Q2 2025 NexGen Energy Ltd Earnings Call
Speaker #3: Thank you for standing by. This is the conference operator. Welcome to the NexGen Energy second quarter of 2025 results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded.
Speaker #3: After the speakers' remarks, there will be a question and answer session at the end. To join the question queue, you may press star, then one on our telephone keypad.
Speaker #3: Should you ed assistance during the conference call, you may signal an operator by pressing star, then zero. 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 #4: Thank you, Jason. Good morning and thank you for joining NexGen's Q2 2025 financial results and investor conference call. My name is Leigh Curyer, and I am Chief Executive Officer today.
Speaker #4: I'm joined by Travis McPherson, Chief Commercial Officer and Benjamin Salter, Chief Financial Officer. On today's call, I'll uss our exciting company advancements in clean equipment, RX readiness, Patterson Corridor East results, which strongly validate another significant mineral body's unfolding $3.5 kilometers to the east alongside Arrow, further the PCOE results clearly suggest a very significant uranium mineralizing event has occurred in the southwest region of the afterbasket basin Saskatchewan.
Speaker #4: On our precedented world scale, and that we are really only at the beginning of defining its true extent. Further, the exciting developments in the uranium market over the quarter, including yesterday's announcement of NexGen doubling the volume in our offtake incorporating our key focus of market-related pricing mechanisms ensuring NexGen Energy deliver industry-leading leverage to future prices, whilst providing utilities with confidence with respect to volumes from RUC One's technically environmentally and socially operation.
Speaker #4: All in all, updating the critical role NexGen is set to play in delivering the world this vital, clean energy fuel supply. At the conclusion of this presentation, we'll move to the Q&A portion of the call, where you'll have the opportunity to ask Travis, Ben, and myself your questions.
Speaker #4: Throughout the course of today's call, we will be statements. Please visit our website for all the relevant disclaimers. making forward-looking
Speaker #5: A few years ago, the idea of nuclear energy powering big tech winning back global financing support and forming the cornerstone of national energy policy might have seemed optimistic.
Speaker #5: Today, it's happening. In just the past several weeks, we've witnessed a series of transformational developments that are reshaping global perceptions of nuclear energy. Developments that signal a clear structural shift is occurring today and forecast to extend well beyond 2050.
Speaker #5: In Q2, corporate buyers, particularly hyperscalers and AI leaders, moved aggressively to secure long-duration baseload power for their required energy needs. These technology companies have committed over US$100 billion in AI data center construction, including Amazon's $20 billion spend on data centers in Pennsylvania, Meta signed a 20-year power purchase agreement with Constellation Energy to secure $1.1 gigawatts of nuclear-generated electricity which could power the equivalent of approximately 1 million homes.
Speaker #5: In addition, Constellation confirmed its nearing long-term nuclear fuel supply deals with other hyperscalers. Google has committed to fund the development of three advanced nuclear projects.
Speaker #5: And TerraPower and Oklo raised another combined $1.1 billion US to develop small modular reactors. The race for energy and particularly clean baseload nuclear preferred is on the growth and demand has never been more robust.
Speaker #5: These are just a few examples of the decade-long commitments to nuclear energy from the most capitalized and data-dependent companies on the planet. According to the International Energy Agency, data center demand for electricity is set to increase by 170% in China, 130% in US, 80% in Japan, and 70% in Europe, over the next five years.
Speaker #5: This equates to an insatiable desire for uranium to fuel large portions of this demand through nuclear energy. The reality is that current mine supply would not keep up with the existing demand and certainly not meet the exponential demand growth unless there are higher prices.
Speaker #5: Governments, including right here in Canada, under Prime Minister Mark Taney, are also moving with urgency. Fast-tracking regulatory frameworks, investing in SM small modular reactor development, and emphasizing domestic supply chains as a matter of national security.
Speaker #5: In May, President Trump signed a series of executive orders to accelerate US nuclear power development. Aiming to quadruple nuclear capacity from 100 to 400 gigawatts by 2050, media actions include funding five gigawatts of upgrades for existing plants, starting construction on 10 new large-scale reactors by 2030, restarting closed or unfinished reactors, fast-tracking permitting via reforms in constructing at least three new reactor designs by 2026.
Speaker #5: US Department of Energy will also direct funding to new projects investing in fuel cycle infrastructure, ultra-prioritize US energy security, and supply chain independence. This is the most comprehensive nuclear policy ever seen.
