Peninsula Energy (ASX:PEN) - Resurging With 2024 US Uranium Production Plans
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- čas přidán 7. 06. 2024
- Interview with Wayne Heili, MD of Peninsula Energy Ltd.
Our previous interview: www.cruxinvestor.com/posts/pe...
Recording date: 11th January 2024
Peninsula Positions for Uranium Resurgence With 2024 Production Plans
Australian uranium developer Peninsula Energy (OTCQB:PENMF) believes it has addressed the challenges that hindered its production plans in 2023 and can now fast-track efforts to join the ranks of uranium suppliers by late 2024. The company is completing construction of a processing facility at its Lance project in the U.S. to produce yellowcake from an in-situ recovery (ISR) operation in Wyoming. Peninsula aims to ramp up to an initial production rate of 2 million pounds U3O8 per year.
According to CEO Wayne Heili, securing their own backend capability after originally planning for toll processing will enable Peninsula to reduce costs and more than double targeted output relative to the prior satellite approach. The decision did push back first production, but the extended timeline may prove fortuitous if uranium markets continue recent strength.
Following an institutional placement and share purchase plan raising A$60 million, Heili confirmed Peninsula now has adequate funding to finish plant modifications and infrastructure at Lance to achieve production in 2024. The company also structured additional financing options potentially worth around A$40 million to provide further support for the ramp-up phase if required.
Importantly, Peninsula Energy has substantial existing contract coverage inherited from the project’s prior owners that will help de-risk early operations. However, with only about one-third of the expanded production capacity spoken for so far, the company retains significant exposure to rising spot and term prices expected due to uranium’s structural supply deficit.
Heili points to U.S. policies around Russian uranium imports, renewed buying from the Sprott Physical Uranium Trust, and widening supply/demand imbalances as providing multi-year tailwinds. With mines unable to keep pace with reactor requirements globally, he suggests the market could retest all-time highs above $130 per pound in 2024. That would be a major boon for Peninsula coming online.
The Lance ISR technique itself is proven technology, having operated previously, and Heili expressed confidence in bringing production back given his team’s expertise. While timing may trail some other projects, Peninsula anticipates having lower costs than most at around $50 per pound. Thus, profit margins look attractive even on existing contract rates assumed to average $60 to $70.
With Peninsula clearing obstacles that distorted its outlook a year ago, investors now have improved visibility on the company’s capability to deliver yellowcake into a strengthening market. The strategic move to control its own backend processing de-risks operations and allows increased scale. Heili contends that with all key pieces in place, “2024 is about execution and getting the construction done and ready for production.” The coming 18 months will demonstrate whether Peninsula can fulfill its production promises to shareholders.
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View Peninsula Energy's company profile: www.cruxinvestor.com/companie...
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Good on you mate, interviewing all the companies in my stock portfolio.
Need to pursue a NYSE listing Wayne. 10:1 reverse split. Ramp up your marketing inline with US ban on Russian uranium 🚀
THANKS YOU MATT YOU DID A GOOD DOWN TO EARTH INTERVIEW WHICH I THINK WILL HELP PEN'S JOURNEY FORWARD. KEEP THE POSITIVE PROGRESS OF PEN UP FRONT WITH MORE PROGRESS INTERVIEWS. WE WANT TO JOURNEY WITH PEN.
I’m rooting for them to produce end of 2024.
THANKS WAYNE - AND GOOD QUESTIONS FROM CRUX INTERVIEW - KEEP UPDATES FLOWING ON PEN - WE HAVE HELD PEN THROUGH THE ROUGH SEAS BUT BELIEVE IN WAYNES TEAM, AND HIS INTEGRITY .
Another great Crux interview - asking all the hard questions. I am rooting for the success of PEN, we need the U especially in the US.
Hard questions? Its paid promotion.. $PEN pays to spew their bullshit to impressionable retail investors. Here's the only relevant question: When or why aren't you buying your shares in the open market? He will never ask !
Thank you Matt for having Wayne on. Good tough conversation.
Sounds like Peninsula will most likely be doing very well come the start of 2025.
I'm invested; I do like this company.
It's great that they have ~ 200M pounds in the ground ,,, significantly more than most US miners.
Id just like to see some kind of progress, lets see the plant, lets see the wells, let’s see some yellow cake!!!
Peninsula have had it tough, mainly thanks to UEC. And you are correct - coys like NexGen and Denison had talked ad nauseam for over a decade (...) but done little except pay enormous salaries. I hold both, but am tending towards selling - despite the obvious potential uptick as they are the first shares generalists will turn to - simply because management has been talking such pointless BS for years whilst paying themselves outrageously, and that annoys me.
Good luck to Peninsula.
As an existing shareholders for over two years. I'm not holding my breath and I'll leave it there
Interesting company. Hoping some smart money see the same value in this company. Prices are all moving, but we are stuck in limbo. Let’s go PEN
Good interview chaps.
