Peninsula Energy signs two uranium concentrate sale and purchase agreements with major US power utilities

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Peninsula Energy's Lance Projects in Wyoming, USA Image credit: www.pel.net.au

Peninsula Energy has announced that it has entered into two new sale and purchase agreements with major United States power utilities to deliver up to 1,935,000 pounds of uranium concentrate starting from 2016.  

Peninsula Energy's Lance Projects in Wyoming, USA Image credit: www.pel.net.au
Peninsula Energy’s Lance Projects in Wyoming, USA
Image credit: www.pel.net.au

“The agreements contain prices that are consistent with the Term contract prices reported by uranium industry commentators during the first half of 2015. Other terms and conditions of the agreements reflect uranium industry norms,” reads the company’s announcement.

“Securing these new Term contracts means Peninsula has four significant agreements in place for a major portion of the U3O8 it wants contracted over the next five years. These committed sales contracts substantially increases revenue certainty whilst allowing an appropriate level of planned production free for future contracting in an increasing price environment.”

Peninsula’s Managing Director/CEO Gus Simpson said the two contracts would provide the company with additional revenue security as it moves closer to bringing the Lance Projects into production later this year.

Adertisement

“We are very pleased to add two more contracts to Peninsula’s forward sale position, guaranteeing a significant proportion of the Company’s revenue stream at better than market when production commences at the Lance Projects,” said Mr Simpson.