NexGen Energy (TSX: NXE) appears to be confident that they will receive federal permitting approval in the coming months, with the company this morning announcing that they have doubled their contracted sales volume in advance of placing the Rook I project into operation.
The company has managed to secure a new uranium offtake contract with what is said to be a major US based utility. The offtake will see the delivery of one million pounds of uranium per year over a five year period. Delivery is expected to begin in the first year of commercial production of the Rook I project.
“NexGen’s stated strategy simply optimizes the value and return on each pound produced. It reflects Rook I’s relative technical simplicity and high production volume certainty, which provides our utility clients confidence in the delivery of their future fuel requirements. At the same time, it provides NexGen shareholders unprecedented industry leading leverage to prices at the time of those deliveries. The team is managing a substantial increase in offtake activity and negotiation, reflecting NexGen as a future cornerstone of the global nuclear energy market,” commented Leigh Curyer, CEO of NexGen Energy.
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Pricing on the contracted 5 million pounds of uranium was not provided, however the contract is said to contain “market-related pricing mechanisms at the time of delivery.”
NexGen has now contracted more than 10 million pounds of future uranium production, following an inaugural 5 million pound contract that was signed with US utilities in December. The Arrow Deposit at Rook I current has 229.6 million pounds of uncontracted material.
NexGen Energy last traded at $9.56 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
