Accumulation Time - Huge Upside Potential, page-39

From the quarterly

"On 31 January 2018 the Company signed binding agreements to sell a portion of its interest in an existing long- term uranium concentrate sale and purchase agreement for net cash consideration of US$19.0 million (Contract Sale). Gross proceeds from the Contract Sale were US$22.8 million which includes a VAT amount of US$3.8 million. The VAT amount is to be remitted by the Company to the relevant taxing authority during the June 2018 quarter.
Under the terms of the Contract Sale, Peninsula sold to a third-party a portion of its delivery commitments under two (2) existing uranium concentrate purchase and sale agreements. The volume of U3O8 delivery obligations sold totals 935,000 lbs. The delivery commitments were previously scheduled to be fulfilled between 2018 and 2021.
Proceeds from the Contract Sale were received in full by Peninsula on 31 January 2018.
As part of the Contract Sale, Peninsula also sold its entire interest in an agreement to purchase 900,000 lbs U3O8 between 2018 and 2020. This purchase commitment is no longer required as uranium purchases under this agreement were intended to provide the bulk of the material for the delivery commitments that have now been sold.

Sales and Marketing
Sales during the quarter totaled 125,000 lbs U3O8 (85,000 lbs from Lance, 40,000 lbs from market purchases) at an average price of US$43.34 per pound U3O8 for cash receipts of US$5.42 million.
Following completion of the Contract Sale on 31 January 2018, Peninsula has up to 6.5 million lbs of U3O8 remaining under contract for delivery to major utilities located in the United States and Europe through to 2030 at a weighted average delivery price of US$51-53/lb U3O8. Within the quantity of 6.5 million lbs U3O8, 4.6 million lbs U3O8 are committed quantities for delivery through to 2030. Up to 1.9 million lbs U3O8 are deliveries that are optional, at the election of the respective customers, to be delivered between 2021 and 2026.These contracts provide a substantial earnings stream to the Company whilst allowing it to preserve significant quantities of planned U3O8 production for contracting during future periods.
The Company has worked closely with its existing customers during the quarter to modify certain contracts to include delivery contract provisions that provide flexibility to the Company during the time it may take to receive authorisation for and to ramp up production under the low pH operational plan. As they stand today, significant portions of the committed deliveries can be sourced from either production or market purchases at the Company’s election without a price variation. The Company intends to utilize these contract flexibilities to manage cash balances and inventory levels over the next several years.
The Company continues to engage with its existing and potential new customer base regarding possible new long- term uranium concentrate sale and purchase agreements targeting pricing mechanisms that would support increased production scenarios under the planned transition to low pH ISR mining at the Lance Projects."