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Nexgen Energy Ltd T.NXE

Alternate Symbol(s):  NXE

NexGen Energy Ltd. is a Canadian company focused on delivering clean energy fuel for the future. It is engaged in the acquisition, exploration and evaluation and development of uranium properties in Canada. It is focused on optimally developing the Rook I Project. It has a portfolio of highly prospective projects, including its 100% owned Rook I property that is host to the high-grade Arrow Deposit, South Arrow, Harpoon, Bow, and the Cannon area. The Rook I Project is a development-stage uranium project in Canada. The new underground mine and mill development is located in the uranium-rich district of the southwestern area of the Athabasca Basin, located in Saskatchewan. Arrow is a 100% land-based, basement-hosted, and high-grade uranium discovery. The Rook I Project, host of the Arrow Deposit, which is a development-stage uranium project in Canada and is 100% owned by NexGen Energy Ltd. The Rook I property hosts the Harpoon Discovery located 4.7 km northeast of the Arrow Deposit.


TSX:NXE - Post by User

Bullboard Posts
Comment by SASKEXPRESSon Sep 06, 2016 2:52pm
192 Views
Post# 25210993

RE:Beyond Exploration

RE:Beyond ExplorationI am a big proponent of Nexgen (and have owned the stock early 2015) but I have to take issue with any post calling for a $10-12 offer in early 2017, especially in a low uranium commodity pricing environment.

Note: I believe the next resource update will ultimately come by February 2017 as it's my belief that Nexgen will include all drill results to the end of the summer 2016 drill season - which should wrap up in October. 

Let's say we end up at 400,000,000 pounds after the next resource update. 

Apply any multiple you like to that but let's use $5 per pound of uranium (which is way too high in my opinion at this time (given spot price) but I'm using it to illustrate blue sky).

400,000,000 * $5 / 341,616,238 shares fully diluted = $5.85 share price. 

I personally don't envision a massive bidding war given the spot price but I would never be shocked to see Nexgen swallowed up. The list of junior companies that have developed a tier one asset to production phase is pretty short in the modern history of mining.  

It might make more sense to value this on a DCF basis like a couple of the analysts have moved to as it seems pretty clear that eventually there will be a mining operation at Arrow. Either way, I don't see an offer coming in the next 6-8 months for more than $5. 

We'll need some pretty compelling resource size growth at the 180m stepout or Harpoon to see anything north of $5-6, if an offer(s) were to come.

Bullboard Posts