NexGen Energy shares rise on new US uranium sales deals
Shares of NexGen Energy Ltd. (TSX:NXE) saw a 4% increase on Wednesday morning following the company’s announcement of securing its first uranium sales contracts. These contracts, which are for the sale of 5 million pounds of uranium, have been made with major US utilities.
The company, which trades on the Toronto Stock Exchange (TSX:NXE), New York Stock Exchange (NYSE:NXE), and Australian Securities Exchange (ASX:NXG), highlighted that the contracts are in line with its marketing strategy, featuring market-related pricing mechanisms at the time of delivery. This approach aims to leverage the strengthening uranium market to maximize value.
The sales agreements mark a significant step for NexGen Energy, establishing it as a new reliable source of nuclear fuel from the Western world. The company’s Rook I Project in Saskatchewan, Canada, is recognized for its high standards in technical, environmental, and social practices.
NexGen provided a table indicating the expected gross sales revenue from these contracts, based on various assumed spot prices for uranium, ranging from $80 to $175 per pound. The deliveries, scheduled from 2029 to 2033, are set to occur annually at a volume of 1 million pounds of U3O8.
Leigh Curyer, the Chief Executive Officer of NexGen, expressed that these contracts with leading US utilities are a pivotal moment for the company. Curyer emphasized the importance of diversifying supply sources and the alignment of the contract terms with market-related pricing at the time of delivery. He also pointed out the growing energy demand and the need to expand nuclear infrastructure, highlighting the significance of having a secure uranium supply.
The Rook I Project, supported by a NI 43-101 compliant Feasibility Study, is poised to become a major environmentally sustainable uranium operation. NexGen continues discussions and negotiations with other utilities across the US, Europe, and Asia.
NexGen Energy is focused on developing its flagship Rook I Project into a leading low-cost uranium mine, with a commitment to exceptional environmental and social governance. The company’s experienced team aims to deliver a project that sets a benchmark in the mining industry, providing long-term benefits to various stakeholders.
The announcement of these contracts underscores NexGen’s strategic vision and its role in the global nuclear fuel supply chain, as the company works towards addressing key global challenges such as decarbonization and energy security.
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