Speaker #5: And it has a profound positive implications for NexGen. Western-based low-cost environmentally responsible and poised ready for construction on the conclusion of the CNSC commission hearing process commencing one of two sessions only 99 days from now.
Speaker #5: In Canada, the passage of Bill C5 enables the government of Canada to fast-track major projects aligned national, economic, environmental, and indigenous priorities. An approach that reinforces the direction NexGen is taking since its inception.
Speaker #5: While RUC One is already well advanced under the current regulatory framework, the passage of Bill C5 presents a clear opportunity for the federal government under Prime Minister Carney and Minister Hodgson's leadership to demonstrate this new legislation in action.
Speaker #5: Something that is much needed in Canada in order for the country to realize its potential as a natural resources world leader. As a project that unambiguously meets the criteria of national interest, delivering economic benefit, environmental excellence, and deep indigenous partnership through legally binding industry-leading benefit agreements.
Speaker #5: In the first 10 years of forecasted production, RUC One is capable of providing 37 billion dollars in economic benefit to Canada. We'll support 104 1,400 direct jobs, and be initially licensed beyond 2050.
Speaker #5: NexGen's RUC One project makes exemplifies every aspect of the criteria that Carney government has defined for projects to be prioritized through Bill C5. And we look forward to the conclusion of the CNSC process to deliver the many stakeholder-led benefits our project exhibits.
Speaker #5: None of developments are isolated. They are strategic signals from the private sector, financial institutions, and government policy makers alike. Their nuclear energy has moved from the sidelines to the center of the global energy preference.
Speaker #5: Nuclear is not just part of the solution; it is a foundational. At the core this shift is a single truth: the world needs more electricity, and it needs to be clean, reliable, and affordable.
Speaker #5: It's not just about the power; it's about energy security, economic prosperity, and national competitiveness, all underpinned by the requirements to supply the key ingredient, uranium.
Speaker #5: All these developments and lack of supply lay groundwork for structurally higher uranium prices in the foreseeable future. The reality is that the industry at large, to some extent, still believes that this can all be solved with higher prices over reasonable timeframe.
Speaker #5: However, to meet the exceptional growth in demand we're eing, you need many new arrow-sized projects to be found, delineated, engineered, permitted, funded, and built.
Speaker #5: Arrow is widely considered the most technically sound and environmentally benign deposit globally. And we are entering into the 12th year since its discovery. Our decision to relaunch exploration in 2023 at RUC One has paid immediate dividends.
Speaker #5: With our PCE discovery, which will evaluate in significance as drilling and development advances, I'll speak more in a moment about PCE. While the global policy environment accelerates, the uranium market is also gaining ground.
Speaker #5: In Q2, uranium spot prices rose over 20%, closing at $78.50 US per pound. Largely driven by the reentry of the spot uranium trust following a $200 million raise.
Speaker #5: It was a powerful reminder that the uranium market is very undersupplied and that when demand volume returns to the market, prices respond rapidly. Further, yesterday I unced NexGen announced a new offtake agreement with a major US-based utility, which doubles their contract book in volume.
Speaker #5: Importantly, and distinguishingly, from past practices, our pricing on the $10 million pound contract book is all US utilities and is marker-related at the time of delivery providing unprecedented leverage to investors in this rising uranium pricing environment.
Speaker #5: At the same time, given our superior technical setting and vironmental design, it provides confident diversification of a new Western world supply. Our contract book represents approximately 3% of our total defined resources.
Speaker #5: And underscores NexGen's patient and strategic approach to building its sales book. We're in advanced discussions with utilities across North America, Europe, the Middle East, Asia, and negotiating negotiations are increasingly urgent.
Speaker #5: Informed and fast-moving. With the commission's hearing set for September 25 and February 2026, NexGen is preparing to transition from advanced development to construction and subsequent operations.
Speaker #5: Our current cash balance stands at $375 million Canadian. With funding to complete the 2025 site programs and initiate development for the first 12 months of post-approval construction.
Speaker #5: We maintain full strategic optionality with a strong cash position and active engagement with global debt providers. Sovereign funds and utilities amongst others. Resulting in financing interest well in excess of the full funding requirements of the bill.
Speaker #5: As we always have, we will optimize the vast number of financial financing alternatives available for maintaining our flexibility and ultimately maximizing the value of each pound of uranium we produce and sell.
