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Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
Peninsula Energy Limited
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Peninsula Energy Limited

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  1. COMPANY PRESENTATION 2012EMERGING PRODUCER
  2. Disclaimer This presentation is provided on the basis that the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Presentation is, or may be relied upon as, a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Presentation contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties, and may differ materially from results ultimately achieved. The Presentation contains “forward-looking statements”. All statements other than those of historical facts included in the Presentation are forward-looking statements including estimates of resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Presentation and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Presentation nor any information contained in the Presentation or subsequently communicated to any person in connection with the Presentation is, or should be taken as, constituting the giving of investment advice to any person. Presentation does not relate to any securities which will be registered under the United States Securities Act of 1933 nor any securities which may be offered or sold in the United States or to a US person unless registered under the United States Securities Act of 1933 or in a transaction exempt from registration. The Exploration and Target Potential described in this presentation is conceptual in nature, and there is insufficient information to establish whether further exploration will result in the determination of a Mineral Resource. 2
  3. Company Overview• Emerging uranium producer with established project pipeline• Flagship project in Wyoming (Lance) and South Africa (Karoo)Lance• 2.2mlbs U3O8 pa ramping up over 3 years• Low Capex - Initial development expenditure US$78m• US$251 million NPV8%Karoo• Exploration potential 150mlbs U3O8• Targeting 30mlbs U3O8 2012• Targeting Development CY16/CY17 TARGETTING PRODUCTION Q4/13-Q1/14 3
  4. Business Plan• PRODUCTION TARGET 10MLBS U308 – before 2025• From USA, RSA and Australia• Commence ISR production at Lance Projects, Wyoming in 2013-14 building to 2.2mlbs U3O8 pa over 3 years (plant capacity 3mlbs pa)• Develop conventional mining and milling operation at Karoo Projects, South Africa by 2016/17 building to 3mlbs pa• Continue to develop the mineral potential  Wyoming: 104-163mlbs U3O8  Karoo: 100-150mlbs U3O8• Acquire an identified third project in a third geographical location and develop a further 3mlbs pa UNDERPIN BALANCE SHEET WITH PROFIT FROM LANCE PROJECTS 4
  5. Market Valuation Production Pre- Market cap Market capCompany 2011E Market cap Fukushima (US$/lb prod) (US$/lb prod) (U3O8 lbs) market capCameco 21.7m US$8,010m 369 US$14,324m 660Paladin 5.7m US$942m 165 US$3,677m 645Uranium One 10.5m US$2,430m 231 US$5,704m 548Peninsula Energy indicative market valuation as a function of productionProduction U3O8 Implied market cap Implied market cap (lbs pa) @ US$255/lb @ US$600/lb 2.2m US$561m US$1,320m 6.0m US$1,530m US$3,600m 10.0m US$2,550m US$6,000m SIGNIFICANT RE-RATING UPSIDE 5
  6. Corporate OverviewCapitalisation Share price historyShares on issue 2,510mShare price 3.0cMarket capitalisation US$76mCash balance US$20mDebt US$0Enterprise value US$56mShareholding Shares % holdingPala Investments 505m 19.85%HSBC 66m 2.62%John (Gus) Simpson 91m 4.61%JP Morgan 53m 2.12%Top 20 Shareholders 826m 32.26%STRONG SHAREHOLDER SUPPORT 6
  7. Directors and ManagementBoard of DirectorsGus Simpson Strong leadership, background in resources, corporate finance and projectExecutive Chairman management ; 25 years experienceMalcolm James Chartered accountant ,strong corporate finance background and projectFinance Director management ; 25 years experienceAlf Gillman Highly experienced uranium geologist; 35 years experienceTechnical Director Warwick Grigor Experienced mining analyst and corporate directorManagement Director Non-executiveMichael Barton Chartered accountant with strong background in resources and financeNon-executive DirectorManagementGlenn Black Senior management engineer mine construction and African operations; 30 yearsCOO, CEO South Africa experienceRalph Knode Senior management geologist /engineer, ISR mine construction and operationCEO Wyoming expert ; 25 years experienceTony Allen Chartered Accountant and experienced mineral production CFOChief Financial OfficerDEVELOPMENT TEAM ENGAGED 7
