24-Apr-2020: Peninsula Welcomes US Uranium Recommendations
Peninsula Energy Limited (PEN) welcomes the key update provided by US Secretary of Energy Dan Brouillette in releasing the Nuclear Fuel Working Group’s (NFWG) strategy report.
In the report the NFWG, a collaborative interagency effort, outlines a comprehensive whole-ofgovernment strategy of actions that could revive the capabilities of the uranium mining, milling and conversion industries in support of the entire US nuclear industry. The strategy recognises that US national security is truly integrated with the health of the front-end of the nuclear fuel cycle.
Among the key recommendations from the NFWG strategy are:
Peninsula Managing Director and CEO Mr Wayne Heili noted that as and when implemented, the recommendations of the NFWG are expected to provide an immediate boost to US uranium producers such as Peninsula through supply agreements with the DOE. The policy recommendations would contribute significantly to the long-term health of the industry.
“This looks to be a very good outcome for Peninsula and all US uranium producers,” he said.
“As an initial step, the President’s FY2021 budget request for the DOE includes US$150 million per annum for the next 10 years for the purchase and development of a Uranium Reserve program. The DOE would purchase uranium from domestic uranium producers to develop a strategic stockpile that would be available for nuclear power operators in the event of a nuclear fuel market disruption. Based on the report recommendations, this would mean purchases of 17 to 19 million pounds of freshly mined uranium supplied by US producers including Peninsula.
“Peninsula is in an excellent position to rapidly re-start production from our two fully-developed mine units at our flagship Lance Project, using the low pH method, to supply these needs.”
--- ends ---
PEN is down -18% today on this announcement, so the market was clearly not as bullish on the implications for PEN as PEN's own management are. PDN (Paladin) are down -4.55%. VMY (Vimy) are flat. DYL (Deep Yellow) are down -2%. PEN (Peninsula Energy) are the only ones out of those 4 with their uranium mine(s)/project(s) located 100% in the USA.
Here's another couple of recent announcements by PEN (I do NOT hold PEN shares currently):
17-Apr-2020: Key Approval Paves the way for New Low pH Mining
06-Apr-2020: Operations Update
09-Sep-2019: Company Presentation - H.C. Wainwright Conference