Peninsula Energy Enters 2 New Uranium Concentrate Sales Contracts With US Power Utilities

Peninsula Energy Limited (ASX:PEN) has entered two new uranium concentrate sale and purchase agreements with major United States power utilities, with deliveries of uranium concentrate starting in 2016. Under the agreements, up to 1,935,000 pounds of uranium will be delivered by Peninsula, at a contract price significantly above the current spot price.
As quoted in the press release:

The agreements contain prices that are consistent with the Term contract prices reported by uranium industry commentators during the first half of 2015. Other terms and conditions of the
agreements reflect uranium industry norms.
Securing these new Term contracts means Peninsula has four significant agreements in place for a major portion of the U3O8 it wants contracted over the next five years. These committed
sales contracts substantially increases revenue certainty whilst allowing an appropriate level of planned production free for future contracting in an increasing price environment.

Peninsula Energy Managing Director, Gus Simpson, said:

“We are very pleased to add two more contracts to Peninsula’s forward sale position, guaranteeing a significant proportion of the Company’s revenue stream at better than market when production commences at the Lance Projects.”

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