Nexgen Energy Ltd T.NXE

Alternate Symbol(s): NXE

Energy

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.

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Nexgen Energy Ltd

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Comment by gizard16on Apr 02, 2019 12:28pm

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Post# 29570586

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Travis McPherson interview

The BIG problem is that can you really believe in the PFS numbers? Cameco had numbers that changed drastically with Cigar Lake. I believe nexgen's numbers are a whole lot of fluff and promotion.

shrink wrote: Greenday, you missed the point about off take agreements and contracts. Travis said anything signed now would be just fluff, they will sign these agreements once they are closer to knowing a production date, something I've been saying all along.Unlike Dev he did not bash his neighbors which is just being polite I wouldn't read too much into it. I did like the part about debt financing to production that will minimize dilution grestly increasing shareholder value.The other thing that impressed me was that once in production NXE will be among the top 15 mines in revenue production, won't be hard to repay debt if thats the case

Greenday wrote: Travis did a good interview. He was baited by the host more than once to bad mouth the other explorers in the region and he had the good sense not too as NXE and FCU will likely be in some form of a business arrangement in the future.

Lots of talk in the interview about permitting and production but an important ommission was a dicussion on who might build the mine. NXE doesn't have the in-house expertise to build a mine so somebody with mine building experience will need to be brought on board. That's reason one why NXE and FCU will probably merge. CGN knows how to build a mine.

Reason two relates to ramp up and full production. The host dismissed the importance of having secure sales contracts in place but a commercial lender will almost certainly have a different view. A lender will want know how it will be paid back. To that end, assume that the full cost of building a mine and a mill is incurred and that the cash flow projections for repaying the lender are miscalculated due to a technical issue or that a sales contract was not secured. Then what? Too avoid breaching the lending covenants, NXE management would need to secure additional financing and in situations like those, existing shareholders always end up with the short end of the stick. Moreover, NXE's cash flow projections are based on disrupting the market so there's a need to sell a lot of uranium.

IMO there's less risk for NXE shareholders to simply merge with FCU, take the synergy premium and let CGN build the mine and buy the production for their reactors. I'm sure that some investors will argue that NXE can do it all themselves and perhaps they can but there's no guarantee that it would be more profitable to shareholders if they did.