Q3 2025 NexGen Energy Ltd Earnings Call

Speaker #3: Thank you for standing by . This is the conference operator . Welcome to the next gen Energy . Third quarter 2025 results . Conference call .

Speaker #3: 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 .

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Speaker #3: Then zero . I would now like to turn the conference over to Mr. Lee , Chief Executive Officer and Director with Next Gen Energy Limited .

Speaker #3: Please go ahead , sir .

Speaker #4: Thank you . Gaylene . Good morning . Thank you for joining Nexgen's Q3 2025 Financial Results and Investor Conference call . My name is Leigh Curyer and I am Chief Executive Officer of NexGen energy .

Speaker #4: I'm joined today by Travis McPherson , Chief Commercial Officer , and Benjamin Salter , Chief Financial officer . During today's Q3 update , I'll provide the latest uranium market dynamics , which is simply unfolding faster than most industry observers anticipated , driven by unprecedented , huge uptake of nuclear energy across the globe and the strategic execution of Nexgen's offtake , marketing strategy .

Speaker #4: Further progress as we prepare for our first of two commission hearings on the federal approval of Rooke , one in a mere 13 days from now .

Speaker #4: In addition , all the Rooke one site activities and preparations updates to execute on this generational project that will set a new benchmark in the economic .

Speaker #4: Environmental and social stewardship for the sector . At the conclusion of this presentation , we'll move to the Q&A portion of the call where you're invited to ask Travis , Ben and myself any questions .

Speaker #4: Throughout the course of today's call , we will be making forward looking statements . Please visit our website for all the relevant disclaimers .

Speaker #4: In recent months , we've seen an unprecedented alignment of policy geopolitical priorities in support of nuclear energy and a growing understanding of the constraints impacting uranium supply .

Speaker #4: As recently as last week , the nuclear energy Institute held its annual interaction in its annual international uranium Fuel Seminar in Charleston , South Carolina , welcoming industry executives from across the globe .

Speaker #4: The clear message from utilities was , capital and industry developments are advancing so rapidly , forecasts of electrical demand have increased over tenfold from as recently as those three years ago .

Speaker #4: There is crystal clear , unprecedented nuclear energy uptake momentum behind restart efforts at a number of the currently idled US nuclear facilities , with additional negotiations underway on the other idled sites .

Speaker #4: Driven by additional layer cake demand by the major tech companies . The full nuclear energy chain is undergoing rapid acceleration , with utilities pursuing reactor uprights , extended life cycles , subsequent license renewals , all whilst the Sameer deployment with major tech partners .

Speaker #4: This this very simply , is forecasting uranium demand at an accelerating speed . Just this last week , the US government announced an $80 billion US investment with Westinghouse to build new commercial reactors and have provided additional commitments to restart current idled reactors .

Speaker #4: But note whilst recent mainstream headlines focus on the power generation component of this generational opportunity in the United States , the government through the 2024 Advance Act has accelerated modernization within the nuclear Regulatory Commission and shortened key licensing timelines , while Energy Secretary Chris Wright's call to expand the strategic uranium reserve reinforces Washington's focus on fuel security and long term nuclear capacity , including from Allied sources such as Canada .

Speaker #4: Adding to this momentum , the US and Australian governments recently signed a landmark critical Minerals framework to strengthen cooperation across mining , processing and supply chain security .

Speaker #4: This agreement demonstrates the shared strategy among allied nations to ensure the stability and accessibility of key raw materials is necessary for geopolitical , security .

Speaker #4: The only way to achieve the goals of all allied nations in this regard is to cooperation . And we anticipate more announcements to follow demonstrating this approach .

Speaker #4: J.P. Morgan , one of the syndicated banks in a recent North American 400 million financing , which I'll discuss shortly , is the latest major institution to announce a 1.5 US trillion dollar , ten year plan to facilitate finance and invest in industries critical to economic security and resiliency .

Speaker #4: To assist companies in boosting their growth , innovation and accelerating strategic manufacturing . A move serving as a concrete signal of finance backing nuclear and uranium .

Speaker #4: The key fuel in the value chain further , Morgan Stanley released its national Security Index , which included next gen among the constituents .

Speaker #4: A reinforcing next gen's unique role as a go to solution provider to Adelaide Nation's needs for uranium supply , specifically to the uranium market .

Speaker #4: Over the third quarter , spot prices rose 16% to $83.20 $5 a pound , driven by an increase in the to the market over August and September .

Speaker #4: This highlights how fast the market price react when demand enters the spot market . Next gen recognizes as demand hits the spot , market price discovery begins to emerge .

Speaker #4: That efficiently signals true incentive pricing , which is in the interests of sellers and buyers . The increased liquidity in the spot market coincided with more supply disruptions over the third quarter .

Speaker #4: We witnessed widespread production guidance cuts around the globe , including the current producers at Caserta and Cameco , where production issues have persisted .

Speaker #4: Simply reflecting late in life , mine challenges are present prior years , healthy inventories of on hand levels are being rapidly exhausted and borrowed inventory levels are skyrocketing to meet , post offtake commitments at lower than current spot prices .

Speaker #4: These dynamics are reinforcing the need for a sustained , higher price environment . A trend already materializing with the term price rising to $86 US per pound , its highest level since May 2008 .

