NexGen Energy Q1 2025 Earnings Report

NexGen Energy EPS Results

• Actual EPS: -$0.06
• Consensus EPS: -$0.02
• Beat/Miss: Missed by -$0.04
• One Year Ago EPS: N/A

NexGen Energy Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

NexGen Energy Announcement Details

• Quarter: Q1 2025
• Date: 5/12/2025
• Time: Before Market Opens
• Conference Call Date: N/A
• Conference Call Time: N/A

NexGen Energy (NYSE:NXE) Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluation and development of uranium properties in Canada. It holds a 100% interest in the Rook I project that consists of 32 contiguous mineral claims totaling an area of 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan. The company is headquartered in Vancouver, Canada.

NexGen Energy Q1 2025 Earnings Call Transcript

Key Takeaways

• Global uranium market saw an 11% rise in spot prices in Q1 driven by unprecedented demand from over 30 countries tripling nuclear capacity by 2050 and persistent supply fragility, with spot at ~US$71/lb and term near US$80/lb.
• NextGen’s Rook One project has advanced to Canadian Nuclear Safety Commission hearings scheduled for November 19, 2025 and February 9–13, 2026, marking a major step toward final federal permitting.
• The 2025 drilling program at Patterson Corridor East yielded the best ever discovery phase intercept (hole RK25232: 3.9 m >61,000 cps within 13.8 m), doubling high-grade zones to 210 m along strike and 335 m vertically, and remains open.
• NextGen is well capitalized with ~CA$435 million in cash, ~CA$300 million in liquid assets, and US$1.6 billion in financing interest, securing funding for construction and exploration into late 2026.
• Global policy tailwinds—including a US executive order to fast-track nuclear projects, Europe’s plan to end Russian nuclear supply, and Germany reversing its phase-out—enhance prospects for Canadian uranium development.

Presentation

[Operator]

Thank you for standing by. This is the conference operator. Welcome to the NextGen Energy First Quarter twenty twenty five Results Conference Call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the speakers' remarks, there will be a question and answer session.

[Operator]

I would now like to turn the conference over to mister Lee Courier, chief executive officer and director with NextGen Energy Limited. Please go ahead, sir.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Much appreciated, Jaylene. Thank you all for joining us today for NextGen's q one twenty twenty five financial results conference call. I am the courier chief executive officer of NextGen Energy, and I'm joined today by my colleagues, Travis Wickerson, chief commercial officer, and Benjamin Salter, Chief Financial Officer. Over the course of today's call, I'll provide a brief update on the global uranium market landscape, which is in the continuation of historically unprecedented demand combined with sustained fragility of supply. Further, liquidity returning to the spot market in the latter part of the quarter, elevating spot 11%.

[Leigh Curyer, Director & CEO at Nexgen Energy]

I'll also provide an overview of our key accomplishments during the first quarter of twenty twenty five. This includes our continued advancement through the regulatory process for our Rook 1 project as we prepare for the upcoming Canadian Nuclear Safety Commission hearings later this year. In addition, an update on our exciting 2025 drilling program at Patterson Corridor East. The early results from our drilling program are simply excellent, including what is now recognized as the best ever discovery phase intercept in R K 25232 on our land package as reported on 03/24/2025. It all adds up to NextGen's one project on the cusp of final federal permitting and on completion then immediately entering into construction, followed by production at the time the market for uranium is going to be intense for low risk, stable production sources from sound jurisdictions.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Next gen's Rook one project will return Canada back to being the world leader in the production of uranium, incorporating the most elite environmental, social, and governance practices. In parallel throughout all of this, further drilling at PCE defined mineralization, which is exhibiting all the famous and unique high grade, solid technical setting attributes of its neighbor, Arrow, Three Point Five kilometers to the west. At the conclusion of this presentation, we'll move to the q and a portion of the call, which will provide you the opportunity to ask Travis, Ben, and myself any questions you'd like to ask. Throughout the course of today's call, we will be making forward looking statements. I invite you to visit our website for all the relevant disclaimers.