Thanks a lot 👍🙏
I really like him. Honest, humble (in a good way), good captain of his boat
I literally watched him do an interview on Crux a year or two ago and he said .. " The company doesn't plan on or need to do another capital raise " literally did a raise a week later .. He's a horrible promoter and even worse liar ...
they all do that
So he definitely is not honest !!!
Someone has $PEN scared for them to come out to justify why they shouldnt be taken over
Question not asked = How long will it produce at 2 million pounds ? how big is the resource ?? and then any other plans to grow ??
The resource is big but old mgmt had issues leaching the uranium.. Wayne " supposedly" fixed it by changing the acid ... Ive been following this company for a decade , they never delivered..
Matt, Looking forward to the next Energy Show with Brandon, or he may be too busy singing Al Jolson's favourite song....
"MA me, my little MA me....." 😂
UEC wanted to significantly weaken PEN. Excluding UUUU , I think UEC see themselves as the sole provider of U308 domiciled in the USA, and made the ruthless decision to cut PEN off at the knees. A great move!
and they blame UEC for pulling out... but isnt UEC providing some processing facility ?? then how come they couldnt transition to getting the stuff out of the ground and send it to UUUU for processing who is calling for ore..... so its not only processing... PEN is not even able to pull the stuff out of the ground... meaning this restructure is covering up the failure to pull the stuff out of the ground in the first place !!! thinking about it, then the delay excuse is total BS (sorry to say)
Wayne is too nice. Saying a "third party", just be more blunt, "UEC screwed us".
Tell them about the next 50 million you have to dilute Wayne. How many shares have you bought in the open market Wayne? Why do you keep having this guy on ? They will never deliver ...
I can understand your dilution question. My annoyance is that PEN did not foresee a huge weakness in their business strategy. Relying on UEC to process their eluent, using IEX columns, to extract yellow cake was a terrible outcome for the company and quite simply a management error. Foolish. I am quite surprised that an investor uprising has not emerged with changes at the boardroom level. What astounds me is that the PEN did not explicitly make clear the risks that this third party contract represented.
More annoyingly is that they have raised so late and should have raised much earlier. Two years earlier. With the benefit of hindsight, when money was free, a loan was the best solution, not dilution. So many mistakes.
Wealth destruction, 2 years of delay, and a a rather lofty $50 lb... and dilution.
Being an ex-shareholder I am quite ropable to hear that Wayne thinks PEN are in a good position.
There are better options, with better versity, lower AISC, and upside capacity. One choice CCO/CCJ.
In Australia that equate to BOE $23/lb or Paladin $28/lb. It is all about margin. I also have DYL.
Over exposed were we?
@tbayley6 no, I got out of this stock years ago . I think I even made a small profit... I would not be surprised even after all this dilution when they do actually produce they are going to have the same issues leaching the uranium. Company should have been taken out , but looks like nobody wants them , why? He admits his aisc is $50, so it's probably $60 and numnuts signed fixed rate contracts in the 60s ... way to go Wayne!
A lot of UR shares with near zero chance of production in 5 years up 70% - this down 50% with near-time progress f'cked by It UEC. Decision time for investors... ...
Glad I decided against buying this dumpsterfire of a company.
But didnt mitigate the risks that UEC could drop them.... so why are they the Team ???!!! and even after the raised funds, they are not honest about still needing more funds... their plans are shiaaat..... one thing is that UEC is an ass to screw them... but then why raise capital in such a strange fashion that doesnt complete the journey ??? there are a lot of holes... what would give the market confidence again, is at least owning up to these Risks and missteps + honest capex numbers
Yep , Wayne is making the assumption those warrants will be in the money before he needs the cash and wont have to go to the market again for another 50 million... Why doesn't Wayne buy the stock in the open market then ? Free money, Right? This man deserves to be humiliated and called out on his bullshit ...
They are doubling the share count ie halving the share price. So PEN is worth maybe $.05AUD
We enjoy $$_now ,u missed it .hahaha.
Down 13% Monday AM
So he is now admitting that he has 600k contracted back in time !!! at shitty prices ... so he is not producing 2million and selling into this high price.... he is selling 600,000 into shitty prices....
This guy never talks straight... ASIC at 50 bucks !!! the margin is so bad with this company....
@Ih4620 Hi. Are you bullish on PEN? Which is a better investment IYO… Peninsula vs Anfield (AEC), and why? Thank you.
well lets see why the share price has underperformed its peers. you issue a squillion cheap shares with a cheap 1 for option then do a SPP on the same terms and wonder why? i wouldn't wonder there is inbuilt selling pressure on this stock for ages yet
@speckledjim1798 Hi. Are you bullish on PEN? Which is a better investment IYO… Peninsula vs Anfield (AEC), and why? Thank you.