- NexGen Energy (TSX:NXE) has signed sales agreements for a combined 5 million pounds of uranium with numerous top U.S. nuclear utility companies
- The company has over 230 million pounds U3O8 of probable mineral reserves remaining to meet global demand
- NexGen intends to become a clean-energy provider by developing its Rook I project in Saskatchewan into the largest low-cost producing uranium mine in the world
- NexGen Energy stock has added 32.67 per cent year-over-year and 651.25 per cent since 2019
NexGen Energy (TSX:NXE) has signed sales agreements for a combined 5 million pounds of uranium with numerous top U.S. nuclear utility companies.
The deals are bound by market-related pricing mechanisms at the time of delivery, allowing NexGen to maximize its exposure to future uranium prices and position itself as a reliable source of nuclear fuel to the Western world.
Based on a 2021 feasibility study, the company’s Rook I project in Saskatchewan houses 231,660,000 uncommitted pounds U3O8 of probable mineral reserves and carries a C$3.47 billion after-tax net present value (8 per cent).
Delivery quantities (1M lbs. U3O8 per year)
| Uranium price($/lbs. U3O8) |
2029 |
2030 |
2031 |
2032 |
2033 |
| $80 |
$79 |
$79 |
$79 |
$79 |
$79 |
| $100 |
$99 |
$99 |
$99 |
$99 |
$99 |
| $150 |
$141 |
$141 |
$141 |
$141 |
$141 |
| $175 |
$150 |
$150 |
$150 |
$150 |
$150 |
| Excludes ancillary commissions and costs of delivery |
Leadership insights
“These offtake awards with premier U.S. utilities represent a pivotal moment for NexGen,” Leigh Curyer, NexGen Energy’s chief executive officer, said in a statement. “They underscore the premier quality and scalability of the Rook I project, whilst offering diversification of supply from existing centralized sources. Further, the terms of these awards reflect market-related pricing mechanisms at the time of delivery, reflecting NexGen’s long-term stated strategy of optimizing the value of each pound produced.
Energy demand from reliable sources is increasing by the week with the need to expand existing nuclear energy infrastructure and the construction of power-consuming data centres at a time when the security of uranium supply is under significant technical and sovereign risk.
The contract awards are in parallel to ongoing discussions and negotiations with additional U.S., European and Asian utilities, which further complement NexGen’s strong financial position and construction-ready status at Rook I. The project is poised to become one of the largest and most environmentally sustainable uranium operations globally. This milestone is another reflection of NexGen’s ability to execute on its strategic vision in advancing its position as a global leader in the nuclear fuel supply chain.”
About NexGen Energy
NexGen intends to become a clean-energy provider by developing its Rook I project in Saskatchewan into the largest low-cost producing uranium mine in the world.
NexGen Energy stock (TSX:NXE) is up by 5.07 per cent trading at C$12.02 per share as of 9:50 am ET. The stock has added 32.67 per cent year-over-year and 651.25 per cent since 2019.
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(Top image of NexGen Energy’s Rook I uranium project in Saskatchewan: NexGen Energy)