Days after global uranium powerhouse Kazapromtom confirmed it would reduce its 2025 full-year production guidance, Peninsula Energy has reiterated desire for operations to resume at its Lance project in the US.
Days after global uranium powerhouse Kazapromtom confirmed it would reduce its 2025 full-year production guidance, Peninsula Energy has reiterated desire for operations to resume at its Lance project in the US.
Kazakhstan-based Kazapromtom, which is the world’s largest producer of uranium, told the market on August 28 that due to a long-running sulphuric acid shortage and production delays, it was required to reduce its annual guidance to 25,000-26,500 tonnes of uranium oxide.
Quite often, production updates from Kazapromtom or Canada-based Cameco cause a massive effect in the share price of West Australian-based uranium companies on the Australian Securities Exchange.
Following Kazapromtom’s production downgrade, Subiaco-based Peninsula’s shares grew by 10 per cent at the end of trade to 8.9 cents.
In contrast, Cameco’s announcement in February that it had decided to increase production resulted in Peninsula’s shares taking a hit.
Wayne Heili-led Peninsula reaffirmed its desire on Tuesday for operations to resume at Lance, its flagship project, located in the American state of Wyoming.
Aiming for a production restart in the fourth quarter of this year, the uranium developer, which has a market cap of $248.58 million, said it had adopted a 24-hour roster in order for ‘different construction disciplines to work continuously with minimal conflicts’ to be undertaken at the site.
Aside from construction activities, approximately 80 per cent of Lance’s wellfield infrastructure has been completed.
“The months ahead will be busy, but our team are ready, and we have our eye on the prize of becoming the next ASX-listed uranium company set to enter production,” Mr Heili said.
“The fundamentals and importance of uranium continue to strengthen, as countries across the globe embrace nuclear energy as a leading clean energy source to achieve decarbonisation targets.
“Importantly, Peninsula will be bringing Lance online at a time when the need for new sources of uranium could not be stronger.”
On July 31, Peninsula announced it had decided to revise its annual production guidance for the 2025 calendar year, from 1.1 million pounds of uranium oxide to 700,000-900,000 pounds – due to a lower initial production ramp up than first previously anticipated.
Peninsula last traded at 8 cents per share, up 2 per cent, as of 9.53am WST while the present uranium spot price is $US79.25 per pound.
