Q1 2025 NexGen Energy Ltd Earnings Call
Operator: Thank you for standing by. This is the conference operator.
Thank you for standing by this is the conference operator, welcome to the Nextgen energy first quarter 'twenty twenty-five results conference call.
Operator: Welcome to the NexGen Energy first quarter 2025 results conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the speaker's remarks, there will be a question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0.
As a reminder, all participants are in listen only mode and the conference is being recorded.
After the Speakers' remarks, there will be a question and answer session.
Join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing Star then zero.
Leigh Curyer: I would now like to turn the conference over to Mr. Leigh Curyer, Chief Executive Officer and Director with NexGen Energy Ltd. Please go ahead, sir.
Speaker Change: I would now like to turn the conference over to Mr. Lee Currier, Chief Executive Officer, and director with Nextgen Energy Limited. Please go ahead Sir.
Speaker Change: I appreciate it guys.
Leigh Curyer: Thank you all for joining us today for NexGen's Q1 2025 Financial Results Conference Call. I am Leigh Curyer, Chief Executive Officer of NexGen Energy, and I'm joined today by my colleagues Travis McPherson, Chief Commercial Officer, and Benjamin Salter, Chief Financial Officer. Over the course of today's call, I will provide a brief update on the global uranium market landscape, which is seeing a continuation of historically unprecedented demand combined with sustained fragility of supply. Further, liquidity returning to the spot market in the latter part of the quarter, elevating spot 11%. I'll also provide an overview of our key accomplishments during the first quarter of 2025.
Thank you all for joining us today for Nexgen Q1, 'twenty 25 financial results Conference call I Am Lee Correa, Chief Executive Officer of Nextgen Energy and I'm joined today by my colleagues travelers think facing Chief commercial officer, and Benjamin Solta Chief Financial Officer.
Speaker Change: Over the course of today's call I'll provide a brief update on the global uranium market landscape, which is saying the continuation of historically unprecedented demand combined with sustained for agility of supply.
Speaker Change: Further liquidity returning to the spot market in the latter part of the quarter elevating spot 11%.
Speaker Change: As I provide an overview of our key accomplishments during the first quarter 2025. This includes our continued advancement through the regulatory process for a rogue one project as we prepare for the upcoming Canadian Nuclear Safety Commission hearings later this year. In addition, an update on how exciting 'twenty.
Leigh Curyer: This includes our continued advancement through the regulatory process for our ROOC1 project as we prepare for the upcoming Canadian Nuclear Safety Commission hearings later this year. In addition, an update on our exciting 2025 drilling program at Patterson Corridor East. The early results from our drilling program are simply excellent, including what is now recognised as the best ever discovery phase intercept in RK25-232 on our land package as reported on March 24, 2025. It all adds up to NexGen's Rook One project on the cusp of final federal permitting, and on completion then immediately entering into construction, followed by production at the time the market for uranium is going to be intense for low-risk, stable production sources from sound jurisdictions.
Speaker Change: 25 drilling program at Edison Corridor race.
The early results from our drilling program is simply excellent, including what is now recognized as the best ever discovery phase intercept in archaic 25 to 32 on a land package as reported on March 24 2025.
Speaker Change: It all adds up to Nextgen Jiuquan project on the cusp of vinyl federal permitting and on completion, then immediately entering into construction followed by production at the time the market for uranium is going to be intense for low risk stable production sources from sound jurisdictions.
Leigh Curyer: NexGen's Rook One project will return Canada back to being the world leader in the production of uranium, incorporating the most elite environmental, social and governance practices. In parallel throughout all of this, further drilling at PCE, defining mineralisation which is exhibiting all the famous and unique high-grade, solid technical setting attributes of its neighbour Arrow 3.5km to the west. At the conclusion of this presentation we'll move to the Q&A portion of the call, which will provide you the opportunity to ask Travis, Ben and myself any questions you'd like to ask. Throughout the course of today's call, we will be making forward-looking statements.
Speaker Change: Exchange with one project will retain Canada back to being the world leader in the production of uranium incorporating the most elite environmental social and governance practices.
Speaker Change: In parallel throughout all of this further drilling at pacey defining mineralization, which is exhibiting all the famous and unique high grade solid technical setting attributes, although it's neither IRI 3.5 kilometers to the west.
At the conclusion of this presentation, we will move to the Q&A portion of the coal, which will provide us the opportunity to ask Travis Ben and myself any questions you'd like to ask.
Speaker Change: Throughout the course of Tonight's call, we will be making forward looking statements I invite you to visit our website for all the relevant disclaimers.
Leigh Curyer: I invite you to visit our website for all the relevant disclaimers.
Leigh Curyer: As we begin, it's important to acknowledge the pivotal inflection point we're at. The Uranium Investment Thesis has evolved from promise to reality, with the key focus turning to execution and scarcity. What we have experienced in uranium equity since the start of the year is a real disconnect from the fundamentals. It's fair to say the noise around tariffs have deflected attention off key uranium market fundamentals materialising. With over 30 countries committed to tripling their nuclear energy capacity by 2050, and more than 60 reactors currently under construction globally, the robustness and the sustainability of demand is at unprecedented levels for nuclear power.
Speaker Change: As we begin it is important to acknowledge the pivotal inflection point we're at the.
Speaker Change: Uranium investment thesis has evolved from promise to reality with the key focus turning to execution and scarcity.
Speaker Change: What we have experienced in uranium equity since the start of the year is a real disconnect from the fundamentals. It's fair to say the noise around tariffs had to afflict the attention of key uranium market fundamentals materializing with over 30 countries committed to tripling their nuclear energy capacity by 2050 and more than <unk>.
Speaker Change: Direct is currently under construction globally.
Speaker Change: The robustness and the sustainability of demand is that on price and entered levels for nuclear power.
Leigh Curyer: Canada has a leading role to play, particularly considering its southern neighbour, the United States of America, is realising its security of supply for this key fuel requires substantial investment and projects are required to come online now. The International Atomic Energy Agency's High Case Scenario predicts cumulative uranium requirements of approximately seven billion pounds through 2025. The vast majority of these requirements are currently undiscovered and unknown.
Speaker Change: Canada has a leading role to play, particularly considering its southern neighbour the United States of America is realizing its security of supply for these key fuel requires substantial investment and projects required to come online now.
Speaker Change: The international Atomic Energy Agency's high case scenario predicts cumulative uranium requirements of approximately 7 billion pounds through 2025.
Speaker Change: The vast majority of these requirements are currently undiscovered and unknown.
Leigh Curyer: A project like NexGen's Rukwan. is unprecedented in terms of the volume capability, the technical, environmental, social and economic performance. Yet our industry would need at least 10 of them over the next 25 years to meet the demand. The sheer scale of the structural deficit underscores the critical nature of the supply challenges facing the world and the scarce and strategic nature of NexGen's role.
Speaker Change: A project like makes change Roke won.
Speaker Change: Is.
Speaker Change: And then in terms of the volume capability, the technical environmental social and economic performance.
Speaker Change: Yet our industry would need at least 10 of them over the next 25 years to meet the demand that she's got all of the structural deficit underscores the critical nature of the supply challenges facing the world and this gas and strategic nature of mix change role.
