September 4, 2024
Peninsula Energy Ltd. (ASX:PEN, BUY, A$0.20 target, David A. Talbot) provided a construction update for its flagship Lance uranium ISR project in Wyoming. The project is on track for a planned restart in Q4/24. The Phase 2 of ISR plant expansion is underway with concrete pours for the foundation, and placement of the IX and elution vessels complete. The building exterior is expected to be completed in October. Work is also underway to develop new wellfield production areas, comprising Mining Units 3 and 4 (MU3 and MU4). Currently, 11 drill rigs continue to install new ISR pattern wells (injection and production wells) at MU3, with 76% of the planned pattern wells drilled and cased. The construction of Header House 11, which will be the first of three modules to be placed into production at MU-3 is nearing completion, with ~90% of surface facilities complete. Wells and infrastructure are being installed at HH12 and 13 as well. Overall, ~80% of infrastructure for the entire MU-3 area is complete. We are encouraged to see the construction going as planned, despite labour shortage in Wyoming. Peninsula had recently slightly downgraded its initial production guidance from 1.1M lbs per year to 0.7-0.9M lbs (read notable). However, it still expects the cash flows to be positive by Q3/25. After its recent A$106M equity raise (read note), Peninsula’s current cash balance is anticipated to support Opex and Capex until break-even cash flow is achieved. Read more
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Peninsula Energy Ltd. – ASX:PEN – 1,2,3
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