Speaker #4: The shift toward a higher for longer marker is here , arriving at a pivotal time for advanced build ready projects like next gen Roc1 .

Speaker #4: The work next gen has done over the last 12 years is aligning with all of the market dynamics , but note Rooke , one cannot service this gap alone .

Speaker #4: The forecast demand , supply deficit into 2030 requires multiple look ones to come online , and they simply do not exist . Substantially higher prices in the future will be the consequence .

Speaker #4: And all our advanced development company cohorts in Canada , the US and Australia are incredibly well leveraged to forecast higher uranium prices of the future .

Speaker #4: In September . The scale and speed of this structural shift taking place in our industry was the key highlight from the World Nuclear Association , Synapsin in London .

Speaker #4: Attendance reached a record 1300 participants , up from 800 a year earlier , and the bi annual fuel report upgraded all three global nuclear growth scenarios upward over the next 15 years .

Speaker #4: The uppercase projects annual uranium demand reaching £530 million per year , while the base case projects £391 million . Today , demand is just under £180 million in 2024 .

Speaker #4: Primary supplier was estimated to be £150 million , with the deficit made up of continued inventory drawdowns , which only prolong and exacerbate the challenges facing primary uranium supply growth .

Speaker #4: With demand far outpacing supply and global mine supply at the same level as it was ten years ago . One can see the need for both significantly higher uranium prices , as well as policy support to address regulatory timelines and their impact on capital formation .

Speaker #4: Notably , the Synapsin and in their report , The Rising engagement from the technology sector was observed with Microsoft formally joining the WSA , reflecting the growing nexus between AI driven power demand and nuclear energy's key role as a clean baseload generation to reliably power this insatiable demand .

Speaker #4: Insatiable demand as the uranium market enters its seasonally strong contracting period , we expect to see continued strength in uranium prices . And against this favorable backdrop , next gen remains uniquely positioned with the world's most advanced high grade , build ready uranium project to deliver a new secure supply .

Speaker #4: The world is depending on with respect to contracting negotiations , with many utilities across North America , Europe , the Middle East and Asia continue to progress .

Speaker #4: Utility activity has intensified markedly , with counterparties actively seeking to secure long term supply beginning in 2030 and beyond . A clear reflection of a tightening market , fundamental and growing recognition that future supply will be challenging .

Speaker #4: Negotiations are advancing on offtake, where these forward-looking utilities are seeking to finance NexGen into production. We expect multiple agreements to be finalized in the coming quarters as utilities move to lock in future delivery schedules.

Speaker #4: A consistent theme across these discussions is the strategic emphasis on supply diversification , and this is where next gen is truly unique . Next gen is the most material source of supply globally .

Speaker #4: That truly provides material de-risk diversification in terms of both technical . Given its competent ground setting and sovereign being located in Canada , utilities are increasingly looking to reduce reliance on state sponsored producers , whilst also addressing the reality that legacy mines are depleting and encountering consistent .

Speaker #4: Late in mine life production issues . The first with the first commission hearing only 13 days from now on November the 19th in Ottawa , and the second scheduled for a single day between February 9 to 13 .

Speaker #4: In 2026 , next Gen is excited to transition from advanced development to building the greatest natural resources project in recent memory . Immediately upon receipt of federal approval , this milestone represents the culmination of over a decade of rigorous technical work , community , indigenous engagement , and regulatory process , and the curated expert team we have developed a construction ready .

Speaker #4: The support we've received has been significant all for indigenous nations located in the local priority area are legally supportive and publicly advocated . Of the immediate approval of the project , including the Province of Saskatchewan , which continues to champion as their a priority project .

Speaker #4: The CNS staff have recommended approval in their technical assessments , and the Canadian government has increasingly recognized the critical role of clean , reliable nuclear energy in meeting climate and energy security objectives .

Speaker #4: That alignment across regulators , government and communities reinforces our unique and general genuine approach to resource development . This is a story that Canadians are very proud of as it is redefining multiple ways how resource projects can be and are now being developed , both technically , environmentally , and socially .

Speaker #4: We'd like to thank our investors for their support in our highly successful global equity offering this past month , with the close of our 1 billion Australian dollar raise , next Gen is further strengthened .

Speaker #4: Its financial position to advance the development of the Rec project immediately upon final federal approval . Interestingly , the vast majority of capital was raised from outside of Canada , predominantly in Australia , where a registry is reflecting an ever increasing Australasian profile , demonstrating next gen's unique ability to attract hundreds of millions of investment dollars into Canada capital that will directly benefit local communities .

Speaker #4: The province of Saskatchewan and the broader Canadian economy . Proceeds will support the balance of detailed engineering , pre-construction activities and general corporate purposes , positioning the company to deliver on its next phase of execution and growth .

Speaker #4: The Australian race has always has also positioned NextGen to meet the market capitalization and liquidity thresholds for the ASX 200 index eligibility . The pre-eminent equity index in the Australian market , our current cash balance stands at approximately $1.2 billion .

Speaker #4: Canadian , with funding to complete the 2025 site program , and this year and initiate development for the first 18 months . Post-approval engineering , procurement , training and construction .

Speaker #4: We are purposefully maintained full strategic optionality with a strong cash position and active negotiations with strategic investors and utilities , amongst others , resulting in a variety of highly accretive financing alternatives .

Speaker #4: As we always have , we will optimize the financing alternatives to maintain our in maintaining our patients with respect to the market , which continues to be recognized .

