Nexgen Energy Ltd T.NXE

RE:RE:RE:RE:RE:RE:Dundee Capital comments on today's Assay Results

[Miner60]

They hope it's worth more. There is lots of drilling left yet to determine how much. GL

Rulingmining wrote: If you're agreeing with me, it's obvious, CEF will convert it. For myself, it's a clear indication that management knows this is worth a lot more. Curyer is a finance guy. He's not a geologist. I have no doubt he understands what debt vs equity is and the risks related to the two forms of capital. This debt will not be repaid in cash, it will be converted. Some of the interest will be paid in cash. It's just that the actual amount of cash NXE ultimately keeps vs, the amount they will have to return in interest will be conditional upon when the conversion takes place. As NXE can only convert in 3 years, I suspect that is Curyer's plan, so NXE will likely have to pay $9 mil. I do not see any reason why CEF would voluntarily convert any earlier.

Miner60 wrote: I agree with you. It's very odd to see a junior explorer financed with debt. Pretty much the same as a mortgage. Betting that more resource will be discovered and the stock will move up. Bottom line is the $60 million has to be repaid. How they do that is the big question. 

Rulingmining wrote: Miner60 I don't think anyone here is an analyst. The loan is odd, but it is essentially intended to be conditional equity. Why would someone invest more? NXE now should have enough to take them through the Feasibility study phase. They do not currently need the financing to build a mine. That will only begin in about 5 years time.

Miner60 wrote: So Malcolm, you are an analyst now? Why would CEF not try & take a bigger equity position instead of offering a loan? Lots of very good results to date, but there is still lots of work to do. The first thing they need to do is move the inferred to indicated. Let's see what that number is.
Quite a bit more drilling to do yet. Certainly great for the whole west basin.

Malcolm2001 wrote: This is going to be the best mine in the world. I don't know why Dave Talbot is surprised at Curyer's willingness to go it alone. He has said it time and time again. Every single interview with the man has stated that as their objective. They do not want to see the marketplace dominated by a few big players. With Uranium going to go ballistic as a commodity in the not too distant future Curyer wants part of that bnillionairre creating upside. I do not mind a bit of dilution when he can attract big international players like Li ka-shing. Also not sure why anyone is surprised at these two holes given the previously announced scintillometer readings....I always go by those. The assay results are just confirmation of what is blindingly obvious. Scintillometer readings mean radioactivity....that can only come from Uranium...so when I see >61,000 counts per second I see bucketloads of U3O8.
As I have said here before and will say again...this is going to be a 500 million pound resource. It is still open. They have drilled out 180m and STILL found more Uranium. People it does not get any better than this.
With Li ka-shing AND the CIBC on board (CIBC owns half of CEF) do you think Curyer is going to have ANY trouble getting money to build the mine and mill.
As Curyer has repeatedly said they are going to take Arrow Rook 1 as well as all the other deposits in the PLS Corridor to production.
He has the deposit base, he has the money and the timing is perfect.
If you can mine it profitably with Uranium at a piddly $27/lb how much do you think they will make at $150/lb when the world is screaming for Uranium.
You are looking at the next Cameco and I would not be at all surprised to see it hit $20/share by 2020.