Peninsula Energy (PEN) H2 2025 earnings summary

Executive summary

• Faced significant operational challenges in restarting the Lance Project, including construction delays, lower wellfield flow rates, and corrosion issues, but implemented a reset plan and resumed production using low pH ISR extraction.

• Leadership transition included a new CEO, CFO, and board renewal, strengthening governance and operational oversight.

• Terminated the majority of long-term uranium sales contracts to reduce risk and secure funding for the reset plan.

• Produced first drum of yellowcake post-year-end, positioning for ramp-up in 2026.

Financial highlights

• Recorded a consolidated net loss of US$12.5 million for FY2025, similar to the prior year.

• Revenue was US$11.9 million, down from US$40.4 million in FY2024, reflecting lower sales volume and contract terminations.

• Significant non-cash gain of US$10.4 million from reversal of derivative liabilities after contract terminations.

• Cash outflows from operations totaled US$8.8 million; invested US$81.9 million in project development.

• Net assets decreased to US$170.1 million from US$185.2 million, mainly due to project investment and contract settlements.

Outlook and guidance

• Revised Lance Project production guidance: up to 50,000 lbs in CY2025, 0.4–0.5 Mlbs in CY2026, and 0.5–0.6 Mlbs in CY2027.

• New life-of-mine plan expected in CY2026 after operational data from new wellfields.

• Uranium market outlook remains strong, with supportive policy and demand drivers in the US and globally.