Peninsula Energy: Mid-2023 Production, Still the Best Risk/...

Peninsula Energy: Mid-2023 Production, Still the Best Risk/ Reward Dynamics Among US ISR Peers

https://www.holdcomarkets.com/post/peninsula-energy-mid-2023-production-still-the-best-risk-reward-dynamics-among-us-isr-peers

We continue to target a 1.30x NAV8% multiple based on a LT uranium price of $70/lb. This results in a 12 month target which would imply +146% upside from the most recent close. Shares of Peninsula Energy currently trade at a 0.53x discount to our calculated NAV8% estimate.

Peninsula Energy's current 0.53x P/NAV discount is by far the largest discount within the US ISR peer group. This includes enCore Energy (currently trading at a P/NAV of 0.68x) and Ur-Energy (P/NAV of 0.70x). We feel that a 1.30x NAV multiple is justified on 2 fronts: Management has a successful track record (multiple decades) of developing ISR assets into production. Peninsula Energy’s current CEO was brought on board after having successfully de-risked, developed and put into production the ISR resource at Ur-Energy’s Lost Creek operation. Secondly, the upside from the large resource at Barber is essentially carried for free, but will very likely extend the Lance LOM and annual production rate to the licensed 3.0M lbs per year. If licensed capacity production is achieved, Lance would thus become one of the largest uranium producing properties located in the US.