Speaker #4: Our production flexibility , which combined will maximize the value of each pound of uranium . We produce and sell , becoming the most leveraged company in the world to rising higher uranium prices to our site activities .

Speaker #4: Since 2013 , NexGen has successfully and safely delivered rook on site activities covering all aspects of exploration , engineering , development and supporting infrastructure totalling $706 million .

Speaker #4: Canadian . During Q3 2026 , construction of the Exploration , accommodation and Infrastructure , including the Exploration Airstrip , Dual way access , road upgrades and the expanded Exploration Camp facilities , has been a terrific opportunity for NextGen to once again validate its planning , management and construction execution skills .

Speaker #4: Incorporating Next Gen's Elite safety performance . This $98 million program is meeting precise design scope within approved , budgeted cost and schedule , with completion for early Q2 2026 .

Speaker #4: All whilst maximizing local indigenous sustainable commerce and employment . There is simply no better preparation for after federal approval . Construction and the next Gen team is in place and ready to expand the same disciplined , safe on budgeting and schedule execution in the construction of Q1 on the procurement front , upcoming upcoming critical path items are being secured and ready for deployment immediately following federal approval .

Speaker #4: We also seeing exceptional interest in participation in many of our training programs and joining the next Gen team . We recently had over 1300 applicants for only 20 open positions , a clear signal that the highly experienced team we've assembled is attracting professionals that want to be part of the next gens .

Speaker #4: Unique elite standards , culture . Turning to our exciting exploration program , drilling at our basement hosted Patterson Corridor East PCE discovery continues to deliver reported results , validate the continuity of our high grade sub domains , and confirmed that the system remains open for expansion in multiple directions .

Speaker #4: The profile emerging at PC is incredibly exciting and speaks to the exploration potential for additional arrow type discoveries on our dominant land position .

Speaker #4: Assassin thermometer results are scheduled in coming months , as they are received . This exploration , the largest reported in the Athabasca Basin for 2025 , is strategic and forward looking , with a typical discovery to production .

Speaker #4: Timeline of 15 to 20 years . Identifying an advancing high quality and technically superior deposits today is essential to sustaining long term production optionality .

Speaker #4: Alongside arrow , this is essential to sustaining the nuclear industry and the key role next gen will play in stabilizing energy infrastructure globally .

Speaker #4: We are undertaking to meet global demand supply deficits for the next 50 years , not just the next five years , which is next gen differentiator to the current uranium producers .

Speaker #4: And we are delivering it through the development of rook one into production post-approval . And in parallel through the drill bit at PCE .

Speaker #4: As we move into the next phase , our priorities are clear receive final federal approvals and mobilize to build the most strategic and significant new mining project globally .

Speaker #4: We're approaching this in the same way as we always have with accountability , honesty and continuous improvement mentality . And the confidence to do things the right way .

Speaker #4: Our indigenous community and partners , the environment , regulators , Canada and the world population , all our shareholders in a most efficient , highly accretive manner through years of dedicated effort , the next Gen team is transformed , has transformed and underexplored ground into a national champion and a strategic asset of global significance .

Speaker #4: The macro backdrop has never been stronger . The rise of AI , the push toward energy security , and the need for economic growth through natural resource development have positioned NextGen as the epitome of the solution .

Speaker #4: The size of the prize has never been bigger , and upon final federal approval , we approximately t minus four years to after tax cash flows that will take us into the top ten of global mining companies .

Speaker #4: The Government of Canada recognizes the urgency and is taking meaningful steps forward with the passing of Bill C-5 . The Building Canada Act , this act aims to prioritize projects of national interest in order to advance Canada's economic resilience and independence , and leverage its unique position as the critical minerals deposit of the world .

Speaker #4: The success of this ethos relies on translating verbal commitments into accelerated execution , and we're focused on doing our part . Canada has the opportunity to lead the world in critical minerals exports , and with the commitments made in Ottawa to support accountability and timeliness , the economic and social growth that will come will benefit Canadians for generations to come .

Speaker #4: The outlook is unprecedented in terms of actioning such a positive generational opportunity for next gen . And all those advanced development companies in the sector that have been developing their projects to meet the insatiable demand .

Speaker #4: The nuclear industry environment is changing rapidly evolving market uranium market fundamentals are set to provide unprecedented upside . Those companies that will succeed have recognized the changing environment , have exhibited the courage to embrace it and lead it .

Speaker #4: Looking to tomorrow and the next 50 years , as opposed to looking backwards , relying on historical and eight outdated practices for comfort .

Speaker #4: The best way to deliver in the future is to create it . And that's exactly what NextGen have been doing since 2011 , when a group of committed industry professionals went to the overlooked , never explored against popular geological invention .

Speaker #4: At the time opposite the Athabasca Basin, we discovered what is now widely recognized as the world's best uranium project. From a geological perspective, NextGen has rewritten what is possible and is still writing that story with PCE and beyond.

Speaker #4: It , one from an environmental and social perspective . Set new standards in what can be achieved through genuine innovation and consultation , and from a shareholder return perspective , is poised to deliver returns on a per dollar spent basis that sets a new watermark for the sector .

Speaker #4: Thank you to everyone on the team committed to this company . We're full of good energy now . We'll open the call to questions .

Speaker #3: Thank you , 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 .

