Q4 2024 NexGen Energy Ltd Earnings Call
Good morning, My name is constant gene and I will be your conference operator for today.
Konstantin: Good morning, my name is Konstantin and I will be your conference operator for today.
Konstantin: At this time, I would like to welcome everyone to the NexGen's Energy Year-End and Fourth Quarter 2024 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise.
At this time I would like to welcome everyone to the Nextgen energy year end and fourth quarter, 'twenty 'twenty, four and financial results Conference call.
All lines have been placed on mute to prevent any background noise.
Konstantin: After the speaker's remarks, there will be a question and answer session at the end, and if you'd like to ask a question during this time, simply press stars and the number one on your telephone keypad. If you'd like to withdraw your question, please press stars and the number two.
After the Speakers' remarks, there will be a question and answer session at the end and if you'd like to ask a question. During this time simply press Star then the number one on your telephone keypad, if you'd like to withdraw your question. Please press Star then the number two.
Leigh Curyer: Mr. Leigh Curyer, CEO and Director for NexGen Energy, you may begin your conference. Thank you, Constantine. Thank you all for joining us today for NexGen's year-end and Q4 2024 Financial Results Conference Call. I'm Leigh Curyer, Founder and Chief Executive Officer of NexGen Energy and I'm joined today by Travis McPherson, Chief Commercial Officer and Benjamin Salter, Chief Financial Officer. Over the course of this call, I will provide NexGen's insights into the global uranium market. and also highlight the significant progress in recent key accomplishments at NexGen, including the completion of the final Federal Technical Review for Rook One and CNSC's acceptance of our Federal Environmental Impact Statement as final, as well as our first uranium sales contract.
Speaker Change: Mr. Lee for your CEO and director for Nexgen Energy you May begin your conference.
Speaker Change: I think he constant team. Thank you all for joining us today for Nexgen is year end and Q4, 'twenty 'twenty four financial results conference call.
Speaker Change: Curious founder and Chief Executive Officer of Nextgen Energy and I'm joined today by travelers Mcpherson, Chief commercial officer, and Benjamin Solta Chief Financial Officer.
Over the course of this call I will provide next gens insights into the global uranium markets and also highlight the significant progress and recent key accomplishments at Nextgen, including the completion of the final Federal Technical review for Rogue one.
Speaker Change: And saying that saves acceptance of that federal environmental impact statement is final.
Speaker Change: As well as our first uranium sales contract.
Leigh Curyer: with leading US utilities and the commencement of the largest exploration program in the Athabasca Basin focused on our new 2024 discovery at Patterson Corridor East, PCE.
Speaker Change: And with leading U S utilities.
Speaker Change: And the commencement of the largest exploration program in the Athabasca basin focused on <unk> 'twenty 'twenty four discovery at Patterson Corridor East P. J a.
Leigh Curyer: At the conclusion of the presentation, we'll move to the Q&A portion of the call, which will provide you the opportunity to ask any questions. We will make forward-looking statements throughout today's call and I invite you to visit our website for all the relevant disclosures. Before we begin, it's worth noting the exceptional scarcity of successful greenfield projects in our industry. Only 1% of exploration projects progress past the permitting stage. We are nearing that stage and a mere 0.01% ultimately become profitable mines. Our steady advancements and multiple milestones emphasise that NexGen is firmly on the path to joining that elite category.
Speaker Change: At the conclusion of the presentation, we will move to the Q&A portion of the coal, which will provide us the opportunity to ask any questions.
Speaker Change: We will make forward looking statements throughout today's call and I invite you to visit our website for all the relevant disclosures.
Speaker Change: Before we begin it's worth noting the exceptional scarcity of successful greenfield projects and the interest rate on the 1% of exploration probably great projects progressed past the permitting stage.
Speaker Change: We are nearing that stage and EMEA, 0.0% to 1% ultimately become profitable mines.
Speaker Change: Our steady advancement smaller multiple milestones emphasize it nextgen is firmly on the path to joining that elite category. The barriers to entry are high and considering the necessity of new supply for the uranium market to feel strongly that growing nuclear demand our Patterson car.
Leigh Curyer: The barriers to entry are high and considering the necessity of new supply for the uranium market to fuel strongly the growing nuclear demand, our Patterson Corridor East project is that much more important than it was yesterday. as are all the current uranium developers. The uranium market remains dynamic, shaped by growing new demand for nuclear energy on top of a robust existing global nuclear fleet. with geopolitical uncertainties and supply chain constraints, all underscoring the critical importance of security of uranium supply. Legislative actions have amplified concerns over supply and emphasised the need for stable western-based uranium sources to diversify what has become a highly concentrated uranium industry.
Our Ace project is that much more important than it was yesterday.
Speaker Change: As our older current uranium developers.
Speaker Change: Uranium market remains dynamic change by growing new demand for nuclear energy on top of a robust existing global nuclear fleets.
Speaker Change: Geopolitical uncertainties and supply chain constraints, all underscoring the critical importance of security of uranium supply.
Speaker Change: Legislative actions have amplified concerns over supply and emphasize the need for stable western based uranium sources.
Speaker Change: Diversify what has become a highly concentrated uranium industry.
Leigh Curyer: Short-term market fluctuations based on market liquidity constraints have not changed the fundamental market reality. There simply isn't enough supply to meet demand, and that is forecast to persist well past the 2040s. The only solution is a substantially higher and sustained price to incentivize greater investment in uranium exploration and mining, leading to new discoveries and project development. Without materially higher sustained prices, the deficits will only grow wider. To put the demand for uranium, particularly Western supply, into perspective, let's focus on the US market for a moment. The US consumes nearly 50 million pounds of uranium annually, but produces less than one million pounds domestically.
Speaker Change: Short term market fluctuations based on market liquidity constraints have not changed the fundamental market reality.
Speaker Change: Simply isn't enough supply to meet demand and that is forecast to persist well past the 20 forty's.
Speaker Change: The only solution is the substantially higher and sustained price to incentivize greater investment in uranium exploration and mining leading to new discoveries and project development.
Speaker Change: That materially higher sustained prices the deficits will only grow water.
Speaker Change: To put the demand for uranium, particularly western supply into perspective, let's focus on the U S market for a moment.
Speaker Change: U S consumes nearly 50 million pounds of uranium annually, but produces less than 1 million pounds domestically.
Leigh Curyer: Canada currently accounts for 25% of its supply with the rest of primary supply coming from Kazakhstan, Russia and Uzbekistan. This available supply is also shrinking. Russia will be legislatively banned from the U.S. market in totality by 2027. And the majority of Kazatomprom's future production is already committed to the East. Kazakhstan and Uzbekistan's uranium is increasingly being diverted to China and Russia. The West is unleashing unprecedented support for nuclear, yet is falling behind on securing the uranium supply it critically needs. All other components of the nuclear fuel cycle are at or near all-time highs, yet the necessary input for the whole cycle, uranium, has yet to perform the same way.
Speaker Change: Canada currently accounts for 25% of our supply with the rest of primary supply coming from Kazakhstan, Russia and Uzbekistan.
Speaker Change: This available supply is also shrinking Russia will be legislators lay banned from the U S market in total income in totality by 2027.
Speaker Change: And the majority of kids that are problems future production is already committed to the east Kazakhstan, and Uzbekistan uranium is increasingly being devoted to China and Russia.
Speaker Change: The west is unleashing on price today and its support for nuclear it yet is falling behind on securing the uranium supply a critically needs.
Speaker Change: All other components of the nuclear fuel cycle are at or near all time highs.
Speaker Change: The necessary inputs for the whole cycle uranium.
Speaker Change: As yet to perform the same way.
Leigh Curyer: But attention towards new sources of primary mine supply has commenced, evidenced by our initial US utility contracts being executed in December of last year.
