How Will Peninsula Energy’s $15M Debt Drive Lance Project’s Uranium Production?
Peninsula Energy reported a $5.3 million operating cash outflow for the June quarter and secured a $15 million debt facility to advance its Lance Project toward uranium production, expected by August 2025.
- Net operating cash outflow of $5.335 million USD in Q2 2025
- Investing cash outflow of $9.881 million USD mainly on Lance Project development
- Cash balance declined to $9.169 million USD at quarter end
- Secured $15 million USD debt facility post-quarter, drawing $10 million USD
- Dry yellow cake uranium production anticipated before end of August 2025
Quarterly Cash Flow Overview
Peninsula Energy Limited disclosed its cash flow report for the quarter ending 30 June 2025, revealing continued investment in its flagship Lance Project. The company recorded a net cash outflow from operating activities of $5.335 million USD, reflecting ongoing costs as it transitions from development to production phases. Investing activities consumed $9.881 million USD, primarily directed towards advancing the Lance Project’s infrastructure and commissioning efforts.
Cash and cash equivalents stood at $9.169 million USD at the end of the quarter, down significantly from $24.193 million USD at the start. This decline underscores the capital-intensive nature of the project’s development stage.
Financing and Strategic Moves
In a critical development post-quarter, Peninsula secured a $15 million USD debt facility, drawing $10 million USD immediately to support ongoing development and commissioning activities. This financing move is designed to bridge the company through the final stages of project readiness while it prepares for an anticipated equity raise.
The company anticipates commencing production of dry yellow cake uranium before the end of August 2025, contingent on final regulatory approvals and successful hot commissioning of the central processing plant. This milestone marks a significant transition from capital expenditure to operational cash flow generation.
Outlook and Operational Challenges
Peninsula acknowledges that operating expenses are expected to rise as the project moves into production, which will place additional demands on cash flow. The company estimates its current cash reserves and financing facilities provide approximately two quarters of funding at the current burn rate, emphasizing the importance of the planned equity raise to sustain operations and growth.
Management remains confident in the company’s ability to continue operations and meet business objectives, supported by the new debt facility and the anticipated revenue from uranium production. However, the timing and success of production ramp-up and capital raising efforts will be critical to watch in the coming months.
Bottom Line?
Peninsula Energy’s transition to uranium production is underway, but its financial runway hinges on successful commissioning and forthcoming equity funding.
Questions in the middle?
- Will Peninsula meet its target to begin dry yellow cake production by August 2025?
- How will rising operating costs impact the company’s cash flow post-production start?
- What are the terms and investor appetite for the planned equity raise?