Speaker #3: You'll hear a tone acknowledging your 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 will . The first question is from Ralph graffiti with Stifel Financial . Please go ahead .

Speaker #5: Thanks . Operator and thanks for taking my questions . Lee . Firstly , there's been some commentary by a competitor on , you know , the prudence of certain contracting strategies as it pertains to the ability to deliver pounds and that it's a risk being brought forward by the utility themselves at a growing rate .

Speaker #5: Just what's been your experience in dealing with utilities and building sort of a mutual confidence in delivery of targets ?

Speaker #4: Yeah . Look , we thanks , Ralph , for the question . We . Are experienced in like we're incredibly busy . Busy on the .

Speaker #4: Contracting side , multiple negotiations with utilities in the US , Europe , Asia and the Middle East and the the key thing that is coming through is a diversified primary mine supply .

Speaker #4: And they see NextGen as as being a real leader in meeting a more diversified . Supply side supply chain fuel cycle for their needs .

Speaker #4: Look , we've signed four contracts already . We've got another 600 negotiation . We've accrued pricing terms that are higher than what's been reported in the market and we're averaging £2 million over the first five years .

Speaker #4: Now , our break even is £3.5 million at at arrow . And , and I guess you know , those that criticism that has been commented or put out there .

Speaker #4: Merely reflects that we are leveraged to this changing environment and we're acting on it . And and whatever that means for them . You know , I'll let them deal with that .

Speaker #4: But we are simply leveraging our project to the the demand . And in a manner that is beneficial to the stakeholders at NextGen .

Speaker #4: And whilst meeting the key . Technical and sovereign risks for the utilities . So yeah , that we're going forward on that strategy .

Speaker #4: It's very simple . It's very clear and it's gaining a tremendous amount of traction with major utilities in the US and across the globe .

Speaker #5: Great . Thanks for that . I think it's important answer . Also , I'd like to ask a follow up on your experience on procurement of sort of that technically skilled labor .

Speaker #5: And , you know , the experienced upper tier construction management that next gen is going to have in-house . And are there any important hiring gaps that still concern you ?

Speaker #4: Yeah , we we have our philosophy is that there's a next gen team member . That's that's responsible for each key aspect of our operations , both when it comes to mining exploration and also the non-technical aspects , be it , you know , finance , legal , communications , any of it .

Speaker #4: We have a person within next Gen who's who's a responsible for that . And basically what you're seeing is like an expansion of of the teams of the of the teams reporting to those key executives that we already have in place .

Speaker #4: We are experiencing huge demand in terms of coming to next gen and wanting to join the team we put out for 20 open positions in September and had over 1300 applicants .

Speaker #4: It that , coupled with our training programs up in the local project area , you know , it is a it is a key aspect .

Speaker #4: But one that we're ahead of . And I think the project itself , plus the company's culture , is attracting the right type of people to our organization .

Speaker #4: And we've done an enormous amount of planning around that . And we're currently ahead of it . And look , I think labor availability sometimes gets unfairly used as an excuse for a number of mining projects around the world .

Speaker #4: You know , we've been planning this for seven years , since we submitted the the project description . We have a very simple project , very simple mine .

Speaker #4: And in a great location . And so attracting , you know , people to this project , which is a generational project . You know , we're not experiencing some of the same labor challenges as as what other companies in the sector are .

Speaker #4: So on the risk registry , I'm very , very comfortable with our current position and our forecasted position as we progress into construction and production .

Speaker #5: Great . Thanks , Leon . Congratulations on the progress .

Speaker #4: Thank you Ralph .

Speaker #3: The next question is from Katie LaChapelle with Canaccord Genuity . Please go ahead .

Speaker #6: Hey guys . Thanks for taking my question . During the prepared remarks , you noted that you've got forward looking utilities that are looking to finance next gen production .

Speaker #6: Can you expand a little bit on what you mean by that ? Is that through the traditional term contract negotiations , you're discussing right now , are potentially prepayments for offtakes ?

Speaker #6: And then as it pertains to term contracts , obviously , we've seen the base escalated price go higher over the last couple of months .

Speaker #6: So how are you seeing a change in terms under your negotiations ? If you could comment on any floors or ceilings ? Thanks .

Speaker #4: So I'll just hand over to Travis for that one . Katie .

Speaker #7: Yeah , thanks , Leon . Thanks , Katie , for the question . With respect to financing and as it relates to the utilities .

Speaker #7: Yeah , I would say that , you know , we're negotiating and exploring all options with respect to financing . So that includes prepayment it includes , you know , interest in the project itself .

Speaker #7: And I think importantly to Lee's earlier point , it reflects this growing understanding of where the market is going and the supply gap that exists today .

Speaker #7: And that come 2030 becomes very , very challenging for them . So there's a clear understanding from our perspective that you can't sit there and wait around .

Speaker #7: You need to be proactive and they are being proactive with us . And then with respect to offtake contract terms and discussions , obviously confidential in nature , but what I can say is that , again , all of our contracting is on the basis of where the market is going to be in 2030 and beyond .

Speaker #7: When it's relevant for us , not what the price is today or tomorrow . And so when we're having discussions with utility , it's on that basis .

Speaker #7: And so the pricing and all the other terms reflect that world . And again , very much getting significant buy in from around the world from our counterparties that we're discussing this with .