[Leigh Curyer, Director & CEO at Nexgen Energy]

As we begin, it's important to acknowledge the pivotal inflection point we're at. The uranium investment thesis has evolved from promise to reality with the key focus turning to execution and scarcity. What we have experienced in uranium equities since the start of the year is a real disconnect from the fundamentals. It's fair to say the noise around tariffs had deflected attention of key uranium market fundamentals materializing. With over 30 countries committed to tripling their nuclear energy capacity by 2050 and more than 60 reactors currently under construction globally, the robustness and the sustainability of demand is at unprecedented levels for nuclear power.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Canada has a leading role to play, particularly considering its southern neighbor, The United States Of America, is realizing its security of supply for this key fuel requires substantial investment and projects required to come online now. The International Atomic Energy Agency's high case scenario predicts cumulative uranium requirements of approximately 7,000,000,000 pounds through 2025. The vast majority of these requirements are currently undiscovered and unknown. A project like Nextgen Zwokwang is unprecedented in terms of the volume capability, the technical environmental, social and economic performance. Yet, our industry would need at least 10 of them over the next twenty five years to meet the demand.

[Leigh Curyer, Director & CEO at Nexgen Energy]

The sheer scale of the structural deficit underscores the critical nature of the supply challenges facing the world and the scarce and strategic nature of NextGen's role. A telling market signal has emerged this quarter. Several producers have claimed current pricing levels are insufficient and consequently deferred contracting decisions while others have delayed final investment decisions on development projects. It is encouraging to see the new generation of uranium developers and to be producers joining next gen working collectively to ensure the sustainability of our industry through discipline and patience. This will lead to high uranium prices sustained in the long term, incorporating the real cost of delivering ethically sourced uranium to ensure reliable, sustained supply.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Pricing must strengthen significantly to incentivize the production growth across the globe, which is required to meet the current and future demand. Demand is resilient. And with the new tech players entering the space, our industry is primed for better outcomes than before, which is in the interest of all participants delivering energy to populations. Spot prices currently sit at approximately $71 US a pound, having moved swiftly from the low sixties on relatively modest activity in an emerging carry trade opportunity, demonstrating the market's inherent sensitivity to even small changes in liquidity. Meanwhile, the third price has held firm, maintaining levels near $80 a pound US.

[Leigh Curyer, Director & CEO at Nexgen Energy]

This resilience in long term pricing sends a strong signal and historically serves as a leading indicator. The demand bench fundamentals remain exceptionally robust despite short term volatility. For these for NextGen, these developments reflect and validate our strategy. Our initial sales contracts reflect fundamental supply demand imbalance in the uranium market and importantly capture the economics in a rising price environment for our shareholders while providing unparalleled security and diversification of supply to our utility partners. Nextgen remains extremely busy negotiating term deals with the industry, and this hasn't been impacted by elections, global trade tension, nor the illiquidity in the spot market.

[Leigh Curyer, Director & CEO at Nexgen Energy]

It's recognition of NextGen's role in this market in the near future is well understood as evidenced by these ongoing contract negotiations. The policy landscape continues to involve evolve in favor of nuclear energy and secure supply chains. Particularly noteworthy is the anticipated executive order from The United States to expedite nuclear project development through the Department of Defense and the Department of Energy. This initiative recognizes the convergence of national and energy security has been the same in today's electrified world. Baseload Power attracts business investment, supports industrial growth, and enables advanced technological development in critical areas like artificial intelligence.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Similarly, Europe has recently announced plans to legislate the phase out of Russian nuclear supply from its energy ecosystem beginning 2027. This decisive shift away from Russian dependency opens substantial opportunities for Western suppliers and reinforces the premium placed on ethical, environmentally responsible production from politically stable jurisdictions. Further, only yesterday, Germany has signaled a major positive shift back towards nuclear energy. This decision has major positive implications on EU energy policy. Together with Belgium, repealing nuclear phase out laws, opening the door to new nuclear investment, and the list goes on of additional positive major macro news involving nuclear.

[Leigh Curyer, Director & CEO at Nexgen Energy]

It simply reflects the reality of power importance, not only the provision of power, but the reliable, environmentally sensibly sourced to support populations and economies. Next Gen's book one with its industry leading environmental profile, technical simplicity, long mine life and location in Saskatchewan Canada will benefit tremendously from this recalibration of the global supply chain. Q one twenty twenty five has seen significant company milestones. The Canadian Nuclear Safety Commission scheduling a two part public hearing days for the Rook one project set for 11/19/2025 and February ninth of thirteen twenty twenty six. And we are ready today to present Canada's largest uranium development project to the world.