Speaker #5: At PCE during the quarter, NexGen announced our best discovery phase asset to date. We drill hole RK25232 returning an incredible 15 meters at 15.9% utero weight.
Speaker #5: Including an exceptional peak of 0.5 meters at 68.8%. This is amongst best exploration intercepts in the world with Arrow hosting the majority the other top 10.
Speaker #5: Since discovery, 45 holes at PCE have been resected mineralization. Of these, 12 have produced the ultra-high-grade massive replacement mineralization of over 61,000 pounds per second.
Speaker #5: We've been bold with our spacing in some cases over 200 meters apart. And are still intersecting mineralization consistently demonstrating the continuity of mineralization and the overall strength of the system.
Speaker #5: Drilling today at PCE confirmed the stark similarities to the mighty Arrow deposit just 3.5 Ks away. It's suggesting the early signs of another tier one asset.
Speaker #5: It really does speak to the vast discovery potential of potentially more deposits on the RUC One property the ure. We also recently announced the consolidation of our entire land package.
Speaker #5: Including PCE with the purchase of Rio Tinto's 10% production carried interest. It held on 39 of ur claims. NexGen has secured a right of first refusal mechanism over this package after a third party made a phone aparty offer to acquire it from Rio.
Speaker #5: NexGen now holds 100% ownership of all its claims in the district. This speaks to the acceptance by not only NexGen but others of the tremendous value in the southwestern afterbasket basin portfolio.
Speaker #5: Which dominates the known and prospective trends in the district. The district, which is often referred to as the future of uranium mining, has received regulatory approval to expand our exploration infrastructure.
Speaker #5: Including a temporary airstrip, road for dual-way traffic, and expanded accommodations to support a growing team on site. This program is currently underway and scheduled to be completed in Q1 2026.
Speaker #5: Our elite standards on responsible development continue to guide every part of the business. In May, we released our fifth annual sustainability report aligned with global reporting initiative.
Speaker #5: And task force for climate-related financial disclosure standards. Highlighting major advancement across environmental, social, and governance metrics. Through our rowing education and workforce development programs, over 500 participants have engaged in NexGen-led training initiatives these past two years.
Speaker #5: Across a wide range of skilled trades. These programs developed in partnership with regional institutions and indigenous communities. And designed to build capacity and create meaningful career paths aligned with the project's long-term needs.
Speaker #5: Indigenous leaders have publicly recognized NexGen's unique and leading collaborative approach, with all four of the indigenous nations in the local project area citing NexGen as a benchmark for meaningful indigenous engagement and shared prosperity.
Speaker #5: Keeping an eye advised to keep an eye out for a video on our website about Chantelle Herman. Who is one of a group of talented local students who have become members of the NexGen team pursuing highly technical careers at NexGen while still living in their community.
Speaker #5: Chantelle is one of these leaders in the community and Travis and I met back in 2015 at the National School Volleyball Tournament and went on to our summer student program followed by a scholarship and is now a second-year geology student at University whilst working as a field geology technician at RUC One.
Speaker #5: It is one of many great outcomes from the RUC One project and is the foundation of delivering even greater generational advancement of the project as it goes into construction and operation.
Speaker #5: NexGen is well advanced on procurement, with long lead and critical path items already ordered. And in several cases, staged and secured in our warehouse.
Speaker #5: This progress reflects NexGen's fully integrated execution strategy and proactive supply chain planning, ensuring we are ready to begin major construction immediately upon final regulatory approval.
Speaker #5: With the team, materials, and partnerships in place, RUC One is execution ready. As we enter next phase, our focus is clear. Conclude approvals, finalize funding, and begin building the most important new uranium project in a generation in a manner fully consistent with how NexGen have delivered the best results today across every aspect of the organization.
Speaker #5: At NexGen, we're advancing with clarity and conviction. We're executing with deep respect for the environment, communities, Saskatchewan, Canada, the world, and our shareholders. We are energized by the opportunity to lead the future in nuclear.
Speaker #5: We appreciate your continued support and look forward delivering further progress in the second half of the year. Thank you, and we'll now open the call to your questions.
Speaker #3: 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.
Speaker #3: You will hear a tone acknowledging our request. If you're using a speakerphone, please pick up your handset before pressing any keys. Should you wish to decline, from the polling process, please press star, followed by the number two.
Speaker #3: We'll pause for a moment as callers join the queue, and while we prepare the Q&A roster. And we will take our first question here.
