Peninsula Energy Looks to Restart Uranium Production in Early 2023

About Peninsula Energy

Peninsula Energy (PEN) is a uranium production company focused on restarting production at their Lance projects in Wyoming, USA. The company has made significant investments and conducted extensive technical de-risking to position themselves to restart production in Q1 2023 after previously halting operations in 2015.

CEO Wayne Heili announced Peninsula Energy has made the investment decision to restart their Lance project, with the goal of the company becoming a uranium producer again starting in Q1 2023. This aligns with their definitive feasibility study released in August 2022 which outlined a $25 million requirement to restart stage one production at Lance. Through a combination of a $32 million placement and a proposed $3 million share purchase plan, Peninsula Energy has secured funding matched to these capital requirements.

Interview with Wayne Heili, Chief Executive Officer

Restarting Uranium Production

By restarting production at Lance, Peninsula Energy is looking to capitalize on an expected increase in uranium prices driven by demand for enriched uranium from US utilities. Being the first US production company to restart puts Peninsula in a strong position to sign long-term supply contracts with utilities motivated to source domestic supply.

The restart will begin with stage one production around 800,000 pounds per year, but the site is licensed to produce up to 3 million pounds annually. Peninsula Energy has significant potential to expand production in the future by doubling their contract book and utilizing debt financing.

De-risked Technology for More Efficient Uranium Recovery

A key factor in the decision to restart production is Peninsula's confidence in the low pH recovery technology they will deploy at Lance. After extensive testing and field work, this technology has been de-risked and is expected to achieve much higher recovery rates and shorter production cycles.

This provides Peninsula with a high degree of confidence in their ability to efficiently restart production after formerly shutting down operations. Their technical team has systematically developed the solutions to drive improved performance.

Conclusion for Investors

With production restarting soon in 2023, Peninsula Energy represents a unique opportunity to invest in an emerging US uranium production company on the verge of transforming into a producer. Their strategic moves to secure funding, proven technology, and existing contracts position them well to capitalize on expected growth in uranium demand. Investors buying in now can get exposure to the upside potential from higher uranium prices and growing production capacity.