Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) has selected Samuel Engineering, Inc and Samuel EPC, LLC as engineering, procurement and construction (EPC) services contractor for the expansion of the Ross Central Processing Plant at the Lance Uranium Project in Wyoming, US.
The company says its contractor is intimately familiar with the project and site construction requirements as Samuel’s Wyoming and Denver offices provided design engineering and advanced procurement services for Lance.
Samuel is prepared to mobilise to site and begin construction activities immediately – key work streams remain on track to restart production before the end of the year.
Preparing for independent uranium production
“The company is in a strong position as we progress towards the production restart at Lance,” Peninsula Energy managing director and CEO Wayne Heili said.
“The appointment of Samuel as our engineering, procurement and construction lead is an important step forward in preparing Peninsula to be a fully independent uranium producer.
“Concurrently, the Peninsula team is actively preparing new and existing wellfields and auxiliary surface facilities for the resumption of production.
“We eagerly look forward to the completion of the plant construction efforts which will conclude our pre-production activities.”
Budget update
The company has also provided a budget forecast update, notifying that the overall group funding requirement to achieve positive free cash flow has increased by US$5 million to US$100 million.
Pre-production capital requirements driven by plant capital estimates have also increased by about $US20 million compared to original estimates.
Peninsula says the additional plant capital requirements can be largely offset when refreshing cash flow model assumptions, including uncommitted sales revenues which have improved with the uranium markets, and other capital expenditure and operation expenditure model assumptions.
Despite the changes, PEN’s updated cash flow forecast continued to point to sustainable positive free cash flow by the third quarter of 2025.
Peninsula held a strong cash balance of US$49.6 million as of the end of March, more than enough to continue to pursue its uranium production ambitions in Wyoming.