  8. Existing Demand Drivers• One ton of natural uranium produces more than 40 million kilowatt- hours of electricity• This is equivalent to burning 16,000 tons of coal or 80,000 barrels of oil• Electricity generation costs – Gas and coal costs 5.0c per Kwh – Nuclear costs 0.7c per Kwh• 434 operating nuclear power stations (Feb 2012) in 31 countries• 240 research and medical isotope reactors• 140 nuclear powered ships• Consuming 200mlbs uranium p.a. STRONG EXISTING DEMAND 8
  9. Future Uranium DemandReactor Units and Market Demand Forecasts by Region Reactor units U3O8 demand (mlbs pa) 2010 2015 2020 2025 2030 2010 2015 2020 2025 2030North America 124 126 129 127 131 52 54 59 59 60Western Europe 129 118 116 111 97 54 55 58 53 52Eastern Europe 67 76 78 85 91 29 33 38 40 44Asia & Oceania (ex 69 101 143 182 223 23 44 67 85 108Japan)Japan 54 43 44 42 35 23 24 26 25 22Africa & Middle East 2 3 7 15 22 1 1 5 10 12South America 4 6 6 8 11 2 3 3 4 7TOTAL 441 470 523 570 617 184 213 255 276 293• Global expansion of nuclear power generation will fuel significant increase in U 3O8 demand• 61 nuclear power plants are in construction, 156 are at the approval stage and a further 450 are planned• China, India, Eastern Europe and the Middle East expected to increase uranium consumption by 250% by 2030 DEVELOPING NATIONS REQUIRE LOW EMISION POWER Source : UxConsulting Q2 2012 9
  10. Uranium Supply• Kazakhstan ISL U3O8 production spectacular growth - slowing – 2000: 5mlbs – 2008: 18mlbs – 2009: 36mlbs – 2011: 44mlbs – 2012: 44mlbs (est.)• Megatons to Megawatts program coming to an end – Uranium recovery from nuclear warheads – US utilities buying 24mlbs pa – Agreement expires at the end of 2013• Fukushima more likely to impact supply rather than demand in long term – 20mlbs delivery suspended due to Fukushima spot price suffering – Trekopje 7mlbs pa(NBA), Olympic Dam add. 9mlbs pa ( SA), Bakouma 7mlbs pa (CAR), Kintyre 6mlbs pa (WA) – Ranger (NT Australia), Rossing (Namibia) – Hathor (Saskatchewan), Mkuju River (Tanzania), Husab (Namibia), – Paladin ($200m pre-payment), UAE (forward purchase multi suppliers) – EdF taken 20 yr contract with AREVA for 60mlbs DEMAND FUNDEMENTALS STRONG – SUPPLY GROWTH NEEDED 10
  11. Supply Deficit Looming (000 lbs) Global uranium supply-demand balance (000 lbs) 90,000 350,000 60,000 300,000 250,000 30,000 200,000 0 150,000 (30,000) 100,000 (60,000) 50,000 Supply Deficit (90,000) 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Net Balance (LHS) World Supply (RHS) World Requirements (RHS)LANCE PRODUCTION COMMENCES AS SUPPLY DEFICIT INCREASES 11
  12. Uranium Price Forecast $150 © UxC $135 Long-Term vs Spot Composite Scenario Historical Spot Ux U3O8 Price $120 $105 $90 Historical Ux Long-Term U3O8 Price $75 $60 $45 $30 $15 $0 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 Source: UxConsultingLONG TERM CONTRACTS - PREMIUM OVER SPOT PRICE 12
  13. Uranium Mining in WyomingURANIUM EXTRACTION SUPPORTIVE STATE 13
  14. Lance – Development Model • Building a 2.2mlbs per year ISR operation • ISR is a low cost non-disruptive method of recovering uranium as yellow cake • Inclusive of – Ion exchange facility – centralised resin stripping, drying and packaging plant at Ross (CPP) – Remote ion exchange facility at Barber trucking resin to CPP Central Processing Plant: Ion Exchange Vessels (left), Elution circuit (right) • Targeting development & production in 2013/14 • 3 stage development ramping up over 3 years • Acquisition of other projects • Possible expansion to permit capacity 3mlbpa Central Processing Plant: Reverse Osmosis System, Brine Tanks (rear)PROVEN TECHNOLOGY – ISR PRODUCES 42% OF WORLD URANIUM 14
  15. Lance – FinancialsCapex by Prod. Phase US$ Financials – Steady State US$ p.a US$/lbPhase 1 : Gross revenue US$179m US$70.00*Ross Production Unit US$56m Royalties and indirect taxes US$20m US$9.26(750klbs pa) Operating costs US$28m US$12.83Phase 2 :Kendrick Production Restoration and closure US$39m US$7m US$2.94Unit costs(750klbs pa) Wellfield development costs US$40m US$14.21Phase 3 : Total operating costs US$95m US$39.24Barber Production Unit US$40m(750klbs pa) EBITDA US$84m US$41.63 Pre-tax NPV 8% US$251m * December 2012 base price escalatedROBUST ECONOMICS 15