[Leigh Curyer, Director & CEO at Nexgen Energy]

The commission to finalize project approval for the benefit of our shareholders and indigenous nation partners, the province of Saskatchewan, Canada, and the planet. These hearing dates provide clarity on the timeline and now allow us to strategically optimize our construction schedule, advance procurement initiatives, and detailed engineering work, and implement our construction hiring plan with precision, positioning us to maximize efficiency once we transition from permitting to construction execution. We're also monitoring Canada's evolving regulatory landscape with its increased focus on streamlining approvals for projects of national significance and that have provincial approval. That is NextGen. Newly elected Canadian prime minister Mark Gunnies stated, one and done, which is extremely positive and recognizes the opportunity Canada has, but also his willingness to sensibly streamline the rigorous approval process to actually deliver Canada's economic, trade, and energy security interests.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Turning to Paterson Corridor East, a region that continues to exceed and indeed redefine our expectations. In 2025, we launched our most extensive drill program at PCE to date, a 43,000 meter exploration campaign, one of the largest in the Atabasca Basin this year. The goal is clear, to follow-up on the exceptional mineralization encountered today and better understand the scale and continuity of what is shaping up to be a significant discovery, which exhibits all of those unique attributes of the mighty Arrow deposit. On 03/24/2025, we reported what is now the best ever discovery phase intercept across any next gen property. Drill hole r k 20 five two 30 two intersected 3.9 meters of off scale greater than 61,000 counts per second.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Grainium mineralization within a broader 13.8 meter zone. For additional holes, all at least 50 meters apart from this intercept, return the same intense ultra high grade mineralization. The high grade zones have now doubled in size since our last update, measuring 210 meters along strike and 335 meters vertically, and it remains open in all directions. These are extraordinary results, particularly given that that PCE is still in its discovery phase. For comparison, intercepts of this calibrated arrow didn't emerge until much later during the targeted resource definition phase.

[Leigh Curyer, Director & CEO at Nexgen Energy]

I'd like to remind everyone that NextGen holds the most significant land position, over a 90 hectares in Southwest in Saskatchewan Southwest at the Basket Basin, which is widely considered to be the future of uranium production in the West. PC is located just 3.5 kilometers east of the world class Arrow Deposit, which positions us to significantly expand our resource base in the coming years and positively impact the communities where we operate for many generations to come. Next gen is exceptionally well capitalized. We hold approximately 435,000,000 Canadian in cash, enough to fund the start of construction activities for the next twelve to eighteen months. In addition, we have over 1,600,000,000.0 US in expressions of interest from leading banks and export credit agencies to form the phase of our project funding funding.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Like any tier one project, we are navigating many financial options to optimize the funding of this project. In terms of timing, we remain focused on year end of this for year end 2025 for determining the best financing package that provides certainty of capital, enables us to maintain our marketing strategy of maximizing exposure to the prevailing prices in the future, and enables us to maintain our production output flexibility. At the same time, demand for our future production has never been stronger. Off-site negotiations are continuous with a diverse group of counterparties all over the world. We expect to announce additional agreements this year, further bolstering our market position as we move into construction and production.

[Leigh Curyer, Director & CEO at Nexgen Energy]

With federal approval approaching, the integrated project team are in place. All procurement and detailed engineering is in place, ready to commence construction with a robust balance sheet. We are ready and exceptionally well positioned to advance into the next phase of development. With that, I would now like to open the floor to questions.

[Operator]

Ladies and gentlemen, we'll now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad.

[Ralph Profiti, Managing Director & Senior Equity Research Analyst at Stifel Financial Corp]

Day. Thanks, operator. Lee, I'd like to ask a question on more detailed progress towards procurement of equipment and long lease items. Are you happy with where you are in the queue? And are your suppliers talking about general inflationary pressures or delivery schedules that may be at risk? Are these the conversations in line with expectations?

[Leigh Curyer, Director & CEO at Nexgen Energy]

It would thanks, Ralph. Look. We have a very detailed construction execution plan, which is down to the day Mhmm. Once we have approval.

