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NexGen Energy Ltd-CDI (NXG) $13.20

UPDATED 13/11/2025 09:14

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Uranium, which fuels nuclear power will become an increasingly critical commodity over the coming years. NextGen Energy (NXG), the $8.6bn dual listed exploration and development stage company has one of the largest, highest-grade uranium assets globally, only really overshadowed by a couple of monster Canadian deposits and the mega low-grade systems like Olympic Dam.

Its Arrow deposit, in the southwestern Athabasca Basin, Saskatchewan, is a high-grade ore body of ~337M lbs putting it comfortably in the global top handful of uranium deposits by contained metal. NexGen has a great chance of becoming a low-cost, globally significant uranium producer when it enters production, likely sometime around 2028.

The backdrop for Uranium demand is very supportive. The U.S. Government is investing heavily in the space, recently entering a strategic partnership with Westinghouse, together with Brookfield Asset Management and Cameco, to accelerate deployment of nuclear-power capacity in the U.S. using Westinghouse reactor technology. The partnership envisages at least US$80 billion of new reactor projects across the U.S, and explicitly highlights the role of nuclear power as central to U.S. strategy for energy security, industrial base renewal, and supporting high-demand applications such as data centres and artificial intelligence

Similarly, several major U.S. tech companies are now investing in nuclear energy:

Microsoft signed a long-term power-purchase agreement with Constellation Energy Corporation to restart the Three Mile Island Unit 2 reactor to support its AI/data-centre power needs.
Amazon has committed about $US500 million to support small modular reactor (SMR) development (including an investment in X‑Energy, Inc.) to secure clean, reliable power for its cloud/AI infrastructure.
Meta Platforms entered a 20-year agreement to obtain nuclear-generated power from the Clinton Clean Energy Centre in Illinois, effective from June 2027—part of its AI/data-centre energy strategy.

While we currently hold Paladin (PDN) and Cameco (CCJ US) in our portfolios, given they are producing now, NXG is a Uranium hopefully carrying more risk, but more potential upside in the coming years.