NexGen is a Canadian uranium developer sitting on what is planned to be the world’s largest and lowest-cost uranium mine, the Rook I Project in Saskatchewan’s Athabasca Basin, making it one of the most strategically significant pure-play uranium bets available to ASX investors ahead of the looming nuclear fuel demand surge. We like NXG over the next 12-18 months, given the company controls its own catalyst pathway. As the investment case continues to derisk, the valuation discount to its peers should close.
Three main questions are being asked at this relatively early stage:
- How quickly can the project advance to production?
- What will nameplate capacity production look like?
- Can capex be controlled, and how will this be funded?
Hence, while we like NXG, if it gets too ahead of itself, a common characteristic in this space, we may consider taking some money off the table, as there remain plenty of hurdles to clear before they start generating revenue.
- We can see NXG retesting ~$20 through 2026/7 – MM is long NXG in its Emerging Companies Portfolio.
MM is long and bullish toward NXG around $16.70
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