Q3 2024 NexGen Energy Ltd Earnings Call
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Elvis: Good morning. My name is Elvis and I will be your conference operator today. At this time, I would like to welcome everyone to NextGen Energy's Q3 2024 financial results conference call. All lines have been placed on mute to prevent any background noise.
Elvis: After the speaker's remarks, there will be a question and answer session at the end.
Elvis: If you would like to ask a question during this time, simply press star, then the number 1 on your telephone keypad.
Elvis: If you would like to withdraw your question, please press the pound key.
Speaker Change: Mr. Leigh Curyer, CEO and Director of NextGen Energy, you may begin your conference.
Thank you, Elvis.
Speaker Change: Welcome, and thank you all for joining NextGen Energies Q3 2024.
update and financial call.
Speaker Change: I'm Leigh Curyer, Chief Executive Officer of NextGen. I'm joined on today's call by Travis McPherson, Chief Commercial Officer.
and Benjamin Salter, Chief Financial Officer.
Speaker Change: During this call, I will review our key achievements this quarter, including the latest updates from the nuclear industry, as NextGen is witnessing tremendous broad-based support on the demand side with respect to the offtake of our future production.
Speaker Change: Further, we will provide updates on the regulatory approval process for the ROOC1 project, which is advancing well and nearing conclusion, financial highlights and our ongoing exploration success at Patterson Corridor East announced this morning.
Speaker Change: Additionally, I'll provide an update on our sustainability and community initiatives, which remain at the core of our operations, as well as the progress made on project development and project construction financing.
Speaker Change: Following this, we encourage questions and provide open lines for all participants on today's call.
Speaker Change: We will make forward-looking statements throughout the call so please visit our website for the relevant disclaimers.
Speaker Change: This quarter marked a transformative shift in how technology leaders view nuclear energy, particularly driven by AI's unprecedented and insatiable power demands.
The industry reached a pivotal moment this quarter.
Speaker Change: With major tech leaders including Microsoft, Alphabet, Amazon, Meta and Oracle publicly recognising nuclear energy as critical to their future operations and initiating significant financial deals at a premium to secure long-term power supply.
Speaker Change: NVIDIA CEO Jensen Hung, whose company is at the forefront of AI development, has been especially vocal about the energy challenges ahead.
Jensen Hung: He emphasised that AI workloads are now demanding power equivalents to that of small nations, creating unprecedented strain on traditional power grids and requiring nuclear energy to supply this growth.
Jensen Hung: This new and exponential growth in demand is on top of the growing demand globally for baseload energy as the world electrifies more broadly.
Jensen Hung: Further, this demand growth is in the face of tremendous fragility of existing uranium supply, which is currently exhibiting significant sovereign risk.
Jensen Hung: With 70% of the world's mine supply hosted by countries or influenced by countries in military conflict
Jensen Hung: The consequence being, it is incumbent on Western world countries and their governments to immediately focus and develop multiple new mines into production, incorporating the high regulatory standards to service this demand.
Jensen Hung: Otherwise it's simple. Lights will turn off. Industry and domestic power users, families, will experience power shortages.
Jensen Hung: Reliable cost-effective power is the primary element in the standard of living and the need for action is now for multiple new mines to be brought online this decade.
Jensen Hung: The current and enlarging demand and supply gap for uranium will result well into the next decade, and most likely at materially higher prices than currently marketed.
Jensen Hung: The broader nuclear landscape continues to evolve favourably. Switzerland reversed its ban on new nuclear bills.
Japan continued to revive its nuclear fleet.
Jensen Hung: South Korea has returned to pro-nuclear policies, while India and China are aggressively advancing their nuclear expansion plans with a combined 41 gigawatt under construction between these two nations alone. September's world nuclear synopsis
saw unprecedented interest and record sold-out attendees.
Jensen Hung: Discussion centered on surging demand with utilities highlighting power grids at maximum capacity and facing exponential growth from electrification, data centers and artificial intelligence.
Multiple utilities alluded to the
Jensen Hung: Underscoring the urgency to secure their uranium supplies and support new mines to diversify the high concentration in the two incumbents.