Speaker #3: Coming from Katie LeChappelle with Canaccord. Please go head.
Speaker #6: Hey, guys. Thanks for taking my question and congrats on the new offtake. Similar to your previous agreements, you noted it was a market-related contract.
Speaker #6: Two questions. Can you confirm if there's floors and ceilings in that new contract? And then as a follow-up, it appears that you're ning better terms relative to what some of your peer companies are announcing.
Speaker #6: Is that fair to say? And if so, what do you think is giving ou that edge? Thanks.
Speaker #4: I can confirm that our contract says a blend is very substantially market-related prices at the time of delivery. There's not one contract that fits all.
Speaker #4: Contracts are very specific to the technical and sovereign profile of either the producer or the emerging producer. And also, that of the particular circumstances of the utility.
Speaker #4: I would make a general comment that US utilities and particularly the larger ones do prefer a surety around future pricing. And so, what you'll see with those contracts is an embedded floor and ceiling.
Speaker #4: And where that is the case with NexGen and I want to say that we have four contracts in place which cover all aspects: floor and ceiling, full spot, and then also no floor and an extremely high ceiling.
Speaker #4: They are based on our knowledge of the markets. Very strong. Relatively. And I think that speaks to a number of things. I think it's an overall assessment by utilities with respect to the state of the current mine supply worldwide.
Speaker #4: We're eing some of the historical projects that have been getting back into production not meeting expectations. And then we're also seeing significant sovereign and technical risk impacts some of the current producing centers.
Speaker #4: So, yeah, what NexGen represents and also the other advanced developments developers in Denison, particularly in Canada, is we provide a alternative or a diversified supply of this key important fuel.
Speaker #4: And I think that then ultimately gets reflected in the pricing from what has occurred in the past. To what is actually about to unfold in the future.
Speaker #4: So, I know that's a bit of a long-winded answer that we are only conveying what we're experiencing. And that is what is driving our contract book.
Speaker #6: Awesome. Maybe just one quick follow-up. In the past, you've ated I think it was upwards of $1.6 billion US in lending interest. From banks and other credit providers.
Speaker #6: Is that number around the same or has that changed? And now that ou've got a couple of these offtake contracts in hand, do you feel like ou're getting closer to finalizing an agreement on the debt side?
Speaker #4: Yeah, thanks. And I'll hand over to Travis to answer.
Speaker #7: Yes. Thanks, Katie. And as Leigh was indicating, yes, it is growing, I would say. There's more parties getting ved. Seemingly every week, frankly. I think that's on the back of obviously all those banks signing that agreement to support the funding of this growth initiative by all these international governments.
Speaker #7: Also, the World Bank lifting that funding of nuclear projects as well. But yeah, we're in excess of that. And offtakes I would say do help that lending process, but it also opens up potentially new avenues of lending government as an example.
Speaker #7: So, but you know to be clear, the offtake contracts are being done kind of in an isolated basis based on our acceptance of those terms and ything.
Speaker #7: Like they're it's not like we're conceding on anything that we that we want long term. So, yeah, it's very positive and we're really trying to fund the balanced project along those timelines that we've indicated in the past, which is end of the year, into Q1 of next year ahead of the approval process.
Speaker #7: Up to debt is one of the alternatives at hand. As Leigh mentioned in the earlier part of the call, you ow we do have a number I think it should be unsurprising quality of the assets and which are not first, but we have quite a few options at hand to fund the full project.
Speaker #6: Okay. Awesome. Thank you, guys.
Speaker #3: And our next question will come from Andrew Wong with RBC Capital Markets. Please go head.
Speaker #8: Hey, good morning. Thanks for taking my questions. So just maybe back on financing a little bit. This regard to that, as you're having more of these conversations with various partners and there's more and more interest, what's your sense on the most likely path here?
Speaker #8: Is having a strategic asset or sorry, a strategic partner the most preferred path? And then maybe that supplemented by debt or equity? You maybe just provide a sense on that.
Speaker #8: Thanks.
Speaker #4: Yeah, thanks, Andrew. Maybe I'll start. Go ahead, Travis.
Speaker #7: Did you ant to ? Okay.
Speaker #4: Yeah. I would say we don't a preferred path at this stage. Like we're keeping an open mind to do all of the avenues at hand.
Speaker #4: You know they all come with well, first of all, they're all at various stages. I would say all of them are advanced. But obviously, various stages of how advanced they are.
