Peninsula Energy Ltd.

Peninsula Energy Ltd. is a junior uranium producer headquartered in Perth, Australia, operating primarily in USA. The company's portfolio consists of 2 projects, comprising 1 operating mine and 1 development project. Key assets include Lance. The company is transitioning to become a fully independent, end-to-end producer by constructing an in-house processing and final product facility, eliminating reliance on third-party processors. This strategic shift was prompted by the termination of a long-standing processing agreement. The operational approach is centered on the In-Situ Recovery (ISR) method, uniquely employing a proven low-pH chemistry, a process associated with the lowest quartile of global production costs and for which the company holds the sole authorization in its primary operating jurisdiction. The central processing plant is undergoing a significant expansion, tripling its original size to include backend resin processing, elution, precipitation, filtration, and product drying circuits. This expansion not only provides complete independence in producing a final dry product but also accelerates the ramp-up to steady-state production. The enhanced plant capacity is designed to process future output from contiguous resource areas, which will benefit from a considerably lower capital cost profile as the full cost of the current upgrades is allocated to the initial life-of-mine plan. This positions the entity as an imminent and long-term producer with one of the largest ISR projects in its region.

The core strategy involves an accelerated transition to a fully independent, end-to-end production model, prompted by the termination of a third-party processing agreement. This pivot involves fast-tracking the construction of an in-house, backend resin processing and final product facility, a move designed to mitigate supply chain risks and accelerate the production ramp-up. Operational priorities emphasize the full implementation of a low-pH In-Situ Recovery process, an industry-leading, low-cost method validated by a successful field demonstration. Resource base expansion is pursued through systematic drilling campaigns, which recently increased the life-of-mine mineral resource estimate by 19.6%, and through strategic, low-cost acquisitions, such as the establishment of a new high-grade development project acquired over an 8-year period. The financial management approach is centered on maintaining a strong balance sheet, evidenced by two major equity raises totaling A$166 million, which are projected to fully fund the entity through to sustainable free cash flow. The company ended the fiscal year with zero debt and continues to explore further financing flexibility through discussions with government agencies and prospective debt providers. Market positioning is strengthened by securing long-term sales contracts covering approximately 40% of projected production over the next decade.

Executive leadership is headed by a Managing Director and CEO with over 35 years of industry experience, including successfully overseeing the design, construction, and ramp-up of a major in-situ recovery project. The board of directors is composed of 7 members, including 6 independent Non-Executive Directors, ensuring a strong majority of independent oversight. Governance is structured through several specialized committees, including an Audit and Risk Management Committee with 3 members, a Remuneration Committee with 4 members, a Nomination Committee with 3 members, and a recently established Sustainability Committee, all chaired by independent directors. The governance framework is reinforced by a formal Code of Conduct, a Share Trading Policy, and comprehensive Whistleblower and Anti-Bribery and Corruption Policies. The board's operating principles grant Non-Executive Directors the right to seek independent professional advice at the company's expense to support their duties. Management's approach is characterized by a focus on operational agility and strong financial stewardship, as demonstrated by the rapid re-engineering of the processing plant and the successful execution of two large capital raisings during the fiscal year.

The organization's commitment to safety is evidenced by receiving a regional Governor's Safety Award for the third consecutive year, marking 7 consecutive years without a lost-time accident involving its own employees. Environmental stewardship is demonstrated by a record of no reportable incidents or regulatory non-compliance during the fiscal year. A life cycle assessment was commissioned to quantify greenhouse gas emissions, providing detailed estimates for Scope 1, 2, and 3 emissions per unit of product. Governance in this area was strengthened with the establishment of a board-level Sustainability Committee in May 2024, tasked with oversight of health, safety, environmental, and community matters. Community engagement includes a long-standing scholarship program, which has awarded over 50 scholarships over the last decade to local students pursuing higher education in STEM fields and trades. The company also supports cultural heritage preservation by acting as a custodian for a website dedicated to an area of traditional and cultural importance. A formal Diversity Policy is in place, and while specific gender diversity targets have not been set due to the entity's size, the company reports that female employees constitute 10.7% of the total workforce.

The corporate structure was refined through the establishment of a new development project, which was assembled via a series of mineral rights and data acquisitions over an 8-year period. In March 2024, the company streamlined its portfolio by negotiating the exit of its 26% joint venture partners from a non-core project, for which it is now seeking regulatory closure. Key operational activities are conducted through its wholly-owned subsidiary, Strata Energy Inc. The company also utilizes a dedicated subsidiary, Peninsula Energy LTIP Pty Ltd, to administer its employee long-term incentive plan. The shareholder base was significantly broadened during the year with the addition of numerous international institutional investors through two major capital raisings. As of August 2024, major shareholders include HSBC Custody Nominees (27.083%), Citicorp Nominees (21.328%), and J P Morgan Nominees (13.101%), indicating a strong institutional presence. Another significant shareholder is Washington H Soul Pattinson and Company Limited, holding 3.419% of the shares.