"We initiate coverage on Peninsula Energy as a BUY, Speculative Risk, and A$0.07 target price. We believe that investors should hear a lot more about Peninsula as it transitions into a uranium producer. We see considerable share price appreciation potential as milestones are met and the stock re-rates as it approaches production and becomes better known by investors. This is where much opportunity lies as comparatively it has a market cap half of its peers, but despite this, it has highest resource base, highest peak production rate, longest mine life, and cheapest valuation on an EV/lb basis. Early Blackrock investment has allowed earthworks to begin, and with a very experienced operations and development team in place (Cameco and Uranium One), a Draft Source Material License in hand, the Final License is due in Q1/14 to allow full scale construction, pending financing. Dundee visited site over two days in January 2014."
PEN Price at posting:
2.6¢ Sentiment: None Disclosure: Held