[Leigh Curyer, Director & CEO at Nexgen Energy]

And so one of the benefits of roundabout benefit of of the commission hearing date has been set for November 2025 and February 2026, is that it does allow us to plan exceptionally well that procurement process with respect to the key inputs, particularly around the first twelve to eighteen months of construction. As I speak, that is well in hand, and it is a significant focus of the executive team's time is is on that execution plan. And and as I speak, I'm I'm very comfortable with that heading. In terms of pricing, look, the industry broadly is always under pricing pressure. We're not excluded from that.

[Leigh Curyer, Director & CEO at Nexgen Energy]

But we are maintaining what we expect things to cost as we've previously forecasted. And that's also been supported by due diligence by a number of the debt and equity providers that have been running process on our our our project. The the good thing about the Rukwonero project is that the economics are extraordinarily robust. So if there is CPI pressure, it won't be as material as as you would in a see in a marginal project. Further, with the payback period being so short, you know, approximately thirteen months at current prices, the impact of any CPI increase on the financeability of the project will also be immaterial.

[Leigh Curyer, Director & CEO at Nexgen Energy]

So it's it's something you're quite right right, Ralph. It is a an aspect we place a lot of attention on and and and planning. And it it as we speak, we're in good shape, and I continue to be you know, I wouldn't see any changes in that either going forward considering the amount of, you know, detailed planning that's going into the construction execution schedule.

[Ralph Profiti, Managing Director & Senior Equity Research Analyst at Stifel Financial Corp]

Great. Thanks for that answer, Lee.

[Ralph Profiti, Managing Director & Senior Equity Research Analyst at Stifel Financial Corp]

And a separate question. As greater attention turns to exploration, just wondering how you're balancing the desire to turn around the mineral resource estimate, inaugural one for PCE, and basically what the drills are telling you, which is, you know, the the longer you take, the more potential is. Just wondering how you're balancing those two aspects of potential versus delivering an MRE.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Yeah. Sure.

[Leigh Curyer, Director & CEO at Nexgen Energy]

That's why, firstly, it's the exploration group. And so this doesn't, at any way, dilute the attention on the final federal permitting or the execution schedule. But with respect to the exploration group, I I I must stress, PC is still in a definition, like, are we dealing with stage. Mhmm. I don't see us turning to delineation resource definition, drilling activities.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Yeah. As we speak at the earliest, that would be 2026. They're still it's still open in every direction. It's looking better than what Arrow did at the same stage of drilling. And as we all know, Arrow, you know, expanded considerably once we tag into the high grade subdomain.

[Leigh Curyer, Director & CEO at Nexgen Energy]

So it's very, very early in the stages around the no we don't see this pressure. We we have a very well thought out exploration approach where we look to define what is the area mineralization first, where we tag into a high grade sub domain. We then focus a little more waiting of the drill drill bits towards that because the the consequence of intersecting that high grade intense mineralization does have an extremely material impact on the resource definition. Once we get a sense that we've got both of those understood, that's when we'll then shift that attention to that like, a a measurement in terms of volume and grade, but but not beforehand. And I don't see us being anywhere near that stage of that as we speak.

[Leigh Curyer, Director & CEO at Nexgen Energy]

And look, that's exciting news for everyone. It's it's way too early to determine just exactly what we're dealing with that BCE because it's exhibiting just incredible, you know, similar characteristics for what Arrow is.

[Ralph Profiti, Managing Director & Senior Equity Research Analyst at Stifel Financial Corp]

Thanks very much, Lee. I appreciate those answers.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Thanks, Ralph.

[Operator]

The next question is from you Julio Madrigan with pardon me, with BMO Capital Markets. Please go ahead.

[Julio Mondragon, Senior Equity Research Associate at BMO Capital Markets]

Hi. Good morning, Lee. Julio here. So just the first question is related to related to your plan for Room 1 development for this year. So, you know, the budget the budget on on potential activities, while you are waiting hearing dates later this year on early twenty twenty six.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Yeah. If I've understood the the question, Julio yeah. The the hearing date we're ready right now as we speak. If we had approvals, as as we speak, we'd be already in construction. We we we had a very clear definition around what we're building and how we're going to build it since 2017.

