(MENAFN - ProactiveInvestors - Australia) Peninsula Energy (ASX: PEN) has witnessed high volume trading today with over 29 million shares changing hands, prompting the company's shares to rise around 11% to an intra-day high of A0.041.
The company has experienced a re-rating of late with shares gaining around 71% from the low of 0.024 they were trading at in mid-October.
There is renewed interest in the Peninsula given its advanced pre-production uranium project as well as a resurgence in the uranium sector as key countries re-affirm their commitment to nuclear power post-Fukishima and uranium company valuations crept to historic lows.
China, India, South Korea and Russia will account for 70% of new plants coming on stream.
China is now seeking to steadily resume approval and construction of new nuclear power plants and is planning to approve a small number of new nuclear power projects by 2015.
Currently there are 432 operable nuclear power stations, 63 under construction, 150 firmly planned and over 300 conceptual.
Uranium demand is positive for the long term.
Uranium demand is expected to double over the next two decades, with supplies set to fall short in the near future as global nuclear power capacity grows at a reported rate of 30% to 100% by 2030.
The supply gap is estimated at around 30 million pounds by 2014 as a result of delays on several projects, diminishing supplies and the ending of the HEU agreement between Russia and the U.S. in 2014.
Peninsula Energy is a near term production company with production targeted from its Lance Projects in Wyoming in the second half of 2013 at an initial rate of 750,000 pounds of uranium per annum, ramping up over three years to 2.2 million pounds per annum.
Importantly, the company has a strong cornerstone investor in Pala Investments, and a 100 million equity facility in place.
The company is well advanced in project funding discussions, with Peninsula announcing earlier this year that several financial institutions were reviewing the Lance projects database.
Lance project funding is expected to be secured in the second half of 2012.