PEN - Peninsula Energy to emerge stronger with shift to in-house production

(NewsDirect)

Peninsula Energy Ltd(ASX:PEN, OTCQB:PENMF) CEO Wayne Heili tells Proactive the company isadopting an accelerated plan for in-house resin processing and dryyellowcake uranium production, aiming to become a fully independentend-to-end producer of the partially refined ore.

This strategic shift isin response to the termination of its resin processing agreement withUranium Energy Corp (UEC). By implementing these capabilities from thestart of production, Peninsula will have greater independence and canexecute its business plan of expanded uranium production withoutrelying on external services.

Heili said, “Faced with the unexpected challengeof not being able to rely on the processing services of our long-termservice provider, we are now recalibrating our business plan tooperate independently from our industry peers and to bring forward thein-house capability to produce finished yellowcake.

“While a delay to our planned restart isdisappointing, we anticipate emerging with an expanded productioncapacity 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 fundingrequirements are underway and we will keep the market posted on keydevelopments as they occur.”

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Proactive Investors

JonathanJackson

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Jonathan@proactiveinvestors.com

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