Jensen Hung: Turning to the Rook One project, we continue to make substantial progress on all fronts of our business, which includes detailed engineering, procurement, training and development, uranium marketing, exploration and permitting.
Jensen Hung: With respect to permitting, the most critical step in unlocking the generational opportunities for all of our stakeholders.
Jensen Hung: The Canadian Nuclear Safety Commission, which is the federal nuclear regulator, continues to finalise and conclude the remaining aspects.
Jensen Hung: We are very confident, based on our submissions, which have been 100% formalised support from our project's local Indigenous communities and leaders, that the Environmental Impact Statement will be deemed final and the scheduling of the Commission hearing and subsequent licence decision immediately thereafter.
Jensen Hung: Our Indigenous Nation partners are eagerly awaiting the finalisation of the Federal EIS and the Commission hearing as this enables the project to advance through construction which will unlock game-changing opportunities for our local communities.
Jensen Hung: Project development activities continue to advance with strategic focus on critical path items. The mine hoist has been ordered and commencement of fabrication.
Jensen Hung: The Shaft Award is progressing and the advancement of detailed engineering and procurement.
Jensen Hung: This ensures optimisation of the project's critical path and capital spend efficiency to maintain a ready state for construction on receipt of the final CMFC approvals.
Jensen Hung: This quarter saw the installation and commissioning of a solar power plant at our existing camp, demonstrating one of our commitments to sustainable operations.
Jensen Hung: The summer site activity, including our gravel crushing program, has been extended and we've completed the majority of our 2024 geotechnical field verification program in support of continued detailed engineering activities.
Jensen Hung: As reported this morning, our PCE drilling, Patterson Corridor East, has delivered exceptional results again.
Jensen Hung: with the completion of our 2024 drilling campaign of more than 34,000 metres across a total of 46 holes.
Jensen Hung: Upon initial discovery of the intense mineralization at PCE as reported on March the 11th of 2024, we redirected all drilling activity to focus exclusively on PCE, whereby 19 of 30 holes have now intersected mineralization.
Jensen Hung: Bold and systematic spacing of drill hole intercepts have quickly grown the discovery from a single hole to a broad and continuous new uranium discovery.
Jensen Hung: Real-time evaluation of results throughout the drilling, throughout the duration of the program, focus on determining the overall out extent of the ore body and in parallel precisely targeting high-grade subdomains.
as detailed earlier today.
Jensen Hung: A high grey portion has now presented itself within the overall mineralised zone of 600 metres strike length and 600 metres of depth extent.
Jensen Hung: with upgraded intensity of mineralization in the now best hole to date, RK2420... 22. Sorry, RK24...
222
Jensen Hung: A 17 metre wide vein with multiple occurrences of off-scale greater than 61,000 counts per second mineralisation.
In addition, RK24
Jensen Hung: 2.2.0 and 2.2.3 intersect with strong mineralization of up to 41,000 CPS and 40,000 CPS respectively, including multiple intercepts of greater than 10,000 CPS.
Jensen Hung: System strength is confirmed by these zones characterized by semi-massive to massive replacement by uraninite.
Jensen Hung: The high-grade subdomain of the mineralised footprint now covers 100 metres of strike extent and 170 metres of depth extent, with potential growth in all directions.
Jensen Hung: The high grade intersection in RK24222 represents the fifth drill hole at PCE to return off scale of greater than 61,000 counts per second.
joining previous significant intersections in 183, 197, 202 and 207.
Jensen Hung: Sustainability, a cornerstone of our operations, is reflected in our transparent engagement platforms which continue to elevate and set a new standard within Saskatchewan and the broader community, recognised by both regulatory agencies and peer companies. Over the past quarter we significantly expanded our community mentorship and education programs.
Jensen Hung: This included engaging more summer students than ever before after receiving the highest number of applicants in the history of our summer student program.
Jensen Hung: Our training and certification programs also expanded with more than 365 community participants this year alone.
Jensen Hung: Notably, we launched our Pathways to Your Future Career in Mining program.
Jensen Hung: Developed and led by the NextGen team to equip community members with the knowledge and skills to explore career paths and thrive in the uranium mining industry, which is resonating across all ages within the community.
