Peninsula Energy shares were down 23 per cent to 6.4 cents early on Friday morning, as the uranium developer made a series of key announcements.
Peninsula Energy shares were down 23 per cent to 6.4 cents early on Friday morning, as the uranium developer made a series of key announcements.
Aside from confirming that Wayne Heili had advised company chair John Harrison of his intent to resign as managing director and chief executive next year, Peninsula confirmed it had downgraded the 2025 calendar year production ramp-up guidance at its Lance project in the US, citing now-rectified challenges in commissioning its new acid storage and delivery systems.
The Subiaco-based explorer told the market it was expecting to produce 600,000 pounds of uranium oxide, down from 700,000-900,000 pounds, for the remainder of the 2025 calendar year at Lance, with all additional guidance relating to the period withdrawn.
Its production guidance for the 2026 calendar year has also been tweaked from 1.4-1.6 million pounds to 1.1-1.3 million pounds – while its 2027 calendar year guidance has been increased from 1.4-1.6 million pounds to 1.5-1.7 million pounds.
Peninsula has worked hard to restart production at Lance, located in the state of Wyoming, throughout the 2024 calendar year, tapping investors for $105.9 million in May so activities could be accelerated at the site, coupled by generating sustainable cash flow.
As of October 31, the company said it had an unaudited cash balance of $US68 million, or $105.2 million, which would ensure it would be funded well following first production.
Despite the capital cost of Lance's central processing plant finishing $US9.5 million, or $14.7 million, higher than anticipated, the company said it is in a position to absorb the additional cost. The engineering, procurement and construction-based contract for the plant has also been converted into a fixed lump sum agreement.
Aside from being committed to finding an appropriate replacement for long-serving Mr Heili, Peninsula said it was in the closing stages of hiring a new chief operating officer, with the appointment tipped to be finalised in the next few weeks.
“Finally, after considerable reflection, I wish to share my personal desire to enjoy a more moderately paced lifestyle than that afforded by the responsibilities of my present position,” Mr Heili said.
“It has been my true privilege to work with the Peninsula team over the past seven plus years in tackling some very challenging technical and corporate issues.
“I believe that Peninsula is now in a far better position to succeed with its uranium production ambitions and that this is the proper time to hand the leadership reigns over to an individual with a more commercial skillset to match the company’s anticipated future needs.
“I look forward to maintaining a close relationship with the company while serving in an advisory capacity.”
Mr Heili’s official departure date from the role has yet to be confirmed, but he’ll begin his advisory role once the new MD and CEO begins.
“The company and its shareholders are indebted to Wayne for his leadership, technical acumen and professional discipline through a complex time in the company’s history,” Mr Harrison said.
“His in-depth knowledge and application of the science required to exploit the Lance projects ore body has enabled us to bring the company back into production with a fully modernised and expanded production facility.”
Mr Harrison, who has been non-executive chair of Peninsula since 2016, has previously indicated he will retire from the board next year.
Other long-serving directors who will depart include Harrison Barker and Mark Wheatley.