[Leigh Curyer, Director & CEO at Nexgen Energy]

And we've been refining it ever since. So this this project has had extraordinary amount of time and focus on executing it well. When you add into that, the fact that it's very simple technically relative to other mines around the world, it's an extremely competent basement rock. It's actually a very small physical fit footprint and a very small mine. We'll be removing about one and a half double decker buses of ore a day.

[Leigh Curyer, Director & CEO at Nexgen Energy]

That that is tiny for a for a mine. And then we have the very clean metallurgy. So the processing plant itself, in a relative sense, is is a more straightforward, simplified version of what we see in other parts of the world. We we that all bodes well for once we have the approval to execute well. And and from a company perspective and mindset, and as everyone knows, we're we're very, diligent on risk analysis.

[Leigh Curyer, Director & CEO at Nexgen Energy]

We are looking forward to construction because of the amount of time and and energy that we've put into it over the last well, it's almost eight years. And we have the team in place, and we have the execution scheduled down to the day. So we can't wait to be in that position, and and we expect so in early twenty twenty six at the conclusion of the federal permitting process with the CNSC.

[Julio Mondragon, Senior Equity Research Associate at BMO Capital Markets]

Oh, thank you. So just to, you know, just to understand a little bit more in the near term, what will be your development activities for 2025?

[Julio Mondragon, Senior Equity Research Associate at BMO Capital Markets]

What will be the budget potential budget for these activities, if I may ask?

[Leigh Curyer, Director & CEO at Nexgen Energy]

Yes. Yeah. So look. We're we're all we're we are focused on exploration in 2026 and sorry.

[Leigh Curyer, Director & CEO at Nexgen Energy]

In 2025. And we maintain that site on a on an exploration basis to support the regional drilling activities and maintaining that in an environmentally elite manner. So once we we have we had 435,000,000 in the treasury as we speak. We have also liquid assets of around another 300,000,000 on top of that. Once we're in construction, that's when you'll see, you know, an acceleration of of the budget.

[Leigh Curyer, Director & CEO at Nexgen Energy]

But as we speak, we are well funded well into the back end of '20 '20 '6 to meet all of our general and administrative expenses, maintaining the site and readying the spoke construction as well and supporting exploration activities.

[Julio Mondragon, Senior Equity Research Associate at BMO Capital Markets]

Oh, perfect. Thank you very much. So if I may ask one more question, how how are your contracting discussions with utilities going at the moment if we can have more more detail on that? Thank you.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Sure. I might just hand over to Travis on on that front.

[Travis McPherson, Chief Commercial Officer at Nexgen Energy]

Yeah. Perfect. Travis here, and thanks for the question.

[Travis McPherson, Chief Commercial Officer at Nexgen Energy]

Yeah. As Lee alluded to in his remarks at the beginning here, contract discussions have been, you know, very, very robust, ongoing, lots of them. And you can expect to see more contracts get signed and announced shortly and throughout the year. I think, you know, general context and color around it, there's definitely a growing awareness of the acute nature of the supply deficit, and particularly, you know, later this decade and and into the twenty thirties when when Arrow is gonna be producing. You know, people are very utilities in particular are very, very concerned about that period of time and and rightfully so.

[Travis McPherson, Chief Commercial Officer at Nexgen Energy]

So that obviously positions NextGen well, and very uniquely. And the the, utilities are are also understanding that that not all uranium is created equal, and buying uranium from us represents a different value proposition to them than, you know, buying uranium from an incumbent producer because it's not an incumbent producer isn't offering them net new diversification and new supply sources, whereas support for our mind and and all the other, you know, emerging developers offers them that. And so there's there's recognition of that, which is very supportive to ours and I'm sure other developers' initiatives. So, yeah, very, very good and robust and more to come on that front.

[Julio Mondragon, Senior Equity Research Associate at BMO Capital Markets]

Perfect. Thank you very much, Trevor and Lee. Thanks.

[Operator]

The next question is from Andrew Wong with RBC Capital Markets. Please go ahead.

[Andrew Wong, Equity Research Analyst at RBC Capital Markets]

Hi. Thanks for taking my question. Maybe just on contacting again, can you just talk about the terms of the contracts that are being discussed? So NextGen, my understanding you guys would prefer more spot related market exposure. Is that before we can expect to see your upcoming contract settlements?