Leigh Curyer: A telling market signal has emerged this quarter. Several producers have claimed current pricing levels are insufficient, and consequently deferred contracting decisions, while others have delayed final investment decisions on development projects. It is encouraging to see the new generation of uranium developers and to be producers joining NexGen and working collectively to ensure the sustainability of our industry through discipline and patience. This will lead to higher uranium prices sustained in the long term. incorporating the real costs of delivering ethically sourced uranium to ensure reliable, sustained supply. Pricing must strengthen significantly to incentivise the production growth across the globe, which is required to meet the current and future demand.
Speaker Change: Italian market signal has emerged this quarter.
Speaker Change: Producers have.
Speaker Change: Climbed current pricing levels are insufficient.
Speaker Change: And consequently deferred contract being cision, while others have delayed final investment decisions on development projects.
Speaker Change: It is encouraging to see the new generation of uranium developers and to be produces joining nextgen and working collectively to ensure the sustainability of our industry through discipline and patience.
Speaker Change: This will lead to high uranium prices sustained in the long term.
Speaker Change: Incorporating the real costs, all delivering ethically sourced uranium to ensure reliable sustained supply.
Speaker Change: Pricing much strengthened significantly to incentivize the production growth across the globe, which is required to meet the current and future demand demand is resilient and with the new tech players entering the space our industry is primed for better outcomes than before which is in the interest of all participants delivering N.
Leigh Curyer: Demand is resilient, and with the new tech players entering the space, our industry is primed for better outcomes than before, which is in the interests of all participants delivering energy to populations. These spot prices currently sit at approximately US$71 a pound, having moved swiftly from the low 60s on relatively modest activity in an emerging carry trade opportunity, demonstrating the market's inherent sensitivity to even small changes in liquidity. Meanwhile, the term price has held firm, maintaining levels near $80 a pound US. This resilience in long-term pricing sends a strong signal and historically serves as a leading indicator.
Speaker Change: D G to populations.
Speaker Change: Spot prices currently sit at approximately $71 U S. A pound having moved swiftly from the low sixties on relatively modest activity and then emerging carry trade opportunity.
Speaker Change: Demonstrating the market's inherent sensitivity to even small changes in liquidity.
Speaker Change: Meanwhile, the tube prices held firm maintaining levels near $80 a pound U S.
Speaker Change: This resilience and long term pricing sends a strong signal and historically says as a leading indicator the demand fundamentals remain exceptionally robust the spot short term volatility.
Leigh Curyer: The demand fundamentals remain exceptionally robust despite short-term volatility. For NexGen, these developments reflect and validate our strategy. Our initial sales contracts reflect fundamental supply-demand imbalance in the uranium market and importantly capture the economics in a rising price environment for our shareholders while providing unparalleled security and diversification of supply to our utility partners. NexGen remains extremely busy negotiating term deals with the industry and this hasn't been impacted by elections, global trade tension, nor the illiquidity in the spot market. It's recognition of NexGen's role in this market in the near future is well understood as evidenced by these ongoing contract negotiations.
Speaker Change: But for.
Speaker Change: So nexgen these developments reflect and validate our strategy.
Speaker Change: Our initial sales contracts to reflect fundamental supply demand imbalance in the uranium market and importantly capture the economics in a rising price environment for our shareholders.
Speaker Change: While providing unparalleled security and diversification of supply to our utility partners.
Speaker Change: Nextgen remains extremely busy negotiating Tam does with the industry and this hasnt been impacted by elections global trade tension, notably illiquidity in the spot market. It's.
Speaker Change: It's recognition of Nextgen <unk> role in this market in the near future as well understood as evidenced by these ongoing contract negotiations.
Leigh Curyer: The policy landscape continues to evolve in favour of nuclear energy and secure supply chains. Particularly noteworthy is the anticipated executive order from the United States to expedite nuclear project development through the Department of Defense and the Department of Energy. This initiative recognises the convergence of national and energy security has been the same in today's electrified world. Baseload power attracts business investment, supports industrial growth, and enables advanced technological development in critical areas like artificial intelligence.
Speaker Change: The policy landscape continues to involve evolve in favor of nuclear energy and secure supply chains, particularly noteworthy is the anticipated executive order from the United States to expedite nuclear project development through the department of Defense and the department of energy.
Speaker Change: This initiative recognizes the convergence of National and then these G security has been assigned in todays electrified world.
Speaker Change: Baseload power Trax business investment supports industrial growth and enables advanced technological development in critical areas like artificial intelligence.
Leigh Curyer: Similarly, Europe has recently announced plans to legislate the phase out of Russian nuclear supply from its energy ecosystem beginning 2027. This decisive shift away from Russian dependency opens substantial opportunities for Western suppliers and reinforces the premium placed on ethical, environmentally responsible production from politically stable jurisdictions. Further, only yesterday, Germany has signalled a major positive shift back towards nuclear energy. This decision has major positive implications on EU energy policy. together with Belgium, repealing nuclear phase-out laws, opening the door to new nuclear investment and the list goes on of additional positive major macro news involving nuclear. It simply reflects the reality of power importance, not only the provision of power but the reliable environmentally sensibly sourced to support populations and economies.
Speaker Change: Similarly, Europe has recently announced plans to legislate the phase out of Russian nuclear supply from its energy ecosystem beginning 2027.
Speaker Change: This disorder.
So I see a shift away from Russian dependency opens substantial opportunities for western suppliers and reinforces the premium place on ethical environmentally responsible production from politically stable jurisdictions.
Speaker Change: Further only yesterday, Germany has signaled a major positive shift back towards nuclear energy.
Speaker Change: This decision has major positive.
Speaker Change: <unk> on <unk> energy policy.
Speaker Change: Together with Belgium, repealing nuclear phaseout laws opening the door to new nuclear investment and the list goes on of additional positive major macro news involving nuclear.
It simply reflects the reality of power importance not only the provision of power, but the reliable environmentally sensibly sourced to support populations and economies.
Leigh Curyer: NexGen's Rook One, with its industry-leading environmental profile, technical simplicity, long mine life and location in Saskatchewan, Canada, will benefit tremendously from this recalibration of the global supply chain.
Speaker Change: Next change look one with its industry, leading environmental profile technical simplicity long mine life and location, Saskatchewan, Canada will benefit tremendously from this re calibration of the global supply chain.
Speaker Change: Q1, 2025, I'd say significant company milestones.
Leigh Curyer: Q1 2025 has seen significant company milestones. the Canadian Nuclear Safety Commission scheduling our two-part public hearing dates for the ROOC1 project set for November 19, 2025 and February 9 to 13, 2026. And we are ready today to present Canada's largest uranium development project to the world. The Commission to finalise project approval for the benefit of our shareholders, our Indigenous nation partners, the Province of Saskatchewan, Canada and the planet. These hearing dates provide clarity on the timeline and allow us to strategically optimise our construction schedule, advance procurement initiatives and detailed engineering work. and implement our construction hiring plan with precision, positioning us to maximise efficiency once we transition from permitting to construction execution.
Speaker Change: The Canadian nuclear Safety Commission scheduling out to public hearing date for Rogue One project set for November 19, 2025, and February nine to 13, 2026, and we are ready today to present, Canada's largest uranium development project to the world.
Speaker Change: The commission to finalize project approval for the benefit of our shareholders and digital first nation partners, The province of Saskatchewan, Canada in the planet.
Speaker Change: These hearing dates provide clarity on the timeline and now allow us to strategically optimize our construction schedule advanced procurement initiatives and detailed engineering work.
Speaker Change: And implement a construction hiring plan with precision.
