- Uranium mining company Peninsula Energy (PEN) is predicting it’ll net between $6 million to $8 million in revenue from Uranium sales in 2021
- The company announced it had purchased 400,000 pounds of triuranium octoxide, a compound of uranium, in order to deliver on its promised sales
- The price paid for the compound is confidential, but the company said it was in line with market expectations
- The expected cash generated from the sales will be used to transform the company’s Lance Projects in the U.S.
- Peninsula shares are trading for 6 cents per share, down 5.56 per cent
Uranium mining company Peninsula Energy (PEN) is predicting it’ll net $6 million to $8 million in revenue from uranium sales in 2021.
The company just purchased 400,000 pounds of triuranium octoxide, a compound of uranium, in a bid to shore up supply for its sales.
Peninsula has already locked in sales for 450,000 pounds worth of the same compound next year.
It believes these sales will lead to seven-figure revenue returns, due to the difference between the purchase pricing and the sales price
The exact price paid by Peninsula for the uranium compound is confidential, however, the company said it was bought at a market acceptable rate.
Peninsula bought the compound product from UG USA, a subsidiary of Orano, and the uranium will be delivered to them in allotments throughout the year.
Peninsula CEO and Managing Director, Wayne Heili, said the agreement was very welcome.
“Entry into the agreement to secure the uranium that we need for most of our 2021 deliveries significantly de-risks our cash flow projections through to the end of next year,” he said.
The CEO said the revenue, as well as a recent $40.3 million dollar entitlement offer, will allow the company to transform its Lance Projects in the U.S.
“The recently completed equity raise along with the net cash margin from these
sales will provide funding certainty through the second half of 2021, allowing us to complete the planned technical activities in support of an optimized restart plan for the Lance Projects, while the uranium markets continuing to strengthen,” he said.
Shares in Peninsula are trading down 5.56 per cent at 6 cents per share at 2.40 pm AEST.