[Andrew Wong, Equity Research Analyst at RBC Capital Markets]

Are the utilities agreeing to that? And just any sense on if there are any floors or ceilings that are being discussed, what's the performance there today?

[Travis McPherson, Chief Commercial Officer at Nexgen Energy]

Yes. Thanks, Andrew. It's Travis again.

[Travis McPherson, Chief Commercial Officer at Nexgen Energy]

Obviously can't talk about specific terms. What I would say is that what we disclosed in December for those initial £5,000,000 of contracts where we outlined kind of what the sensitivities look like and stuff that's in line with what we're discussing going forward. And our focus on maximizing the exposure to the future prevailing price of uranium, Bought price of uranium at the time we deliver uranium is it remains consistent. And definitely, willingness of utilities and our standing of utilities, generally speaking, to our desire for that and how it benefits both us and them actually, in the sense that, you know, our philosophy overall is not just one where it only benefits us. It benefits utilities and that you don't get into a post Fukushima world again where, you know, producers are oversupplying a market for way, way too long because they have floor prices that incentivize them to breakeven and and contractually obligate them to continue to produce.

[Travis McPherson, Chief Commercial Officer at Nexgen Energy]

Our our philosophy and our our strategy around marketing eliminates that because we shorten the duration of the contract and tie them to the to the price at the time. And, therefore, you know, if something changes in the future, the industry can adjust or at least we can in these contracts. So that understanding is there and and, yeah, they're they're they're open to that as we demonstrated the framework with the disclosure.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Yeah. And, Andrew, I'll just add to the the fact that, yeah, the utility is going to the same contract with to Travis' earlier point, utility is going to the same contract for all producers or advanced developers.

[Leigh Curyer, Director & CEO at Nexgen Energy]

The contracts do reflect the unique nature of our respective projects. Now we our our strategy merely reflects the technical aspects, economic aspects, and environmental aspects of our project. We're in confident basement rock. We can ramp production up. We can ramp production down given market conditions.

[Leigh Curyer, Director & CEO at Nexgen Energy]

And that is to the benefit of the the producers, but also the utilities who are procuring the the the offtake. So yeah. I know there's a bit of commentary out there that, you know, it only works this way and that's why it's always worked. But this mine there's never been a mine like this in terms of technical certainty, economic, and environmental performance. And our contracting strategy nearly reflects those attributes, and that is what is being appreciated by the utilities that we have already contracted with and will contract with in the in the near term.

[Andrew Wong, Equity Research Analyst at RBC Capital Markets]

That's that's a lot of great color. Thank you. And then just with the federal election, I'm curious, like, how has that impacted your discussions with the government on approvals? Have you had any discussions with the new government since the election? And is there any flex around those public hearing dates?

[Leigh Curyer, Director & CEO at Nexgen Energy]

I look. The the good thing about those dates that they they are now bookends, and and we know and and they're in place. Look, I've been incredibly encouraged by Mark Harney's comments with respect to one and done for major energy projects in Canada. And and if that transpires into more efficient regulatory process where a a project that has provincial approval won't require subsequent federal approval. I think that's in the interest of all current, but also future uranium projects that are going into production.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Look, there there is aspects of having two regulatory both the provincial and the federal. There is overlap and and and between between the two. That's not in anyone's interest. And and so, look, I've been very impressed with with Mark Carney's commitment to streamlining the process and Canada applying to its strengths and getting these energy projects up and running now. So if it does transpire into that, I'll be very, very pleased to to present that.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Certainly, the the premier of Saskatchewan, Scott Moe, has been very public with respect to what he would like to see with respect to the federal government's approach to projects such as ours. Yeah. Let's let's let's wait and see. Look, November will be just around the corner. No doubt about that.

[Leigh Curyer, Director & CEO at Nexgen Energy]

And we are in the final stages as we speak.

[Andrew Wong, Equity Research Analyst at RBC Capital Markets]

Great. Thank you very much.

[Operator]

Our next question is from Craig Hutchinson with TD Cowen.

