Lance Project CPP Commissioning Pushed to June, Uranium Output Downgraded
Peninsula Energy has postponed commissioning of its Lance Uranium Project’s Central Processing Plant to the June quarter, prompting a downward revision of production forecasts through 2027 amid leadership changes and share suspension.
- Central Processing Plant commissioning delayed to June quarter 2025
- Production guidance downgraded for 2025, 2026, and 2027
- Leadership changes: new MD/CEO George Bauk and CFO Jitu Bhudia appointed
- Shares suspended from ASX quotation since April 23, 2025
- Company purchased 200,000 lbs uranium on spot market to meet delivery commitments
Operational Delays at Lance Project
Peninsula Energy Limited (ASX: PEN) has announced a delay in the commissioning of its Central Processing Plant (CPP) at the Lance Uranium Project in Wyoming, pushing full completion and commissioning into the June quarter of 2025. This postponement follows challenging weather conditions and supply chain disruptions that have hampered progress on the CPP construction, managed by lead contractors Samuel Engineering, Inc and Samuel EPC, LLC.
The company now plans to commence production of dry yellowcake prior to the end of June 2025, a setback from earlier expectations. During the March quarter, uranium captured on resin reached 5,975 pounds, but resin storage constraints limited further accumulation, underscoring operational bottlenecks ahead of CPP completion.
Revised Production Forecasts and Life of Mine Review
Peninsula is undertaking a comprehensive review of its Life of Mine (LOM) model and production forecasts, which remains ongoing. The company has signaled an expected downgrade to production guidance for calendar years 2025, 2026, and 2027. This revision reflects the impact of the CPP delay and operational challenges, including below-expected wellfield flow rates in some mine units due to cold weather.
Despite these setbacks, the company continues wellfield development, with significant progress on Header Houses 11 and 12 in Mine Unit 3 and monitoring well installations in Mine Unit 4. The recent commissioning of a Dissolved Air Filtration system aims to improve wellfield pre-conditioning and operational efficiency.
Leadership Transitions and Corporate Developments
Peninsula has undergone notable leadership changes this quarter. George Bauk commenced as Managing Director and CEO in January 2025, bringing over 30 years of global mining experience. He has been actively involved onsite to oversee the CPP commissioning and production ramp-up. Additionally, Jitu Bhudia was appointed Chief Financial Officer, succeeding interim CFO Willie Bezuidenhout.
On the board level, David Coyne was appointed Interim Non-Executive Chairman effective May 1, 2025, following the retirement of John Harrison. Meanwhile, former MD Wayne Heili ceased his technical advisory role in late April. These changes coincide with the company’s shares being suspended from ASX quotation on April 23, 2025, as Peninsula works to finalize revised production plans and secure adequate funding.
Financial Position and Market Actions
Peninsula maintains a solid cash position with US$24 million available as of March 31, 2025. To meet scheduled uranium deliveries in June, the company contracted a spot market purchase of 200,000 pounds of U3O8 at a cost of approximately US$1.5 million, well below a previously recognized provision of US$4.6 million related to delivery risks.
The company also completed a share sale facility to eliminate unmarketable parcels, reducing administrative overhead and streamlining its shareholder base. Safety performance remained strong with no lost time injuries reported during the quarter, despite one minor on-site spill that was contained and required minimal remediation.
Regulatory Progress and Future Outlook
On the regulatory front, Peninsula secured an approved amendment to its Permit to Mine, expanding the authorized area to include the Kendrick Project Area at Lance. The related Source Materials License amendment is expected to be finalized in the June quarter, enabling future uranium recovery operations in this zone.
Looking ahead, Peninsula’s refreshed leadership team is focused on navigating the operational challenges and delivering a revised production roadmap. The company’s strategic priority remains the successful ramp-up of the Lance Project to establish itself as a fully independent uranium producer positioned for the evolving clean energy market.
Bottom Line?
Peninsula’s delayed plant commissioning and downgraded production forecasts set a cautious tone as it reshapes leadership and strategy to regain momentum.
Questions in the middle?
- How significant will the production downgrades be for Peninsula’s financial outlook through 2027?
- What are the key risks and timelines for completing the Life of Mine model review and updated guidance?
- How will the share suspension and leadership changes affect investor confidence and liquidity?