Peninsula (ASX: PEN) share price jumps on update

The Peninsula Energy Ltd (ASX: PEN) share price has jumped 4% higher in early trade after the company released its quarterly report.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Peninsula Energy Ltd (ASX: PEN) share price has jumped 4% higher in morning trade to 13 cents apiece. Investors are watching the company's share price after the uranium miner released its quarterly report.

Let's take a look at how Peninsula performed for the last quarter.

hand on touch screen lit up by a share price chart moving higher

Image source: Getty Images

Peninsula releases quarterly activities report

Earlier today, Peninsula released its quarterly activities report for the March quarter.

The company reported an operating cash loss of US$2.2 million for the quarter with no sales recorded.  For the 9 months to 31 March, Peninsula noted an operating cash loss of US$5.7 million on sales of US$3.4 million.

For the March quarter, Peninsula highlighted US$6.8 million cash on hand. In addition, the company also provided a summary of its purchase agreements. For the calendar year of 2022, Peninsula noted that it has entered into binding contracts for the delivery of 450,000 pounds of uranium. As a result, Peninsula forecasts a net cash margin of US$8 million to US$9 million in 2022.

Peninsula also highlighted the company's upgrade to the OTCQB Venture Market earlier this year.

More on the Peninsula share price

Peninsula is an ASX-listed uranium mining company. The company's flagship Lance Project located in Wyoming, USA is the only US-based uranium project using a low pH, in-situ recovery (ISR).

In order to 'decarbonise' the country's power sector, the US Department of Energy has allocated US$75 million towards the establishment of a national strategic uranium reserve. As a result, Peninsula is in a position to potentially benefit from various initiatives of the US government.

The Peninsula share price bolted out of the blocks in 2021, hitting 18 cents in mid-February. After dipping since then, the company's share price has struggled to gain traction. Shares in Peninsula were given a boost earlier this month after the company delivered favourable results from field demonstration tests at its Lance Project. However, despite the slew of updates the Peninsula share price has tanked more than 20% in the past 12 months.

As highlighted before, shares in Peninsula Energy were upgraded to the middle tier of the OTC market earlier this year. The upgrade was in response to strong trading volumes and provides overseas investors greater access to securities in Peninsula Energy.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Two miners standing together with a smile on their faces.
Resources Shares

These are the best ASX 200 mining shares to buy in March: Morgans

These mining shares are on Morgans' best ideas list in March.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Resources Shares

Rio Tinto share price dips despite copper mega-mine milestone

Rio Tinto owns 66% of what will soon become the world's fourth-largest copper mine.

Read more »

Miner looking at his notes.
ESG

'Not sure if that's the way we should go': Why BHP shares are making news today

BHP is trialling renewable diesel made from Hydrotreated Vegetable Oil (HVO) at its Western Australian Yandi iron ore mine.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Resources Shares

Are Fortescue shares back on the menu amid job cuts?

Can cost reductions be the key to driving Fortescue ahead?

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Could buying Fortescue shares at under $22 make me rich?

The iron ore miner Fortescue has seen volatility. Is it time to buy?

Read more »

Australian Strategic Materials employee wearing a hard hat at a mine looks into the distance as he checks a folder.
Resources Shares

Sayona Mining share price dumps 6% amid lithium lows

Lithium prices have fallen to their lowest level in more than a year.

Read more »

Rede arrow on a stock market chart going down.
Resources Shares

Why are ASX 200 lithium shares falling so hard today?

The lithium carbonate price has fallen to its lowest level in more than a year.

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Resources Shares

Why is the BHP share price taking a flogging on Friday?

The commodity growth engine may not be firing on all cylinders.

Read more »