Speaker Change: But attention towards new sources of primary months' supply has commenced evidenced by our initial U S utility contracts being executed in December of last year.
Leigh Curyer: 2024 was a transformative year for NexGen, marked by significant milestones. We secured our first utility contracts, which are entirely in line with our strategy of maximizing the exposure to future uranium prices and optimizing the return on every pound produced. This has coincided with completing the Federal Technical Review and finalisation of our Federal EIS. Materially advanced the project execution, surpassed regional procurement and training objectives all while advancing the Athabasca Basin's largest targeted acceleration drill program that yielded a brand new material discovery named PCE, just 3.5 kilometers from our mighty Arrow deposit. Our progress has been driven by an incredibly dedicated team and our steadfast mission to establish NexGen as a world leader in clean energy fuel solutions.
Speaker Change: 2024 was a transformative year for nexgen marked by significant milestones.
We secured our first utility contracts, which are entirely in line with our strategy of maximizing the exposure to future uranium prices and optimizing the return on every pound produced this has coincided with completing the federal technical review and Finalization of the fed.
Speaker Change: E R I S.
Speaker Change: Materially advanced the project execution.
Speaker Change: Pos regional.
Speaker Change: Acumen and training objectives.
Speaker Change: All while advancing the Athabasca basins largest targeted exploration drill program that.
Speaker Change: That yielded a brand new material discovery nine P C. A.
Speaker Change: This three five kilometers from M Iot Arrow deposit.
Speaker Change: Our progress is being driven by an incredibly dedicated team and I've said fast mission to establish nextgen.
Speaker Change: As a world leader in clean energy fuel solutions.
Leigh Curyer: As we continue advancing our disciplined development of our 100% owned Rook One project, we are now nearing completion of the most material phase, permitting. The site, our team and our balance sheet are ready to commence construction immediately following conclusion of the Commission hearing, which we, the Province of Saskatchewan and our Indigenous community partners are all eagerly awaiting. With the full support via fully executed and legally binding benefit agreement. and strong advocacy from all four Indigenous communities in our project area. Clearwater River Dene Nation, Mating Nation Saskatchewan Northern Region 2, Birch Narrows Dene Nation, Buffalo River Dene Nation.
As we continue advancing our disciplined development of a 100% owned one project. We are now nearing completion of the most material feis permitting.
Speaker Change: The site our team and our balance sheet are ready to commence construction immediately following conclusion of the commission hearing which way the province of Saskatchewan and there are indigenous community partners are all eagerly awaiting.
Speaker Change: With the full support while fully executed and lately legally bonding benefit agreements.
Speaker Change: And strong advocacy from all four indigenous communities in that project area.
Speaker Change: Clearwater River deny nation, 19 nation, Saskatchewan Northern region too Bearish Narrows denied nation Buffalo River, then I imagine the project is optimally.
Leigh Curyer: The project is optimally positioned for completion of the final approval process. NexGen has made significant advancement. in construction readiness. Procurement of critical items is well advanced. Vendors are secured for key critical path activities and the team which has been strategically compiled for optimal performance is in place and ready to execute. This discipline planning and execution today positions us to mobilise on day one. of approval once final permits are secured, with existing cash on hand supporting a minimum of 18 months of post-approval construction activity. In parallel, we continue to attract top-tier talent and expand our local training programs to ensure industry-leading percentages of the on-site labour and commerce is domiciled directly from nearby local communities.
Speaker Change: For completion of the final approval process.
Speaker Change: Nexgen has made significant advancements.
Speaker Change: In construction readiness procurement of critical items is well advanced vendors are secured for three key critical path activities and the team, which is very strategically compiled for optimal performance is in place and ready to execute.
Speaker Change: This disciplined planning and execution to date positions us to mobilize on day one.
Speaker Change: Although approval once final permits secured with existing cash on hand, supporting a minimum of 18 months of post approval construction activity in.
Speaker Change: In parallel we continue to attract top tier talent and expand our local training programs to ensure industry, leading percentages of the onsite labor and.
Speaker Change: And Congress is domiciled directly from knee by local communities are for.
Leigh Curyer: Our focus on sustainable development remains at the core of our operations, while delivering lasting value to our shareholders, partners and the communities in which we operate. Additionally, our updated capital estimate reaffirmed Rook One's industry-leading economy. Featuring rapid payback of approximately 12 months based on UXC's long-term price and an exceptionally low operating cost of under $10 a pound US at $9.98. These low operating costs, combined with the ideal geological setting, provide NexGen with significant production flexibility and strategic leverage on contracting, enabling us to maximise the value of every pound produced. NexGen's strategic uranium inventory, which was purchased in early 2024, has played a key role in our contracting position, enabling us to secure customers aligned with us in terms of future market dynamics, and ensuring we maintain maximum exposure to future uranium prices.
Speaker Change: Focus on sustainable development remains at the core of our operations, while delivering lasting value to our shareholders partners and the communities in which we operate.
Speaker Change: Additionally, our updated capital estimate reaffirmed brook one's industry, leading economics, featuring rapid payback of approximately 12 months based on New York City's long term price and then an exceptionally low operating cost of under $10 a pound U S. At 998.
Speaker Change: These low operating costs combined with the ideal geological setting provide nextgen with significant production flexibility.
Speaker Change: <unk> strategic leverage on contracting and enabling us to maximize the value of every pound produced.
Speaker Change: Nextgen strategic uranium inventory, which was purchased in early 2024 has played a key role in our contracting position, enabling us to secure our customers along with us in terms of future market dynamics, and ensuring we maintain maximum exposure to future uranium prices.
Leigh Curyer: As evidenced in December, this proactive approach led to the award of our first Uranium Sales Agreement. with multiple leading US utilities, securing 5 million pounds of deliveries over the first five years. Building on these first few contracts, interest from global utilities continues to increase for NexGen to bring a new material source of uranium supply to the market and, in order to assist nuclear operators, diversify their current supply concentration. Discussions are advancing across the US, Europe, Asia and the Middle East. As market fundamentals tighten, we anticipate further contract signings in the near term as utilities move to secure long-term supply and NexGen prepares for production.
Speaker Change: As evidenced in December its proactive approach led to the award of our first uranium sales agreements with multiple leading U S utilities, securing 5 million pounds of deliveries over the first five years.
Speaker Change: Building on these first few contracts interest from global utilities continues to increase for Nexgen.
Speaker Change: To bring a new material source of uranium supply to the market and in order to assist nuclear operators diversify the current supply concentration.
Speaker Change: Discussions are advancing across the U S U S Europe Asia, and the Middle East as.
Speaker Change: As market fundamentals tighten we anticipate further contract signings in the near term as utilities move to secure long term supply and Nextgen compares full production.
Leigh Curyer: NexGen remains well positioned to capitalise on this growing demand, and while maintaining a disciplined approach to our contracting strategy, ensuring we optimise value of every pound committed and produced. So as we navigate this evolving landscape, NexGen remains focused on delivering long term value, leveraging our strategic position in a market with unprecedented and undeniable growth potential combined with the structural supply constraints.
Speaker Change: Nextgen remains well positioned to capitalize on this growing demand and while maintaining a discipline and a disciplined approach to our contracting strategy, ensuring we optimize value of every pound committed and produced.
Speaker Change: So as we navigate this evolving landscape nextgen remains focused on delivering long term value leveraging our strategic positioning in the market with unprecedented and undeniable growth potential combined with our structural.
Speaker Change: With the structural supply constraints.
