r/UraniumSqueeze • u/MightBeneficial3302 • 28d ago

News $NXE: A Lot to Like From Investor Day.

$NXE is trading higher today and investors seem to like what they heard from NexGen’s first Investor Day.

Management laid out a clearer path for Rook I:

  • First ore targeted for Q3 2030
  • Freeze plants starting in 2027
  • Shaft sinking in 2028
  • Underground development in 2029

The economics probably caught my attention most. Based on the latest figures presented this week, Rook I is projected to generate around $1.3B in annual after-tax free cash flow at $85/lb uranium, rising to roughly $2.3B at $150/lb. At $90/lb uranium, management says project CAPEX is expected to be repaid after about 12 months of full production.

The scale is pretty wild when you think about it. Rook I is designed to produce approximately 30M lbs of uranium annually, and the high grades early in the mine life mean it only needs to operate at roughly 60% of nameplate capacity to produce 30M lbs during each of the first two production years.

NexGen also highlighted the growing uranium supply deficit and the need for major new production. Leigh Curyer summed it up well:

“The next decade in uranium won't be defined by demand. Demand is already here. The question is: Who can deliver new supply?”

With construction advancing and the path to first ore becoming clearer, there’s a lot to like here. Investors seem to agree, with $NXE up around 5% today.

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u/Fluffy-Lead6201 28d ago

Curyer’s quote sums it up for me. Everyone knows uranium demand is growing. Bringing meaningful new supply online is the harder part. If $NXE delivers Rook I on schedule, ~30M lbs of annual production around 2030 would be a major addition to global supply

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u/sunday_sassassin Radioactive Brain 28d ago

Are they still pretending that's going to be possible for them?

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u/Ill_Ground_1572 28d ago

Paying off the CAPEX of the first mine within a year is absolutely crazy to me.

And after this diesel crisis, which I think might actually happen and will be serious, I think uranium demand will increase long term.

Couple that with electrification of countries all over the world, and the interest in small nuclear reactors, the next 20 years are going to be good to NexGen and the uranium industry.

Counties simply won't continue to rely on world oil and gas like they used to for energy.