Speaker #7: And so it is , you know , again , we're extremely busy on this front . And I would say that there is this growing understanding of where the market is actually going .

Speaker #7: And these utilities want to get in front of it and want that diversification and want to secure new supply .

Speaker #6: Understood . And then maybe just one quick follow up . You mentioned a break even amount of £3.5 million in the prepared remarks .

Speaker #6: Do you guys have a targeted amount of contracts or targeted percentage of coverage ? That you would like to have before making a final construction decision , or do you feel comfortable commencing construction ?

Speaker #6: And then during the build , layering the additional contracts .

Speaker #4: Categorically 100% . We are very comfortable with starting construction with just the contracts that we have in place today . As I said , we're almost at break even and then we on top of that , we have another £26.5 million fully exposed to the future price of uranium .

Speaker #4: Now , you know , there will be contracts that we sign off , take for negotiation of contracts that we signed that will be very heavily tied to the market price at the time of delivery .

Speaker #4: But yeah , we're not . That is the key principle driving our contracting strategy . We don't have a fixed component with respect to that .

Speaker #4: We are merely taking advantage of our extremely low cost per pound and the technical certainty around our production volumes . We can ramp production up to £30 million from from £3.5 million break even very simply , without additional sunk CapEx .

Speaker #4: So our contracting strategy merely reflects the technical and sovereign profile of the mine , which all companies contracting strategies should reflect . We just happen to have a project that has incredibly strong technical competency and very high economics .

Speaker #6: Great . Thank you guys , and congrats on the progress .

Speaker #4: Thank you Katie .

Speaker #3: Next question is from Andrew Wang with RBC Capital Markets . Please go ahead .

Speaker #8: Hey good morning . Thanks for taking my questions . So just maybe on the longer term implications on contracting again , you know , the Rook one project obviously is is large and has implications for that longer term .

Speaker #8: Sad outlook . And given that the approvals are getting there , but not quite approved yet , are the utilities waiting to see how rook one timing plays out before they make decisions on contracting , like just in general ?

Speaker #8: Like how does that potential timing of the project ? How do you see that affecting utility behavior overall ?

Speaker #7: Yeah , so .

Speaker #9: Sorry . Yeah .

Speaker #7: Yeah yeah . Thanks , Andrew . No , the timing I wouldn't say is in terms of permanent approvals and stuff isn't isn't relevant for the discussions that we're having with the because all of our contracts are based on the commencement of commercial production in the contract .

Speaker #7: So it is subject to starting with an understanding that , you know , there is I would say , increasingly less uncertainty around the precise timeline of of producing uranium , given the advanced stage of the permitting process .

Speaker #7: But an understanding that , yeah , we're developing a new mine . And so it is delivery is subject to the commencement of commercial production .

Speaker #7: And , you know , again , that that just speaks to the fact that utilities are understanding of where the market's going and wanting to secure uranium from this new mine .

Speaker #9: Well , we'll we'll .

Speaker #4: Probably experience an uptick from some utilities that were not currently in negotiations with that . That's certainly possible , Andrew . But to Travis's point , that hasn't been a determinative factor in the offtakes that we've signed to date or the ones that we have under negotiation .

Speaker #8: Okay . Understood . Thank you . And then just on the PCE results , it continue to look pretty promising . So if after resources reported and maybe it doesn't get fully reflected in the shares , would you consider some sort of spin out .

Speaker #9: Yeah . Look , it's possible . .

Speaker #4: Very much so . And if we feel that it's not getting it's fair value . You know , that would be something that we would we would definitely consider .

Speaker #4: But yeah , time will tell . I think , you know , the , the way PCE is progressing where there's still so much more drilling to do before we truly understand it's it's nature .

Speaker #4: And once we we do understand its nature , I think that that could be a possibility if we don't feel that it's truly getting valued as it should be .

Speaker #4: So yeah , that's that's something . Yeah . To answer your question , Andrew , that is something that is is possible . But you know , if that was the case .

Speaker #4: You know , we would ensure that , you know , PC has a right , you know , subject to additional approval to be extracted through the production , proposed production exhaust shafts at next gen and any , any corporate structure would would not inhibit the optimization of the exploitation of that deposit .

Speaker #8: Okay . Great . Thank you very much .

Speaker #3: The next question is from Craig Hutchinson with TD Cohen . Please go ahead .

Speaker #8: Hey good morning .

Speaker #10: Good morning Lee and team Lee . You mentioned in your opening remarks that bills C5 and the potential benefits to NextGen . And I just was kind of wondering , given the timelines , your permits are pretty well defined here .

Speaker #10: How could Bill see five actually benefit next gen ? And maybe more broadly , have you had direct discussions with the federal government ?

Speaker #10: How do you see them benefiting you guys and helping you guys out in the future ?

Speaker #9: To clarify .

Speaker #4: Yeah , my point with respect to Bill C5 , Craig , was that it reflects the Canadian government's commitment to nuclear energy and expediting key projects .

Speaker #4: I agree with you . I think our project is so advanced through the existing regulatory process that any , you know , Bill C5 will have minimal impact on on rook one itself .

Speaker #4: But what is exciting for , you know , our cohort of advanced development uranium companies is that I think the intent of Bill C5 is extremely encouraging for them .

Speaker #4: So , you know , anyone with a project in in an advanced development project in Canada , I think that is very exciting in terms of the the Canadian government really recognizing the need to expedite approvals .