[Craig Hutchison, Analyst at TD Cowen]

Just a question. You mentioned at the onset that you're looking to find out the best financing package by year end. Are you guys still entertaining a strategic investor at the asset level at this point?

[Leigh Curyer, Director & CEO at Nexgen Energy]

Yeah. I'll oh, sorry. Travis, yes, you can answer that.

[Travis McPherson, Chief Commercial Officer at Nexgen Energy]

Yes. Thanks, Lee. Yeah. Craig, short answer, yes.

[Travis McPherson, Chief Commercial Officer at Nexgen Energy]

We are. You know, as we have talked about in the past, it's very targeted select group that we have been engaging with, some over the last two years, some in detail over the last year. And, yes, it still remains one of the many options that we have at hand. In terms of timing, everyone involved on that process, on the prepayment process, on the debt process are all lining up for the timing around year end of this year as as we noticed.

[Craig Hutchison, Analyst at TD Cowen]

Okay.

[Craig Hutchison, Analyst at TD Cowen]

That would that would come before before the permits, probably.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Yeah.

[Travis McPherson, Chief Commercial Officer at Nexgen Energy]

Then yeah. Yeah. Potentially.

[Travis McPherson, Chief Commercial Officer at Nexgen Energy]

But, yeah, obviously, the permits are very dependent on concluding that financing aspect.

[Craig Hutchison, Analyst at TD Cowen]

Okay. And just on the contracting, I mean, do you guys have a is there a set volume or rough volume that you wanna have contracted before you you make the final investment decision?

[Leigh Curyer, Director & CEO at Nexgen Energy]

Yeah, Craig. No.

[Leigh Curyer, Director & CEO at Nexgen Energy]

No. We don't have that. You know you know, some of the options will require some level of of offtake being in place, but it won't be being in place to commence construction. You know, like, debt is example. There's there's a portion of it that requires some volumes to be demonstrated.

[Leigh Curyer, Director & CEO at Nexgen Energy]

They you know, as we talked about before, they don't they don't need price hedging in that sense. They don't the the lenders don't care what price Right. Pricing mechanism is utilized, but there'll need to be some volumes there, but but those aren't needed until the first part of those won't be needed until you actually start to draw down the debt, which won't be until early in 2027 at a minimum. So and then others, you know, it's not part of the discussion. So there is no no volume that we need to get to start construction.

[Leigh Curyer, Director & CEO at Nexgen Energy]

As we said, we're ready to go. If we got approval tomorrow, we're we're in construction immediately. So, yeah, not in a good position there. And then even longer term, we don't really have you know, because we get asked this sometimes, like, what's the split of, you know, term contracts or or whatever long term. We we don't have a set set percentage that we want.

[Leigh Curyer, Director & CEO at Nexgen Energy]

We we will always maintain our ability to leverage the production output flexibility that the mine has. And then the biggest determinant really is just the alignment between ourselves and the counterparty that we're dealing with or counterparties that we're dealing with with respect to what the future of the uranium supply and demand looks like. And if there's alignment, then we can we can get there on a contract. If there's if there's not alignment, then that's when we're patient. And we've been patient the whole time, and that's clearly benefited us materially to do that, and we'll continue to do that.

[Craig Hutchison, Analyst at TD Cowen]

Okay. Great. And I have one last question for me, just just back to PC. I think the expectation was assays were released in in April. Are they taking a bit longer than expected, or are you guys just waiting to to batch those results with some new ones?

[Leigh Curyer, Director & CEO at Nexgen Energy]

No. The the lab has been very, very busy with as I'm given the volume of what's gone through, they will be expecting them in the lead, Craig. And when we release, we always provide, you know, materiality context around it. So, yeah, there's no doubt two thirty two will have its own user lease given its materiality, which will most likely be separate from the assay results from the drilling that occurred in in 2024. I just would emphasize again, like, we are still in the very early stages of of getting a grasp on the scope of PCA, but it's looking extremely extremely strong if you provide the relativity to Arrow at the same level of drilling.

[Craig Hutchison, Analyst at TD Cowen]

K. Great. Good luck, guys. Thanks.

[Operator]

The next question is from Brian MacArthur with Raymond James. Please go ahead.

