NexGen Energy Targets 2030 First Ore as Rook I Eyes $1.3B Annual Cash Flow

Key Points

• NexGen Energy is targeting first ore from its Rook I uranium project in Saskatchewan in the third quarter of 2030. Construction milestones include freeze-plant activation in early 2027, shaft sinking beginning in 2028 and underground development starting in 2029.
• Rook I is designed as a conventional underground mine with planned annual production of approximately 30 million pounds of uranium and a 30 million-pound-per-year processing capacity. The project will use underground tailings storage, avoiding a surface tailings dam, and incorporate automation and remote operations.
• At an $85-per-pound uranium price, management projects roughly $1.3 billion in annual after-tax free cash flow, rising to about $2.3 billion at $150 per pound. NexGen says the project could repay its capital expenditure after 12 months of full production under a $90-per-pound price assumption.

NexGen Energy NYSE: NXE used its inaugural Investor Day to outline the construction plan, operating design and projected economics for its Rook I uranium project in Saskatchewan, with management targeting first ore in the third quarter of 2030.

Founder and Chief Executive Officer Leigh Curyer positioned the project against a backdrop of growing expected nuclear-power demand and constrained mine supply. He said global nuclear generating capacity is about 400 gigawatts, while more than 88 gigawatts of new capacity is under construction. Curyer also said 38 countries had pledged as of 2026 to triple global nuclear capacity by 2050.

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

Curyer said the uranium supply deficit stands at approximately 60 million pounds annually and is growing as legacy mines deplete. He said the long-term uranium price had reached a record $97 per pound, compared with $17 per pound a decade earlier, while new mine development can take 15 to 20 years from discovery to production.

Construction Schedule and Mine Design

Project Director Chris Copley said Rook I is designed as a conventional underground mine expected to move an average of 1,300 tons of ore to surface daily. The operation is planned to use gravity ore and waste passes, underground conveyors and shaft hoisting systems.

NexGen has completed an early works program valued at C$100 million, which Copley said was materially completed on time and on budget. Existing site infrastructure includes an occupied accommodation complex, a 13-kilometer dual-lane access road and a 3,000-foot exploration airstrip.

The company’s near-term construction focus during the second half of 2026 includes site earthworks, shaft-pad preparation, temporary facilities and utilities, runway expansion, water-management infrastructure, and foundations for shaft-related buildings and freeze plants.

• Freeze plants are expected to be activated in the first quarter of 2027.
• Pre-sinking of the production and exhaust shafts is scheduled to begin in mid-2027.
• Main shaft sinking is expected to begin in 2028, with the exhaust and production shafts reaching basement rock in June and August 2028, respectively.
• Underground development is planned to begin after the exhaust shaft reaches bottom in early 2029.
• The company expects surface and underground features to be completed by the third quarter of 2030, when first ore is targeted for commissioning and production.

Copley said the project’s geology differentiates Rook I from other shaft projects because the ore body is located in competent basement rock. The shafts will pass through overburden and unconsolidated rock before reaching basement rock, requiring temporary ground freezing in the upper portions of the shafts. NexGen completed 60 geotechnical and hydrogeological drill holes, as well as a central pilot hole to roughly 950 meters, to support design and risk assessment, he said.

Once the shafts reach competent basement rock and hydrostatic liners are installed, Copley said temporary freezing will end and geotechnical and hydrological risk will be substantially reduced.

Processing, Tailings and Technology

Bryan Dyck, NexGen’s director of processing, said the company is building a conventional mill designed for a maximum 5% uranium head grade and an average grade of about 3%. The flow sheet will use grinding, acid-and-peroxide leaching, solvent extraction and precipitation to produce uranium concentrate, or yellowcake.

Dyck said the plant is designed to accommodate the range of grades expected over the mine life and could potentially process future ore sources while utilizing its planned 30 million-pound annual capacity.

Rook I is also planned to use an underground tailings management facility, allowing all tailings to be returned underground into mined-out chambers and stopes. Copley said this approach means the project will not have a surface tailings dam.

Neil Chiles, director of information technology, said the operation is being designed as a “digitally native mine,” with a remote operations center, sitewide 5G connectivity and automated vehicles controlled from surface. The company’s objective is to minimize the number of people working underground, he said.

Workforce and Economics

Dylan Smart, vice president of regional development, said NexGen has delivered community-based training programs since 2022, with nearly 700 participants completing courses in project readiness, radiation and environmental subjects, and skilled trades. During summer 2026, the company said it was training more than 60 students in water management, heavy-equipment operation and mining-career preparation.

Curyer said Rook I is expected to produce approximately 30 million pounds of uranium annually at full production. He added that, because of the projected high grades in the initial mine life, the operation would need to run at approximately 60% of nameplate capacity to produce 30 million pounds during its first two production years.

At an approximately $85-per-pound uranium spot price, Curyer said Rook I is projected to generate about $1.3 billion in annual after-tax free cash flow. At $150 per pound, he said annual after-tax free cash flow would rise to approximately $2.3 billion. Copley said the company expects the project’s capital expenditure to be repaid after 12 months of full production using a $90 uranium spot-price assumption.

Curyer said NexGen has its site-preparation construction license and financing in place, and described the remaining development phase as focused on execution, contract awards, capital deployment and schedule performance.

About NexGen Energy (NYSE:NXE)

NexGen Energy is a Canada-based uranium exploration and development company focused on advancing its flagship Rook I project in the Athabasca Basin of northern Saskatchewan. The company's primary activities include resource delineation, feasibility studies, and permitting for its high-grade Arrow deposit, one of the largest undeveloped uranium discoveries in the region. NexGen's technical team employs advanced drilling, geophysical and geochemical techniques to expand and define its resource base, with the aim of delivering a robust, low-cost supply of uranium to global nuclear power markets.

The Rook I project sits within one of the world's most prolific uranium districts, offering excellent infrastructure access, a skilled local workforce and a supportive regulatory regime.

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