Speaker #4: And so, all of them are attractive in isolation or together. So I would say we're keeping a very open mind with respect to how this ultimately gets funded.
Speaker #4: Although, you know obviously, we are keeping our focus on our ability to be flexible with respect to production volumes and maintaining our leveraged future upside in prices.
Speaker #4: That's what I would say to that. And Leigh, obviously, you found a company, so. Yeah, exactly. Look, our principle is to finance it in a manner that optimizes the production and the return on every pound produced.
Speaker #4: And we're working both streams, both the equity stream, project equity, debt, and also the potential of the prepayment on the future supply of a volume of pounds.
Speaker #4: Each one of them comes with their costs and benefits. But the overall principle that we will incorporate when we conclude the package is optimizing the exposure to future uranium prices.
Speaker #4: And whilst we can't be specific on the debt to equity percentage or whether it's project equity or not, that will be the guiding principle.
Speaker #4: And we will be most likely concluding that in the first half of 2026. At the subject to respectfully the conclusion of the CNSC hearing process.
Speaker #8: Okay, great. And then just maybe on the project itself in terms of construction, given that the approval might be as might be coming sometime in that first half of next year, can you just talk about how the project team is shaping up right now?
Speaker #8: Can you highlight any of the construction expertise you've hired or if there are any notable additions recently?
Speaker #4: Yeah, it's a good question, Andrew. One that, yeah, we don't make a lot of noise about. But behind the scenes, there's a very well-planned human resource execution that is going on.
Speaker #4: We've been adding to the team consistently since 2017. In line with the stage of development. Look, there's no doubt we've appointed some people that are ready to go.
Speaker #4: And start constructing this mine. And obviously, you know we've when we've seen a quality higher, we've hired them on board. And they're very they're busy.
Speaker #4: They're not sitting around doing nothing. That's for sure. But so I would say on balance, we're probably over employed. But it is going to pay extreme dividends once we have that approval and we're into the construction phase.
Speaker #4: Yeah, the benefit of a long permitting process is it gives you plenty of opportunity to plan, plan, review, plan again, and review again. And I can tell you the construction plan is down to a finite detail.
Speaker #4: We know actly what we're building. It's technically a very simple mine in a mining sense. And we've attracted the best in the . Onto the team.
Speaker #4: We have a combination of both direct employees and consultants that the overall philosophy of NexGen is that we don't delegate any decision-making. We have a person on the team that takes responsibility for their respective field.
Speaker #4: And that responsibility ultimately rests with Travis and myself on the board. And so we are very much owner constructor and operator. Model.
Speaker #8: Yeah, that's great. Thank you very much.
Speaker #4: Thank you.
Speaker #3: And our next question will come from Ralph Profiti with Stifel. Please go head.
Speaker #9: Thanks, operator. Good morning. Thanks for taking my questions. Leigh and Travis, I want to delve in a little bit on these two offtake contracts being held to a five-year term.
Speaker #9: Was there appetite on the part of the counterparties to move those contracts out to a further 10 year? And is what's holding back sort of movement on the floors and the ceilings or is this becoming the industry standard?
Speaker #9: Or I'm just wondering if there's other factors at play, specifically with regards to the 10 year.
Speaker #4: Hopefully, we yeah, the contracts are very different depending on the actual asset and the utility. There's not one contract that you know suits all.
Speaker #4: And that is also reflective of the utility's specific requirements. Utilities have a range of contracts with a range of suppliers and some are short-term and some are long-term.
Speaker #4: I would class ours as medium-term in terms of length. And we are just at the beginning. Like we're at 3% of our total defined resources at Arrow.
Speaker #4: We all ow that the Arrow deposit is much larger and given it's in third resource, which will convert to indicated with subsequently closer space drilling I would say our philosophy is or at the moment, we're egotiating a variety of between three-year, five-year, and 10-year contracts.
Speaker #4: And you know it's it is really dependent on the specific circumstances of the utility. And those you know characteristics differ from one region to the next worldwide.
Speaker #4: Like the US utilities have a a different preference to the Asian utilities. We have a different preference to the European utilities. So I just want to make the point that there's not one contract in this market that fits all.
Speaker #4: It is very specific to the utility and very specific to the producer. What we offer is obviously a a high level of confidence in volume given the technical simplicity of our project.
Speaker #4: And that is resonating strongly with the utility customers.