Speaker Change: Turning us to maximize efficiency once we transition from permitting to construction execution.
Leigh Curyer: We're also monitoring Canada's evolving regulatory landscape with its increased focus on streamlining approvals for projects of national significance and that have provincial approval. That is NexGen. Newly elected Canadian Prime Minister Mark Carney has stated, one and done, which is extremely positive and recognises the opportunity Canada has, but also his willingness to sensibly streamline the rigorous approval process to actually deliver Canada's economic, trade and energy security. turning the Paterson Corridor east, a region that continues to exceed and indeed redefine our expectations. In 2025, we launched our most extensive drill program at PCE to date, a 43,000 metre exploration campaign, one of the largest in the Athabasca Basin this year.
Speaker Change: We're also monitoring Canada's evolving regulatory landscape with its increased focus on streamlining approvals for projects of National <unk>.
Speaker Change: <unk> and that had provincial approval.
Speaker Change: That is nextgen newly elected Canadian Prime Minister, Tony stated, one and done.
Speaker Change: It is extremely positive and recognize the opportunity Canada has but also his willingness to sensibly streamline the rigorous approval process to actually deliver is Canada's economic trade and energy security interests.
Speaker Change: Turning to Pat as Southern corridor East a region that continues to exceed and indeed redefine our expectations in 2025, we launched our most extensive drill program at <unk> to date of 43000 May takes where Asian campaign, one of the largest in the Athabasca basin. This year.
Leigh Curyer: The goal is clear, to follow up on the exceptional mineralisation encountered to date, and better understand the scale and continuity of what is shaping up to be a significant discovery which exhibits all of those unique attributes of the mighty Arrow deposit. On March 24, 2025, we report what is now the best ever discovery phase intercept across any NexGen property. drill hole RK25232 intersected 3.9 metres of off-scale, greater than 61,000 counts per second. uranium mineralisation within a broader 13.8 metre zone. Four additional holes, all at least 50 metres apart from this intercept. return the same intense ultra-high-grade mineralization.
Speaker Change: The goal is clear to follow up on the exceptional mineralization encountered design.
Speaker Change: And better understand the scale and continuity of what is shaping up to be a significant discovery, which exhibits all of those unique attributes of the mighty Arrow deposit.
Speaker Change: On March 24, 2025, we report what is now the best ever discovery phase intercept across any nexgen property.
Speaker Change: Drill hole RK 25 to 32 intersected.
Speaker Change: Three non majors above scale greater than 61000 accounts per second.
Speaker Change: Uranium mineralization within a broader 13 point I made design.
Speaker Change: For additional halls, OLED <unk> fate 50 meters apart from these into CIT.
Speaker Change: Return the sign intense ultra high grade mineralization.
Leigh Curyer: The high-grade zones have now doubled in size since our last update, measuring 210 metres along strike and 335 metres vertically, and it remains open in all directions. These are extraordinary results, particularly given that PCE is still in its discovery phase. For comparison, intercepts of this calibrated arrow didn't emerge until much later during the targeted resource definition phase.
Speaker Change: The high grade zones have now doubled in size since our last update measuring 210 meters along strike and 335, Macy's vertically and it remains open in all directions.
Speaker Change: These are extraordinary results, particularly given the that PCA is still in its discovery phase for.
Speaker Change: For comparison intercepts of this caliber at arrow didn't emerge until much later during the targeted resource definition phase.
Speaker Change: I'd like to remind everyone that next Gen holds the most significant land position over 198 days in South West.
Leigh Curyer: I'd like to remind everyone that NexGen holds the most significant land position, over 190 hectares in Saskatchewan's southwest Athabasca Basin, which is widely considered to be the future of uranium production in the West. PCE is located just 3.5km east of the world-class Arrow deposit, which positions us to significantly expand our resource base in the coming years and positively impact the communities where we operate for many generations to come.
Speaker Change: Saskatchewan Southwest Athabasca basin, which is widely considered to be the future of uranium production in the west.
Speaker Change: <unk> is located just three five kilometers east of the world class ore deposit, which positions us to significantly expand our resource base in the coming years and positively impact the communities, where we operate for many generations to come.
Leigh Curyer: NexGen is exceptionally well capitalised. We hold approximately 435 million Canadian in cash. enough to fund the start of construction activities for the next 12 to 18 months. In addition, we have over US$1.6 billion in expressions of interest from leading banks and export credit agencies to form the base of our project funding. Like any Tier 1 project, we are navigating many financial options to optimise the funding of this project. In terms of timing, we remain focused on year-end 2025 for determining the best financing package that provides certainty of capital, enables us to maintain our marketing strategy of maximising exposure to the prevailing prices in the future, and enables us to maintain our production output flexibility.
Speaker Change: Next Gen is exceptionally well capitalized.
Speaker Change: Approximately 435 million Canadian in cash.
Speaker Change: And enough to fund the start of construction activities for the next 12 to 18 months.
Speaker Change: In addition, we have over one 6 billion U S and expressions of interest from leading banks and export credit agencies to form the base of that project finding funding.
Speaker Change: Like any tier one project, we are navigating many financial options to optimize the funding of this project in terms of timing we remained focus on year end.
Speaker Change: This for yearend 2025 foot determining the best financing package that provides certainty of capital.
Speaker Change: Enables us to maintain our marketing strategy of maximizing exposure to the prevailing prices in the future and enables us to maintain our production output flexibility.
Leigh Curyer: At the same time, demand for our future production has never been stronger. Off-take negotiations are continuous with a diverse group of counterparties all over the world. We expect to announce additional agreements this year, further bolstering our market position as we move into construction and production. With federal approval approaching, the integrated project team are in place. All procurement and detailed engineering is in place, ready to commence construction with a road-bus balance sheet. We are ready and exceptionally well positioned to advance into the next phase of development.
Speaker Change: At the same time demand for our future production has never been stronger.
Speaker Change: Negotiations are continuous with a diverse group of Counterparties all over the world.
Speaker Change: We expect to announce additional agreements this year further bolstering our market position as we move into construction and production.
Speaker Change: With federal approval approaching the integrated project teams are in place.
Speaker Change: Procurement and detailed engineering.
Speaker Change: As in place ready to commence construction with a robust balance sheet.
Speaker Change: We are ready and exceptionally well positioned to advance into the next phase of development.
Leigh Curyer: With that, I would now like to open the floor to questions. Ladies and gentlemen, we'll now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To remove yourself from the question queue, please press star then two.
Speaker Change: With that I would now like to open the floor to questions.
Speaker Change: Yeah.
Speaker Change: Ladies and gentlemen, we will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad here at tolling methodology and your request.
Speaker Change: Youre using a speakerphone please pick up your handset before pressing any Keith.
Speaker Change: Remove here so from the question queue. Please press Star then two.
Ralph Profitti: Our first question is from Ralph Profitti with Stiefel. Please go ahead. Good day. Thanks, operator.
Speaker Change: Our first question is from Ralph <unk> with Stifel. Please go ahead.
Speaker Change: Good day, Thanks, operator, Lee I'd like to ask a question on more detailed progress towards procurement of equipment and long lead items.
Leigh Curyer: Leigh, I'd like to ask a question on more detailed progress towards procurement of equipment and long-lead items. Are you happy with where you are in the queue? And are your suppliers talking about general inflationary pressures or delivery schedules that may be at risk? Or are these conversations in line with expectations?
