Debt Reduction Boosts Peninsula but Raises Share Dilution Concerns
Peninsula Energy has reduced its debt by US$4.25 million through a partial conversion of its convertible loan facility, issuing nearly 20 million shares to its lender. This move supports the ongoing restart and ramp-up of its Lance Uranium Project in Wyoming.
- Partial conversion of US$4.25 million under convertible loan facility
- Issued 19.9 million shares at A$0.30 per share to lender nominee
- Outstanding debt to lender reduced to US$8.3 million
- Supports Lance Uranium Project restart and Reset Plan execution
- Facility provided by Davidson Kempner affiliate Adare Finance
Debt Reduction Through Convertible Loan Conversion
Peninsula Energy Limited has taken a significant step to strengthen its balance sheet by partially converting US$4.25 million of its convertible loan facility into equity. This transaction, completed on 12 February 2026, involved issuing 19,875,125 new shares to a nominee of Adare Finance, an affiliate of global investment firm Davidson Kempner. The conversion price was set at A$0.30 per share, reflecting the price from Peninsula’s most recent equity raising.
Strategic Support for Uranium Project Restart
The convertible loan facility was originally established in July 2025 as part of a broader funding package to support the restart of Peninsula’s Lance Uranium Project in Wyoming, USA. The project successfully resumed production of dried yellowcake in September 2025 and is currently ramping up under a revised operational plan. This partial conversion reduces the company’s outstanding debt to Adare Finance to US$8.3 million, easing financial pressure as production scales.
Implications for Peninsula’s Capital Structure and Market Position
By converting debt into equity well ahead of the facility’s maturity date, Peninsula Energy is not only reducing its leverage but also aligning its capital structure to better support ongoing operations and growth. The involvement of Davidson Kempner, a firm managing over US$35 billion in assets, underscores confidence in Peninsula’s long-term strategy and the potential of the Lance Project. Positioned as one of the largest independent uranium operations in the US, the project is strategically important amid growing demand for domestic uranium supply in a clean energy future.
Looking Ahead
While the conversion reduces debt, it also dilutes existing shareholders with the issuance of nearly 20 million new shares. Investors will be watching closely to see how this capital restructuring impacts Peninsula’s financial health and production ramp-up in the coming quarters. The company’s ability to execute its Reset Plan and optimise production sequencing will be critical to delivering value from this strategic move.
Bottom Line?
Peninsula’s debt reduction signals financial prudence as it advances its uranium production ambitions.
Questions in the middle?
- How will the remaining US$8.3 million debt be managed or converted?
- What impact will share dilution have on Peninsula’s stock performance?
- How quickly can the Lance Uranium Project reach full production capacity?
