RE:BNN on Tuesday evening Joe Mazumdar is the fellows name. Brent Cook and Joe were together talking at the Vancouver Resource conference a month back.
If it was the same interview that I just watched on BNN, Reddale, I think your summary /opinion is interesting (and again, I am assuming we are talking about the same discussion).
Here is my interpretation:
While I would agree they weren't warm in the short-term on Fission, the interesting thing is the question was about NexGen, NOT FISSION, and what thoughts were on the stock price and where it would go from here as an investment at this point.
Joe suggested that NexGen was a better buy back when he did his site visit in Jan 2015 (obviously) - and said something about maybe now a 25-30% return potential on a buyout or Western Basin "consolidation".
With respect to both companies, really they suggested that additional pounds in the ground aren't that "exciting" anymore because it is now derisking. Fission being an example for a year plus now. The feeling I got is they are suggesting the big run up at Nex Gen is very similar to what happened at Fission a little over a year ago, and that now derisking comes into play, which isn't as exciting. They both didn't seem to give a care about anyalyst stock price targets for either, and mentioned how Fission never got there, to current or old target averages, during the same exciting initial exploration stage.
I didn't hear one question or reference to land drilling discoveries with regards to Fission and how that might compare to under the lake drilled holes and/or how that would affect PEA or Capex - etc. Didn't even come up. Certainly management didn't come up directly or expenses directly related. Printing paper or issuing shares did come up, but more so (again, my opinion) in the cost of proving up more pounds, which was Joe's point about return (price changes) per finding more pounds....his point being that what is Nex Gen's upside now, just look at how fission hasn't bounced when finding more pounds - that is a GOOD point.
On a possible plus side, Brent mentioned the inferred versus indicated (which some consider a plus on fission versus nex gen). He did say it is a fantastic discovery. 7 main drill holes are what is used for 120 million bulk high grade inferred, of the initial resource - "lot more infill drilling to bring it up to measured in indicated" he said.
To me it was a cautionary commentary on Nex Gen at current price levels, with Fission as a warning/example. The chinese investment, land discoveries improving economics, and fast track potential for production were not part of the discussion......I think a new Resource Estimate at Fission, even showing 150 Million pounds might not trigger a massive share move. I would like a delayed updated Economic Estimate, including an updated mine plan with 600W and 840W expanded open pit, and maybe the theoretical discussion about a shared mill in Western Basin - the amazing Capex improvement and Present Value improvements shown there, "might" trigger some Can't Ignore figures and result in a significant share jump....
Was interesting. But not entirely negative for longs that feel that Fission is 1.5 - 2 years ahead further down the road in the process than Nex Gen. We have already seen the stock price languish and now kind of stall. I do feel that anyone with a 1-2 year time horizon will continue to be a lot more stressed with slow share price improvement compared to anyone willing to to wait 3-5 years for continued derisking, updated mine plans, possible mill development sharing, and, of course, U price increases.
Agree that another hit North of current conductor would be a good catalyst, but the main one would be Spot and Future price increases in Uranium, because then the pounds in the ground become more valuable too....
While i have said before I think nex gen's apparent strategy and advantage of sort of being in Fissions slip screen has seemingly helped a bunch (they don't worry about corebox or trips to China/India yet, or even booths at conferences,or infill drilling yet - but just kept drilling - they focussed on inferred pounds and at moment it is paying off. I wonder if their share price follows almost EXACTLY what happened to Fission and the excitement of inferred pounds wears off or if they can keep the momentum going and avoid that down turn the graphs we have all seen during the derisking phase.
IF (and it is a big if) Nex Gen wants to derisk and move to indicated pounds and do a PEA, etc - that will cost money and diluttion just like it did for Fission, and be less exciting too....
Perhaps they will just keep drilling inferred and sell their deposit and get a great price instead?!
I think that buyers will be cautious with what has happened in past with inferred versus indicated though.....
My thoughts on the discussion, for what it is worth - it is Part 3 if you google "BNN Market Call Tonight" on their website now...