  16. Lance – Exploration Potential • 13 Historic resources • 22 roll fronts extend for a combined linear strike length of 194 miles (312km) • Exploration potential 104-163mlbs U3O8FURTHER SIGNIFICANT RESOURCE POTENTIAL 16
  17. Lance – Rapid Resource Growth 60,000,000 1,854 No. PEN holes 4,738 No. NuBeth holes 50,000,000 1,106 4,738 40,000,000 805 4,738 lbs U3O8 36,783,402 Inferred 30,000,000 600 Indicated 4,738 30,178,789 Measured 22,454,321 20,000,000 281 4,738 15,955,169 10,000,000 11,130,000 10,697,540 6,681,340 7,500,039 5,587,760 3,960,000 3,644,099 3,813,347 3,835,486 4,014,475 0 March 2010 July 2010 January 2011 July 2011 March 2012ONGOING EXPLORATION SUCCESS & RESOURCE CONVERSION 17
  18. Lance – Permitting on Schedule • Deep Disposal Wells − DDW feasibility study completed − Licence application lodged − Environmental and technical review completed − Licence granted 30 March 2011 − Aquifer is deemed exempt • NRC Source Material Licence − Technical reports completed − Environmental reports completed − Licence application deemed complete − Environmental and technical review completed − Grant of draft SML - Nov. 2012 (NRC est.) − BLM acknowledged NRC lead • WDEQ Permit to Mine − Technical reports completed − Environmental reports completed − Licence application deemed complete − Environmental and technical review completed − Environmental bonds lodged − 4 week public notice period completed − No objections after PNP − Grant of PTM - Nov. 2012 − Air Quality Permit grantedPERMITTING AHEAD OF REGULATORY SCHEDULES 18
  19. Lance – Uranium Sales• First sale contract entered into in February 2011 – USA utility – WAP $75.60 per lb – 7 year contract – first delivery 2013• Planned sales structure – 30% to a strategic partner taking an investment in Peninsula Energy – 40% to 3-4 utilities on long-term contracts – 30% on the spot market• Negotiations advancing with utilities and trading houses• Strategic relationship: Boswell Capital – Specialist uranium advisory group – Ongoing role evaluating juniors for utilities – Completed DD on PEN STRATEGIC PARTNERING AND LONG TERM CONTRACTS 19
  20. Lance – Development Schedule 2012 2013 PROJECT EVALUATION ✔ ✔ ✔ ENGINEERING / PROCUREMENT PERMITTING Deep Disposal Wells ✔ Permit To Mine Source Material License (SML) Project FUNDING Stage 1 - $30 Stage 2 - $145m CONSTRUCTION Pre SML License Post SML LicenseDEVELOPMENT SCHEDULES ON TRACK 20
  21. Karoo – Geological Setting • Sandstones of the Adelaide Subgroup (Beaufort Group) • SW of the Karoo basin • Extends from NE of Western Cape, across SE of Northern Cape, and into Free State • Stretches east to Cradock in the Eastern Cape includes smaller satellite area located to the ENE of BloemfonteinKNOWN URANIUM PROVINCE 21
  22. Karoo Projects • 6 project areas (2,200 sqkm) over Permian sandstones of the Karoo Basin South Africa • Ownership: Peninsula 74%, BEE Partners 26% • 3 project areas contain historic resources • The Karoo Basin is a known uranium and molybdenum mineralised province • All sites contain outcropping to sub-cropping uranium and molybdenum anomalism • Resource statement expected in Dec. 2012- Mar. 2013 • Feasibility work planned for 2H/2013 commencement • Test work indicate most sites would likely be amenable to mining by combination of open pit and adit miningSIGNIFICANT RESOURCES 22
  23. Karoo – Mineral Potential Grade (ppm U3O8)Exploration Tonnes (m) Contained U3O8 (mlbs)potential From To From To From ToTotal 72 120 1,200 1,400 93 156 Contained eU3O8Mineral Tonnes Grade (ppm eU3O8) (mlbs)Site 22 1,480 2.8Site 45 700 4.3Site 29 1,050 0.7 TARGETTING 93-156 MLBS U308 23
  24. Karoo – Conceptual Development Model• Multiple open-pits; with central processing facility at Site 29• All sites within road- hauling distance• Planning development in 2016/2017• Continue to delineate > 120mlbs of uranium mineralisation CONVENTIONAL MINING 24
  25. Investment Analysis• The uranium sector is at a historic low• Increased demand and tightening supply will lift the whole uranium sector• Uranium producers attract a significant premium• Peninsula is a near term uranium producer with high liquidity, high margins and strong financial support• The Company has a low risk, clear path to production and the ability to expand this from its existing projects• This information is not yet recognised by the market MAJOR SECTOR AND COMPANY RE-RATING COMING 30

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