NexGen Energy Ltd. Q1 FY2025 earnings call

• Global uranium market has unprecedented demand and sustained supply fragility; spot uranium price at 11% elevation, term price near $80/lb. - Rook I project advancing through regulatory process, with Canadian Safety Commission hearings in Nov 2025 and Feb 2026; on cusp of final federal permitting leading to construction and production. - 2025 drilling program at Patterson Corridor East (PCE) shows excellent results, including RK-25-232 with exceptional uranium mineralization; PCE mineralization similar to Arrow deposit. - NexGen well-capitalized with ~CAD435M cash and over $1.6B in expressions of interest from banks/export credit agencies; ongoing contract negotiations with utilities. - Policy landscape favorable to nuclear energy, e.g., US executive order to expedite nuclear project development, Europe phasing out Russian nuclear suppliers, Germany shifting back to nuclear.

No specific product segment financial performance with revenue contribution % provided as the transcript does not break down by traditional product segments.

• Planning for construction execution post-federal permitting, with construction expected to start soon after permitting. - Expecting to announce additional offtake agreements this year to bolster market position. - Focus on year-end 2025 to determine best financing option for the project, aiming for certainty of capital and flexibility in production output. - Ready to advance into construction phase with robust balance sheet and in-place procurement and engineering.

Q: More detailed progress towards procurement of equipment and long lead items, including inflationary pressures and delivery schedules?

A: Leigh Curyer stated they have a detailed construction execution plan, with commission hearing dates allowing for well-planned procurement. Industry has pricing pressure, but Rook I project economics are robust, and payback period is short, so CPI impact is immaterial.

Q: Balancing exploration to turn around mineral resource estimate for PCE vs. longer drilling for more potential?

A: Leigh Curyer said PCE is still in definition stage, exploration group is taking a well-thought-out approach to define mineralization first, focusing on high-grade sub-domain when identified, with no pressure to rush to resource definition yet.

Q: Rook I development activities in 2025 and potential budget?

A: Focus on exploration in 2025 to support regional drilling and maintain site readiness, with CAD435M in cash and liquid assets to fund expenses into late 2026.

Q: Contracting discussions with utilities?

A: Travis McPherson said contracting discussions are robust, ongoing, with more agreements expected; focus on maximizing exposure to future uranium prices, aligning with utility interests to avoid oversupply issues post-Fukushima.

Q: Contract terms, spot exposure, floors/ceilings in contracting?

A: Travis McPherson mentioned no specific terms can be disclosed, but focus on maximizing exposure to future prevailing price, with utilities open to the strategy as demonstrated in prior disclosures.

Q: Impact of federal election on approvals and public hearing dates?

A: Leigh Curyer noted encouragement from Mark Carney's comments on streamlining regulatory process, but public hearing dates are set, and they are in final stages of permitting preparation.

Q: Strategic investor at asset level and timing relative to permits?

A: Travis McPherson said they are entertaining a strategic investor, with timing around year-end 2025, and permits are dependent on financing aspects.

Q: Contracting volume before final investment decision?

A: Travis McPherson said there's no set volume, some options require offtake demonstration but not to start construction; lenders don't care about pricing mechanism, just need some volumes for certain debt portions.

Q: Construction timeline post-permitting, critical path to production?

A: Leigh Curyer said shaft is longest lead time item, construction is a 48-month process from CNSC finalizing permitting, with delay in hearings allowing refinement of execution schedule, actually reducing execution risk upon commencement.