Ann: Uranium Purchases Secure US$6-8M Cash Generation in CY2021, page-4

Cash flow is good. Question is if PEN, Kazakhstan, PDN and Cameco and everyone else it seems are supplying contracts with purchased of uranium on the Spot market. The spot market has jumped by about 30% from Jan2020 to Jun2020. What if it jumps again. Pen said the contract is fixed. I assume the allowed for a big jump in the spot price. I hope it is enough to cover the supply required.

" underpins Peninsula’s forecast net cash margin of US$6 million to US$8 million on uranium sales for next year based on the difference between the purchase pricing and the sales price computations of the Company’s agreements with customers." The Company Briefing on 04 Jun 09:34 has $51-53 /lb U308 leaving a margin of about 50% for the contract for 5.5M lb. Page 17 shows 750,000 lb with a purchase fixed price for us at <US27/lb and 450,000lb to be delivered by us in 2020 and 2021 prior to this current announcement.It also states '6 months to restart production" only starting when the price makes production viable. I am Assuming a viable price of about $40-50 before anyone starts or restarts mining.

The Oil Price trap from a few months ago might see the reverse effect on Uprice fixed supply contracts based on spot price. Leave us possibly forced to buy above sale contract prices. Hope PEN has not mucked this up fixing the 2021 contract price. Every miner needs the price to rise to above the cost of production.

Oh, oh, oh, how was I supposed to know
That you were o-o-over me? I think that I should go (go!)And something's telling me to leave, but I won't
'Cause I'm damned if I do ya, damned if I don't
It took a lot to take you home One stupid call and I end up alone