Leigh Curyer: Sustainability is a cornerstone of NexGen's culture and business practices. In 2024, local Indigenous communities continued their vocal support for the immediate approval of the Rook One project, given their deep participation and understanding of the environmental assessment process, as well as the trust which is clearly evident between NexGen and the communities. Our benefit agreements continue to deliver tangible community programs, workforce training and economic partnerships, reinforcing our long-term commitment to responsible resource development. Programs such as our Pathways to Your Future for careers in mining at the Rook One project, coupled with our unique sports partnerships that deliver impactful mentorship for youth through leadership development, are creating long-lasting growth opportunities for the next generation of leaders across our region.
Speaker Change: Sustainability is a cornerstone next Jones culture and business practices in 2024 local indigenous communities continue their vocal support for the immediate approval of the required project given the date participation and understanding of the environmental assessment process as well as the trust, which is clearly evident.
Speaker Change: The 12 Nextgen in the communities benefit agreements continued to deliver tangible community programs workforce training and economic partnerships reinforcing our long term commitment to responsible resource development.
Speaker Change: Brands, such as a pathway to your feature for careers in mining at the <unk>, One project, coupled with our unique sports partnerships.
Speaker Change: They live our impactful mental shape for us through leadership development, creating long lasting growth opportunities for the next generation of leaders across our region. We.
Leigh Curyer: We are also proud to announce that in line with NexGen's commitment to support and advance local Indigenous communities and businesses, 96% of the procurement for the Rook One site was made through our community partners during 2024. That is industry leading, the number one position in the industry, and reflects the genuine nature of our commitment to local communities, which will expand exponentially once the project clears the commission hearing process.
We are also proud to announce that in line with Nextgen commitment to support and advanced local indigenous communities and businesses, 96% of the procurement for the route one sought was made through our community partners during 2024.
Speaker Change: That is industry leading.
Speaker Change: Number one position in the industry and reflects the general nature of that committed commitment to local communities, which will expand exponentially.
Speaker Change: Once the project <unk> The commission hearing process.
Speaker Change: Beyond Roke won 2024 exploration program was Nextgen most successful since the discovery of Arrow in 2024.
Leigh Curyer: Beyond Rook One, our 2024 exploration program was NexGen's most successful since the discovery of Arrow in 2024, a major uranium discovery at Patterson Corridor East, just 3.5 kilometres from Arrow. It has all the same characteristics of Arrow, and in terms of size and the existence of the ultra-high-grade mineralisation, it exceeds that of Arrow at the same stage of drilling. The discovery at PCE represents a transformational development, unlocking new resource potential and refining the truly district scale of NexGen's land position.
Speaker Change: Major uranium discovery Pedersen corridor East just three five kilometers from erode.
Speaker Change: It has all the same characteristics of that ROI and in terms of size and the existence of the ultra high grade mineralization at.
Speaker Change: Exceeds that of arrow at the same stage of drilling.
Speaker Change: The discovery piece, a represents a transformational development unlocking new resorts perfect protection and refining the truly district scale of mixed <unk> land position.
Leigh Curyer: We just commenced our 2025, sorry, our 2025 exploration program. One of the largest and boldest drill programs in the Athabasca Basin. with a 43,000 metre drill program focused on two key objectives. to find the scale of mineralisation at PCE and unlock the full potential of this high-grade system. Financially, NexGen maintains a strong position with approximately $477 million Canadian in cash at year-end, which covers the construction span for the first 18 months of the post-approval activities. Further, the expressions of interest from lenders has increased to approximately $1.7 billion US, which is more capacity than is required and highlights just the incredible financeable nature of this world-class project.
Speaker Change: We just commenced our 2025, sorry at 2025 exploration program.
Speaker Change: One of the largest some boaters drill programs in the Athabasca basin.
Speaker Change: With a 43000 meter drill program focused on two key objectives.
Speaker Change: To fund the skull of mineralization at PCA and unlock the full potential of this high grade system.
Speaker Change: Financially Nextgen maintains a strong fit.
Speaker Change: <unk> with approximately $477 million Canadian in cash at year end, which covers the construction spend for the first 18 months of the post approval activities.
Speaker Change: The expressions of interest from lenders has increased to approximately $1 7 billion U S, which is more capacity than is required and highlights just the incredible financial nature of this world class project.
Leigh Curyer: We continue to advance discussions across multiple financing streams, rigorously evaluating options amid strong interest from around the world and from various industries. We will continue to advance all financing alternatives. throughout the remainder of this year, leveraging our ability to optimize the capital stack with patience, given our strong balance sheet.
Speaker Change: We continue to advance discussions across multiple financing streams rigorously evaluating options amid strong interest from around the world and from various industries.
Speaker Change: We will continue to advance all financing alternatives.
Speaker Change: Out the remainder of this year, leveraging our ability to optimize the capital stack with patients given our strong balance sheet.
Leigh Curyer: As we look ahead to 2025, we do so with tremendous confidence, momentum and focus on our strategic objectives. Our focus is on securing full federal approvals, including the upcoming Commission hearing, and while doing so, advancing engineering, procurement and training to further enhance the execution phase. NexGen is incredibly proud to be at the forefront of one of the most significant times in the global energy markets, where a confluence of factors including energy security, the energy transition and geopolitics continue to play favourably into our zone. As demand for clean, reliable and secure energy intensifies, we are ready to meet this challenge head-on.
Speaker Change: As we look ahead to 2025, we do so with tremendous confidence momentum and focus on our strategic objectives. Our focus is on securing full federal approvals, including upcoming commission hearing.
Speaker Change: And while doing so advancing engineering.
Speaker Change: <unk> and training to further enhance the execution phase.
Nicknames: Nicknames incredibly proud to be at the forefront of one of the most significant times in the global energy markets, where a confluence of factors, including energy security the energy transition and Geo politics continue to play favorably into our zone.
Nicknames: As demand for clean reliable and secure energy intensifies, we are ready to meet this challenge head on.
Leigh Curyer: We have the right strategy in place, with a highly talented and dedicated team, supported by values. and a commitment to all stakeholders.
Nicknames: We have the right strategy in place.
Nicknames: Highly talented and dedicated team.
Supported by our values.
Nicknames: And our commitment to all stakeholders.
Leigh Curyer: Thank you, and I look forward to updating you on our progress for what promises to be a transformative year.
Nicknames: Thank you and I look forward to updating you on our progress throughout promises to be a transfer my 10th year.
Konstantin: I'd now like to open the floor for questions.
Nicknames: I'd now like to open the floor for questions.
Nicknames: Ladies and gentlemen, we will now begin the question and answer session.
Konstantin: Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touchstone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two. If you are using a speakerphone, please make sure to lift the handset before pressing any One moment while we prepare the Q&A roster.
Should you have a question. Please press star followed by the number one on your Touchtone phone, you'll hear a prompt that your hand has been raised should you wish to decline from the polling process. Please press star followed by the number two.
Nicknames: If you are using a speaker phone please make sure to lift the handset before pressing any keys.
Nicknames: One moment, while we prepare to the Q&A roster.
Speaker Change: Your first question comes from the line of Katy Lashup Pella for mechanical or Genuity. Your line is open.
Katie Lachapelle: Your first question comes from the line of Katie Lachapelle from Canaccord Genuity, your line is open. Hey guys, thank you for taking my question and congrats on the on the recent acceptance of the final EIS. One of your peers recently announced notice of its commission hearing date. How has that announcement informed your thinking around the timeline for the hearing date? And then maybe as a follow-up to that as well, are you still expecting it to be a one-part hearing or is a two-part hearing a possibility? And then does that decision ultimately lie with you or is it with the CNSC?
Speaker Change: Hey, guys. Thank you for taking my question and congrats on the on the recent acceptance will finally, yes.
Speaker Change: One of your peers recently announced a notice of its commission hearing date, how is that announcement informed your thinking around the timelines for the hearing date, and then isn't maybe as a follow up to that as well are you still expecting it to be a one part hearing or is it or the two part hearing a possibility and then does that decision ultimately lie with you or is it with the CN.
