Key highlights

  • Peninsula recorded a US$50.1 million non-cash Impairment of resource assets, mainly legacy wellfield assets, and a loss of US$77.1 million for FY2026.
  • Mine Unit 4 acidification began in late December 2025, with early uranium head grades reported above those of earlier alkaline operations but flow rates difficult to maintain.
  • The Lance Project Mineral Resource was reported at 59.0 Mlbs U3O8, and CY2026 production guidance of 400,000–500,000 lbs was withdrawn.

During the Trading session on 21 October 2026, Peninsula Energy Ltd (ASX:PEN) was priced at $0.20, up 2.56%. The S&P/ASX 200 Energy [XEJ] index traded at 11,167.20 (+0.014%, +1.60 points) while the S&P/ASX 200 [XJO] was at 8,806.90 (−0.11%, −10.00 points) at 2:32 pm GMT+11. On the energy-market side, Brent Crude oil added 0.60% to US$109.48, with continued Middle East friction involving Iran, Saudi Arabia and Yemen’s Houthis in view, while a reported draw on US oil stockpiles added to signs of tightening supply. Peninsula is a uranium producer that operates the Lance Project, an in-situ recovery operation in the United States.

What Peninsula Energy does

Peninsula Energy Limited is an ASX-listed uranium company whose principal asset is the Lance Project, an in-situ recovery uranium operation in Wyoming in the United States. The project returned to production using an expanded Central Processing Plant and new wellfields, and it moved from an alkaline leach basis to a low-pH, mildly acidic leach basis. Peninsula holds uranium sales contracts and reports its results in US dollars.

FY2026 financial results

In its Annual Report for the year ended 30 June 2026, Peninsula reported a loss for the year of US$77.1 million, compared with US$12.5 million in the prior year. The result included a US$50.1 million non-cash impairment of resource assets, which the company said principally relates to legacy wellfield development Assets from Mine Units 1, 2 and 3, together with certain historically capitalised costs.

Revenue was US$654 thousand, compared with nil in the prior year. The company said the impairment reflects its decision to focus technical, operational and Capital resources on Mine Unit 4 and future mine development.

Mine Unit 4 and wellfield performance

Peninsula reported that it completed capital works on the Central Processing Plant expansion and commenced operations in Mine Unit 4, with acidification of Header House 14 starting in late December 2025. Flow rates during initial acidification were above those at Mine Unit 3, but as acidification progressed, injecting both sulphuric acid and hydrogen peroxide appeared to cause gas build-up in the formation and precipitation of solids, which reduced flow rates and increased wellfield maintenance.

The company said it has modified acidification procedures and maintenance practices for later header houses, including Header House 16, and noted that results are measured in months. It reported that uranium head grades in Header Houses 14 and 16 have been materially above grades from earlier alkaline operations, and described production performance over the year as disappointing.

Guidance, resources and financing

The report records that CY2026 production guidance of 400,000–500,000 lbs of U3O8 was withdrawn, and that a revised plan was announced in July 2026. In an announcement dated 25 September 2026, the company reported that the Lance Project Mineral Resource increased to 59.0 Mlbs U3O8, up 1.0 Mlbs from the previous estimate, with the Ross Area resource up 15.6% after drilling in Mine Unit 4.

On funding, the report describes a convertible Debt Facility with Washington H. Soul Pattinson and a financing package that included an entitlement offer. It states that debt owed to a previous lender was reduced to nil following conversion and repayment steps during and after the year.

Sector context

The report notes that the base price for uranium delivered under long-term contracts has exceeded US$90 per pound and has moved beyond US$100 per pound, with several countries pursuing new nuclear generation. During the session, the S&P/ASX 200 Energy index was at 11,167.20 and Brent crude was at US$109.48 per barrel amid Middle East tensions.

Risks and uncertainties

The report states that wellfield flow rates have been difficult to maintain under the low-pH approach, that the company still has more to learn about developing and operating the wellfields, and that production guidance for CY2026 has been withdrawn. The company recorded a large impairment and a higher loss, Revenue was minimal, and in-situ recovery results can only be assessed over months. Financing arrangements include convertible instruments, and uranium prices, contract terms and regulatory conditions can affect outcomes.

Catalysts to watch

Items referenced include wellfield flow rates and head grades in further header houses of Mine Unit 4, the operational changes to acidification procedures, the revised production plan, uranium sales and deliveries, the progress of Mine Unit 5 planning and further resource updates.

Final word

Peninsula’s FY2026 annual report set out a large impairment, withdrawn production guidance and early grade results from the new acidic wellfields, alongside a higher resource estimate. Subsequent quarterly reports are likely to show whether flow rates and grades are maintained.