Peninsula Energy Limited · ASX:PEN
Peninsula Energy — Shaw and Partners Uranium Conference 2023
38 slides from Peninsula Energy's conference presentation, Nov 2, 2023
Slide 1: Updated Ross and Kendrick Life of Mine Plan and Dagger Addition
PENINSUL A ENER GY ’ S UPD ATED R OSS A ND K ENDR ICK LIFE OF MINE PL A N AND D AGGER A DDITION N o v e m b e r 2 0 23 ASX:PEN; OTCQB:PENMF 1
Slide 2: Important Notice & Disclaimer
Im p o r t a nt N ot i c e & D i s cl a i m e r 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 Presentation is of a general nature and does not purport to be complete
Slide 3: Disclaimer & Competent Person
D i s cl a i m e r & Co m p et e nt Pe r s o n The distribution of this Presentation in jurisdictions outside Australia may be restricted by law and any such restrictions should be observed. In particular, this Presentation may not be distributed or released in the United States. Any failure to comp
Slide 4: Cautionary & Inferred Resources Notice
Ca u t i o n a r y & In fe r re d R e s o u rc e s N ot i c e The August 2023 Life of Mine plan (LoM) completed for the Ross and Kendrick Production Areas within the Lance Projects includes Measured and Indicated resources, and based on historical experience at Lance, utilizes a resource conversion
Slide 5: A Compelling Uranium Proposition
A C O MPELLIN G UR A NIUM PR O P OSITIO N PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 5
Slide 6: Investment Highlights
In v e s t m e nt Hi g hli g h t s • Flagship Lance ISR Project located in a tier-one mining and uranium jurisdiction World Class • Lance is a long-life operation, with excellent resource and life-of-mine growth upside Asset • Peninsula will be the largest US-based and fully independent, end-to-end
Slide 7: Corporate Overview
C O R P O R AT E OV ER V IE W PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 7
Slide 8: Experienced Management Team
Ex p e r i e n c e d M a 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 Rachel Rees Managing Director Executive Director – Finance and Corporate Affairs Mr Heili has spent the bulk of his 35+-year professional career in t
Slide 9: Corporate Overview
Co rp o ra t e O v e r v i e w 1,257m A$0.13 A$163.5m Nil US$12.5m 210 klbs Shares on Issue Share Price Market Term Debt Cash U3O8 Inventory (26 Oct 2023) (26 Oct 2023) Capitalisation (30 Sept 2023) (30 Sept 2023) Board of Directors Share Price Performance 70 0.25 Mr John Harrison Non-Executive Chai
Slide 10: Sustainability Focus
S u s t a i n a b ili ty Fo c u s Peninsula’s Annual Sustainability Report is built around the pillars of Employees, Environment, Social and Governance (“EESG”) ✓ Business Ethics • 2023 Report Sustainability highlights: • Recipient of Wyoming Governors Safety Award (2 consecutive ✓ Community years),
Slide 11: Uranium Market Overview
UR A NIUM M A R K ET OV ER V IE W PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 11
Slide 12: Potential to Become Largest U.S. Producer
Pot e nt i a l t o B e c o m e La rg e s t U . S . Pro d u c e r Uranium Concentrate Production in U.S. Nuclear power gaining momentum as a critical part of the green energy mix 6.0 U.S. Uranium demand in Million Lbs • Growing global recognition of the important role 2022 exceeded 40Mlbs nuclear pow
Slide 13: Uranium Price Continues to Strengthen
Ura ni u m Pr i c e Co nt i n u e s t o St re n g t h e n Uranium Price • Supply/demand imbalance remains 100 • Robust growth forecasts for 90 Spot Price – uranium demand due to the critical 80 US$74.75/lb requirement of nuclear energy in 70 meeting global decarbonization targets 60 US$/lb 50 • The
Slide 14: Peninsula's Sales Contract Book
St ro n g Le v e ra g e t o Ura ni u m Pr i c e Peninsula’s Sales Contract Book • Contract portfolio balances base-escalated and market pricing mechanisms providing both downside protection and Spot Uranium v. Realised Price1 upside linkage to uranium spot price 110 • Contracted sales represent 1/3r
Slide 15: The Lance Projects
T HE L A N CE PR OJECTS PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 15
Slide 16: Lance – A Premier Uranium Project & Location
La n c e – A Pre mi e r Ura ni u m Pro 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 16
Slide 17: The Lance Projects
T h e La n c e Pro j e c t s • Ross Production Project Area • Fully licensed Uranium ISR production facility • Estimated Resource of 5.9 Mlbs U3O8 • 4.1 Mlbs estimated to be produced • 2 Previously operated Mine Units (MU-1 and MU-2), with potential for an additional 2-3 Mine Units • MU-3 under deve
Slide 18: Lance Resource Estimate
La n c e R e s o u rc e Es t i m a t e One of the largest US Uranium ISR Projects known Lance Projects Resource Estimate as at 31 Dec 20211 Classification Tonnes U3O8 Grade U3O8 ✓ 53.7Mlbs U3O8 of JORC (2012) Resources1 (million) (Mkg) (ppm U3O8) (Mlbs) ✓ Exploration Target of 104 – 163 Mlbs eU3O8 b
Slide 19: Timeline to Operational Restart
T i m e li n e t o O p e ra t i o n a l R e s t a r t • The current Lance plant and wellfield facilities at Ross were constructed in 2015 & operated from 2016 through mid-2019 • Current plant capacity of 0.82 Mlbs U3O8 per year loaded on resins • Licensed to produce up to 3.0 Mlbs U3O8 per year of d
Slide 20: Production Profile & Plant Flow Rate