Speaker Change: Are you happy with where you are in the queue and are your suppliers talking about general inflationary pressures or delivery schedules that may be at risk or these conversations in line with expectations.
Leigh Curyer: Thanks Ralph, look we have a very detailed construction execution plan which is down to the day once we have approval and so one of the benefits of, roundabout benefit of the commission hearing dates being set for November 2025 and February 2026 is that it does allow us to plan exceptionally well that procurement process with respect to the key inputs particularly around the first 12 to 18 months of construction. As I speak that is well in hand and it is a significant focus of the executive teams time is on that execution plan and as I speak I'm very comfortable where that's heading.
Ralph: Thanks, Ralph look we have a very.
Speaker Change: Data out construction execution plan, which is down to the day.
Speaker Change: Once we have approval and so one of the benefits of.
Speaker Change: Oh roundabout benefit all of the commission hearing date, Spain set for November 2025 in February 2026 is that it does allow us to play an exceptionally well that procurement process with respect to the key inputs, particularly around the first 12 to 18 months of <unk>.
Speaker Change: Instructions.
Speaker Change: As a stake that is well in hand, and it is a significant focus of.
Speaker Change: The executive teams.
Speaker Change: Time is on that execution plan and as I speak on I'm very comfortable where that's heading in terms of pricing.
Leigh Curyer: In terms of pricing, look the industry broadly is always under pricing pressure, we're not excluded from that but we are maintaining what we expect things to cost as were previously forecasted. and that's also been supported by due diligence by a number of the debt and equity providers that have been running a process on our project. The good thing about the Rukwanaro project is that the economics are extraordinarily robust, so if there is CPI pressure, it won't be as material as you would see in a marginal project. Further, with the payback period being so short, you know, approximately 13 months at current prices, the impact of any CPI increase on the financeability of the project will also be immaterial.
Speaker Change: Look the industry broadly is always on the.
Speaker Change: Pricing pressure.
Speaker Change: Were not excluded from that but.
Speaker Change: We are maintaining our.
Speaker Change: What we expect.
Speaker Change: Things to cost as we had previously forecasted.
Speaker Change: And that's also been supported by due diligence.
Speaker Change: There are a number of the debt.
Speaker Change: Debt and equity providers that are running.
Speaker Change: Our process on that project.
Speaker Change: Project.
Speaker Change: The good thing about the required narrow project is that the economics.
Speaker Change: Extraordinarily robust so if there is a C P.
Speaker Change: I appreciate it it won't be as a must.
Speaker Change: Material.
Speaker Change: As you would see in a marginal project.
Speaker Change: Further with the pay back period being so short.
Speaker Change: Approximately 13 months at current prices.
Speaker Change: The impact of any CPI increase on the finance ability of the project will also be immaterial.
Leigh Curyer: So, it's something you're quite right, Ralph, it is an aspect we place a lot of attention on and planning, and as we speak, we're in good shape. And I continue to be, you know, I wouldn't see any changes in that either going forward considering the amount of, you know, detailed planning that's gone into the construction execution schedule.
Speaker Change: It's it's something you're quite right right Ralph.
Speaker Change: And that's baked we place a lot of attention on and planning and.
Speaker Change: As we speak we're in good shape and I continue to be.
Speaker Change: I wouldn't say any changes in that either going forward considering.
The amount of <unk>.
Speaker Change: Data out planning that's gone into the construction execution schedule.
Speaker Change: Great. Thanks for that answer Lee and I'm.
Ralph Profitti: Great, thanks for that answer, Leigh.
Ralph Profitti: And a separate question, as greater attention turns to exploration, just wondering how you're balancing the desire to turn around the mineral resource estimate, inaugural one for PCE, and basically what the drills are telling you, which is, you know, the longer you take, the more potential is. Just wondering how you're balancing those two aspects of potential versus delivering an MRE? Yeah, sure.
Speaker Change: A separate question as greater attention turns to exploration just wondering how you're balancing.
Speaker Change: The desire to turnaround the mineral resource estimate inaugural one for PCE.
Speaker Change: And basically what the drills are telling you which is you know the.
Speaker Change: The longer you take the more potential is just wondering how you're balancing those two aspects of potential versus delivering at MRV.
Speaker Change: Yes sure.
Leigh Curyer: So firstly, it's the exploration group. And so this doesn't, in any way, dilute the attention on the final federal permitting or the execution schedule. But with respect to the exploration group, I must stress, PCE is still in a definition, like, what are we dealing with stage. I don't see us turning to delineation, resource definition, drilling activities. You know, as we speak, at the earliest, that would be 2026. It's still open in every direction. it's looking better than what Arrow did at the same stage of drilling and as we all know Arrow you know expanded considerably once we tagged into the high-grade subdomain so it's very very early in the stages we're under no we don't see it as pressure we we have a very well thought out exploration approach where we look to define what is the area of mineralization first where we tag into a high-grade subdomain we then focus a little more weighting of the drill drill bits towards that because the consequence of intersecting that high-grade intense mineralization does have an extremely material impact on the resource definition once we get a sense that we've got both of those understood that's when we'll then shift that attention to a measurement in terms of volume and grade but not beforehand and I don't see us being anywhere near that stage of that as we speak and look that's exciting news for everyone it's way too early to determine just exactly what we're dealing with at PCE because it's exhibiting just incredible you know similar characteristics to what Arrow is.
Speaker Change: Firstly, it's the exploration group and so.
Speaker Change: This doesn't it anyway.
Speaker Change: The attention on the final federal permitting or the execution schedule, but with respect to the exploration group.
Speaker Change: I must stress pacer he's still in definition like what are we dealing with stage.
Speaker Change: I don't see us training to delineation resource definition drilling activities.
Speaker Change: Yes, as we speak at the earliest that would be 2026.
Speaker Change: They still it's still open in every direction.
Speaker Change: It's looking better than what arrow did at the same stage of drilling.
Speaker Change: And as we all know.
Speaker Change: Expanded considerably.
Speaker Change: Once we tagged into the high grade sub to mine. So it's very very early in the stages, we're under no.
Speaker Change: We don't see it as pressure we have a very.
Speaker Change: Ah well thought out exploration approach, where we look to define what is the area of mineralization first where we tag into a high grade sub domain. We then focus.
Speaker Change: Little more weighting of the drill drill bits towards that because.
Speaker Change: The consequence of intersecting that high grade intense mineralization does have an extremely material impact on the resource definition.
Speaker Change: Once we get a sense that we've got both of those understood. That's when we'll then shift that attention too.
Speaker Change: That like a measurement.
Speaker Change: In terms of volume and grade, but but not beforehand, and I don't see us paying anywhere near that stage of that as we speak and look that's exciting news for everyone.
Speaker Change: It's way too early to determine just exactly what we're dealing with that pace.
Speaker Change: Because it's exhibiting just incredible.
Speaker Change: Similar characteristics to what arrow is.
Ralph Profitti: Thanks very much Leigh, I appreciate those answers. Thanks, Ralph.
Speaker Change: Thanks, very much I appreciate those answers.
Ralph: Thanks Ralph.
Speaker Change: Yeah.
Speaker Change: The next question is from Neil Julio.
Julio Madragon: The next question is from Julio Madragon with. with BMO Capital Markets. Please go ahead.
Speaker Change: Dragon with it.
Speaker Change: Pardon me.
Speaker Change: With BMO capital markets. Please go ahead.