Leigh Curyer: Thank you. Sure. Thanks. Thanks, Katie. Yeah, look, great news. Denison has received their Commission Hearing Date. I think, you know, everyone can take, um, um, note of that and, and obviously is, is positive for when we expect to hear, hear ours, uh, the scheduling of that. We've been informed by the CNSC that it will be only a one part. and we are eagerly awaiting the announcement of that date. So clearly, the CNSC only has so much resources and so we're working with them to schedule that commission hearing date as early as possible. and the advocacy from all four local communities to the CNSC to ensure that that happens as immediately as possible is extremely strong.
Speaker Change: Thank you.
Speaker Change: Sure.
Speaker Change: Thanks, Scott Yeah. It looked it was great news Denison has received the.
Speaker Change: Commission hearing date.
Speaker Change: Everyone can take.
Speaker Change: Note of that and obviously is positive for when we expect to hit here How's the scheduling of that we have been informed by the same let's say that it'll be on the a one part.
Speaker Change: And we are eagerly awaiting the announcement.
Speaker Change: All of that date so.
Speaker Change: Yeah, clearly you have the same let's say only has so much our resources inside with we're working with them too.
Speaker Change: Schedule that commission hearing date as early as possible.
Speaker Change: And.
Speaker Change: The advocacy from all for local communities.
Two the same let's say to ensure that that happens as immediately as possible is extremely strong so.
Leigh Curyer: So that is what we know, Katie, as we speak, and we have got everything filed and ready and ready to do that commission hearing, even if it was scheduled for tomorrow. And then on the subsequent conclusion of that commission hearing process and approval, we'll literally be starting construction the following week. So, yeah, we're very much looking forward to the commission responding and setting a date.
Speaker Change:
Speaker Change: That is what we know Kt as we speak and we have got everything filed and ready and ready to do that commission hearing even if it was scheduled for tomorrow.
Speaker Change: And then on the subsequent a conclusion of that commission hearing process and approval will literally be starting construction in the following week.
Speaker Change: Yeah.
Speaker Change: It will very much looking forward to the commission responding and setting a date.
Leigh Curyer: Awesome, and then maybe an unrelated follow up. You emphasized the Patterson Corridor East discovery a lot in your opening remarks, and I think the market continues to undervalue that. When are you expecting to release more results from the program at PCE and then perhaps, or any thoughts around the timing of potentially a Maiden Resource there? Yeah, so our approach is to release results in batches. along the way in order to always give some context. Now the only thing that would change that philosophy is if we hit a hole which, you know, changes the entire direction of PCE and, you know, that was the experience at We defined mineralisation, we tagged into some high-grade veinlets and then it was Hole 30 which completely unlocked the size, potential and scope of Arrow.
Speaker Change: And then maybe an unrelated follow up you emphasized the Pilar standard corridor East discovery a lot in your opening remarks that I think that market continues to undervalue that.
Speaker Change: When are you expecting to release more results from the program P. C. And then perhaps any thoughts around the timing of potentially a maiden resource there.
Speaker Change: Yeah. So our approach is.
Speaker Change: Our latest results in batches.
Speaker Change: Along the way in order to give.
Speaker Change: Some context now the only thing that would change that our philosophy is if we hit a hull, which <unk>.
Speaker Change: <unk> the entire direction of.
Speaker Change: Pacey, a and that was they experienced at arrow, we define mineralization, we tagged into some high grade.
Speaker Change: And let's and then it was a whole 30, which.
Speaker Change: Completely unlocked.
Speaker Change: The size.
Speaker Change: Central and Scully Pauls of Arrow.
Leigh Curyer: We are drilling those holes in terms of Defining the extent of mineralization, but also looking to unlock PCE and that could be the next hole, it could be in a hundred holes. We don't know. So our focus on that and given materiality. assessment is that we will release those results in batches of drilling in order to always provide context. But unless, as I said, if a barn burner occurs we would announce that as soon as possible. Comment.
Speaker Change: We are drilling those holes.
Speaker Change: In terms of.
Speaker Change: Finding the extent of mineralization, but also looking to unlock.
Speaker Change: PCA and that could be the next all it could be in 100 holes. We don't know so I'll focus on that and given materiality.
Speaker Change: Assessment is that we will release those results in batches.
Speaker Change: All drilling in order to allow us to provide context.
Speaker Change: But unless as I said, if a barn burner.
Speaker Change: Okay.
Speaker Change: <unk> announced that.
Speaker Change: Soon as a as possible.
Speaker Change: Got it thanks, so much guys.
Leigh Curyer: Thanks so much, guys. Thank you.
Speaker Change: Thank you.
Speaker Change: Your next question comes from the line of are you getting borrowers from Bell Potter. Please go ahead.
Regan Boros: Your next question comes from the line of Regan Boros from Bell Potter. Please go ahead. Good morning Leigh and Travis. Thanks for taking my questions. Just a follow up on Katie's question before on PCE assay results. Has there been sort of a delay in getting those results back or I guess sort of further elaborating on what you said there? Are we sort of to interpret that the strategy has shifted because of something within those results? No, no, look, we've already put out the scintillometer results from the 2024 program. And at this stage, the assays are less material.
Speaker Change: Good morning, ladies and gentlemen, thanks for taking my questions. Just a follow up on Casey's question before on PCA assay result has it been sort of a delay in getting those results back for I guess sort of further elaborating on what you said there.
Speaker Change: Sort of to interpret to this strategy has shifted because of something we didn't nice results.
Speaker Change: No look that we've already put out the scintillometer results from the 2020 full part of DRAM and at this stage yes.
Speaker Change: A less material, it's about discovering the extent of mineralization.
Leigh Curyer: It's about discovering the extent of mineralization. and looking for the high-grade parts within that area of mineralization. Once we get into project delineation, where we're working towards establishing a resource, the assays then become very, very material. But it's just simply batching the results, sending them to the lab and getting them back, those assays from 2024 will be released in the near future and most likely along with the first phase of 2025 scintillometer results from PCE. So no need to look into the length of that, the lab does get backed up, but the priority is to send that core in.
Speaker Change: And and are looking for the high grade parts within that.
Speaker Change: Arab mineralization once we get into.
Speaker Change: Project delineation, where we're working towards establishing a a resource.
Speaker Change: <unk> become a very very material, but it's just simply a batching the results.
Speaker Change: The lab and getting them back and those size from 2024.
Speaker Change: We will be released in the in the near future and most likely along with the first phase of <unk>.
Speaker Change: 2025, Scintillometer results from <unk> so.
Speaker Change: No 190.
Speaker Change: And I need to look into.
Speaker Change: The length of that yeah that the lab does get backed up.
Speaker Change: But.
Corey: The priority setting that Corey.
Leigh Curyer: was just in the normal course and those assays will be coming but as I said at this stage focusing on the scintillometer results and the extent of mineralization looking for those high grade hearts is the focus.
Corey: Was just in the normal course.
Corey: And those assays will be coming but.
Corey: As I said at this stage focusing on the Scintillometer results and and the extent of mineralization looking for those high Bright house is the focus.
Corey: And just sort of elaborating on that.
Leigh Curyer: And just sort of elaborating on that a bit further for the 25 program. And I mean, most of these holes just stepping out from the initial holes, is that the way you're sort of approaching that? I mean, what kind of spacings are you looking to do on a whole basis? Yeah that's an excellent question and as we did with Arrow, you know we basically use a grid based on 50 meter spacing when we're trying to define the area of mineralization and that's what we're doing. So it's not you know drill holes stepping out side by side from another 20 meters and so effectively doing it on a 50 meter grid and then if we tag into a high grade heart well it would require some more concentrated drilling at that time but when you consider you can miss these deposits by as little as a meter or less.
Corey: 25 program.
Corey: Most of these holes just stepping out from the initial holes is that why you're sort of approaching that.
