Peninsula Energy (ASX:PEN) Settles Samuel EPC Claims and Updates Lance Project
Lance Project Update
Peninsula Energy is progressing with Phase II of the Central Processing Plant (CPP), with commissioning and handover activities set to begin in June. The company aims to produce dry yellowcake in the coming months.
Settlement with Samuel EPC
A settlement agreement with Samuel EPC has been executed, resolving all outstanding claims. The total settlement amount is US$4.75 million, including US$2 million in cash, US$2 million in equity, and a US$0.75 million cash milestone payment.
Reset Plan and Funding
The company is finalising revised production guidance for CY26 and CY27, which will lower expected production rates. Discussions are ongoing for interim debt funding and a capital raise to secure necessary funds for the reset plan. As of 31 May 2025, Peninsula Energy has a cash balance of US$13 million and no corporate or project finance debt.
Sales Contracts
Peninsula Energy is in advanced negotiations with offtake customers to amend sales contracts, which are critical to the viability of the reset plan.
Personnel Changes
David Hofeling has been promoted to General Manager of Operations, reporting to Managing Director and CEO George Bauk. Additionally, Frederic Guerin will step down as Chief Operating Officer in July due to personal reasons.
Executive Comments
Managing Director and CEO George Bauk stated, “We are being deliberate and disciplined in our approach to bring Lance back into production, with multiple workstreams underway to address the key matters necessary to set Peninsula up for success. We are making good progress on all these workstreams and are enthusiastic about being in a position to produce dry yellowcake in the coming months.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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