Kalkine: ASX300 Uranium Play Peninsula Energy Advances Lance Project with EPC Dispute Resolution

June 12, 2025 01:21 PM AEST | By Team Kalkine Media

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Kalkine: ASX300 Uranium Play Peninsula Energy Advances Lance Project with EPC Dispute Resolution — Image source: shutterstock

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Highlights

CPP Phase II commissioning scheduled for June 2025

EPC dispute settled with clear terms and timeline

Revised production strategy amid organisational shifts

Peninsula Energy (ASX:PEN) is accelerating developments at its flagship Lance Project in Wyoming, marking notable milestones as the company edges closer to a return to uranium production. With Phase II construction of the Central Processing Plant (CPP) nearing completion, commissioning is expected to begin in June 2025, representing a crucial inflection point for the ASX300-listed uranium developer.

The company is strategically navigating several key workstreams to ensure a smooth path forward. A major recent development includes the successful resolution of its engineering, procurement and construction (EPC) dispute. Peninsula Energy reached a formal settlement with its contractor, resulting in a US$4.75 million payment package—comprising US$2 million in cash, US$2 million in shares (pending shareholder approval), and an additional US$750,000 milestone payment upon the delivery of dry yellowcake by 30 June 2025.

Organisational Restructuring and Capital Strategy

In parallel with infrastructure progress, Peninsula has taken steps to align its corporate structure and financing roadmap with the updated project trajectory. The company has implemented organisational changes, including a leaner team and leadership transitions—most notably the promotion of David Hofeling to General Manager of Operations, and the impending departure of Frederic Guerin as COO, with ongoing talks for a continued advisory role.

To fund the next phase of development, Peninsula is actively exploring interim debt funding and a potential capital raise. The company had US$13 million in cash reserves as of 31 May 2025. Revised production guidance for 2026 and 2027 is also underway, signaling lower expected output than previously forecast.

Offtake Agreement Revisions and ASX Suspension

Given delays in CPP delivery and changes to life-of-mine projections, Peninsula is renegotiating its offtake agreements. Despite the operational momentum, the company’s shares remain in voluntary suspension as it finalises these contract adjustments and production guidance updates.

Peninsula Energy’s positioning within the ASX300 highlights its relevance in Australia’s evolving uranium landscape. As the company progresses towards yellowcake production, investors and industry observers alike are closely watching its execution strategy and readiness to resume output at the Lance Project.

This series of advancements reinforces Peninsula Energy’s intent to be a meaningful contributor to the uranium supply chain, with a focus on disciplined execution and financial restructuring.

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