Corey: Spicing that you're looking to take on that.
Corey: Hold on a whole basis.
Corey: Yeah, that's an excellent question and as we did with Arrow.
Corey: Yes, we basically use a grid based on 50 meter spacing.
Corey: When we're trying to define the area of mineralization.
Corey: And that's what we're doing so it's not yet.
Corey: Drill hole stepping outside buy side from one another 20 meters and so effectively doing it on a 50 meter grid.
Corey: Great and and.
Corey: And then if we tag into a high grade hot well it would require.
Corey: Some more concentrated drilling at that time, but.
Corey: When you consider you can miss these deposit as far as little as a meter or less.
Leigh Curyer: and we're doing it on a 50 metre grid and we're hitting mineralisation at the rate that we are in those holes at PCE. It tells you that we are on to something incredibly significant. And I've always said it, you know, Arrow was discovered on the very first drill hole within a four and a half kilometre radius of the initial hole, which discovered mineralisation. Now that is an unprecedented success with respect to exploration and when you consider just how confined these deposits are. For us to be doing a wide grid and hitting mineralisation where we are, this PCE justifies the largest drilling program in the Athabasca this year.
Corey: And we're doing it on 50 made agreed and we're hitting mineralization at the rate that we are in those holes at PCA. It tells you that we're onto something incredibly significant.
Corey: And I've always said at Arrow was discovered on the very first drill hole within a four and a half kilometers radius of all of the initial hull, which discovered mineralization now that is unprecedented.
Corey: Success with respect to exploration and when you consider just how come.
Corey: Combined these deposits off.
Corey: For us to be doing a wide grid and hitting mineralization level yeah.
Corey: This this this pace a justifies the largest drilling program.
Corey: In the Athabasca this year and so.
Leigh Curyer: And so the geology team and all of us are incredibly excited and to think that we may be on to... A mineralisation of the calibre of Arrow, it's an absolute game changer as we're progressing through the final stages of permitting and are about to start construction on Arrow. To have another one bubbling away here in parallel. like unprecedented with respect to what that will mean for the company. Appreciate the colour, thanks, I'll pass it on.
The geology team and all of US are incredibly excited to think that we might be on soup.
Corey: Mineralization.
Corey: All of the caliber of Arrow, it's an absolute game changer.
Corey: As we are progressing through the final stages of permitting.
Corey: Permitting in or about to start construction on arrow to have another one.
Corey: Bubbling away here.
Corey: <unk> it.
Corey: On price it and.
Corey: With respect to what that will mean for the company.
Corey: Appreciate the color Thanks, I'll pass it on.
Corey: Thanks.
Speaker Change: Your next question is from the line of Craig Hutchison from TD Cowen. Please go ahead.
Craig Hutchison: Your next question is from the line of Craig Hutchison from TD Cowen. Please go ahead. Hey, good morning, guys. One of your objectives this year is to do optic negotiations. Just curious, you know, what type of volumes you're looking to contract ahead of a potential approval next Yeah, thanks. Thanks, Craig.
Corey: Okay.
Craig Hutchison: Hey, good morning, guys.
What are your objectives this year is to.
Speaker Change: Negotiations just curious.
What type of volumes Youre looking to contract ahead of a potential approval next year.
Speaker Change: Yeah. Thanks, Thanks, Craig it's Travis here.
Travis McPherson: It's Travis here. We don't have a, I wouldn't say we have a set volume that we're targeting in any given year, frankly. You know, we're in the stage of building relationships and remaining patient with our with our strategy and making sure that we, you know, at the end of the day, maximize the value of every pound we produce. So, that's the stage we're in. We are, you know, there's significant demand for our product as evidenced by, you know, the premium pricing we, we indicated in December. That makes sense given the premium and scarce nature of our of our product.
Speaker Change: We don't have I wouldn't say, we have a set.
Speaker Change: Volume that we're targeting in any given year frankly.
Speaker Change: We are in the stage of.
Speaker Change: Building relationships and remaining patient with our with our strategy and making sure that we.
Speaker Change: At the end of the day maximize the value of every foundry producers.
Speaker Change: So that's the stage we're in we are.
Speaker Change: There is significant demand for.
Speaker Change: Our product.
Speaker Change: As evidenced by the premium pricing.
Speaker Change: We indicated.
Speaker Change: In December.
Speaker Change: That makes sense given.
Speaker Change: The premium and scarce nature of our of our product so.
Travis McPherson: So. Those discussions are ongoing and will continue throughout the year. I would expect to see some more contracts get announced this year for sure, but we're definitely not targeting X number of pounds in 2025 and X number of pounds in 2026. We will see how the market develops, how the negotiations go, and remain patient while we continue to build relationships along the way.
Speaker Change: Those discussions are ongoing and will continue throughout the year I would expect to see.
Speaker Change: Some more contracts get announced this year for sure.
Speaker Change: But we're definitely not targeting X number of pounds in 2025 and X number of pounds in 2026, we will see how the market develops how the negotiations go in and remain patient, while we continue to build relationships along the way.
Speaker Change: Uh huh.
Travis McPherson: Has the tariffs in the U.S. had any impact on your discussions with utilities? Yeah, we get that question a lot, and the short, direct answer is no. We don't get, it's not even a topic, frankly, of any discussions really. You know, uranium is very long term and global in nature, and so these types of things, or these types of considerations anyways, are pretty normal in these discussions within various jurisdictions. And we also have in our contracts that the tariffs are borne and worn by the purchaser of the uranium.
Speaker Change: The tariffs in the U S had any impact on your discussions with utilities.
Speaker Change: Yes, we get that question a lot in the short direct answer is no.
Speaker Change: We don't get it's not even a topic frankly.
Speaker Change: Any discussions really.
Speaker Change: Uranium is very long term and global in nature and so.
Speaker Change: These types of things.
Speaker Change: Are these types of considerations anyways are pretty normal in in these discussions within various jurisdictions.
Speaker Change: And we also have in our contracts that.
Speaker Change:
Speaker Change: The tariffs are born and worn by the by the purchaser in the uranium.
Speaker Change: Okay great.
Travis McPherson: Craig Hutchison, Unknown Attendee, Alexander Pearce, Graham Tanaka, Alexander Pearce, Leigh Curyer, Travis McPherson, Katie Lachapelle, Benjamin Salter, NexGen Energy Ltd. to get a gauge on, you know, the uranium price and where it's heading. There is substantial activity on the offtake arrangements in the background and look, I've been in this sector since 2002, there's been periods where the spot market is a liquid, which we're at at the moment, but also periods where it becomes highly liquid. when utilities don't secure enough of the pounds through the off-taking process. And that's happened throughout the history of this uranium market.
Speaker Change: And then just add Dan sorry.
Speaker Change: Sorry, Craig I'd just add like.
Speaker Change: Yeah.
Speaker Change: A lot of people are looking.
Speaker Change: To.
Speaker Change: To get a gauge on that.
Speaker Change: The uranium price and where it's heading.
Speaker Change: There is substantial.
Activity on the offtake arrangements are in in the background and then Luke abandoning sectors. Since 2002, there's been periods, where the spot market.
Speaker Change: Is illiquid, which with where we're at at the moment, but also periods, where it becomes highly liquid.
Speaker Change: When you tally these dying to secure enough to the pounds through the off tightening process and that has happened.
Speaker Change: The history of this uranium market.
Speaker Change: Yes.
Travis McPherson: I've never personally seen the demand so high for a new source of mine supply. That will materialize but there will be a point where the utilities need to try and extract the Pounds wherever they can. And we saw that before in the 2000s where the price of uranium went from $7 a pound to $136 very, very quickly. That illiquid spot market became highly liquid in an instant when that threshold broke. And I think the situation today is even more tightly wound than what it was back in those early 2000s.
