Peninsula Energy to emerge stronger with shift to in-house production
Melbourne, Victoria
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August 08, 2023 01:30 PM Eastern Daylight Time
Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) CEO Wayne Heili tells Proactive the company is adopting an accelerated plan for in-house resin processing and dry yellowcake uranium production, aiming to become a fully independent end-to-end producer of the partially refined ore.
This strategic shift is in response to the termination of its resin processing agreement with Uranium Energy Corp (UEC). By implementing these capabilities from the start of production, Peninsula will have greater independence and can execute its business plan of expanded uranium production without relying on external services.
Heili said, “Faced with the unexpected challenge of not being able to rely on the processing services of our long-term service provider, we are now recalibrating our business plan to operate independently from our industry peers and to bring forward the in-house capability to produce finished yellowcake.
“While a delay to our planned restart is disappointing, we anticipate emerging with an expanded production capacity and a lower operating cost profile because of this endeavour. We are also evaluating an accelerated schedule towards full capacity. Analysis of the impact of this action on operational plans and funding requirements are underway and we will keep the market posted on key developments as they occur.”
Contact Details
Proactive Investors
Jonathan Jackson
+61 413 713 744