[Brian Macarthur, Analyst at Raymond James Financial]

Good morning, and thank you for taking my question. A little bit back to what Ralph was talking about. When you get approval, let's just say we get it February year, have you are you gonna be able to do anything to move the whole construction time frame up? If you can maybe just go through how you see it developing going forward on the time line and where the critical path is to production once you do get your permits?

[Leigh Curyer, Director & CEO at Nexgen Energy]

Yeah.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Look, the the thanks, Brian. Look, the shaft is the effectively, the longest lead time item, requires the the greatest amount of preparation as well. As per the feasibility study that we updated in August of twenty twenty four, it is a four year construction process. You yeah. It's it's preferable to start either, yep, as you're coming out of the winter, which is around the time that we expect the conclusion of the Tennessee hearing process.

[Leigh Curyer, Director & CEO at Nexgen Energy]

So I I think everyone should adjust that from the commencement of construction, which is subject to the NSC finalizing the process. It is a forty eight month process from that date. So I don't wanna I don't wanna yeah. There's there's not in terms of accelerating that forty eight months, there's nothing really material. It it's going to be forty eight months.

[Brian Macarthur, Analyst at Raymond James Financial]

Great. Thanks. I think that's how I understood too. On the Converse, but just to be sure, there's nothing because it's delayed back to Ralph's question that you've lost stuff in the queues or anything that would make it longer than forty eight months that you can see right now just because of the timing of the way things have worked out?

[Leigh Curyer, Director & CEO at Nexgen Energy]

No.

[Leigh Curyer, Director & CEO at Nexgen Energy]

It's actually the offset. This the the delay in the hearings allows us to to really refine the execution schedule for key imports in further out than what we otherwise would have. So everyone yeah. That's a a reduction in execution risk once we start construction due to this delay in the hearings to to November of twenty five and February of twenty twenty six. So it's actually from that execution perspective when you do commence, it's actually a real positive.

[Brian Macarthur, Analyst at Raymond James Financial]

Great. Thanks. And maybe just one more thing to make sure I fully understand this. My understanding was a lot of the sourcing was in Canada for what you need as well. Is is that right?

[Brian Macarthur, Analyst at Raymond James Financial]

So really, there's not a whole lot of risk in the supply chain going forward. Is that a fair comment?

[Leigh Curyer, Director & CEO at Nexgen Energy]

That's fair. And and and we will prioritize and and optimize the opportunities for Canada First and foremost. There is some, you know, specialization of certain items of equipment with respect to the shaft and the mill, but nothing really material in that sense.

[Leigh Curyer, Director & CEO at Nexgen Energy]

But, yeah, no. Canada will be prioritized. Now I'll say that that prioritization does, as everyone knows, with respect to our our focus on local communities, it will start in the local communities and expand out from there.

[Brian Macarthur, Analyst at Raymond James Financial]

Great. Thanks very much, Lee. That's very clear.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Thanks, Brian.

[Operator]

This concludes the question and answer session. I'd like to turn the conference back over to mister Courier for any closing remarks.

[Leigh Curyer, Director & CEO at Nexgen Energy]

Thank you, Gatelyn. Yes. As always, we really appreciate everyone's ongoing interest and support for NextGen. We as as I alluded to in the earlier part of the call, we are on the cusp of of final federal permitting approval. The the market and the fundamentals for nuclear energy are improving almost on a daily basis with all of the news that is coming out.

[Leigh Curyer, Director & CEO at Nexgen Energy]

And and NextGen's ready to deliver its role in in returning Canada to being the number one producer of of this incredibly important fuel that powers economies and and and and the population times right around the world. With that, I thank everyone for their their time and attention. And and as always, if any additional questions arise, please don't hesitate to reach out to Monica, Stacy, Travis, or myself. Thank you.

[Operator]

This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Participants

Analysts

• Leigh Curyer, Director & CEO at Nexgen Energy
• Ralph Profiti, Managing Director & Senior Equity Research Analyst at Stifel Financial Corp
• Julio Mondragon, Senior Equity Research Associate at BMO Capital Markets
• Travis McPherson, Chief Commercial Officer at Nexgen Energy
• Andrew Wong, Equity Research Analyst at RBC Capital Markets
• Craig Hutchison, Analyst at TD Cowen
• Brian Macarthur, Analyst at Raymond James Financial