Jensen Hung: Our continued investment in the community has been further validated with our nomination of several community and industry recognition awards, including being the recipient of the prestigious 2024 ABX Community Involvement Award from the Saskatchewan Chamber of Commerce.
Jensen Hung: celebrating a business that actively contributes to the betterment of their communities and demonstrates a genuine dedication to making a positive impact in areas that extend beyond the core business function.
Jensen Hung: This award is reflective of NextGen's innovative and genuine community programs that are contributing to building generational change benefits.
Jensen Hung: Financially, NextGen maintains a strong position with approximately 540 million CAD in cash and another 340 million CAD in strategic uranium inventory.
Jensen Hung: Interest from the financial sector has intensified following Climate Week in New York, with 14 global financial institutions signing on to the Declaration to Triple Nuclear Energy, which was originally launched at COP 28 last year.
Jensen Hung: Since that announcement, NexGen has seen even more interest in lending discussions on what will be one of the world's elite mining projects. We are evaluating the many options we have to finance the construction capital and will determine the optimal capital stack on conclusion of the final federal approvals.
Jensen Hung: NextGen has significant funding options at hand to optimally construct and operate Rook One whilst maintaining low risk.
high leverage to the future prices of uranium.
Jensen Hung: Development at WK1 for the quarter and 2024 full year focuses on advanced engineering. Note
Jensen Hung: All initial stage construction programs are fully engineered, procurement of long lead time items, project development, exploration permitting, community programs and corporate development, whilst maintaining next-gen's industry-leading ratio of G&A spend relative to project spending.
Jensen Hung: No uranium in resource of greater than 300 million pounds worldwide has been discovered and defined through to feasibility level and provincial environmental approval as officially in terms of time and cost on a per pound basis.
Jensen Hung: A direct reflection of NexGen's broad, executive and team culture of elite standards in every aspect of the business.
Jensen Hung: On the contracting front, following a strategic uranium purchase in May 2024, utility interest and activity increased materially, with numerous utility site visits to Rook One over the summer of 2024.
Jensen Hung: We are advancing multiple off-take contract negotiations with various global utilities to demonstrate a very strong demand for NextGen's future production.
Jensen Hung: These discussions specifically focus on the need for Western world production and diversification.
focus and long-term uranium procurement is intensifying.
Furthermore, we've established an
Jensen Hung: A highly experienced and successful uranium marketing firm who is now exclusively marketing only for NexGen.
Jensen Hung: WOMC's alignment on NextGen's unique industry positioning and correlated marketing approach will further enhance NextGen's key role in the energy transition.
In order to meet demand, the market needs new discoveries.
Jensen Hung: The projects known, being restarted and then expanded would not be enough. In fact, multiple new Rook One size projects must be discovered, permitted, financed and constructed in the coming years.
Jensen Hung: capable of reaching any level of production within the next decade.
Jensen Hung: This scarcity of new projects makes our recent exploration success at Patterson Corridor East all the more significant, with the southwestern section of the Athabasca Basin presenting itself as the epicentre of future western world mined uranium.
Jensen Hung: Looking ahead, we have several exciting and highly material catalysts on the horizon, including the finalisation of the Federal Environmental Assessment Technical Unit and the Commission hearing.
Jensen Hung: NextGen is exceptionally well positioned to lead the nuclear energy resurgence with RUK-1 representing the largest and highest quality environmentally sensible uranium project globally in a Tier 1 jurisdiction.
Jensen Hung: Our unique position in Canada is at the Baskerville Basin is attracting utilities seeking to diversify supply chains and reduce geographical concentration risk.
Jensen Hung: a crucial advantage in today's geopolitical climate. Our commitment to excellence in all aspects of development, coupled with our robust financial position and our wavering focus on sustainability, including our people, will continue to set us apart as we work to deliver this generational project.
Jensen Hung: I now hand over to the operator to answer any questions.
Speaker Change: Thank you. We will now begin the question and answer session. If you would like to ask a question, simply press star, then the number 1 on your telephone keypad. If you would like to withdraw your question, please press the pound key.
Speaker Change: Our first question comes from Alex Pierce from BMO UK, please go ahead.
Great morning, Leigh.
