Peninsula Energy (ASX:PEN) announced that it had added its fifth long term uranium concentrate sale and purchase contract to its supply agreements.
Peninsula Energy (ASX:PEN) announced that it had added its fifth long term uranium concentrate sale and purchase contract to its supply agreements. The Company is pleased to provide an update on the benefit that the totality of these sale contracts contribute to building a global, sustainable, low-cost uranium concentrate producer.
As quoted in the press release:
The fifth long term contract signed by Peninsula is for delivery of 4.0 million pounds of U3O8 over a 10-year period commencing at the end of 2020. This agreement also contemplates increasing the quantity to 50% of annual Lance production from 2026 onwards. Terms relating to the increased quantities are to be negotiated in 2022 when prevailing market conditions are forecast to be more favourable for producers.
Peninsula has 7.9 million pounds of U3O8 under contract for delivery to major utilities located in the United States and Europe. Projected revenue under these existing long term contracts now exceeds US$440,000,000.
These contracts provide a substantial earnings stream to the Company whilst allowing it to retain significant quantities of planned U3O8 production for future contracting during periods of anticipated improvement in uranium prices.
Peninsula Energy Managing Director and CEO, Gus Simpson, stated:
Over the past five years Peninsula has been focussed on demonstrating to United States and European utilities its capacity to become a reliable long term supplier of uranium. The establishment of good relations with end-users has provided a significant long term revenue stream that underpins the Company’s development in the short term and provides a solid basis for its long term growth.