Peninsula Energy Limited (ASX:PEN) Restarts Lance Uranium Production and Appoints New CEO
Operations Update
Operations at Peninsula Energy’s flagship Lance Uranium Projects in Wyoming resumed in selected areas of Mine Unit 1 after a five-year hiatus. This restart marks a historic milestone as the company moves towards becoming an independent producer of uranium yellowcake. In December 2024, early-stage operations generated approximately 1,000 pounds of uranium captured in ion exchange resins. Initial flow rates and grades met planned levels and are expected to rise as preconditioning continues in subsequent Header Houses.
Plant Construction Progress
Construction of the Central Processing Plant (CPP) at Lance continues, with the yellowcake filtration and drying circuits in progress. The first dry yellowcake product is expected in the June Quarter 2025. Peninsula and its EPC contractor, Samuel Engineering, converted the CPP contract to a fixed lump sum, resulting in a US$9.5 million cost overrun. Completion is now scheduled for June Quarter 2025 due to challenging weather and supply chain issues.
Executive Appointments
Subsequent to the quarter end, George Bauk was appointed Managing Director and Chief Executive Officer, commencing on 20 January 2025. Additionally, Frederic Guerin was appointed Chief Operating Officer and Senior Vice President of Geology, starting 25 November 2024.
Financial Highlights
As of 31 December 2024, Peninsula held available cash of US$44.9 million. The company also completed a 20-for-1 share consolidation, reducing shares on issue to a more appropriate capital structure. During the quarter, US$21.3 million was invested in process plant expansion activities.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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