Julio Madragon: Hi, good morning, Leigh Curyer here. So just the first question is related to related to your plans for Route 1 development for this year. So, you know, the budget, the budget and potential activities, while you await the hearing dates later this year on early 2026. Yeah, if I've understood the question, Julio... Yeah, the hearing date, we're ready right now, as we speak, if we had approvals. We've had a very clear definition around what we're building and how we're going to build it since 2017, and we've been refining it ever since. This project has had an extraordinary amount of time and focus on executing it well.
Lee Clear: Hi, Good morning, Lee clear here. So yes. The first question is related to.
Lee Clear: Related to your plans for Rogue one development for this year. So you know that.
Lee Clear: Jed.
Lee Clear: The budget on potential activities why did you outweigh the hearing date later this year early 2026.
Lee Clear: Okay.
Julio: Yeah, if I understood the question Julio.
Julio: Yeah. The the hearing date, we're ready right now as we speak if we had approvals.
Julio: As we speak would be already in construction.
Julio: We we've had a very clear definition around what we're building and how we're going to build it since 2017, and we've been refining it ever since.
Julio: This project has had it.
Julio: An extraordinary amount of time and focus on executing it well.
Leigh Curyer: When you add into that the fact that it's very simple technically, relative to other mines around the world, it's an extremely competent basement rock. It's actually a very small physical footprint and a very small mine. We'll be removing about one and a half double-decker buses of ore a day. That is tiny for a mine. And then we have the very clean metallurgy. So the processing plan itself, in a relative sense, is a more straightforward, simplified version of what we've seen in other parts of the world. That all bodes well for once we have the approval to execute well, and from a company perspective and mindset, and as everyone knows, we're very, very diligent on risk analysis, we are looking forward to construction because of the amount of time and energy that we've put into it over the last, well it's almost eight years, and we have the team in place, and we have the execution scheduled down to the day, so we can't wait to be in that position and we expect so in early 2026, at the conclusion of the federal permitting process with the NSA.
Julio: When you add into that the fact that it's very simple technically relative to other mines around the world. It is an extremely competent rock, it's actually a very small physical footprint in a very small mine.
Julio: We will be removing about one and a half double deck buses of or a day that is tiny for four months and then we had the very clean metallurgy.
Julio: The processing plant itself in a relative sense <unk> is a more.
Julio: Strike forward simplified version of what we see in other parts of the world.
Julio: We.
Julio: It all bodes well for once we had the approval to execute well and from our company.
Aspect, even mindset and as everyone knows where we're very very diligent on.
Julio: Risk analysis.
Julio: We are looking forward to construction because of the amount of time and energy that we've put into it over the last well its almost eight years.
Julio: And we have the team in place and we have the execution schedule down to the day so.
Julio: We can't wait to be in that position and we expect.
Julio: I expect so in Italy.
Julio: 2026.
Julio: At the conclusion of the federal permitting process with the San Jose.
Leigh Curyer: Oh, thank you. So just to, you know, just understand a little bit more in the near term, what will be your developing activities for 2025? And what will be the potential budget for this activity? We are focused on exploration in 2025 and we maintain that site on an exploration basis to support the regional drilling activities and maintaining that in an environmentally elite manner. We have CAD$435 million in the Treasury as we speak. We have also liquid assets of around another CAD$300 million on top of that. Once we're in construction, that's when you'll see an acceleration of the budget but as we We are well funded well into the back end of 2026 to meet all of our general and administrative expenses maintaining the site in readiness for construction as well and supporting exploration activities.
Julio: Oh, Thank you so just to understand.
Julio: Understand it will be more in the near term what would be your developing activities for 2025.
Julio: It will be there by the potential budget for these activities.
Julio: Yes.
Julio: Yeah, so look where or where we are.
Julio: Focus on exploration in 2026.
Julio: And Oh, sorry in 2025.
Julio: And we maintain that sought on a on an exploration basis to support the.
Julio: The regional drilling activities and maintaining that in an environmentally a late midnight so.
Julio: Once we are we have we had 435 million Canadian in the Treasury as we speak we have.
Julio: So liquid assets of around another $300 million on top of that.
Julio: Once we're in construction, that's when you say an acceleration of the budget, but as we speak we are well funded well.
Julio: Into the backend of 2026.
Julio: To me all of Al.
Julio: General and administrative expenses, maintaining the site in readiness for construction as well and supporting exploration activities.
Speaker Change: Oh perfect. Thank you very much so if I may ask one more question.
Julio Madragon: Oh, perfect.
Julio Madragon: Thank you very much.
Julio Madragon: So if I may ask one more question, how are your contracting discussion with utilities going at the moment? If we can have more detail on that. Thank you.
Speaker Change: How are your contracting discussions with utilities going at the moment, if we got a couple of more detail on that thank you.
Speaker Change: Sure I might just hand over to Travis.
Travis McPherson: Sure, I might just hand over to Travis on that front. Yeah, perfect.
Speaker Change: Right.
Speaker Change: Yeah.
Speaker Change: Yes, perfect Travis and.
Travis McPherson: Travis here. And thanks for the question. Yeah, as Leigh alluded to in his remarks, at the beginning here, contracting discussions have been, you know, very, very robust, ongoing, lots of them. And you can expect to see more contracts get signed and announced shortly and throughout the year. I think, you know, general context and color around it. There's definitely a growing awareness of the acute nature of the supply deficit, and particularly, you know, later this decade and into the 2030s, when Aero is going to be producing, you know, people are very, utilities in particular, are very, very concerned about that period of time, and rightfully so so.
Speaker Change: And thanks for the question.
Speaker Change: Yeah as Leigh alluded to in his remarks.
Speaker Change: At the beginning here.
Speaker Change: Contract discussions they've been.
Speaker Change: Very very robust ongoing lots of them.
Speaker Change: And you can expect to see more contracts get signed and announced.
Speaker Change: Shortly and throughout the year.
Speaker Change: I think general context and color around it.
Speaker Change: There is definitely a growing awareness of.
Speaker Change: The acute.
Speaker Change: The nature of the supply deficit and particularly.
Later, this decade and into the 20 <unk> when when Aero is going to be producing.
People are very utilities in particular are very very concerned about that period of time and rightfully. So.
Speaker Change: So that obviously positions <unk> well.
Travis McPherson: That obviously positions NexGen well, and very uniquely, and the utilities are also understanding that not all uranium is created equal, and buying uranium from us represents a different value proposition to them than buying uranium from an incumbent producer. It's not an incumbent producer isn't offering them net new diversification and new supply sources, whereas support for our mine and all the other, you know, emerging developers offers them that. And so there's, there's recognition of that, which is very supportive to ours. And I'm sure other developers initiatives. So, yeah, very, very good and robust and more to come on that front.
Speaker Change: And very uniquely.
Speaker Change: And the.
Utilities are also understanding that that not all uranium is created equal and buying uranium from us represents a different value proposition to them then.
Speaker Change: Bayou right here from an incumbent producer because.
Speaker Change: It's not an incumbent producers and offering them net new diversification and new supply sources, whereas support for our mine and all the other emerging developers offers on that and so there's there's.
Speaker Change: A recognition of that which is very supportive to ours and I'm sure other.
Speaker Change: Developers initiatives so.
Speaker Change: Yes, very very good and robust and more to come on that front.
Speaker Change: Perfect. Thank you very much tailored on me.
Julio Madragon: Perfect. Thank you very much, Trevor and Leigh. Thanks.