Speaker Change: I was just hoping you could give us a little bit more detail on which areas within the review process are still under scrutiny and then, let's say, assuming the EIS is approved on the 19th, which I think is the next deadline, what's your current estimate of when you could get shovels in the ground for the main project? Thanks.
Speaker Change: Hello Alex, good morning. We had an update as recently as late last week. There are no issues presented to us as we are currently made aware.
Speaker Change: We understand also that there's very few aspects left to conclude.
and that the CNSC...
Speaker Change: is working very diligently on the conclusion of those aspects. Now, as I've often stated, we are incredibly respectful of the process.
Speaker Change: and that's one of the reasons why we chose Canada because it's highly regulated and as uranium mining should be.
But we are nearing the final conclusion of that.
Speaker Change: The 49 aspects that they required additional information on has been publicly released by the CNSC, but we are very, very confident, based on that meeting last week, that the process is nearing conclusion.
From there, a commission hearing date will be set.
Speaker Change: and then the process is that it's 60 days for final signing by the Federal Minister at which point after that shovels will be able to go on the ground.
Speaker Change: Okay, thanks Leigh. And then maybe I can ask you a second question which is...
Speaker Change: You flagged in your remarks, obviously, discussions with utilities are ongoing about future offtakes. We're seeing, at least from some of the reporting agencies, there's been a bit of a slowdown since, let's say, the W&A. I just wondered whether you can just talk about how you've seen discussions change over the last month. Are you also seeing a slowdown in terms of a need for future contracts?
Speaker Change: Yeah look Alex I can only speak to what we're experiencing with
Speaker Change: It's been quite the opposite. We're actively engaged on a number of off-take agreements with multiple utilities globally. So no, we personally haven't experienced that at all.
Great. Thanks, Leigh.
Thanks, Alex.
Speaker Change: Our next question comes from Orest Walkodaw from Scotiabank Toronto, Canada.
Speaker Change: Hi, good morning. My questions are sort of more of the same as Alex's. Leigh, of the 49 sort of outstanding questions that you mentioned earlier, how many of those are still outstanding as of today?
Speaker Change: As of today, well, I can't tell you specifically which ones are outstanding except to say that the CNSC have indicated that they're nearing conclusion of the process and we have not been notified.
Speaker Change: any outstanding issues or seeking additional information as I speak. So look it's a process where
Speaker Change: The CNSA and the company will share information and look to conclude and close out certain aspects.
Speaker Change: What I can say overall is that it's been indicated to us that the process is nearing conclusion.
Speaker Change: We are very confident, based on the responses that we have given, that it will be concluded in the very near future.
Speaker Change: So, I can't give a date or a specific number of where that process is out of respect for the CNSE in conducting...
Speaker Change: And we very much look forward to that and then the commission hearing date being set.
Look, the community...
Speaker Change: It was conveyed to me by one of the community chiefs late last week that
Speaker Change: They are very interested in having this process concluded in the in the very near future. So there's a number of stakeholders including the province of Saskatchewan who are of the same view but ultimately all of us are very respectful of the federal CNSC process concluding.
Speaker Change: in the appropriate manner and we understand that to be in the very near future.
Speaker Change: And Leigh, just on the timing, like, assuming you do get the final sign-off on the EIS, say, at the end of the year.
Speaker Change: Are we talking like 60 to 90 days to set a hearing date and then 60 days post that hearing date? Like is that, so are we talking more like mid-25 now for kind of realistic timing of construction ready?
Speaker Change: as soon as it can be, respecting everything that needs to occur prior to that Commission hearing date. We're not looking for a shortcut.
Speaker Change: or anything in that respect. So we respect the CNSC's discretion in setting that date. I think the CNSC is well aware of all the stakeholders.
Speaker Change: a desire to have that as soon as it practically can be respecting the CNSC's processes.
Speaker Change: And we are ready for it as a company, as a community, as a province to have that Commission hearing and then have it finalised in order to commence construction.
Okay, thank you.
Thank you.
Speaker Change: Our next question comes from Andrew Wong from RBC Capital Markets.
Please go ahead.
Speaker Change: Good morning. Thanks for having me on the call. Just given the increased level of interest from utilities, I'm just wondering, does that give you more line of sight on signing an offtake contract this year? And does that process hinge on the approvals process moving forward?