Speaker #9: It's very helpful. I reciate that. Thanks. And you ow Leigh, you mentioned the Bill C5 a couple of times in your pre-prepared comments. And now that we're six months from that second CNSC hearing, it does sound like there's iterations going on with detailed engineering and just wondering has there been any scope changes with regards to planned equipment or components in the design?
Speaker #9: That are directly being driven by Bill C5. And the reason I'm king is just to kind of think scope changes in the early pre-construction phase of the project.
Speaker #4: Yeah, interesting question. And but the answer is no. Our scope, there's been absolutely no scope changes whatsoever full stop. And we wouldn't be contemplating scope changes as a result of Bill C5.
Speaker #4: You know our approach since even prior to discovery has been to deliver an environmentally elite approach. Along with a socially elite approach. And we have done that.
Speaker #4: And in every respect, we've exceeded the requirements of the legislation from a technical and environmental perspective and also from a social perspective it's well documented that we've been incredibly proactive in engaging and consulting with indigenous communities.
Speaker #4: And implemented programs where there is incredibly strong collaboration between NexGen and the communities. And that actually even extends beyond those that are defined as impacted.
Speaker #4: So you ow I think Bill C5 is a reflection of Prime Minister Mark Carney's government recognizing that there are elements of duplication to permit a resources project, not just specific to uranium, but major energy and national infrastructure projects.
Speaker #4: And I absolutely applaud them for recognizing it. And introducing legislation that aims to make the whole process more efficient whilst maintaining incredibly high environmental and social standards that Canada leads the world in.
Speaker #4: So you know that's why we are in Canada. That absolutely is aligned with our values as an organization. And we are very proud to you know deliver this project to Canada in line with the very high environmental and social standards that Canadians expect.
Speaker #8: Great. Very pful answers, Leigh. Thank ou.
Speaker #4: Thanks, Ralph.
Speaker #3: And our next question will come from George Ross with Argonaut. Please go ahead.
Speaker #10: Thanks, operator. Hi, Leigh and the team. Thanks for taking my my questions. Just in regards to the production carried interest, when is the market going to be informed?
Speaker #10: A little bit more on the cost, etc. attached to that.
Speaker #4: Well, it's confidential. As per the agreement of the clause. That triggered it. And so yeah, we are unable to disclose what it means or what the cost was specifically in relation to that acquisition.
Speaker #4: I will say, you know we are very pleased to have acquired it. We had approached Rio Tinto on it. And then yeah, bonafide bid was received by an external party.
Speaker #4: Which we do not even know the identity of. And so we triggered our right of first refusal. And whoever that party was, thank you for expediting the process.
Speaker #10: Fair enough. Okay, thanks for that. And just in regards to the Patterson trend, any plans to sort of test along strike at this point, Leigh?
Speaker #10: Or it's very much just going to be focused on sort of defining the higher grades, there at PCE?
Speaker #4: Yeah, our initial focus is to define and extend what we have at PCE. But look, we also have seen the results that Paladin which is basically an extension of the trend that Patterson Corridor East trends off our property.
Speaker #4: And they've hit mineralization as well. And what that says is that the whole conductor trend is very highly prospective for additional mineralization. As I speak, we've probably explored less than 1% of that actual Patterson Corridor East conductor trend.
Speaker #4: Similarly with Arrow, we've explored less than 10% of that particular conductor corridor. And as everyone knows, you've got AAA that's along the Patterson Corridor conductor off our project.
Speaker #4: So yeah, the area is extremely well mineralized. And we are on the cusp or just at the very, very beginning of truly defining its true extent.
Speaker #4: We have eight conductor corridors going through the RUC One project alone. There's no doubt there's been a significant mineralizing event in the region. And you ow we've put in the exploration camp to facilitate extensive exploration of that region of which we host 320,000 hectares.
Speaker #4: So it's incredibly exciting. It really is. A geological phenom and we are yeah, there's a lot of drilling to be done before we can truly hold our hand on our hearts and say, "You know what?
Speaker #4: This is the extent of it."
Speaker #10: Thanks, Leigh. Drill, drill, ill.
Speaker #3: Thanks, George. And our next question will come from Fred Polard, a private investor. Please go ahead.
Speaker #11: Thank you. Good morning, Leigh and team. You mentioned RUC One is execution ready. And you've been held back in my view for some time now awaiting the federal approval process.
Speaker #11: You mentioned C5. And I have a couple of questions. Along that theme. So has C5 triggered some conversations with the government on advancing mine approval?