Speaker Change: Hmm.
Andrew Wong: The next question is from Andrew Wong with RBC Capital Markets. Please go ahead. Hi, thanks for taking my questions.
Andrew Wong: Next question is from Andrew Wong with RBC capital markets. Please go ahead.
Andrew Wong: Alright, Thanks for taking my questions, maybe just contracting again can you just talk about the terms it looks like prices are being discussed.
Andrew Wong: Maybe just on contracting again, can you just talk about the terms of the contracts that are being discussed? So NexGen, my understanding, you guys would prefer more spot related market exposure. Is that what we can expect to see in your upcoming contract settlements? Are the utilities agreeing to that? And just any sense on if there are any floors or ceilings that are being discussed, what those levels are today? Yeah, thanks, Andrew. It's Travis again. We obviously can't talk about specific terms. What I would say is that what we disclosed in December for those initial 5 million pounds of contracts, where we outlined kind of what the sensitivities looked like and stuff, that's in line with what we're assessing going forward.
Hello, Nextgen my understanding you guys would prefer more spot related end market exposure.
Andrew Wong: What we can expect to see in your own upcoming contract settlements or are these generally is agreeing to that.
Andrew Wong: And just any sense on if there are any floors or ceilings that are being discussed with what those levels are today.
Andrew Wong: Yeah. Thanks, Andrew described as again.
Andrew Wong: Obviously, you can't talk about specific terms.
Andrew Wong: What I would say is that what we disclosed in December.
Andrew Wong: For those initial 5 million pounds of contracts.
Andrew Wong: Where are we outlined kind of what the sensitivities looked like and stuff. That's in line with what we're discussing going forward.
Travis McPherson: And our focus on maximizing the exposure to the future prevailing price of uranium, spot price of uranium at the time we deliver uranium, it remains consistent and definitely willingness of utilities and our standing of utilities, generally speaking, to our desire for that and how it benefits both us and them, actually, in the sense that our philosophy overall is not just one where it only benefits us, it benefits utilities, and that you don't get into a post-Fukushima world again, where producers are oversupplying a market for way, way too long because they have floor prices that incentivize them to break even and contractually obligate them to continue to produce.
Andrew Wong: And our.
Andrew Wong: Focus on maximizing the exposure to the future prevailing price of uranium spot price of uranium at the time, we deliver uranium is it remains consistent and definitely.
Andrew Wong: Willingness of utilities, and our standing of utilities generally speaking to.
Andrew Wong: Our desire for that and how it benefits, both us and them actually.
Andrew Wong: In a sense that you know our philosophy overall is not just one where it only benefits us it benefits utilities and that you don't get into a post Fukushima world again, where producers are over supplying the market.
Andrew Wong: For way way too long because they have.
Andrew Wong: Floor prices that incentivize them to breakeven and contractually obligate them to continue to produce.
Travis McPherson: Our philosophy and our strategy around marketing eliminates that because we shorten the contracts and tie them to the price at the time. And therefore, if something changes in the future, the industry can adjust, or at least we can in these contracts. So, that understanding is there and they're open to that. as we demonstrated in our listed disclosures.
Andrew Wong: Our philosophy and our strategy around marketing eliminates that because we shorten the duration of the contracts and tie them to this to the price at the time.
Andrew Wong: And therefore, if something changes in the future the industry can address or at least we can in these contracts.
Andrew Wong: So that understanding is theyre in there they are open to that.
Andrew Wong: As we demonstrate.
Andrew Wong: With the disclosure.
Leigh Curyer: Yeah, and Andrew, I'll just add. to the fact that Yeah, utilities don't do the same contract with, to Travis's earlier point, utilities don't do the same contract for all producers. or advanced developers. The contracts do reflect the unique nature of our respective projects. Now our strategy merely reflects the technical aspects, economic aspects and environmental aspects of our project. We're in competent basement rock. We can ramp production up, we can ramp production down given market conditions. And that is to the benefit of the producers but also the utilities who are procuring the off-take. So I know there's a bit of commentary out there that it only works this way and that's the way it's always worked.
Andrew Wong: Yeah, and Andrew I'll just add.
Andrew Wong: The fact that.
Andrew Wong: Utilities, starting to the signed contract leads to <unk> earlier point utilities, starting to do the same kind of contract roll.
Andrew Wong: Producers.
Andrew Wong: Or advanced developers.
Andrew Wong: The contracts to reflect.
Andrew Wong: The unique nature of our respective projects.
Wade: Now Wade.
Andrew Wong: Our strategy.
Speaker Change: Merely reflects the technical aspects economic aspects and environmental aspects of our project were incompetent basement rock, we can ramp production up we can ramp production down given market conditions.
Andrew Wong: And that is to the benefit of.
Andrew Wong: The producers, but also the utilities who are procuring the.
Andrew Wong: They also take sorry.
Speaker Change: I know, there's a bit of commentary out there that it only works this way and that's why it's always worked.
Andrew Wong: But.
Leigh Curyer: This mine, there's never been a mine like this in terms of technical certainty, economics and environmental performance. And our contracting strategy merely reflects those attributes and that is what has been appreciated by the utilities that we have already contracted with and will contract with in the near term.
Andrew Wong: This mine, there's never been a mine like this in terms of technical certainty.
Andrew Wong: Economic and environmental performance and.
Andrew Wong: Our contracting strategy really reflects those attributes.
Andrew Wong: And that is what is vein.
Andrew Wong: <unk> by the utilities that we have already contracted with and we'll.
Andrew Wong: Contract with.
Andrew Wong: In the in the near term.
Andrew Wong: That's a lot of great color. Thank you.
Andrew Wong: That's a lot of great color. Thank you.
Andrew Wong: And just with the federal election, I'm curious, how has that impacted your discussions with the government on approvals? Have you had any discussions with the new government since the election? And is there any flux around those public hearing dates? I look, the good thing about those dates that they are now bookends and we know and they're in place. Look, I've been incredibly encouraged by Mark Carney's comments with respect to One and Done. for major energy projects in Canada, and if that... Transpires into a more efficient regulatory process where a project that has provincial approval won't require subsequent federal approval.
Andrew Wong: And then just with the federal election.
Speaker Change: Curious as to how has that impacted your discussions with the government on approvals.
If you had any discussions with the new government since the election and is there any flex around those public hearing dates.
Hi look the good thing about those diets that they're in.
Speaker Change: Now bookends and we know them and they are in place look I've been incredibly encouraged by my economies comments with respect to one and done.
Speaker Change: For a major LNG project in Canada.
Speaker Change: And and if that trend.
Speaker Change: Transpires into more efficient a regulatory process where.
Speaker Change: A project that has provincial approval.
Speaker Change: One requires subsequent federal approval I think that's in the interests of all.
Leigh Curyer: I think that's in the interests of all current but also future uranium projects that are going into production. Look, there is aspects of having two regulatory, both a provincial and a federal, there is overlap between the two. That's not in anyone's interest. And so, look, I've been very impressed with Mark Carney's commitment to streamlining the process and Canada playing to its strengths and getting these energy projects up and running now. So, if it does transpire into that, I'll be very, very pleased to present that. Certainly, the Premier of Saskatchewan, Scott Moe, has been very public with respect to what he would like to see with respect to the federal government's approach to projects such as ours.
Speaker Change: Current but also future.
Speaker Change: Uranium projects that are going into production look there is aspects of having two regulatory both the provincial and federal there is overlap and and and but between the two.