Speaker Change: No, it doesn't. Oh, it doesn't. Yeah, Travis. It doesn't. Yes, it doesn't hinge on the permitting approvals necessarily, but.
Speaker Change: We are negotiating them and in final negotiations on a number of them.
Speaker Change: Obviously, it's always hard to pin down an exact timing of it.
Speaker Change: you know, signing anything you're negotiating, frankly, but obviously extremely motivated parties on their side and on our side. So, and there's no issues or anything, and it's very advanced. So, yes, it seems completely reasonable that we will execute and announce potentially a number of contracts before the end of the year.
Speaker Change: Okay, and do you have enough physical uranium available to backstop those contracts? And just given that uranium prices have come down recently, do you see that as an opportunity to maybe add to your current inventory?
Speaker Change: It's a good question, Andrew. I would say answer your question in order. No, we're satisfied with the amount that we have. We don't see a need to buy it. Again, you know...
When we bought it originally it wasn't
Speaker Change: You know, we're not like timing the market and trying to trade the market So, you know, you're any imprints coming down going up frankly doesn't really change the rationale for doing that transaction or
Speaker Change: any future transactions with that uranium. The uranium has proven to be very useful in these discussions that we're having, particularly with a few counterparties that aren't as used to supporting, you know, a new mine because, frankly, there hasn't been a new mine in uranium in
Speaker Change: a couple of decades, at least one that's material. So it's proven to be very helpful in those negotiations. And so, yeah, we're satisfied with how much uranium we have and aren't looking to purchase any more. That's great. Thank you very much.
Speaker Change: Andrew, I think it's two factors. One, the market and the way it's evolving, but also the recognition by the utilities of where NextGen is in their...
Speaker Change: the permitting process and that it is nearing finalisation, so I think it's a number of factors which has increased that activity with respect to those negotiations specifically with NextGen.
Our next question comes from Puneet Singh
Puneet Singh: Hi, good morning. I saw that tidbit in the UXC Weekly where WMC was touting being brought on as your exclusive partner and you mentioned in the opening remarks as well. I know they do some work with the Sprott Trust but maybe touch on that decision to bring them on and talk about how that could be a strategic advantage for you guys. Thanks.
Speaker Change: Yeah, I might start and then let Travis take over. But look, WNC are highly qualified and experienced in the uranium marketing industry worldwide.
They approached us, wanted to become our exclusive marketing arm.
Speaker Change: for the offtake of Next Gen Druk One project. I think that reflects a couple of things. One, that they identify with our position and approach.
Speaker Change: to the marketing of Offtake. They have a fantastic long-standing relationships with all the major utilities.
and um
Speaker Change: I just think that it's an excellent reflection on where we are as a company and where we're heading. Also, yes, they have purchased uranium for Sprott Uranium Trust. There's no relationship between NextGen or the Sprott Uranium Trust, so I just want to be clear on that.
The arrangement is to exclusively market.
Speaker Change: offtake on behalf of NexGen from the Ruk-1 project. We're very excited about it for obvious reasons as I said I think it reflects our position in the market but also our approach to the the future marking of the uranium.
Speaker Change: Our next question comes from Craig Hutcheon from TD Cohen. Please go ahead.
Craig Hutcheon: Good morning guys. Thanks for taking my question. Just one follow-up on the permitting front. Do you guys know at this point whether the hearings, the commission hearings, will be a one-part hearing or two-part hearing? Have they given you any sense on that at this stage or is it too early?
Speaker Change: No, they've indicated that it'll be both the permitting and the licensing concurrently.
Speaker Change: Concurrently. Okay, great. And then just on the exploration front, can you just give us a sense of what the turnaround time is on assay results? I think you guys mentioned you'll expect some assays in the fourth quarter next year. And what's sort of the plan in terms of meterage for drilling next year? Thanks.
Speaker Change: Yeah sure, so look we batched the essays and considering that it's a
Speaker Change: You know, occurring in parallel to the development activities at Rook One Arrow with the confirmation of the geotechnical setting.
Speaker Change: to the lab after each hole where we're doing batches. And so it will be a bit lumpy with respect to the way those assays come back. The other aspect too.
