Peninsula Energy Delays Lance Uranium Plant Start, Cuts 2025 Output Forecast

Delayed Commissioning Amid Operational Hurdles

Peninsula Energy Limited (ASX: PEN) has announced a significant delay in the commissioning of its Central Processing Plant (CPP) at the Lance Uranium Project in Wyoming, pushing full completion and first dry yellowcake production into the June quarter of 2025. This represents a shift from the previously anticipated March quarter timeline, attributed primarily to challenging weather conditions and supply chain disruptions.

The CPP’s elution, precipitation, and filtration circuits will be commissioned sequentially ahead of the first yellowcake drying unit, with ramp-up to higher production rates expected only after full commissioning. Since operations restarted in December 2024, uranium loading onto resin for elution has continued, with short-term storage solutions being explored to manage resin during the commissioning phase.

Financial and Production Guidance Implications

Reflecting the delay, Peninsula Energy anticipates revising its 2025 production guidance downward from the earlier forecast of 600,000 pounds of U3O8. The company also flagged a potential provision of up to US$5 million in its half-year financial statements related to possible delivery delays or rescheduling, though this provision could be reversed depending on ongoing customer negotiations.

Despite the setbacks, Peninsula maintains a solid cash position with US$44.9 million on hand as of December 31, 2024. The company is actively engaging with financial advisors and funding providers to secure additional capital aimed at reducing liquidity risks during the critical commissioning and ramp-up period.

Leadership and Stakeholder Engagement

Newly appointed Managing Director George Bauk is set to oversee the commissioning and ramp-up phases firsthand, arriving on site in early February 2025. The Peninsula board expressed frustration over the delays but emphasized ongoing collaboration with lead contractors Samuel Engineering to expedite project completion.

Peninsula also highlighted its strong relationships with long-standing customers in the US and Europe, underscoring a commitment to managing delivery schedules proactively despite the operational challenges. The Lance Project remains a cornerstone asset, positioning Peninsula as a key uranium supplier aligned with the global clean energy transition.