Peninsula Energy (ASX:PEN) expects to recognize a non-cash impairment expense of about $50 million against legacy well field development assets and other historically capitalized costs at its Lance uranium project in Wyoming, according to an Australian bourse filing on Thursday after market hours.
The impairment primarily relates to mine units (MU) 1, 2, and 3, which are no longer expected to generate sufficient future economic benefits after the company scaled back support activities and excluded the restart of MU-2 from its current forecasts, per the filing.
The company said the charge would have no impact on cash or funding arrangements and did not represent an impairment of the broader Lance Project.
The company is instead prioritizing investment in MU-4 and future mine development, which it expects to improve production, lower costs and strengthen long-term project economics, the filing added.