone: +61 8 9380 9920 www.pel.net.au FURTHER INFORMATION Wayne Heili Managing Director/CEO email: info@pel.net.au 30
Slide 31: Appendix 1 – Resources
A p p e n di x 1 – R e s o urc e s Lance Projects Resource Estimate as at 31 December 20221 Classification Tonnes U3O8 Grade U3O8 (million) (Mkg) (ppm U3O8) (Mlbs) Measured 3.5 1.7 489 3.8 Indicated 11.3 5.5 492 12.2 Inferred 36.2 17.2 474 37.8 Total 51.0 24.4 479 53.8 Dagger Resource Estimate as at
Slide 32: Appendix 2 – Lance Exploration Target Additional Disclosure
A p p e n di x 2 - La n c e Ex p l o ra t i o n Ta rg et A d di t i o n a l D i s cl o s u re Exploration Target1 The Lance Projects cover a significant proportion of the Powder River Basin. Cretaceous sandstones of Wyoming, which are believed to represent an Exploration Target of between 104 and 16
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