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matyd

4,147 Posts.

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04/05/21

18:26

Post #: 52933880
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Originally posted by U92Bull: ↑

https://youtu.be/hUFsVS0gtiA
Here is yet another great coverage of Peninsula with 16 Questions Derek from Financial Fortune asked Wayne!
Introduction
#1) Peninsula Energy Pen Facts/Stats
16 Questions for CEO of Peninsula
History of Paladin and Peninsula
Bloomberg stock targets for Peninsula
Peninsulas assets and future

(D)1. Capital Allocation- Where will the coming cashflow go to build shareholder value?

(W) The contracts are providing cashflow which is being used to conduct the low pH field demonstration and other project optimization activities. Our annual budget is designed around our income so we don’t anticipate doing capital raises to just keep the lights on. We will likely look to the capital markets when we are preparing to resume production at Lance.

(D) This is my reaction to the answer but I did not send my reaction to Wayne.
This is very rare to have a company in Uranium able to do this, a lot better than doing capital raises. I really like this and so will future and current shareholders. Lance will be first to be using low ph isr and with little capital needed to restart.

(D) 2. CEO and management with skin in the game- If you can answer Do you or the board plan to buy shares at these undervalued prices?

(W) I am personally heavily invested in PEN. It is of course my #1 holding and over the past four years I have gone from zero to nearly 8 million shares. I have put my own money in and I have chosen at times to take shares in lieu of cash as compensation. I fully participated in the June 2020 rights offering – again using my own money to invest.

(D) I really like that Wayne has high conviction like myself and others. He has more shares he loaded with his own funds than half of us put together. Very rare for this as well.

(D) 3. Acquisitions- Will $PEN look to get another project in the U.S. Canada or Australia like you did in the past in Africa?

(W) PEN is investigating growth through acquisitions. Our team has been working on a project of interest to us and we will see where that goes in time. It’s good to keep our overhead low but it is also good to have some growth opportunities.

(D) This is big news, I really wonder what the project could be I agree with low overhead but having something on the table for the future will move the stock price huge! I feel it could be working with UR energy…..

(D)4. Smart Leverage managing debt - With having a successful CFO , how might he repeat his success he had at Paladin growing it from 2 mil mc to 4 billion and how might they do this transitioning from a Jr producer to a top tier?

(W) Ron is a top-notch guy and we are fortunate to have him managing our financial affairs. He knows what it takes and how to get there.

(D) Glad Wayne acknowledged this as its not promoted enough, this CFO is the MVP imo and one of the best performing CFO’s for a stock in that little time, if Fukushima didn’t happen Paladin likely would be bigger than Cameco and Kazatomprom.

(D) 5. Stock Buybacks - Will you look to upgrade to NYSE and possibly do a stock buyback or RS to get eligible? I say this because I have got about 500+ messages, Comments and emails from investors wanting to invest in $pen but only can invest on the NYSE etc.

(W) Even before my arrival, the company has coveted having a North American listing. I pushed for the OTC upgrade knowing that a proper listing is very expensive and time consuming when you also consider SEC compliance with SOX and all our technical reports (the cost was a big factor). The OTC has helped us open access to a broader base without the exchange and compliance cost. Still, taking a systematic approach, I see the OTC move as a stepping stone to a future listing on NYSE or NASDAQ. Yes, we will have to do something to get our share price eligible. There are a few ways to do that including reverse splits.

(D) I really like that Wayne is a supporter of the U.S. listings of PEN, I feel as the sp moves they can get onto the NYSE, also could do a merger with UR energy ? He is right it costs money and they are giving us opportunities without breaking the bank. Very smart on their end.

(D) 6. Minimize taxes- Can $pen look to get tax breaks from being a clean U.S. Energy producer? What type of programs could the government offer?

(W) PEN has a large investment in the US that has not been recouped. We are not in the position of paying income taxes now or in the near future. Nuclear and nuclear fuels are getting good support within the clean energy community and from the Biden administration.

(D) This is great news to me, I agree that the Biden admin is more pro nuclear than I thought. I also like that they will be the first in Low ph.

(D) 7. Decentralized organizations- With having a big supporting Wyoming Senator do you see any issues with getting the final production Low PH ISR revised permits,? What if Low PH does not workout in the tests? WIll you go back to other methods?