Pro d u c t i o n Prof il e & Pl a nt Fl o w R a t e • 2.0 Mlb p.a. production plant provides the platform for a faster ramp-up to substantial rates • Production profile based on detailed mining, metallurgical and scheduling factors • 2025 production level projected at ~1.1 Mlbs • Steady state produ
Slide 21: Construction Progress at Lance
Co n s t r u c t i o n Pro g re s s a t La n c e Plant Construction Update • Engineering Firm contracted to complete detailed engineering and procurement work for the process plant expansion • Long lead items for the structure of the plant building expansion ordered • Site construction to complete t
Slide 22: Ross and Kendrick Project Level CAPEX Estimate
R o s s a n d Ke n d r i c k Pro j e c t Le v e l C A PEX Es t i m a t e Remaining CAPEX to First Production (Dec’24) US$ M Remaining Plant CAPEX 19.3 Remaining General CAPEX 5.1 53.4 Remaining Wellfield CAPEX 25.4 CAPEX Contingency 3.6 Ramp-up CAPEX to Positive Cash Generation (Aug’25) General CAPE
Slide 23: Lance Unit Cost Outcomes
La n c e Uni t Co s t O u t c o m e s ( Un - e s c a l a t e d ) Direct Operating Cost (“C1”) • Direct OPEX of $21.69/lb U3O8 includes all project level non-CAPEX costs and contingencies from July 2023 to end of production • Restoration and Rehabilitation costs are not included in Direct OPEX $/lb U
Slide 24: Key Financial Outcomes of August 2023 LoM Plan
Key Fi n a n ci a l O u t c o m e s of AU GUST 2023 LO M PL A N Project remains economically attractive and financial returns are consistent with 2022 DFS expectations Key results include : LoM Project Revenue (Real) Payback period of 3.5 years US$ 988M from August 2025 Project forecast to become ca
Slide 25: Sales Price Basis and Sensitivity
S a l e s Pr i c e B a s i s a n d S e n s i t i v i ty Sales Contract Book Contribution • LoM financial model uses an average Real 2023$ un- escalated sales price of $55.00 per pound for ~5 Mlbs of contracted sales • Contracted sales represent 1/3rd of the projected LoM production from Ross and Ken
Slide 26: Significant Exploration Upside
SIGNIFIC A N T EXPLO R ATIO N UPSID E PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 26
Slide 27: Lance Exploration Upside
Past Exploration La n c e Ex p l o ra t i o n Up s i d e • Exploration Target of 104 – 163 Mlbs eU3O8 Ross Area • Based on a combination of past exploration results and proposed exploration programmes1 • Explored by Nuclear Dynamics and Bethlehem Steel Peninsula’s Exploration Success • 4,700 drill h
Slide 28: Trend Mapping Resource Upgrade at Ross & Kendrick
Tre n d M a p p i n g - R e s o u rc e Up g ra d e a t R o s s & K e n d r i c k Completing close-spaced drilling in areas where resources are currently mapped linearly, has the potential to increase both the quality and the quantity of the known resources Example Area within Kendrick Ross, and to a
Slide 29: New High-Grade Satellite Deposit - Dagger
N e w Hi g h - Gra d e S a t e lli t e D e p o s i t - D a g g e r ✓ 6.9Mlbs U3O8 of JORC (2012) Inferred Resources1 ✓ >2x Grade of U3O8, compared to Lance Resource ✓ Mineral rights and data set established through in-house efforts for only US$800K (or US$0.12/lb U3O8) ✓ Opportunity to extend Lance
Slide 30: Group Funding Requirements / Solutions
GR O UP FUNDIN G R EQ UIR EMEN TS / S O LU TIO NS PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 30
Slide 31: Group Funding Analysis
Gro u p Fu n di n g A n a ly s i s • US$95 million additional funding required for PEN Group to reach sustainable positive cash flows • Incorporating all group costs, ramp-up costs, contingency and escalation allowance • Includes discretionary cash buffer allowance of US$12.5 Prepay Debt / million •
Slide 32: Group Funding Solution
Gro u p Fu n di n g S o l u t i o n Funding Strategy – secure the most cost competitive and value maximizing option • PEN is assessing various funding options, including debt, equity, product prepayments and inventory sales. • PEN’S funding objectives are to secure the most cost effective and value
Slide 33: Conclusion
C O N CLUSIO N PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 33
Slide 34: The Peninsula Advantage
T h e Pe ni n s ul a A d va nt a g e Flagship Lance Project located in a tier-one mining and uranium jurisdiction Lance is a long-life operation, with excellent resource and life-of-mine growth upside Production restart set for late 2024, positive cash flow generated within first year of operations
Slide 35: Contact Details
Co nt a c t 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 US Office Phone: +1 (307) 467-9401 email: info@pel.net.au 35
Slide 36: Appendix - Resources
A p p e n di x 1 – R e s o u rc 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 a
Slide 37: Appendix - 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 mobs Cretaceous sandstones of Wyoming, which are believed to represent an Exploration Target of between 104 an
Slide 38: Appendix - 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 Basis of Grade and Tonnage Range Determination The level of exploration activity on which the Exploration Target is based is considered to be high due to the combination of a database of approximately 7,500
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