Peninsula Energy (ASX:PEN) has sunk 13% in the first hour of trade after the company revealed its Lance Uranium Project (LUP) is to be delayed and production guidance downgraded.

While the company is on track to start producing yellow cake uranium – the form in which uranium is consumed by nuclear fuel makers before enrichment – the market isn’t liking the lull in momentum.

Production, nonetheless, is “expected” in the June quarter, a Q2CY25 target only recently slated for the March quarter. This is despite “challenging weather conditions and supply chain issues” at Lance, based in Wyoming.

“The Peninsula board is frustrated by the delay and the company is working closely with [contractors] to conclude the project as quickly as possible,” Peninsula wrote on Friday.

“The company will continue to sequentially commission the elution, precipitation and filtration circuits as they are turned over from the construction contractor. Ramp up to higher than current production rates will occur after the full plant is commissioned.”

(Lance, it’s fair to note, only resumed production late last year after five years mothballed.)

Incoming MD George Bauk will be on-site at LUP from February 3, and the company noted it had just shy of $45M of cash.

But looking at the share price fall, Peninsula’s biggest problem was creating uncertainty. It didn’t actually give any idea of what the production downgrade will look like.

“The board will continue to monitor progress and provide updated CY2025 production guidance at the end of the March Quarter. It is likely, however, that guidance will be revised downward from the previously forecast 600,000 lbs U3O8.”

PEN last traded at $1.15.

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