Speaker #4: And we are , you know , in parallel , very strong advocates of that . We think congratulations goes to the federal Canadian government for recognizing it .

Speaker #4: And and immediately taking action . You know , he's only been in office since May . Has Prime Minister Carney , but he's already onto it .

Speaker #4: So whilst not specifically , you know , in next gen , I think it's a very clear signal for not just only uranium mining , but also the development of small modular reactors in Canada and more broader nuclear programs .

Speaker #4: So it's a general comment that it's great for nuclear , of which next gen is a part of that value chain .

Speaker #10: Okay , great . Maybe just a follow up on your last call . You guys said you're pretty well advanced on long lead critical path items , procurement , etc.

Speaker #10: . Can you just give us a sense of where you're at , that where you're at now and whether there's any more to kind of go there ahead of your permits next year ?

Speaker #4: Yeah . So we we have a very detailed execution schedule , obviously dependent on , on receiving final federal approval . And we're it's possible we've we've put our orders in for the long lead time procurement items such as the freeze plant for the temporary shaft sinking for the first 100m .

Speaker #4: That's in a warehouse currently all ready to be shipped up to site on final approval . Other aspects with respect to the the hoist House , etc.

Speaker #4: . Look , we know what we'll be doing every single day of the construction period and we have interrogated it multiple times . You know , the benefit of a long permitting process .

Speaker #4: It gives you an enormous amount of time to plan , revise and prepare and and that's what we've done . So . We've got also an additional $1 billion in our treasury .

Speaker #4: So that that process will continue and will will exist . Right throughout the entire construction , execution period . But we're we're well ahead of it as we speak .

Speaker #10: Okay , great . Thanks , guys .

Speaker #4: Thanks , Greg .

Speaker #3: The next question is from Mohammad with National Bank Capital Markets . Please go ahead .

Speaker #11: Hi . Thanks for taking my question . Could you please give us some color on where detailed engineering is currently sitting for the project and where you expect to be by the time you effigy ?

Speaker #4: Yeah . So detailed engineering is progressing the I'll say detailed engineering on the well . In summary , detailed engineering on the first items for the first 18 months of construction is complete and detailed engineering will continue throughout the next 18 months .

Speaker #4: And and is moving into more of the surface infrastructure and and the mill . So yeah , it depends on what what aspect of the construction that you're speaking about .

Speaker #4: But the first 18 months and all those items is , is fully engineered . I want to be clear , we have already made our final investment decision .

Speaker #4: We made that back in 2017 when undoubtedly we knew we had a world class project on our hands . And it was approved , subject to financing and regulatory approval .

Speaker #4: So there's not going to be a pause or anything post the final federal approval . Whilst we make a final investment decision that has already been made .

Speaker #11: Thanks a lot , Lee . So as it relates to the , I guess , shaft sinking process , that that detail engineering process already complete , if I understand correctly .

Speaker #4: That is correct . Yes .

Speaker #11: Great . And given the .

Speaker #4: And no note though , just just to be clear , yes . Actual . If your definition of shaft sinking our definition is from the moment we prepare the foundations , have all the hoists in place , etc.

Speaker #4: and commence underground shaft sinking . You know , there's quite a bit of work prior to the actual boring of the of the shafts .

Speaker #4: So but for all intents and purposes , the first 18 months of construction items is fully engineered .

Speaker #11: Thanks for that clarification . And so just moving on to your balance sheet , given the strengthening of your balance sheet , first quarter there , can you maybe remind us of the financing mix you expect for the remainder of the funds to bring the project forward ?

Speaker #11: I think Travis mentioned everything is on the table in terms of potential interest at the project level or debt or any of the mix .

Speaker #11: So any color on that would be appreciated . Thank you .

Speaker #4: Sure . Travis .

Speaker #7: Yeah . Thanks . Yeah . I mean , you know , everything is on the table and we have tremendous interest and it should be unsurprising .

Speaker #7: I mean , it is a world class project , a world class company . So we have tremendous interest from around the world in a number of forms .

Speaker #7: We've spoken about them before , but everything from strategic project level interests , strategic equity , project finance , you know , converts , prepayments , etc.

Speaker #7: and you know , the positive thing is that that interest continues to grow . Those discussions are really in of like advanced negotiation stages as we speak .

Speaker #7: And what the billion dollars did is enable us to not be under any time pressure with respect to determining the optimal mix with all of these great options at hand .

Speaker #7: So , you know , we're in a very privileged position to have so much interest from around the world in so many great forms .

Speaker #7: And now our job over the next , you know , 6 to 8 months is to systematically evaluate and finalize that mix in line with the things that are most important to us , which are really around maintaining our our leverage to future uranium prices and our ability to leverage our unique production flexibility , optionality .

Speaker #7: So , yeah , you know , we would target finalizing that sometime next year and probably in the , you know , around the mid-year point of time .

Speaker #7: Great .

Speaker #11: Thanks for taking my questions .

Speaker #3: The next question is from Grace signs with energy Intelligence . Please go ahead .

Speaker #12: Hi . Thanks for taking my question . The £30 million per year production target you've noted . It's quite flexible . I'm just curious if there's any plan to sort of raise and lower that production to match uranium prices or match contracting , or like to store produced pounds .