Speaker Change: Look, the scintillometer gives us a very good feel and we're at the stage of just identifying the area of mineralisation.
Speaker Change: looking for the interior high-grade domains. Now we still haven't defined the outer limits of the mineralization nor the high-grade subdomains within that.
So the...
Speaker Change: We want to understand that first, and then we have batched and sent the core to the lab, and those will be coming in during Q4, but I just want to make the point that it's not
Speaker Change: one hole, send the hole to the lab. We're batching them and we'll report them in batches as they come in.
Speaker Change: was the largest in the entire Athabasca Basin for 2024. Based on what we see today, I would say that at a minimum it would be around that many meters plus probably some more.
dependent on other results. But this is an incredible discovery.
Speaker Change: only three and a half kilometers from the Arrow deposit entirely contained within the basement rock and at the same time exhibiting greater off-scale than what we saw at Arrow.
Speaker Change: We are incredibly excited about it but you know when we are running you know we haven't been distracted with it in terms of we are very focused on the permitting and development of Arrow.
Speaker Change: and this running in parallel and in the background is incredibly exciting.
Speaker Change: for everyone involved, not just the people at the company but also the community.
Speaker Change: the province as well. So it's an incredible development as it has presented itself only earlier this year. So it's very early stages but looking incredibly exciting.
All right, thank you.
Speaker Change: Our next question comes from Katie LaChapelle from Canaccord Genuity. Please go ahead.
Speaker Change: Hey, good morning guys. It's nice to see another positive update on the drilling. I do want to go back to sort of the offtake negotiations that are underway and the WMC energy agreement. What has been the sort of response that you've received from utilities on the back of that and have you seen
Speaker Change: Some of the contract negotiations, I would say, improve or evolve since bringing in WMC, and then maybe one follow-up as well. I'm not sure if you can answer this, but if there were to be some sort of change of control or something at the company level, is WMC guaranteed?
Speaker Change: that agreement going forward, or is there something in place where that could potentially fall out?
Yeah, thanks, Katie. Oh, sorry, Travis, go ahead.
Travis McPherson: Yeah, I was just going to say everything was progressing very well prior to WFC coming on. WFC obviously has the infrastructure in place as well as expanded.
Travis McPherson: I'd say, there was a delay, but what's been leading to sort of the the awarding of the shopping a little bit longer than maybe previously expected.
Yeah, there's nothing nothing.
Travis McPherson: Jos.
Good okay.
Speaker Change: No nothing other than it's a token Tom look it's a it's a massive contract.
Speaker Change: And we.
Speaker Change: Many review hours et cetera.
Speaker Change: And.
Speaker Change: That's just a function of how material that contract is to the overall construction schedule. The other aspect to is that we are awaiting final.
Speaker Change: Approval, so we can't really.
Speaker Change: Launch into any major construction until final approvals and ministerial sawn off so.
Speaker Change: Yeah nothing.
Speaker Change: Other than that.
Speaker Change: And I would just say also just to add to the the thing about WMC.
We are very focused on executing this project and by virtue of the volume of inbound calls we were getting.
Speaker Change: It just made sense.
Speaker Change: To work with the Wm say to do that in a in.
Speaker Change: In a manner in which should deserves.
Speaker Change: And as Trevor said that they've got exposure across the entire globe.
Speaker Change: And.
Speaker Change: We are incredibly pleased to be working with them.
Speaker Change: Hey, Kelly I might just add on the on the shop side of it as well.
Speaker Change: Let me.
Speaker Change: These large contracts like this could be like phases, and so we have advanced through eliminate notice to proceed on those critical path detailed engineering and procurement phase of that contract. So notwithstanding the fact that the whole contract is not excuse me you do advance under the early phases of what will become those contracts so everything on the critical path.
Speaker Change: With respect to the shops is maintained despite this contract not being fully executed as of yet.
Speaker Change: Okay got it awesome. Thank you guys.
Speaker Change: Okay.
Speaker Change: Our next question comes from Mohammed <unk> from the National Bank of Canada. Please go ahead.
Yeah.
