ASX-listed Peninsula Energy has announced a new sales agreement for the supply of 1.2-million pounds uranium yellowcake from its Lance projects, in Wyoming, to European nuclear fuel buyer Synatom.
The agreement runs over six years, starting in 2028.
“The strength of the uranium market dynamics in recent months has allowed Peninsula to consider adding sales commitments with improved pricing structures to our sales portfolio,” states MD and CEO Wayne Heili.
The pricing structure is a blended approach, including both base price and market-priced components. The resulting pricing is projected to be well above the forecast production costs at Lance, as reported in the August 2023 life-of-mine model.
The new contract is estimated to generate gross revenue of between $88-million and $117-million over the term.
This new sales agreement brings the company’s total contractual sales obligation over the upcoming ten-year period to six-million pounds. The Lance project is projected to produce about 14.8-million pounds of uranium over the same six-year period.