Speaker #12: You know , depending on prices so as not to flood the spot market .

Speaker #4: Yeah . Firstly , the mine has incredible flexibility . You know , a breakeven point of £3.5 million and a capability to , to seamlessly reach £30 million per annum nameplate production .

Speaker #4: We will produce in line with the market conditions at the time . And , and optimize the return on every single pound produced .

Speaker #4: The fact is , the most simplest mine plan and removing the least amount of dirt from underground . Given the deposit results in a £30 million per annum output from moving just a mere 1300 tons per day .

Speaker #4: Having said that , I . I see no scenario where we won't be at maximum production levels from 2030 onwards , given the clear current demand .

Speaker #4: And that's just current demand , let alone it increasing , which is going to and also the very fragile mine supply amongst the current producers , you know , we're looking at a forecast for 2025 of around £135 million for the year and consumptions at a touch over £200 million .

Speaker #4: And historical inventory levels have been drawn down rapidly . And you are seeing producers even borrowing pounds to meet current contract commitments . So I personally don't see a scenario where we are not at maximum capacity , from 2030 onwards .

Speaker #4: So but we had the flexibility to go right down to £3.5 million and still make money . So we're just leveraging that that technical and economic profile of the mine .

Speaker #12: And then just one follow up , there's been some speculation in the uranium market . Next gen's hoping for a buyout before it enters production .

Speaker #12: I'm just wondering if you can comment on that at all . Thanks .

Speaker #4: Well , with respect , those comments in the market are absurd . You know , this this project is stewarded by a team of committed individuals that have been in place for over ten years now .

Speaker #4: You know , permitting when you look back , even when in production , permitting was always going to be the largest risk because of the the number of diverse interest groups that are , that are involved .

Speaker #4: We have over the last ten years brought all of those interest groups in , in together the advocacy for the project from all those groups is incredibly strong .

Speaker #4: In fact , at an absolute level , and the we can't wait to get into construction because then everything is in our hands and that's what we like at NextGen and these projects .

Speaker #4: This is a generational project . They don't come along very often . We have the expertise in-house . We have the financing capability , and we are taking a very , you know , technically simple mine in a mining context into construction and production and everything we've done to date , we've set a new standard in the sector that is going to be maintained through construction and production .

Speaker #4: And I don't think there's a group that is demonstrated a more efficient use of capital along the the development path and has not wasted a day under next gen stewardship .

Speaker #4: This project will be in production the soonest meeting preplanned scope and doing it in a manner which genuinely incorporates the various stakeholder engagement .

Speaker #4: So yeah , there's there's absolutely no intention from the next gen board or the executive or the team . We'd be bored , frankly , within the space of about two days , if we sold this company .

Speaker #4: So we're the best for it for our shareholders . You know , really to , to to make the most with respect to their investment , that is very clearly keep it independent within next gen and enjoying full leverage to the future price of uranium as opposed to getting locked in to historical offtake .

Speaker #4: Are practices .

Speaker #12: All right . Thank you .

Speaker #3: The next question is from Graham Tanaka with Tanaka Capital Management . Please go ahead .

Speaker #13: Hi . Congratulations with your progress so far . I'm curious about your your plans on exploring the many of the I think I believe it's seven corridors , additional acreage .

Speaker #13: And whether you might be what you might need to accelerate exploration development of a second . Basically a second or a third or fourth rook .

Speaker #13: One . What are the dynamics of what will make you accelerate or keep the current pace of exploration ? And if you could also just touch a little bit on on how you're doing on Paterson Corridor East .

Speaker #13: Thank you .

Speaker #4: Yeah . Thanks . Graham . And also for your very long support from , from right from the beginning , as I mentioned , we're we are exploring to to solve this this challenge for the globe for the next 50 years , not for just the next five .

Speaker #4: You know , as you're aware , we found arrow with the very first or the 21st drill hole , but the very first drill hole within a 4.5km radius of of its location and PC is 3.5km from arrow , a very significant mineralizing event has occurred in the area .

Speaker #4: And not just on our project at at arrow and PCE , but we've had we have multiple occurrences along the Paterson corridor and we still , as you pointed out , we still have another seven corridors yet to explore .

Speaker #4: We haven't even finished exploring on the Paterson corridor where arrow and and PCE is , even though PCE is on a separate conductor , it is still recognized as being in the Patterson corridor .

Speaker #4: So we've got enormous amount of drilling yet still to do . And , you know , as a base case , though , we have arrow , which will be around 23% of global mine supply .

Speaker #4: It's quite incredible when you think in context , you know , nuclear fuel is becoming the go to energy source amongst the developed nations .

Speaker #4: And emerging nations and you've got Saudi Arabia , who's the the world's , you know , most dominant oil producer at 9% of oil supply .

Speaker #4: So , you know , people have have referred like whether Saudi Arabia of of uranium out at the Q1 project . And I think the mineralization is , is suggesting we've got an enormous amount yet to discover .

Speaker #4: I don't think we're that good that we found the very best deposit on the very first drill hole within a 4.5km radius , or the 21st drill hole on the property altogether .

Speaker #4: We have another two land packages as well , adjacent to rook one in S1 and three . That's why we built an expanded accommodation camp for the for for exploration .

Speaker #4: We could have 20 drill rigs for 20 years and still not complete the full geological evaluation . But you know , we know we'll be producing around 23% of the world's mine supply from arrow post four years Post-approval .

