Nexgen Energy Ltd T.NXE

Pure Play

[retiredcf]

Would you start buying uranium today? What's your pure play on uranium? Is Cameco a buy?

We do like uranium and think there is long term demand potential driven by the increased usage of nuclear energy. For investors looking for uranium exposure we do see CCO as a buy at current levels since it is one of the largest functioning players making it a safer option. Our favourite pure play would be NXE which is a smaller and earlier stage company at $5.5B market cap. (5iResearch)

[argaiv]

There is no production here at this point.  I would be very careful buying this stock because it will cost a whole lot of money to start production.

[investornot]

Indeed the costs to build the mine and reach production is high, as would be expected. What you have to consider is that the payback for the projected costs is recovered in less than 1 year of production. That was if memory serves me correctly based on uranium @ $50, not the current $100+.  The mine life was estimated to be 8+ years based on what has been found so far but that is expected to