You have to be brave to be in Uranium project development companies right now I reckon @raymon68 - and while Peninsula Energy (PEN) is a uranium company that plan to provide US production and direct market exposure (the big positive, with the US wanting to be as self-sufficient as possible with all of their critical minerals - so buying USA product wherever possible and supporting US production), PEN's 100% owned Lance Projects in Wyoming were due to re-commence production in December 2024 following a central processing plant capacity expansion construction project and have clearly encountered issues, including a dispute with their EPC contractor ("Samuel EPC") which has now been settled (no details shared about that settlement). Which has all resulted in management turnover and funding / future profitability questions.

They need a lot to go right for them to be viable - i.e. worth anything:

They are calling out the need for successful renegotiation of contracts being critical: "Advanced negotiations with offtake customers regarding amendments to sales contracts which are critical to the viability of the reset plan"

They are lowering production guidance, assuming they can produce at all: "Revised production guidance is being finalised that will lower the expected production rates in CY26 and CY27 from previous expectations, with outcomes to be released as soon as practicable following conclusion of discussions with customers and go-forward funding"

It's clear that to go ahead they need their offtake contracts ammended (to be more favourable to PEN), and they need to finalise further funding AND do another CR: "The Company is currently in discussions with several parties for interim debt funding to allow time for all workstreams to be finalised. In parallel, the Company is working on a capital raise to ensure sufficient funds are available for the implementation of the plan. Such raise is expected to occur once the workstreams outlined in this announcement have been finalised."

And while they do not have current debt right now, they are very low on cash: "As at 31 May 2025, the Company had a cash balance of US$13million (unaudited) and nil corporate or project finance debt."

So, problem one is the commodity: Uranium, with an army of shorters always waiting to pounce on any Uranium company but ESPECIALLY those that look to be in any sort of trouble, or need a number of things to go right for them to be viable.

Have a look at today's top 20 most shorted ASX companies as listed on Shortman.com.au (data accurate as at 5 trading days ago, i.e. there's a T+4 lag):

The top 5 are all either Uranium or Lithium companies, and half of the 20 (10) are either Uranium or Lithium companies.

Uranium: BOE, PDN, DYL, SLX, BMN & LOT.

Lithium: MIN, PLS, LTR & IGO.

Sure, there's money to be made when the shorters get it wrong and the company's share price rebound (rise) is turbocharged by a "short squeeze", but these shorters are not always wrong - they are often correct in that the companies they are targeting do go lower much of the time. There's good reasons why uranium and lithium companies feature so heavily in the above list of the most shorted stocks on the ASX.

And here's the short position chart for PEN (again, accurate up to around 5 trading days ago):

5.2% sold short.

That's the first problem, a sector that is usually deeply out of favour with the majority of market participants.

Second problem is the economics of PEN's own project, as detailed further up (and in their announcement today: PEN-Company-Update-and-Samuel-EPC-Settlement.PDF) which require things to go right for them for the project to be viable. Things like the successful renegotiation of existing offtake agreements.

Third problem is they haven't locked in the funding they require yet, as also detailed above and in today's announcement.

If you take it all together, even if you're bullish Uranium, and not many people are, but even if you are, is this the best company in the Uranium sector to have exposure to?

Many people would say, "No."

Hence their SP trajectory over the past year:

Last issue is that they've been in a trading suspension since April 23rd, so if you hold them you can't sell them, and if you don't hold them, you can't buy them.

Very High Risk IMO. Could be worth nothing, or something. Time will tell.