Nexgen Energy Ltd T.NXE

RE:Rosseau Asset Management Ltd. comments on NexGen Energy Ltd.

[BobbiOre]

Thanks for posting this.  It wouldn't suprise me if this gets taken out very soon.  Arrow is the perfect combination of size, location and commodity.  It will likely be the next deposit put into production in the basin, and the timing is perfect for maximizing production with commodity price.  Look for a Billion Plus takeout coming to an Arrow near you!

This quote is great 

But for NexGen's deposit, it will be just regular underground mining in the basement rocks. It's very easy to mine and very attractive.

stockmaster989 wrote: https://www.theaureport.com/pub/na/16905
 
The event-driven hedge fund Rosseau LP has beat its benchmark by over 50% since inception in 1998, and its founder and CIO Warren Irwin says it does so by going deep, looking at very specific events or situations that are special within industry sectors. Irwin made his name by shorting Bre-X some 20 years ago and hasn't looked back. In this interview with The Gold Report, Irwin gives us a peek into Rosseau's portfolio, discussing opportunities that he is excited about in metals, uranium and oil.
 
TGR: Let's get to some of those names. What are some companies that you are excited about?
 
WI: I'll start with NexGen Energy Ltd. (NXE:TSX.V; NXGEF:OTCQX), which just put out its maiden resource estimate. NexGen is a perfect example of an event-driven situation in that, although the fundamentals for uranium look very good over the next few years on a supply-demand basis, the commodity hasn't started to run yet. What is fascinating is NexGen has managed to find a massive new uranium discovery in the Athabasca Basin. It's very exciting and could be worth, at the end of the day, multiple billions of dollars.
 
TGR: The day of the news release, NexGen had a pretty big pop on volume, going up $0.27/share.
 
WI: Yes. It's a unique discovery. My original estimate from our proprietary resource model was 200 million pounds (200 Mlb) U3O8. The NI 43-101 did indeed come in around those levels at 202 Mlb. The market was actually expecting a lot less than that. We have long since touted 200 Mlb, and we were right on the money with that. We plotted every single drill hole and went very in-depth with our model to determine the size of the discovery. Having our own model is extremely time-consuming but allows us to really understand what the company is doing.
 
 
 
The current winter drill program is underway. We believe NexGen has the potential to add between 100 and 200 Mlb to that resource. So there is a potential for a doubling of the resource over the winter drill program. Long term this has the potential of being the largest uranium mine in the world.
 
TGR: How long have you been in this stock? When did you start building a position?
 
WI: I first visited the property in 2014, and I've been watching it ever since. We started building a position mid-year last year. Right now the stock is extremely undervalued. It's probably trading at about a third of the value it should, even with the run-up with the news release. Putting out more results is not going to improve the situation. What it basically needs now is to have more people be aware of what an extraordinary discovery this is, and realize that it's very undervalued.
 
Canada is viewed by many utilities as the premier supplier of uranium to the world, and all of Canada's three uranium mines are in the Athabasca Basin, as is NexGen's discovery. But what's unique about NexGen is it's not in the sandstone or at the unconformity, which is the border between the sandstone and the basement rocks. When you're dealing with sandstone, it's water saturated, so there are a lot of water ingress issues. But for NexGen's deposit, it will be just regular underground mining in the basement rocks. It's very easy to mine and very attractive. And the scale of the deposit is clearly attracting the interest of all the global miners.

Warren Irwin is president and chief investment officer of Rosseau Asset Management Ltd. He founded the firm in 1998 after several successful years as vice president and director of special investments at Deutsche Bank Canada. The firm's flagship event driven hedge fund, Rosseau LP, was established on December 31, 1998, and has since earned a reputation for solid long-term performance earning over 50% the return of its benchmark index. Irwin started his career as a bond analyst for Scotia Capital Markets where he developed the Universe Bond Index, the Canadian bond market benchmark, and shortly thereafter developed and managed Canada's first bond index fund. He is a Chartered Financial Analyst and holds a Bachelor of Mathematics from University of Waterloo and a Master of Business Administration from the University of Western Ontario.