How Peninsula Energy’s Lance Project Is Powering Up Amid Uranium Price Surge

Operational Progress at Lance Uranium Project

Peninsula Energy Limited has reported significant operational advancements at its flagship Lance Uranium Project in Wyoming during the December 2025 quarter. The company successfully initiated acidification at Header House 14 within Mine Unit 4 (MU-4), a pivotal step towards first production from this unit. This development follows regulatory approval from the Wyoming Department of Environmental Quality and marks a critical milestone in Peninsula's Production Reset Plan, which focuses on low-pH in-situ recovery operations.

MU-4 is strategically important, expected to account for approximately 60% of Peninsula's uranium production forecast for calendar years 2026 and 2027. Early performance metrics from Header House 14 are encouraging, with flow rates averaging around 15 gallons per minute, surpassing the Production Reset Plan’s assumptions. Construction and acidification activities at adjacent header houses 15 and 16 remain on schedule, underpinning the company’s confidence in meeting its production targets.

Challenges and Mitigations in Mine Unit 3

While MU-4 advances, production from Mine Unit 3 (MU-3) experienced setbacks due to lower flow rates and well maintenance requirements. These issues stemmed from a pause in operations and solid build-up around wells, necessitating comprehensive maintenance programs. Peninsula expects MU-3 to resume production in February 2026. Importantly, the company anticipates that the strong ramp-up in MU-4 will more than offset these temporary challenges, keeping overall production on track.

Central Processing Plant Commissioning and Upgrades

The Lance Central Processing Plant (CPP) commissioning continued to progress well, with fine-tuning of elution, precipitation, filtration, and drying processes. A significant upgrade involved replacing corroded carbon steel piping with acid-resistant fibre reinforced plastic, completed on schedule and below budget. This upgrade is critical to support the increased flow from MU-4 and future satellite projects. The CPP’s design capacity positions Peninsula to scale production towards approximately 2 million pounds of dried yellowcake annually.

Financial Strength and Market Context

Peninsula bolstered its financial position by completing a A$69.9 million equity raise and fully drawing down its US$15 million Davidson Kempner debt facility, enhancing liquidity and funding flexibility. The company ended the quarter with US$31.8 million in cash. Market conditions are favourable, with uranium spot prices climbing above US$88 per pound, reflecting robust global nuclear fuel demand and accelerating government policies supporting nuclear energy as a clean, reliable power source.

Exploration and Future Outlook

Beyond Lance, Peninsula continues to advance its Dagger Exploration Project in Wyoming, reviewing drill data and initiating a scoping study to evaluate development options. This complements the company’s broader strategy to expand its uranium resource base and production capabilities. Safety performance remained stable with no lost time injuries reported during the quarter, underscoring operational discipline amid ramp-up activities.

Overall, Peninsula Energy’s December quarter report highlights a company steadily progressing its key uranium assets while navigating operational challenges and capitalising on a strengthening uranium market. The successful ramp-up at MU-4 and ongoing CPP commissioning are central to delivering on 2026 production guidance of 0.4 to 0.5 million pounds of uranium oxide.