Speaker Change: That is not in anyone's interests and so look I've been very impressed with <unk> commitment to streamlining the process and.
Speaker Change: Canada, playing to its strengths and getting these energy projects up and running now so if it does transpire into that Oh, we are very very pleased to present that.
Speaker Change: Certainly the premiere of Saskatchewan.
Speaker Change: Scott has been very public.
Speaker Change: With respect to what he would like to say with respect to the federal government's approach to projects such as ALS.
Speaker Change: Yeah, let's let's let's wait and say look November will be just around the corner.
Andrew Wong: Yeah, let's wait and see. Look, November will be just around the corner, no doubt about that, and we are in the final stages as we speak. Great, thank you very much.
No doubt about that and.
Speaker Change: In the pharma stages as we speak.
Speaker Change: Great. Thank you very much.
Speaker Change: Once again, if you have a question. Please press Star then one.
Operator: Once again, if you have a question, please press star then 1.
Speaker Change: Our next question is from Craig Hutchison with TD Colin. Please go ahead.
Craig Hutchison: Our next question is from Craig Hutchison with TD Cohen. Please go ahead. Hi, good morning guys. Thanks for taking my question. I'm just a question. You mentioned at the onset that you're looking to find out the best financing package by year end.
Craig Hutchison: Hi, Good morning, guys. Thanks for taking my question.
Craig Hutchison: Just a question you mentioned the the answer that you're looking to find out the best financing package by year end are you guys still entertaining a strategic investor.
Craig Hutchison: Are you guys still entertaining a strategic investor at the asset level at this point? Oh, sorry, Travis, yeah, you can answer that. Yeah, thanks, Leigh. Yeah, Craig, short answer, yes, we are. You know, as we have talked about in the past, it's a very targeted select group that we have been engaging with, some over the last two years, some in detail over the last year. And yeah, it still remains one of the many options that we have at hand in terms of timing. Everyone involved on that process on on the prepayment process on the debt process are all lining up for the timing around year end of this year.
Craig Hutchison: Asset level at this point.
Craig Hutchison: Yes.
Craig Hutchison: Uh huh.
Craig Hutchison: Oh, sorry, Travis Yeah, you can answer that.
Travis: Yes, yes.
Craig Hutchison: Yes, Craig short answer yes, we are.
Travis: As we have talked about in the past it's very targeted.
Craig Hutchison: Select group that we have been engaging with some over the last two years some.
Travis: In detail over the last year.
Travis: And yes, it still remains one of the many options that we have at hand in terms of timing everyone involved on that process on on the prepayment process on the debt process are all.
Travis: Lining up for the timing around year end of this year.
Travis McPherson: As.
Travis: As we noticed.
Travis: Okay, so that would come before before the permits.
Travis McPherson: Okay, so that would come before the permits, probably. Potentially, but obviously the permits are very dependent on concluding that financing aspect.
Travis: Yes.
Travis: Yeah, yeah potentially.
Travis: But yeah, obviously the permits are very dependent on concluding.
Travis: That financing aspect.
Travis: Okay.
Travis McPherson: And just in the contracting, I mean, do you guys have a sort of set volume or rough volume that you want to have contracted before you make the final investment decision? Yeah, Craig, no, we don't have that. You know, some of the options will require some level of offtake being in place, but it won't be being in place to commence construction. You know, like the debtors example, there's a portion of it that requires some volumes to be demonstrated. You know, as we've talked about before, they don't need price hedging in that the lenders don't care what price or pricing mechanism is utilized, but there'll need to be some volumes there, but those aren't needed until the first part of those won't be needed until you actually start to draw down the debt, which won't be until early in 2027.
Travis: And just on the contracting I mean do you guys have any sort of set volume or rough volume that you won't have contracted before you make the final investment decision.
Speaker Change: Yeah, Craig no we don't have that.
Travis: The options will.
Travis: It will require some level of offtake being in place but.
Travis: But it won't be being in place to commence construction.
Travis:
Travis: The debt as an example, there's a portion of it that requires some volumes to be.
Travis: Demonstrated.
Travis: As we've talked about before they don't they don't need price hedging in that sense. They don't use the lenders don't care what price.
Travis: Pricing mechanism is utilized but they'll.
Travis: They'll need to be some volumes there, but those arent needed until the first part of those wont be needed until you actually start to draw down the debt, which won't be until.
Travis: Early in 2027.
Travis McPherson: at a minimum. So, and then others, you know, it's not part of the discussion. So, there is no volume that we need to get to start construction. As Leigh said, we're ready to go. If we got approval tomorrow, we're in construction immediately. So, yeah, no, in a good position there.
Travis: At a minimum so.
Travis: And then others.
Travis: It's not part of the discussion. So there is no no volume that we need to get to start construction as Lee said, we're ready to go if we got approval tomorrow were in construction immediately so now in a good position there and then even longer term. We don't really have you know because we get asked sometimes like what's the split of.
Travis McPherson: And then, even longer term, we don't really have, you know, because we get asked this sometimes, like, what's the split of, you know, term contracts or whatever? Long term, we don't have a set percentage that we want. We will always maintain our ability to... leverage the production output flexibility that the mine has. And then the biggest determinant really is just the alignment between ourselves and the counterparty that we're dealing with, or counterparties that we're dealing with, with respect to what the future of the uranium supply and demand looks like. And if there's alignment, then we can get there on a contract.
Travis: Term contracts are or whatever.
Long term, we don't have a set.
Travis: Percentage.
Travis: Then we want.
Travis: We will always maintain our ability to.
Travis: Leverage the production output flexibility of the mine has.
Travis: And then the biggest determinant really is just the alignment between ourselves and the counterparty that we're dealing with our counter parties that we're dealing with with respect to what the future of the uranium supply and demand looks like and if there's alignment then we can we can get there on a contracted it doesn't because there is not alignment then that's when we're patient.
Craig Hutchison: If there's not alignment, then that's when we're patient. And we've been patient the whole time. And that's clearly benefited us materially to do that. And we'll continue to do that. Great.
Travis: And we've been patient and the whole time and Thats clearly benefited us.
Travis: Materially.
Travis: Do that and we'll continue to do that.
Travis: Okay Greg.
Craig Hutchison: I may have one last question for me, just back to PCE. I think the expectation was assays were released in April. Are they taking a bit longer than expected, or are you guys just waiting to batch those results with some new ones? The lab has been very, very busy, given the volume of what's gone through, we're expecting them immediately, Craig, and when we release...
Travis: One last question for me just respect to TCE I think the expectation was asset assays were released in April.
Travis: They're taking a bit longer than expected or are you guys just waiting to batch those results with some new ones.
Travis: No the.
Travis: The lab has been very very busy with that.
Craig Hutchison: I thought I mean, given the volume of what's gone through they will be we are expecting them imminently Craig.
Travis: And when we release.
Leigh Curyer: We always provide materiality context around it, so there's no doubt 232 will have its own news release given its materiality, which will most likely be separate from the assay results from the drilling that occurred in 2024. I just would emphasise again, we're still in the very early stages of getting a grasp on the scope of PCE, but it's looking extremely, extremely strong if you provide the relativity to arrow at the same level of drilling.
Craig Hutchison: We always provide materiality context around it.
Speaker Change: Yeah, there's no doubt $2 32 will have its own user life given its materiality.
Speaker Change: Which will most likely be separate from the ISI results from.
