Peninsula Energy Raises A$69.9M at 51.6% Discount to Fund Lance Restart

Equity Raise to Fund Operational Reset

Peninsula Energy Limited (ASX, PEN) has announced a fully underwritten equity raise totaling approximately A$69.9 million, designed to underpin a comprehensive reset of its Lance uranium project in Wyoming, USA. The raise includes a two-tranche institutional placement and a 1-for-1 accelerated non-renounceable entitlement offer priced at A$0.30 per share, representing a steep 51.6% discount to the last traded price.

The capital injection is anchored by a cornerstone commitment from Tees River Uranium Fund Limited, which has pledged up to A$22.5 million, positioning it as a significant long-term investor. Davidson Kempner Capital Management is also participating with a US$3 million subscription, offsetting existing debt.

Revised Production Guidance Reflects Operational Realities

Following a thorough review of Lance’s near-term operations, Peninsula has revised its production guidance downward to reflect more conservative and achievable targets. The reset plan focuses on commissioning the Central Processing Plant (CPP) in late 2025, with a ramp-up phase extending through 2026 and 2027. The updated guidance anticipates production of up to 50,000 pounds of uranium oxide (U3O8) in 2025, increasing to between 400,000 and 500,000 pounds in 2026, and 500,000 to 600,000 pounds in 2027.

This adjustment follows operational challenges including lower-than-expected wellfield flow rates and delays in CPP commissioning due to weather, supply chain issues, and equipment corrosion. The company has also optimized wellfield designs, reducing injection-to-production well spacing to improve flow consistency.

Strategic Contract and Infrastructure Moves

To align with the revised production outlook, Peninsula has terminated five of six existing uranium offtake contracts, incurring a US$5 million payment upon completion of the equity raise. This move eliminates take-or-pay obligations during the reset and ramp-up period, providing operational flexibility. The CPP, a critical asset enabling end-to-end yellowcake production, is now complete with regulatory approval secured. Commissioning is advanced, with first dried yellowcake expected by the end of September 2025.

The equity raise proceeds will also fund final CPP payments, ongoing wellfield development, exploration studies at Kendrick and Dagger, and corporate working capital, ensuring the company is well-positioned to execute its reset plan.

Leadership and Market Positioning

Peninsula’s refreshed management team, led by CEO George Bauk, emphasizes a disciplined and methodical approach to restoring sustainable production. The company highlights Lance’s status as one of the largest uranium in-situ recovery projects in the US, situated in a jurisdiction favorable for uranium mining. With the CPP operational and a strong capital base, Peninsula aims to re-establish itself as a key uranium supplier amid growing global demand for clean energy commodities.

Investor confidence is bolstered by the participation of respected funds like Tees River, which underscores the sector’s upside potential and Peninsula’s strategic importance in the US uranium supply chain.