Peninsula Energy – The Next Uranium Producer on the ASX?

Australia’s Paydirt recently featured Peninsula Energy (ASX:PEN) and its Lance project in Wyoming, USA. The article highlighted the company’s $69.4 million fully underwritten institutional funding, its first sales contract in 2011, management, and pending pre-feasibility study. According to the article, “With $60 million equity secured to build stage one, Peninsula has debt facilities it can drawdown to fund stage two capex at Lance of $US35 million, while $US25 million in debt and $US53 million working capital would be required for stage three.”

As quoted in the article:

A PFS is under way, with the company expecting to start DFS activities in the second half of 2015.

As of February 2014, a resource of 56.9 mlb @ 1,108 ppm uranium stood at Karoo, with an additional 49 mlb of historic material that could be converted into JORC resources.

An exploration target of 250-350 mlb @ 900-1,200 ppm is a possibility within Peninsula’s holding in the Karoo Basin.

“We have a very large project landholding of about 8,000sq km. It was originally extensively explored by Esso in the 1970s and again we have another 57 mlb JORC-compliant resources at the moment at very good grades. We have completed a scoping study here and are in a PFS. We expect at some time between the mid and end of 2016 to complete the DFS and we will be looking out for financing for this project and a second production centre for ourselves,” Simpson said.

A scoping study in 2013 highlighted the potential for a 3 mlbpa operation at Karoo, with Peninsula indicating possible start-up in
2017/18.

With a project on the cusp of production, $54 million cash, a market cap of $110 million and available debt to be drawn down to fund expansions at Lance, Peninsula is poised to be even better placed when it cuts the ribbon at its second mine.

“We are in a very good position for a junior company, with two very large project groups with upside exploration potential. We believe there is a major re-rating for both company and the sector, particularly for our company as we have a clear path to production and the project is committed and we will be the next uranium producer on the ASX,” Simpson said.

Click here to read the Peninsula Energy (ASX:PEN) press release
Click here to see the Peninsula Energy (ASX:PEN) profile.