Speaker Change: Personally, saying the demand so high for a new source of.
Speaker Change: Months' supply and.
Speaker Change: That will that will materialize, but there will be a point when the utilities need to try and extract.
Speaker Change: The pounds wherever they can and we saw that before in the two thousands where the price of uranium went from $7 a pound to 136 very very quickly that illiquid spot market became highly liquid in an instant when that threshold broke and I think again.
Speaker Change: The the situation today is even more tightly wound than what it was back in those early two thousands.
Speaker Change: Okay, Great and just maybe one last question from me just in terms of budgets can you give us a sense of what you plan to spend on exploration. This year and then what you plan to spend on Aero, obviously, excluding a potential final investment decision this year as well.
Travis McPherson: Okay, great. Just maybe one last question for me, just in terms of budget, can you give us a sense of what you plan to spend on expiration this year, and then what you plan to spend on Arrow, obviously excluding a potential final investment decision this year as well? Well, with respect to the exploration program, 43,000 metres, it's $15 million Canadian. With respect, if we had final approval from the commission hearing, the first 12 months is $209 million with respect to the capital spend on the project. We know the cost down to the screwdrivers and the shovels that will be used.
Speaker Change: Well fifth.
Speaker Change: With respect to exploration program 43000 meters at 15 million.
Speaker Change: Canadian.
Speaker Change: With respect if we had a final approval from the commission hearing.
Speaker Change: The first 12 months since $209 million with respect to the capital.
Speaker Change: Capital spend on the project.
Speaker Change: Okay.
Speaker Change: We know the cost down to the SKU drivers and the shovels that will be used.
Speaker Change: Yeah.
Speaker Change: Perfect. Thanks.
Speaker Change: Yeah.
Speaker Change: Your next question comes from the line of Ben find Goldman. Please ask your question.
Ben Feingold: Your next question comes from the line of Ben Feingold. Please ask your question. Hi, thanks Leigh and all the NexGen team, congrats again. McDonald's UK, British Columbia, Khan Academy, BFSU. Thank you for joining us on this week's version of Godіл'ts Bakery.
Ben: Alright, Thanks, Lee and <unk>.
Speaker Change: Gentlemen, congrats again on the recent development.
Ben:
Ben: Uh huh.
Speaker Change: Two questions from me first you mentioned the domestic deficit in the U S. In particular.
Initial contracts agreement U S utility.
Leigh Curyer: I was wondering how these contracts have changed since the new administration and do you get the feeling from US utilities that despite tariffs that Canadian Uranium is kind of put in the same bucket as domestic pounds? The second question is around pricing. The recent Canafil call spoke about floors at $70 a pound. Is this, I guess, the same to you guys in your conversations at the moment? Yeah, thanks for the question, Ben. With respect to the U.S. demand changing or anything, no. You know, I think the biggest changes have come in previous years, frankly, when it became obvious that the supply risk to them, not out of Canada, but out of, you know, the eastern countries was becoming a big problem.
Speaker Change: So I was wondering how these contract with changes to the New administration do you get to feeling.
Speaker Change: From you at utilities that despite tariff that Canadian euro against kind of put in the same bucket.
Speaker Change: Domestic violence.
Speaker Change: The second question is around pricing.
Speaker Change: The recent kind of alcohol spoke about Florida $70 a pound.
Speaker Change: Yes.
Speaker Change: I guess I'm, saying to you guys in your conversations with your lenders.
Speaker Change: Thanks Scott.
Scott: Yes. Thanks for the question Ben with respect to the U S demand changing or anything no.
Scott: I think the biggest changes have come in previous years, frankly, when it became obvious that.
Scott: On the supply risk to them not out of Canada, but out of the eastern countries.
Scott: What is becoming a big problem.
Travis McPherson: The reality is the U.S. utilities don't have a lot of and particularly when you look ahead to when we're going to be in production, or could be in production, you know, at the latter part of this decade and into the 2030s and beyond, it's acute. And so, you know, that deficit that Leigh mentioned can't be solved domestically in any material capacity at all. And so, you know, there is an understanding that they have to rely on Canada, frankly, and I think, again, no impact in the discussions whatsoever.
Scott: The reality is the U S utilities.
Scott: Utilities don't have a lot of alternatives and particularly when you look ahead to when we're going to be in production.
Scott: It could be in production at the latter part of this decade and into the 2000 thirty's and beyond it.
Scott: Cute and so.
Scott: That deficit, we mentioned can't be solved domestically.
Scott: In any material capacity at all and so there is an understanding that.
Scott: They have to rely on Canada, frankly, and I think.
Scott: Again, no impact in the discussions whatsoever.
Scott: And.
Scott: We'll see what happens with tariffs and everything else, but the reality remains the same which is that where the northern neighbor and have supplied material uranium into that market for a very long time.
Scott: <unk> and with <unk> coming online.
Scott: Frankly, it's a huge help too.
Scott: Reducing reliance on other jurisdictions.
Scott: So.
Travis McPherson: And and with respect to our, you know, the pricing that we're receiving in our contracts, well, it's industry leading. And it's substantially industry leading in terms of terms of leverage to the future price of uranium. So, you know, we are purely reflecting the mine's flexibility and very, very low cost to having maximum exposure to the return on every pound produced. And utilities are recognising that and the outlook is absolutely terrific for NexGen on that front, and we'll continue to keep that industry-leading exposure to the future price of uranium.
Scott: And with respect to <unk>.
Speaker Change: Yeah, the pricing that we're receiving in our contracts well it's industry leading.
Speaker Change: It's substantially industry, leading in term of tens of labor as to the future processing of uranium.
Speaker Change: So we we are.
Speaker Change: Purely reflecting the mines flexibility and very very low cost too.
Speaker Change: Two.
Speaker Change: Having Mexican exposure to the return on every pound produced and utilities are recognizing that and.
Speaker Change: The outlook is absolutely terrific.
Speaker Change: <unk>.
Speaker Change: <unk> on that front, and we'll continue to keep their industry, leading exposure to the future process of uranium.
Speaker Change: Alright, guys.
Speaker Change: Your next question comes from the line of Graham Tanaka from Tanaka Capital Management. Please go ahead.
Graham Tanaka: Your next question comes from the line of Graham Tanaka from Tanaka Capital Management. Please go ahead. Yes. Hi. Hi, guys. Can you hear me? Loud and clear, Brian. Okay, thank you.
Graham Tanaka: Yes, Hi, Hi, guys can you hear me.
Speaker Change: Loud and clear Brian.
Speaker Change: Thank you.
Graham Tanaka: I just was wondering to what extent the announcements on Denison and their approval process might delay the NexGen process or could your approval process and review process be started in parallel? Just just wondering about timing. Thank you.
Speaker Change: I just was wondering.
Speaker Change: To what extent the announcements on Dennis and their approval process.
Speaker Change: Delay.
Speaker Change: The nexgen process or could your approval process and review process B.
Speaker Change: Started in parallel.
Speaker Change: Just wondering about the timing thank you.
Speaker Change: Yeah. It was great and good to speak with you Greg for everyones knowledge graph in Spain, a shareholder from just post <unk>.
Leigh Curyer: Yeah, it was Graham and good to speak with you, for everyone's knowledge, Graham's been a shareholder from just post listing back in 2013. Graham, I think the announcement of Denison's commission hearing is more positive for NexGen. And again, congratulations to David and the team at Denison for meeting that milestone. Look, I can only convey what has been communicated to us from the CNSC, that our file is a top priority. And I'm also aware there's been communications to the local communities that the setting of that date is imminent. Now, I'm aware the local communities have all requested the commission hearing to be very early in 2025.
Speaker Change: Listing back in 2000 22013.
