Peninsula Energy (ASX: PEN) has delayed the restart of commercial production at its Lance project in Wyoming, from the first quarter of this year until mid-2023.
According to the Australia-based company, there has been a delay in the delivery of equipment.
“The current inflationary economic environment and very real supply-chain constraints, in combination with an unusually difficult Wyoming winter, have presented challenges but the team has demonstrated their professional capability and resolve,” Peninsula CEO Wayne Heili said in a news release.
“Despite encountering some delivery delays that are outside of our control, the team continues to complete the transition construction work on a short timeline and within the projected capital framework,” he said.
Peninsula’s capital expenditure to date is in line with the 2022 definitive feasibility study, which estimated a life-of-mine capital cost of $290.6 million, with the Stage 1 operation requiring an up-front capital investment of $2.7 million and a wellfield replacement and sustaining capital expenditure of $16.3 million.
The Lance project, located in northeastern Wyoming holds a resource of 53.7 million lb. of uranium oxide (U3O8), making it one of the largest uranium projects in the U.S.
It is estimated that Lance could produce 2 million lb. of uranium a year at steady-state production from the fourth year of production, producing 14.4 million lb. of U3O8 over an estimated 14-year mine life.
Shares plummeted 14.3% in trading on Thursday, reaching a year low of A12¢ (11¢) when markets closed in Sydney. Peninsula shares’ yearly high was A28¢. The company has a market capitalization of A$175.9 million ($160.7 million).
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