Speaker Change: The drilling that occurred in 2024.
Speaker Change: I just would emphasize again.
Speaker Change: Like.
Speaker Change: We are still in the very early stages of getting a grasp on the scope of PSA, but its looking.
Speaker Change: Extremely extremely strong.
Speaker Change: We provide the relativity to arrow at the same level of drilling.
Speaker Change: Okay, great. Good luck guys. Thanks.
Craig Hutchison: Great, good luck.
Brian Macarthur: The next question is from Brian MacArthur with Raymond James. Please go ahead. Good morning, and thank you for taking my question. A little bit back to what Ralph was talking about.
Speaker Change: The next question is from Brian Macarthur with Raymond James. Please go ahead.
Brian Macarthur: Good morning, and thank you for taking my question, a little bit back to what Ralph was talking about.
Brian Macarthur: When you get approval, let's just say we get it February next year, are you going to be able to do anything to move the whole construction time frame up? If you can maybe just go through how you see it developing going forward on a timeline and where the critical path is to production once you do get your permit.
Brian Macarthur: When you get approval lets just say we get to February next year.
Brian Macarthur: Are you gonna be able to do anything to move the whole construction timeframe up.
Brian Macarthur: Maybe just go through how you see it developing going forward on a timeline of where the critical path is to production. Once you do get your permits.
Leigh Curyer: Yeah, look the, the, uh, thanks Brian. Look the, uh... The shaft is effectively the longest lead time item, requires the greatest amount of preparation as well. As for the feasibility study that we updated in August of 2024, it is a four-year construction process. you know it's it's preferable to start um either you know as you're coming out of the winter which is around the time that we expect the conclusion of the CNSC hearing process. So I think everyone should adjust that from the commencement of construction, which is subject to CNSC finalising the process, it is a 48 month process.
Speaker Change: Yeah look the the things Brian look they are.
Speaker Change: The shaft is the effectively the longest lead time item.
Speaker Change: <unk> requires the greatest amount of preparation as well.
Speaker Change: As far as the feasibility study that we updated in August of 2024. It is a four year construction process.
Speaker Change: Yeah, it's it's preferable to start.
Speaker Change: Are the as you're coming out of the winter, which is around the time that we expect the conclusion of the same let's say.
Speaker Change: Im hearing process.
Speaker Change: So I think everyone.
Speaker Change: Sure.
Speaker Change: The adjust that from the commencement of construction, which is subject to say NSA.
Speaker Change: Finalizing the process.
Speaker Change: It is.
Speaker Change: A 48 month process.
Leigh Curyer: from that date so I don't want to I don't want to you know there's there's not in terms of accelerating that 48 months there's nothing really material um it's going to be 48 Great, thanks. I think that's how I understood it too. On the converse, but just to be sure, there's nothing because it's delayed back to Ralph's question that you've lost stuff in the queues or anything that would make it longer than 48 months that you can see right now just because of the timing of the way things have worked out. No, it's actually the opposite, the delay in the hearings allows us to really refine the execution schedule for key imports even further out than what we otherwise would have.
Speaker Change: From that date, so I don't want to I don't want it does not.
Speaker Change: In terms of accelerating that 48 months theres nothing really material.
Speaker Change: It's going to be 48 months.
Speaker Change: Great. Thanks, I think that's how I understood it too on the converse, but just to be sure. There is nothing because it's delayed back to Ralph's question that you've lost stuff in the Qs or anything that would make it longer than 48 months that you can see right now just because of the timing of the way things have worked out.
Speaker Change: No its actually the opposite this the delay in the hearings allows us to to really refine the.
Speaker Change: The execution schedule for key inputs, even further out than what we otherwise would have.
Speaker Change: So everyone.
Leigh Curyer: So that's a reduction in execution risk once we start construction due to this delay in hearings to November of 2025 and February of 2026. So it's actually from that execution perspective when you do commence, it's actually a real positive.
Speaker Change: That's a reduction in execution risk.
Speaker Change: Once we start construction.
Speaker Change: To this.
Speaker Change: July in the hearings to November of 'twenty five in February of 2026.
Speaker Change: All right.
Speaker Change: It's actually from the execution perspective, when you do commence it's actually a real positive.
Brian Macarthur: Great, thanks.
Speaker Change: Great. Thanks, So maybe just one more thing to make sure I fully understand this my understanding was a lot of the sourcing was in Canada for what you need as well is that right. So really there's not a whole lot of risk in the supply chain going forward is that a fair comment.
Leigh Curyer: And maybe just one more thing to make sure I fully understand this. My understanding was a lot of the sourcing was in Canada for what you need as well. Is that right? So really, there's not a whole lot of risk in the supply chain going forward. Is that a fair comment? That's fair, and we will prioritise and optimise the opportunities for Canada first and foremost. There is some specialisation of certain items of equipment with respect to the shaft and the mill, but nothing really material in that sense. But no, Canada will be prioritised, and I'll say that that prioritisation does, as everyone knows, with respect to our focus on local communities, it will start in the local communities and expand out from there.
Speaker Change: That's fair and I know and we will prioritize and optimize.
Speaker Change: The opportunities for Canada, first and foremost there is some specialization of certain items of equipment.
Speaker Change: With respect to the.
Speaker Change: The.
Speaker Change: Shaft and the mill.
Speaker Change: But nothing really material.
Speaker Change: In that sense, but yeah, no, Canada will be prioritized and outside of that prioritization does as everyone knows with respect trial, our focus on local communities. It will stop in the local communities and expand out from there.
Speaker Change: Sure.
Speaker Change: Great. Thanks, very much Lee that's very clear.
Brian Macarthur: Great. Thanks very much, Leigh. That's very clear. Thanks, Brian.
Speaker Change: Thanks, Brian.
Operator: This concludes the question and answer session.
Speaker Change: This concludes the question and answer session I'd like to turn the conference back over to Mr. <unk> for any closing remarks.
Leigh Curyer: I'd like to turn the conference back over to Mr. Curyer for any closing remarks. Thank you Gaylene. Yes, as always, we really appreciate everyone's ongoing interest and support for NexGen. We, as I alluded to in the earlier part of the call, we are on the cusp of final federal permitting approval. The market and the fundamentals for nuclear energy are improving almost on a daily basis with all of the news that is coming out. And NexGen is ready to deliver its role in returning Canada to being the number one producer of of this incredibly important fuel that powers economies and the population's homes right around the world.
Speaker Change: Thank you guideline, yes, as always we really appreciate everyones ongoing interest and.
Speaker Change: Support for Nexgen, we as I alluded to in the earlier part of the coal we are on the cusp of of final federal permitting approval the market and the fundamentals for nuclear energy are improving almost on a daily basis.
Speaker Change: With all of the news that is coming out.
Speaker Change: And and Nextgen is ready to.
Speaker Change: The deliver its role in and return in Canada too.
Speaker Change: The number one producer of.
Speaker Change: This incredibly important fuel that powers the economies.
Speaker Change: And in the populations arms right around the world.
Speaker Change: With that I, thank everyone for their time and attention and as always if any additional questions arise placed as a tight to reach out to our.
Leigh Curyer: With that, I thank everyone for their time and attention and as always, if any additional questions arise, please don't hesitate to reach out to Monica, Stacey, Travis or myself. Thank you.
Speaker Change: Monica Stacey drive installed myself.
Speaker Change: Thank you.
Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
Speaker Change: This spring to close today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yeah.