Speaker Change: Brian I think the announcement of the Denizens Commission hearing is is a more positive for nexgen and and again congratulations to David Entertainment Denison.
Speaker Change: Meeting that milestone.
Speaker Change: Look I can only come by what has been communicated to us from the San Jose that fall is a top priority.
Speaker Change: And and most are aware, there's been communications to the local communities that the setting of that date is imminent.
Speaker Change: Now on the way of the local communities of all requested the commission hearing to be very early in 2025.
Leigh Curyer: Clearly, you know, the CNSC has their own resourcing. I don't know if we are waiting from the Senecio because I have no control over their resources. Right, okay.
Speaker Change: Clearly.
Speaker Change: Safe to say he has their own resourcing.
Speaker Change: Aspects and we're respectful of that so.
Speaker Change: In summary, I would take the announcement of the Denizens Commission hearing is an absolute positive that.
Speaker Change: Houses imminent as well when that is actually scheduled for which state.
Speaker Change: I don't know a way of lighting from the San Jose because I have no control over their resourcing.
Speaker Change: Right, Okay, and just to review again, I know you've been accelerating your procurement process.
Leigh Curyer: And just to review, again, I know you've been accelerating your procurement process. If you were to hear, for example, your hearing data is, say, I don't know, if you can pick a month, that might be the earliest. How many months and years would it take to stage important, you know, milestones in the construction process? Yeah, and another excellent question. And look, I want, even if the commission hearing was to be in the latter part of this year if you want to take Denison as an analogue. It's not, it actually won't materially affect the timeline initially.
Speaker Change: If you were to hear for example.
We're hearing data as say.
Speaker Change: I don't know if you can pick a month.
Speaker Change: That might be the earliest.
Speaker Change: How many mud.
Speaker Change: Months.
Speaker Change: In years.
Speaker Change: Would it take to stage.
Speaker Change: Important.
Speaker Change: Milestones in the construction of projects.
Speaker Change: Yeah, and another excellent question and look I won't even if they commission hearing was to.
Speaker Change: B in the latter part of this year, if you Wanna type Denison as an envelope.
Speaker Change: It's not it's it's actually.
Speaker Change: <unk> materially affect the timeline initially theres a lot what we're doing with respect to project execution.
Leigh Curyer: There's a lot we're doing with respect to project execution that can occur in parallel to that commission hearing and so you know we We would like this commission hearing to be as soon as it can be but you know there's a lot of work that can still be ran in parallel and not materially affect the overall timeline through the production. But in a very simple sense On approval it'll be 42 months through to construction and as we have been with everything we'll be super transparent with those construction milestones and the tracking of progress against those milestones.
That can occur in parallel to that commission hearing.
Speaker Change: And so.
Speaker Change: We would like these commission hearings to be as soon as it can be but you know there's a lot of work that can still be running parallel and not materially affect the overall.
Speaker Change: <unk> threw the production.
Speaker Change: But in a very simple.
Speaker Change: Simple sense.
Speaker Change: An approval it'll be 42 months through to construction and as we are paying with everything will be.
Speaker Change: Super transparent with those construction milestones and the tracking our progress against those milestones milestones playing both in terms of.
Leigh Curyer: Milestones being both in terms of the construction of various items, the cost, and the time in which to execute but overall 42 months from the moment the shovels hit the ground which as I said earlier would be literally the following week of receiving the conclusion of the commission hearing process. Okay, great. Thank you.
Speaker Change: The construction of various items the cost and the time in.
Speaker Change: In which to execute but overall for <unk> for two months from the moment.
Speaker Change: The the shovels hit the ground, which as I said earlier would be literally the following week of receiving.
Speaker Change: The conclusion of the commission hearing process.
Speaker Change: Okay, great. Thank you.
Leigh Curyer: And on the staging of Patterson Corridor East, if it is, if it does turn out to be a major discovery, and if we sort of look at the macro side and assume, on the one hand, a very, very strong demand environment emerging in the next few years, How quickly could you bring on Patterson Corridor East and would you overlay that any production on to the later years of production at Arrow or would you do it sequentially? Thank you I think the possibility, once up and running at Arrow, etc., and look, I'll say now, every evidence suggests that it's the same mineralising event as though something has burst in the region and mineralisation falling out in multiple areas.
Speaker Change: And on the.
Speaker Change: The staging of Patterson quarter East.
Speaker Change: If it is if it does turn out to be a major.
Speaker Change: Discovery.
Speaker Change: And.
Speaker Change: If we sort of look at the macro side and assume.
On the one hand, a very very strong demand environment.
Speaker Change: Emerging in the next few years.
Speaker Change: How quickly could you bring on Patterson quarter Eastern would you overlay that any production onto the the later years of production at Aero or would you do it sequentially.
Speaker Change: Thank you.
Speaker Change: Oh, well that that I think.
Speaker Change: The possibility.
Speaker Change: Once up and running at Arrow et cetera in and look at outside now every evidence suggests is that it's the same mineralized vein as something has burst.
Speaker Change: In the in the region.
Speaker Change: And mineralization falling out in multiple areas I think there's enough evidence today to two.
Leigh Curyer: I think there's enough evidence today to be very, very clear on that fact. Same mineralising event, same mineralisation, same metallurgy in a similar setting. It wouldn't be like you're permitting from brand new. There would obviously be a lot of aspects that could be applied from the permitting of Arrow to this new discovery. But obviously subject to the regulatory process. From an economic operational sense, yes, there's opportunities to double production. Arrow's 30 million pounds per annum won't even meet the number of pounds that are and then that's on the back of a demand and supply gap of approximately 80 million pounds already occurring every year.
Speaker Change: Be very very clear on that fact.
Speaker Change: <unk> mineralized event signed mineralization some metallurgy.
Speaker Change: In a similar setting.
Speaker Change: It wouldn't be like Youre youll permitting like from from brand New there would obviously be a lot of aspects that could be applied from the the permitting of arrow.
Speaker Change: To this new discovery.
Speaker Change: But obviously subject to the regulatory process.
Speaker Change: And from an economic operational sense, yes, theres opportunities to double.
Speaker Change: Production.
Speaker Change: Arrow has 30 million pounds per annum.
Speaker Change: One even meet the number of pounds that are coming offline from mine supply between now and 2030.
Speaker Change: And then that's on the back of the eye.
Speaker Change: Demand and supply gap of approximately 80 million pounds already carrying every year.
Leigh Curyer: The world needs more than one Arrow. It needs two to three Arrows and preferably up and running by 2030. That is not going to happen. But with PCE, in the event that it was to be Arrow-like or perhaps even better, It's good to know that we'll have that optionality in that event. So, everything's possible, Graham. The great news is that we have those levers to pull in the scenario that warrants it. So I'm just to clarify, if demand indeed does significantly exceed net new production in 2030 and beyond, you could accelerate production at Patterson Corridor East.
Speaker Change: The world needs more than one arrow needs two to three arrows and preferably up and running about 2030 that is not going to happen, but with P. C. A M. In the event that it was to be IRR like or perhaps even better.
Speaker Change:
Speaker Change: It's good to note that we will have that optionality.
Speaker Change: In that event so.
Graham Tanaka: Everything is possible Graham the great news is that we had those labors to poll.
Graham Tanaka: In the scenario that wants it.
Graham Tanaka: So just to clarify.
Graham Tanaka: If demand indeed does significantly exceed.
Speaker Change: Net new production.
Speaker Change: In 2030 and beyond.
Speaker Change: You could accelerate production.
Speaker Change: At Patterson corridor East in other words it.
Leigh Curyer: In other words, increase total pounds coming out of NexGen beyond just Arrow's kind of peak level. Yes, it's absolutely possible, subject to the regulatory process. Right.
Speaker Change: Increased total pounds coming out of Nextgen.
Speaker Change: Beyond just arrows kind of a peak level.