Speaker Change: Thank you for taking my question. So just wouldn't be uptick from I think you mentioned interest from utilities globally, but I just wanted to understand given you know barriers announcement enough maybe contracting being sort of unexpected. This year are you seeing particular interest from a specific jurisdiction and from your point of view are you really more focused on supplying a spin.
Speaker Change: Vic jurisdiction like North America, or radio kinds of upticks from anywhere in the world. Thank you.
Speaker Change: Yes.
Speaker Change: Yeah. Thanks, Thanks Mohammed.
Speaker Change: I would say there's three primary jurisdictions that have been the early focus anyways, which has been North America, Canada and the U S.
Speaker Change: And then as well as Western Europe and Japan.
Speaker Change: We are speaking to effectively everyone around the world, but I would say that those are the most advanced.
Speaker Change:
Speaker Change: And so we're kind of just going with that I think yes.
Speaker Change: If we could choose how it gets split up in terms of yeah, I think obviously times on wise and where the asset is of course, North America should and likely well have a heavy focus.
Speaker Change: But yes, we'll sell to anyone.
<unk> robust and wherever they go you're allowed to sell to.
Speaker Change: But those would be the primary three jurisdictions that have shown tremendous interest over the last couple of years.
Speaker Change: Thank you and just my second and final question here just on the financing portion and then you know if you express with interest that you had and maybe the timing I think last time, we chatted you said that you know it would be post permitting approval that we could see an announcement on the financing front is that still the case or.
Speaker Change: Or could we see something prior to may be a commission hearing date are being finalized. Thank you.
Speaker Change: Yes.
Speaker Change: We're targeting effect, obviously, it's a bit of a moving target because we don't know exactly when the commission hearing date will be obviously lots has been spoken to about that.
Speaker Change: But we don't know exactly what that is obviously every focus of energy is on making sure that that says expedient as it can possibly be but we don't know when that is so we're advancing with debt.
Speaker Change: Overall project financing auctions of which there are many altogether.
Speaker Change: So, yes, there's a chance that that.
Speaker Change: Can get finalized.
Speaker Change: Of that.
Speaker Change: It just depends on.
Speaker Change: When that commission hearing David exactly is relative to how these things progressing in advance, but we want to be at a decision point for sure kind of around the point of that.
Speaker Change: Commission hearing with our own internal estimates.
Speaker Change: Kind of potentially when that hearing could be.
Speaker Change: Yeah.
Speaker Change: Not a lot.
Speaker Change: Obviously, the the conclusion of the federal.
Meeting process is the mine gate to be offtake bit.
Speaker Change: Construction financing finalize.
Speaker Change: All of these things are getting run in parallel but effectively.
Speaker Change: Dependent on on that.
Speaker Change: Final federal approval process concluding.
Speaker Change: The fact that.
Speaker Change: We haven't concluded that to diet to even though we had been in a position to have.
Speaker Change: This resulted in <unk>.
Speaker Change: More avenues of financing.
Speaker Change: And as this market continues to evolve.
Speaker Change: We are ensuring that we will be taking the most optimal package available.
Speaker Change: That maintains.
Speaker Change: Leverage to the future prices of uranium we have a very very simple story, we have a very large very high grade project in the best jurisdiction to develop and operate a uranium mine in Saskatchewan, Canada right next door to the biggest nuclear fuel.
Speaker Change: In the world in the U S.
Speaker Change: And we're incorporating the late environmental standards and community.
Speaker Change: Participation and engagement.
Speaker Change: Yes.
Speaker Change: We have a very simple story.
Speaker Change: And hence we're attracting a lot of interest from offtake or a debt or financing providers and the big gate to that is concluding these federal funding.
Speaker Change: Federal permitting process and we.
Speaker Change: Our confidence that our that is imminent, whilst respecting the saying they see process to conclude.
Speaker Change: Okay.
Speaker Change: Thank you.
Yeah.
Speaker Change: Our next question comes from Aaron Cheng. Please go ahead.
Speaker Change: Yeah.
Aaron Cheng: Hi, Thank you.
Aaron Cheng: Yes.
Aaron Cheng: Thank you for this comprehensive summary of all the recent transformative.
Aaron Cheng: Across all aspects of Nextgen.
Aaron Cheng: These exciting prospects.