(W) We are fully permitted for low pH now. We routinely seek amendments (like for oxidant) but there is little regulatory risk as those are only for identified improvements and optimizations. The State of Wyoming handles all of our permitting, no Federal interference.

(D) This is probably one of the most important things so far. Getting that permit is huge and they are fully permitted. Also great the feds are not involved and they have massive state senator etc support.

(D)8. Cash Flow focus - With all this cash flow coming in how might they invest it to build shareholder value and how can $pen continue to cut costs like you have during covid 19?

(W) Similar to #1. We have significantly reduced our cash burn rate but we are keeping a decent staffing level to conduct the field optimization testing. We could cut further if we were to go into a full on care and maintenance mode.

(D) This is great as they are looking to boost shareholder value, all other Uranium producers burn too much cash, pen is led by a great team Wayne and Ron are top notch.

(D) 9. Getting into Production/Costs/Location Will the new low ph ISR bring the measured Uranium numbers up?

(W) The laboratory testing indicates that low pH generates higher concentrations in the production solutions. We are conduction a field demonstration to confirm

(D) The lab tests are very promising, double the Uranium, faster, cheaper long term etc.

(D)10.I saw Strata say Lance has an estimated 163 Mlbs U3O8, Is this still possible with recent data?

(W) The exploration potential for Lance has not changed and the number is in the range you site. That is not a JORQ compliant resource.

(D) This is Huge and overlooked as most only look at $Pen having 53Mlbs of U308 when they could have triple 163Mlbs at Lance with Low PH.

(D)11.Will Low PH ISR change a lot of the original projected numbers once in full operation?

(W) The 2018 Feasibility Study remains our best assessment

(D) Looking forward to the results and study.

(D)12.With Lance being such a low cost project with a massive upside, where might they look to get the capital to restart low ph?

(W) All options are on the table. Equity, debt, JV partnership, etc

(D) Glad they still have these options with 0 debt currently, like partnership too.

(D)13. After doing some research I found that paladin produced (270,000) lbs in 2007 at the peak of its stock price and Uranium's peak price, this is far less than $pen could start producing if everything works out. Your thoughts on how the market could value $pen in the same situation.

(W) Prices peak when production rates are low. PEN is undervalued (IMHO) and there are multiples to be realized under the right conditions.

(D) I too believe once valued by the market the multiples will be double digits from where they are now.

(D)14. Do you plan to hold excess Uranium like some of the explorers are doing or do you think it creates a false supply surplus when you go to negotiate long term contracts?

(W) PEN is not planning to get involved in the speculative game that some of our peers are in. We do purchase uranium to meet a portion of our contractual deliveries. The difference is that we have a home for the yellowcake that we buy and we know about what we will get for it.A company’s shares can go up with the price of uranium without owning physical U.

(D) I am glad they are keeping their balance sheets light and only using it to fulfill contracts. Cameco also believes in this , good idea for producers not to create a fake supply surplus outlook. Very interesting they have a home for it vs the others that won’t mostly meaning others dont have contracts yet, I wonder why? I agree all boats will rise with the tide buy Pen will rise a lot more.

(D)15. Having a former Nuclear Fuel Buyer on your board does he feel that a lot of future contracts could go to pen especially in the U.S. because of its low pH and cost?

(W) Mr. Barker is good at keeping our market expectations moderated with the perspective of someone who has been on the other side for a very long time. He brings a solid reputation and credibility to our sales approach. His relationships across the industry cannot be easily duplicated.

(D) A lot of people undervalue this position, I don’t know of any other companies with this type of person on their board, I wonder why Penmf got these early contracts like paladin did before they got into full production? It's always about who you know not what you know and Mr. Barker knows a lot of utility fuel buyers and knows that side better than any new jr uranium company could.
(D)16. Is there an update on the resin upgrade needed for the low Ph?

(W) That information will be updated in the future, most likely in the context of an updated Feasibility Study. Resin evaluations are one of the focal points of the field demonstration.

This question was before they did the low ph release! Cheers!

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Good find. Cheers

PEN Price at posting: 13.5¢ Sentiment: Hold Disclosure: Held
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