Speaker Change: Yes.
Speaker Change: Yeah, It's it's it's it's.
Speaker Change: Absolutely possible subject to the regulatory process.
Leigh Curyer: Okay. And given what you've seen so far by people like Dennison and others that are trying to bring on mines that have been partly developed in other parts of the world actually where there's exploration going on in Australia, etc., do you have a very rough approximation of how many millions of pounds could be brought on at what price levels in say the 2030 and beyond timeframe? At what price levels? Thank you. Yeah, we have a very clear understanding of that at NexGen of every project around the world. as it relates to the stated production capacity and the cost of production and its economics.
Speaker Change: Right.
Speaker Change: Okay.
Speaker Change: And given what you've seen so far by people like.
Speaker Change: But dennis and others that are trying to bring on mines that have been.
Speaker Change: They developed.
Speaker Change: And other parts of the World actually where there is exploration going on in Australia et cetera do you.
Speaker Change: Do you have a very.
Speaker Change: A rough approximation of how many millions of pounds could be brought on at what price levels.
Speaker Change: And say that 2030 and beyond timeframe and at what price levels.
Thank you.
Speaker Change: Yeah, we we have a very clear understanding of that at Nextgen of every project around the world.
Speaker Change: <unk>.
Speaker Change: Stated production capacity and the cost.
Speaker Change: <unk> production in their economics it's.
Leigh Curyer: The example of, a lot of these projects were in existence during the early 2000's when the price of uranium went to $136 a pound US. Lot of these projects still did not get into production or even turn the first sod of soil in order to construct That $136 a pound back then is the equivalent of about $210 a pound US today. The aspect is, this investment thesis is incredible and I think we're already seeing some of the projects that have... are trying to get up and running. are not producing as much as they would like.
Speaker Change: The example of the early lot of these projects.
Speaker Change: Were in existence during the early two thousands when the policy Ryan he went to $136 a pound.
Love of these projects do did not get into production.
Speaker Change: Or even during the first sort of soil and narrowed it to construct.
Speaker Change: That $136 a pound back then is the equivalent of about $210 a pound U S. Today.
Speaker Change: Yeah.
Speaker Change: The the estimate is like this this investment thesis is incredible.
Speaker Change: And.
Speaker Change: I think we're already seeing some of the projects that have.
Speaker Change: Trying to get up and running.
Speaker Change:
Speaker Change: Are not producing as much as they would.
Speaker Change: Like there's one or two exceptions of course.
Leigh Curyer: There's one or two exceptions, of course, down in Australia, but not producing as much as they would like and at a far higher cost. and so I think that outlook for uranium prices, incredibly bullish going forward. Even at the best case scenario, as I said, the world needs two to three arrows up and running by 2030 to, to fulfill the gap. It's not going to happen even The barriers to entry are so significant for any material production to come online and well done to the uranium developers out there and I'll pump up our own ties for a bit but NexGen getting incorporated in 2011, doing the work over the last decade and a half and along with the Denisons and the bosses and the energy fuels and the UECs to get these projects up and running.
Speaker Change: Demonstrated but not.
Not producing as much as a block and at a far higher cost.
Speaker Change: And so I think that outlook for uranium price is incredibly bullish.
Speaker Change: Going forward.
Speaker Change: Even in the best case scenario as I said the world needs two to three arrows up and running about 2032 to fulfill that gap, it's not going to happen even.
Speaker Change: Are the barriers to entry is so significant for any material production to come online.
Speaker Change: And well done to the uranium developers out there.
Speaker Change: Tom pop out on pause for a bit, but yes, nextgen getting incorporating 2011 and doing the work over the last decade, and a half and along with the denizens in the buses and the energy fuels in the U S as to get these projects up and running also.
Leigh Curyer: ISO doing a magnificent job acquiring projects in the US that are probably at the front of the queue in terms of getting them into production as well subject to price. There's a lot of people doing a lot of work in the background and but the challenges are significant.
Speaker Change: Doing a magnificent job of acquiring projects in the U S that are probably at the.
Speaker Change: The front of the queue in terms of getting them into production as well subject to price.
Speaker Change: Yes, Theres a lot of people doing a lot of work in the background, then and and but.
Speaker Change: The challenges are significant.
Speaker Change: Right.
Leigh Curyer: Right, and not a lot of incremental pounds, but so not to give you a hard time, but if if the world will not be able to provide two or three more arrows implying what 60 to 90 million pounds a year shortfall, Why contract any uranium at current prices at the current time? Yeah, we're not we're not contracting price at current prices, Graham, we're contracting at future prices at the time of delivering the pound. So you're dead, you're bang on on a key point there. We are not contracting at current prices. We are contracting at future prices at the time of delivery.
Speaker Change: Not a lot of incremental pounds.
Speaker Change: So not to give you a hard time, but if the world will not be able to provide.
Speaker Change: Two or three more arrows are implying.
Speaker Change: What 60 to 90 million pounds a year shortfall.
Speaker Change:
Speaker Change: White contract any uranium at.
Speaker Change: At current prices.
Speaker Change: Time.
Speaker Change: Yeah, we're not we're not contracting.
Speaker Change: At current prices Graham, we're contracting at future prices.
Speaker Change: At the time of delivering the pounds so.
You did.
Speaker Change: Bang on a key point that we are not contracting at current prices, we are contracting at future prices at the time of delivery.
Leigh Curyer: and that's a real differentiator between NexGen and I would say also the other emerging producers comparative to the current producers.
Speaker Change: And that's a real differentiator.
Speaker Change: Between.
Speaker Change: Nextgen and I would say also the other emerging producers.
Speaker Change: Comparative to the current producers.
Speaker Change: Right.
Speaker Change: Great.
Leigh Curyer: Well, congratulations on your progress so far and good luck on your. Thank you for your support, Graham.
Speaker Change: Congratulations on your progress so far and good luck on your timing.
Speaker Change: Thank you Peter you spoke Graham.
Speaker Change: Yeah.
Speaker Change: Ladies and gentlemen, as a reminder, if you would like to ask a question. Please press star followed by the number one on your Touchtone phone.
Konstantin: Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star followed by the number one on your touchtone phone. If you'd like to withdraw from the polling process, you can press star followed by the number two. And if you are using a speakerphone, please make sure to lift your handset before pressing any keys.
Speaker Change: If you'd like to withdraw from the polling process you can press star followed by the number two and if you are using a speaker phone. Please make sure to lift your handset before pressing any case.
Speaker Change: There are no further questions at this time I would like to turn the call over to Lee career for closing remarks, Sir. Please go ahead.
Konstantin: There are no further questions at this time.
Leigh Curyer: I'd like to turn the call over to Leigh Curyer for closing remarks. Sir, please go ahead. Thanks Constantine, thank you everyone for dialing in today and we, yeah, NexGen's ready and this market's never been shaping up better and we are ready to execute on this project and look forward to doing so whilst running our exploration program PCE in parallel. Incredibly exciting time at NexGen and I thank everyone for their support and buy-in to this incredible company.
Speaker Change: Thanks, Kirsten and thank you everyone for dialing in today and we yes.
Speaker Change: Nextgen is ready and this market has never been shaping up better and we are ready to execute on this project and look forward to doing so while.
Speaker Change: While its running Oh exploration program P. C. A parallel incredibly exciting time at Nextgen and I, thank everyone for their.
Speaker Change: Support and buy into.
Speaker Change: This incredible comp.
Speaker Change: Company. Thank.
Konstantin: Thank you.
Speaker Change: Thank you.
Speaker Change: This concludes today's conference call. Thank you very much for your participation you may now disconnect.
Konstantin: This concludes today's conference call. Thank you very much for your participation.
Konstantin: You may now disconnect.
Speaker Change: Yes.
Speaker Change: Okay.