- Peninsula Energy (PEN) has entered into multiple binding purchase agreements to procure natural uranium concentrates (U3O8)
- The agreements are set to meet the entirety of Peninsula’s calendar year 2022 committed sales of 450,000 pounds U308
- Peninsula is a uranium miner and owns 100 per cent of the Lance Projects in Wyoming
- Combining the latest contracts with its existing purchase agreements, the company has forecast a net cash margin of US$7 million to US$8 million (roughly A$9.1 million to A$10.4 million) on uranium sales this year
- Additionally, it has secured sales of US$8 million to US$9 million (A$10.4 million to A$11.7 million) for the 2022 calendar year
- The arrangements will allow Peninsula to advance its key MUA1 field demonstration and progress the Lance Project toward a return to commercial production
- Peninsula Energy shares are up 8.33 per cent, trading at 13 cents each
Peninsula Energy (PEN) has entered into multiple binding purchase agreements to procure natural uranium concentrates (U3O8), which are set to meet the entirety of its calendar year 2022 committed sales of 450,000 pounds U3O8.
The uranium miner owns 100 per cent of the Lance Projects in Wyoming, where it began in-situ recovery operations in 2015.
Combining the latest contracts with its existing calendar year 2021 purchase agreements, Peninsula has secured a forecast net cash margin of US$7 million to US$8 million (roughly A$9.1 million to A$10.4 million) on uranium sales this year.
Additionally, it secured sales of US$8 million to US$9 million (A$10.4 million to A$11.7 million) for 2022.
This forecast net margin is based on the difference between the fixed purchase price and the likely sales price, based on customer agreements.
Peninsula holds a portfolio of uranium concentrate sales agreements with major utilities for up to 5.45 million pounds U3O8 at average pricing of US$51 to US$53 (about A$66 to A$69) per pound.
Further, the company has 4.1 million pounds of firmly committed sales and up to 1.35 million pounds of sales optional at customers’ election.
Peninsula Energy Managing Director and CEO Wayne Heili said the company is the only ASX-listed junior uranium producer with sales contracts extending to 2030.
“The sales volumes highlight the strength of our long-term contract book and existing relationships with our tier-one customers,” he said.
“Entry into these agreements to secure uranium concentrates sufficient for our near term deliveries significantly de-risks our cash flow projections through to 2023,” Wayne continued.
“These contractual arrangements provide further funding certainty, allowing us to continue advancing the key MUA1 field demonstration and progress the Lance Project toward a return to commercial production.”
Peninsula Energy shares are up 8.33 per cent, trading at 13 cents at 12:06 pm AEST.