Aaron Cheng: Future projects in development and it sounds like really limitless potential and demand there.
Speaker Change: There are a lot of questions I'd actually love to explore in more depth and I'm going to hone in on a pretty functional like okay.
Speaker Change: Given the unprecedented pioneering nature of your projects I wonder about the workforce driving the execution of these projects and the adequate supply of skilled labor workforce.
Does that present, a risk to project progress and timeline.
Speaker Change: Is there a real obstacle.
Speaker Change: Got it.
Seeing how it is in other significant projects in the energy sector.
Speaker Change: And considering the complexity and scope of projects and timelines from shovel in the ground for product in the marketplace.
Speaker Change: But is this skilled workforce pipeline.
Speaker Change: The other challenge I hear a lot about and project execution in the energy sector is in supply chain to meet them delay for parts and components related to the engineering and infrastructure projects.
Speaker Change: I'm really just wondering about.
Speaker Change: He's out in logistics and to what extent are these projects expose those bets as well.
Speaker Change: Thank you.
Speaker Change: That's a incredibly relevant question.
Speaker Change: And.
Speaker Change: Those two aspects.
Speaker Change: Yeah, you got to look at two things one the technical nature of the asset.
Speaker Change: We have a very very.
Speaker Change: In a mining sense very simple mind, we're incompetent basement rock it's shallow.
Speaker Change: And we'll be moving or 1300 tonnes a day, it's actually one of the world's tiniest.
Speaker Change: Hard rock underground months. So we're in we're in a very technical simple technical setting any environment to setting the other aspect with respect to labor forces in and delays at the way. The company manages the execution of the project now we have been of late and now project fixed.
Speaker Change: <unk> since inception.
Speaker Change: And when it comes to the labor, we have a community of 150 kilometers from the project, a four and a half thousand pay.
Speaker Change: People with <unk> since 2011.
Speaker Change: And we ran a number of programs starting back in 2022.
Speaker Change: With a very enthusiastic community.
Speaker Change: Working with the various technical colleges in Saskatchewan.
Speaker Change: In a number of job skills programs to ensure that that community has the has the the.
Access to the jobs at one.
Speaker Change: One and appropriately.
Speaker Change: Qualified now a lot of those people have gone through our programs and they are currently working in other parts of Canada. They can't wait to come back once the project is approved and construction commences. So we've recognized this many years out and we've been working towards that.
Speaker Change: Since we made the decision to go to develop this mine back in 2017, and so as we speak we're very very pleased with where we are with respect to that training.
Speaker Change: And the availability of the appropriately qualified labor, which Willy which doesn't exist in the local community and as a philosophy of our company, we want all workers living as close to the project in the local communities as possible to lend.
Speaker Change: It's it's gonna be another example of success.
Speaker Change: Successful.
Speaker Change: She collaboration between the company and the community and the successful execution of our resources projects. So yeah.
Speaker Change: Your question is incredibly valid.
One, which we've been aware of and planning for since 2017.
Speaker Change: And the success of those programs, which I touched on it now and are earlier in their coal.
Speaker Change: Uh huh.
Speaker Change: Having an excellent impact that as we speak so on.
Speaker Change: On top of that you know the nature of the project and the culture of the company has been attracting elite talent from around the world.
Speaker Change: We have a very strong perspective on this line on this mine being most environmentally well managed <unk> globally and that's a function of its natural technical setting, but also the design aspects.
Speaker Change: That wave.
Speaker Change: We've chosen to incorporate underground tailings management facility is one of them and so.
Speaker Change: We're really pleased with where we stand currently for al.
Speaker Change: Our level of activity and we are prepared for the next stages.
Speaker Change: Once they are approved to move forward.
Speaker Change: In a N a.
Speaker Change: Stable and sensible manner.
Speaker Change: Thank you for that and you also touched on my second question, which is going to be about the initiatives that you are already implementing it.
Speaker Change: So thank you for a segue.
Speaker Change: Not really into that.
Speaker Change: Hum.
Speaker Change: Pleasure thanks.
Speaker Change: There are no further questions at this time.
Speaker Change: Ladies and gentlemen, this concludes the conference call for today, we thank you for participating and ask that you. Please disconnect your lines.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: [music].