Peninsula Energy Agrees US$4.75M EPC Settlement, Lowers 2026-27 Production Forecast
Peninsula Energy has resolved outstanding claims with its EPC contractor and is advancing a reset plan for its Lance uranium project, including revised production guidance and funding strategies.
- Settlement agreement executed with Samuel EPC for US$4.75 million
- Phase II of Central Processing Plant nearing commissioning
- Revised production guidance expected to be lower for 2026 and 2027
- Discussions underway for interim debt funding and capital raise
- Organizational changes including CFO assuming operations role and COO stepping down
Progress on Central Processing Plant Phase II
Peninsula Energy has reported significant progress on the construction of Phase II of its Central Processing Plant (CPP) at the Lance Project in Wyoming. With all major equipment installed, commissioning and handover activities are scheduled to commence imminently. This marks a critical milestone as the company moves closer to resuming full uranium production.
Settlement with Samuel EPC
The company has formally settled all outstanding claims with its primary construction contractor, Samuel EPC, agreeing to a total settlement of US$4.75 million. This includes a mix of cash payments and equity issuance, subject to shareholder approval and share price conditions. The settlement aims to maintain project momentum and ensure timely completion of the CPP Phase II.
Reset Plan and Revised Production Outlook
Peninsula Energy is finalizing a reset plan that includes revised production guidance for calendar years 2026 and 2027, which is expected to be materially lower than previous forecasts. This adjustment reflects a more cautious approach to wellfield development and operational planning. The company is actively negotiating amendments to sales contracts with offtake customers, which are pivotal to the viability of the reset plan.
Funding and Organizational Changes
To support the reset plan, Peninsula is in discussions with multiple parties for interim debt funding and is preparing for a capital raise to secure sufficient resources. As of 31 May 2025, the company held US$13 million in cash with no corporate or project finance debt. Organizationally, David Hofeling, the current CFO and General Manager at Strata Energy, has been promoted to General Manager of Operations, while COO Frederic Guerin will step down in July for personal reasons. These changes aim to streamline operations as the company prepares for production ramp-up.
Ongoing Challenges and Suspension Status
Despite progress, the company continues to address challenges such as corrosion detected in Phase I piping, with mitigation plans expected in the third quarter of 2025. Peninsula Energy’s shares remain suspended on the ASX pending finalization of sales contracts, production guidance, and financial plans. The company emphasizes its commitment to a disciplined and deliberate approach to bringing Lance back into production.
Bottom Line?
Peninsula Energy’s next moves on production guidance and funding will be pivotal for its path to uranium output and market re-entry.
Questions in the middle?
- What will the finalized production guidance reveal about the Lance Project’s near-term output?
- How will the planned capital raise and interim debt funding impact Peninsula’s financial stability?
- What are the potential operational risks related to the detected corrosion and its remediation timeline?
