Peninsula Energy — Funding locked in, first yellowcake produced, Lance ramp-up underway - Uranium Business
- Noel Ong
- 1 day ago
- 6 min read
Announcement
Peninsula Energy Limited (ASX: PEN) has completed a A$69.9 million equity raise alongside full drawdown of its Davidson Kempner debt facility, settled legacy contract liabilities, and confirmed that the first dried yellowcake has been produced at the Lance Central Processing Plant in Wyoming (Figure 1). The combined funding and operational milestones underpin the Horizon 2 plan and position Lance for a disciplined scale-up.
Figure 1: Central Processing Plant (Phase I & II) in Wyoming (source: PEN)
Highlights — 13 October 2025 (Corporate Update) - A Uranium Story
Equity raise completed (A$69.9m): Finalised following shareholder approvals at the 30 Sep 2025 EGM and receipt of Tranche 2 proceeds.
Cornerstone & substantial holders: Tees River Uranium Fund invested A$22.5m and now holds 18.4% of issued capital; Washington H. Soul Pattinson also provided support.
Debt facility status: Davidson Kempner facility fully drawn; US$3m of the US$15m facility converted to equity (current debt balance US$12.6m after mandatory conversion and make-whole capitalisation).
Legacy contracts settled: Outstanding US$5.0m payment for terminated uranium sales contracts paid in full; no remaining take-or-pay obligations under the five terminated contracts. One remaining sales commitment totals 600,000 lbs (100,000 lbs p.a. from 2028–2033).
Use of funds/execution focus: Funding package for Horizon 2 (Figure 2) completed, allocating proceeds to project development, Kendrick & Dagger studies, and corporate/working capital to support Lance ramp-up.
Figure 2: Horizon 2 Plan - Ramp-Up Framework (source: PEN)
Peninsula Energy’s Managing Director and Chief Executive Officer, Mr George Bauk, commented:
“We are pleased to have completed a critical funding milestone for the Company. The strong support we received as part of the equity raise underscores confidence in Peninsula’s revised production plan and management team and reflects broad recognition of our progress toward becoming a leading uranium producer.
“We now have a robust financial platform to progress the production ramp-up at the Lance Project, execute on our Horizon 2 plan including funding the Kendrick and Dagger studies, and supporting ongoing corporate and operational initiatives. The completion of the central processing plant expansion and production of first yellowcake demonstrates the tangible progress we have already made and our ability to deliver on strategic objectives.
“There hasn’t been a better time to be an emerging uranium producer in North America, and the team is now fully focused on execution and establishing Peninsula as a key uranium producer. I would like to sincerely thank our shareholders for their continued support as we enter this next phase of our production ramp-up.”
First dried yellowcake produced: Lance Central Processing Plant (CPP) delivered first dried yellowcake after Phase 2 approvals in Aug 2025 and completion of commissioning (Figure 3).
Figure 3: First Drum of Dried Yellowcake – Lance Project (source: PEN)
Independent, end-to-end capability: Peninsula becomes a fully independent producer of dried yellowcake, with scale-up underway in line with revised targets.
CPP designed for growth: Facility can process uranium-loaded resin from satellite projects (Barber, Dagger), positioning Lance to scale toward ~2 Mlbs dried yellowcake per annum nameplate. Kendrick is already permitted for mining; Dagger and Barber provide upside.
Production pathway: Production on resin recommenced in Dec 2024; dried yellowcake production commenced in Sep 2025, supporting a staged ramp-up under Horizon 2.
Managing Director and CEO, George Bauk, commented:
“First yellowcake production from our Lance Central Processing Plant, just 14 months from first concrete pour for the CPP expansion, is an excellent achievement and a significant milestone for Peninsula.
“While there have been challenges along the way, the Board and management team are fully aligned on a clear and strategic path forward that sets Peninsula up for sustained success as a key supplier to US and global energy markets. “We are building momentum as we meet our milestones and targets, with funding in place and a sustainable and disciplined approach to achieving full production in the years ahead.”
Samso Concluding Comments
Current Situation
The new version of Peninsula has crossed the credibility gap—funding is in, the CPP is producing dried yellowcake, and the restart is now about operating rhythm rather than promises. That alone changes the risk profile and invites a more practical lens on what Lance can consistently deliver.
From here, it is all about the wellfields and a low-pH ISR regime. Sustained growth will depend largely on operational matters such as stable flow, rising resin load, and fewer plant interruptions. These parameters will dictate market sentiments. From a market perspective, the company must demonstrate repeatable monthly pounds for any rerating of company valuations from the market.
Peninsula will have to demonstrate market sensitivities as it only has a modest forward commitment, but near-term volumes will be more leveraged to potential price increases. The key proof point is unit costs through the ramp—show me margin, and the rest follows.
Option value sits in the satellites. Kendrick is permitted, Dagger/Barber gives feed flexibility, and the CPP has headroom. Peninsula will have to keep hitting the near-term milestones on time to move from a “restart story” to a “scale story.” DYOR.
Samso's Synopsis for the Investment Thoughts:
Highlights
Exposure to uranium, which is of growing interest in many portfolios, given the global push for low-carbon energy.
US-based asset in Wyoming provides a production story (not just exploration), which is a plus compared with many juniors.
Large resource base (58 M lbs U₃O₈) gives scale and potential upside.
Risks
Commodity risk: Uranium prices are volatile, and regulatory and political issues matter (especially in the US and globally).
Execution risk: Ramp-up of production, cost control, and achieving ISR targets are key.
Financial risk: Being unprofitable means the company may need to rely on capital raising, which can dilute.
Market sentiment: Small-cap, uranium sector can be more speculative and subject to swings.
Final Thoughts
In my view, Peninsula Energy is interesting but high risk/high reward. The resource scale and production asset are positives. But the share price dropped from ~A$1.60 down to ~A$0.45+ (Figure 4) over the year, suggesting the market has significant reservations (likely execution + uranium price concerns). The last time I followed PEN was almost 5 years ago, and they were an aspiring uranium producer.
Figure 4: PEN share price chart as of 14th November 2025. (source: CommSec)
If you believe in a uranium price resurgence, strong US ISR execution, and a tight supply picture globally, PEN could offer leverage. On the flip side, if those things falter, there’s a downside. Investors need to keep in mind that this is an old story, and I strongly recommend DYOR, as this is a new following for Samso.
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