Speaker #4: And we've already got a backup forming at PCE . It looks very analogous to to arrow in every respect . And when you consider , the mineralization outside of our at also at Patterson Lake South , which I you know , I think there's enough evidence to suggest it's the same mineralizing event , something incredibly significant occurred in the area with respect to uranium mineralization .

Speaker #4: And I feel that we're just scratching the surface , frankly , and our results are evidence of that . PCE . We've got some assays coming imminently , followed by Moore KM results as the program concludes for 2025 .

Speaker #4: It'll be back up and running with a similar size program in 2026 . And that really does speak to you know , we've got a lot of work to do before we fully just , you know , have a have a basic understanding of PC as well .

Speaker #13: I'm just wondering what if there are is a path towards deciding what will trigger an acceleration of the development of a of a of a second arrow at PCE or elsewhere .

Speaker #13: If you know what kind of pricing might accelerate your your development process of another arrow . Thank you .

Speaker #4: I look , we're very focused on do what we do . Well , you know the exploration the exploration team as we go into construction are kind of like a division within NexGen , all on their own .

Speaker #4: But I , you know , I feel for rigs at PCE is a decent program . It was the largest , program in the Athabasca Basin for 2025 .

Speaker #4: And I a base case , you'll see that continue in 2026 . Look , if you know as we speak , Graham . Yeah you'll see a similar program to 2025 in 2026 .

Speaker #4: But if results can change everything in a heartbeat , frankly . So yeah , I guess all I can say is watch that space is all I can say .

Speaker #4: And , and I . guess we want to execute well .

Speaker #13: Yeah , I just I'm just sort of curious if if pricing and interest from utilities , etc. would suggest the need for another arrow , how fast , how early could you bring on the PCE or any other prospect ?

Speaker #13: Are we talking 10 or 12 years ?

Speaker #4: Yeah , you know , so look , PC , look , I'll , you know , without preempting anything , you know , conceptually I think there's enough evidence to suggest if you were to develop PCE , it would go it would come out through the same production shaft is what's proposed at at arrow .

Speaker #4: That would be subject to additional permitting . But given our permit has been done on a basis of like recognizing an area of influence , it wouldn't be starting from scratch at all .

Speaker #4: But , you know , I think first things first , we get arrow into production , operating at the level that it's capable of , and then we'll determine , you know , that'll be the first step .

Speaker #4: And then we'll we'll make decisions based on the market conditions at the time . But I concur with yourself , Graham . I actually think there's going to be enormous demand beyond £30 million a year at arrow .

Speaker #4: Like we we can't fill the gap that currently exists on an annual basis . So yeah , maybe the C5 will be very advantageous to next gen when it comes to PCE to Craig Hutchinson's earlier point .

Speaker #4: So yeah , it's it's it's very much , you know , on on the radar . But first things first , we want to execute very , very well on , on arrow and rook one .

Speaker #4: And getting that into construction and subsequent production .

Speaker #13: Thank you very much and good luck .

Speaker #4: Thank you Graham .

Speaker #3: The next question is from Allen with Torchio for ten . Please go ahead .

Speaker #14: Good morning . So are you hearing me ?

Speaker #4: Yes , I can hear you .

Speaker #14: Okay . Last week we saw the Cree Nation challenge Saskatchewan approval of the Nissan mine . Willow River uranium project , citing inadequate consultation on treaty ten .

Speaker #14: Right . So I have two questions . Are your mind is on there territory and secondly , do you think things like that similar thing can happen to you and can it postpone the opening of the mine ?

Speaker #4: Well ,

Speaker #7: I .

Speaker #4: Can't speak to out of respect for Denison . I won't comment on that particular situation because I haven't been involved with the consultation and engagement with respect to that project , with respect to our project , it's very clear that the for are identified communities in the local project area , identified by the the federal government and also the government of Saskatchewan is very clear with respect to our four communities .

Speaker #4: We have undergone study agreements in 2019 , which set the foundation for collecting all of the cultural studies and appreciations , and we took that and incorporated it into the design of the project , respecting all of those cultural sensitivities .

Speaker #4: Further , we then executed legally binding impact benefit agreements with those four communities in the project area that covers the entire life of the project and closure .

Speaker #4: With respect to environmental commerce , employment and community programs . So I believe we are have have met and exceeded the requirements and and have the full support of those communities that are identified in our project area .

Speaker #4: And so , yeah , I'm very , very confident with respect to our position and the conclusion of the approval process from that , from that perspective .

Speaker #14: Thank you very much .

Speaker #4: Thank you .

Speaker #3: This brings to a close the question and answer session . I'd like to turn the conference back over to Leigh Curyer for any closing remarks .

Speaker #4: Thank you . Gaylene I'd like to thank everyone for their participation today and the excellent questions . It's incredibly exciting time for for the company .

Speaker #4: Well , it always is , frankly , with with what is unfolding at NextGen and I certainly welcome any additional questions that you may have .

Speaker #4: Please contact Monica Paul , Paula and Stacey or Travis and myself , and we'd be more than happy to to answer them . But no , I we sincerely appreciate everyone's support very much .

Speaker #4: Looking forward to this fourth quarter and 2026 . And what is going to be an incredibly exciting time , not only for the market , but for the company as well .

Speaker #4: So thank you everyone .