News: Peninsula Energy shares rally to fresh 12-month high

Peninsula Energy's (ASX:PEN) shares rallied another 7.1% to close at $0.03 yesterday, after hitting an intra day high of $0.031, which was a fresh 12-month high for the company.

Over 30 million shares changed hands worth around $900,000, which followed on from 24 million trading the previous session.

The valuation of the company has almost doubled in the past two months.

Peninsula is on track to become the next ASX-listed uranium producer, and is on budget and on time for the landmark first production in the second half of 2015 from its Lance Projects in Wyoming, U.S.

In May, Peninsula started the application process to list its shares on the New York Stock Exchange (NYSE-MKT), giving it access to the world’s largest capital market and institutional fund managers.

The impending listing on the NYSE-MKT is one of the reasons that institutional fund managers and overseas investors have an increased appetite for Peninsula.

Peers listed on a U.S. stock exchange have increased liquidity compared to their non-U.S. exchange by a factor of 4 to 7 times and outperform their non-U.S. listed companies by 2-3 times enterprise value per pound of measured and indicated resource.

The Lance Projects are fully permitted for U3O8 production at the rate of 3 million pounds per year, and in Stage One will produce 500,000 - 700,000 pounds of U3O8 per year, constituting 10% of U.S. U3O8 production.

The project is scalable and can ramp up production to maximum permitted levels (3,000,000 pounds of U3O8 per year) as demand and pricing for U3O8 increase and maintain a mine life that will span many decades.


Valuation

Proactive has estimated a 12-18 month price target of $0.16, and initiated a Speculative Buy on the company in January 2015 when the stock was trading at $0.019.

Based on the close of $0.03 yesterday, Peninsula is up 58% since our Buy Recommendation.