Speaker #11: And secondly, might there be some movement on the government schedule that you also mentioned earlier in the call? And I ask that because of the principles of fast tracking that are associated with Bill C5.
Speaker #11: Thanks.
Speaker #4: Thank you. And for the question. And it's a very topical question. Look, I would say that the introduction of Bill C5 from Prime Minister Carney is absolute recognition that there are some efficiencies that can be gained at the federal level particularly after provincial approval and the indigenous community approval in region of a specific project.
Speaker #4: And he's been very, very clear about that. And as a consequence, he's also going to resource a new projects office to help fast track the federal process.
Speaker #4: I absolutely applaud Prime Minister Carney and his ministers for that endeavor. I think in reality, the NexGen project is so advanced in the process that these initiatives are going to really benefit other projects that come after.
Speaker #4: NexGen's. And so you know we are resourcing industry advocates clearly. And we're really excited about that because like NexGen isn't going to fill the gap on its own.
Speaker #4: The world needs to with respect to uranium, the world needs two to three Arrows. And they need them now. So I think that's excellent news for every other advanced developer out there looking to get into construction.
Speaker #4: So specifically to our project, I think the benefit is most likely for other projects behind us. But I absolutely applaud the recognition and the importance that the federal government is placing on the expedition of major projects.
Speaker #11: Understood. Thank ou.
Speaker #4: Pleasure. And thank ou for your support.
Speaker #3: Again. If ou have a question, you may press star then one to join the queue. Our next question will come from Brian McCarthur with Raymond James.
Speaker #3: Please go head.
Speaker #12: Good morning and thank you for taking my questions. If I can just go back to the contract, there's been a lot of talk about floors and ceilings.
Speaker #12: But can you confirm or deny, I guess, whether there are any volume options in those contracts? It sounds like there isn't the way you're talking how much is committed.
Speaker #12: But I'm just trying to figure out how that part of the equation is working in all these contracts.
Speaker #4: Yeah, Brian, the there's no volume discretion in the contracts by the utility. Or us as the supplier. I'd make and that's very clear. I'd make a general statement that the form and structure and pricing of the contracts are changing.
Speaker #4: From what has been done in the past. The environment is changing. And the contracts which we are doing are different. And have got different elements to what has been done in the past.
Speaker #4: And I think you're just going to see that naturally evolve. Over time, as the scarcity and the risk be it sovereign or technically around supply increases.
Speaker #4: And so yeah, my overall comment is the environment is changing. There's no doubt about it. And what we are conveying to market is what we are experiencing.
Speaker #4: And it's different. For all companies. And as I said, it's very specific to the technical and sovereign profile of your supply. And also very specific to the particular utilities preferences and they differ between the US, Asia, and Europe.
Speaker #11: Great. Thanks. That's very clear.
Speaker #4: The second thing, can I just confirm, there's a couple of comments about the financing and timing. Whether it's year-end or H1 next year. And then comments around the CNSC approval.
Speaker #4: Could you have financing in place before the CNSC approval? And would that be subject to CNSC approval? Or are they sort of dependent on each other?
Speaker #4: Any comments on that? Just to clarify, I think would be pful. Yeah, obviously related. And we look if we were approved today, we would have concluded the financing.
Speaker #4: We've been well prepared for this for many years. But yeah, we can't really trigger the financing until we have approval. To that extent. So as time as that final approval timetable unfolds, so will the financing.
Speaker #4: And yeah, terms or optionality may be better. In the future, given the way this environment is changing. And so we are just keeping our exposure to that.
Speaker #4: In place. But I can assure you we will conclude financing in short order post-approval. Thanks, Leigh. 's very clear. They're just different time horizons talked about.
Speaker #4: So I was just trying to clarify that. Thank you very much. I appreciate it.
Speaker #3: Thank you, Brian.
Speaker #11: And this concludes the question and answer session. I'd like to turn the conference back over to Leigh Currier for any closing remarks.
Speaker #4: Yeah, thank you all for listening. And joining the Q3 call. Thank you for your questions. We certainly appreciate them. And everyone's interest in this incredible project.
Speaker #4: And Q3 is going to be an incredible quarter ahead of us with everything that we're working on and the conclusion through to end of the year.
Speaker #4: Not just what's happening at NexGen, but driven by what is happening in a very rapidly changing market environment. And we we appreciate your interest in our project.
Speaker #4: And we look forward to continuing to deliver on the milestones that we have articulated.