Just like NXG overshot on the upside in January, pricing in uranium prices well above US$120/lb, we believe it’s now become too negative, and a grind above US$100/lb for uranium, let alone new highs, is likely to send NXG significantly higher. We’ve preferred NXG as an early-stage uranium investment because its flagship Arrow deposit is huge, offers exceptional grades, and all its major approvals are now in place. Funding is the next challenge, however it seems like BHP might be in the mix to help with that.
- We are initially looking for NXG to push towards $16, or 25% higher.