Peninsula Energy Ltd (ASX:PEN) is on track to achieve its production guidance of 90,000 to 110,000 pounds U3O8 (triuranium octoxide) at the Lance Uranium Projects in Wyoming, US for the financial year ending June 30, 2019.
The company's production during the December 2018 quarter was 20,364 pounds of U3O8, slightly below the quarterly guidance range of 22,500 to 27,500 pounds U3O8 set in May 2018.
Peninsula's production was affected by a nine-day processing plant shut-down for repairs and a natural decline of head grades in remaining alkaline leach areas where chemical addition has been reduced to lower these costs.
An abbreviated drying campaign was conducted during the quarter with a total of 14,445 pounds U3O8 dried and drummed, with a larger scale drying campaign commencing in January 2019.
In December 2018, Peninsula signed a new five-year term uranium toll milling agreement with its existing toll milling service provider Uranium One Americas, Inc.
The revised terms of the new contract are projected to reduce rates below those used in the recently completed Low pH Feasibility Study.
In October 2018, the company made a scheduled sale to a customer of 100,000 pounds U3O8 (85,000 pounds U3O8 Lance production, 15,000 pounds U3O8 market source), resulting in sales proceeds of about US$4.5 million being received in November 2018.
Production guidance for the financial year ending June 30, 2019, which was set in May 2018 remains unchanged, with slightly lower production rates offset by a positive dried product toll milling reconciliation adjustment recorded in the September 2018 quarter.
Production for the March and June 2019 quarters is now expected to be 15,000 to 20,000 pounds U3O8 per quarter as Peninsula continues to prepare the operational facilities for future low pH production conditions.