NXG has been a steady performer in 2026 advancing almost +10%. After reaching a high in late January alongside the broader nuclear/AI power rally, the pre-revenue dual-listed developer was caught in the sector-wide correction, while they also pushed first production at its flagship Rook I project to FY31. However, continued drilling success and the commencement of construction have helped NXG hold up better than many uranium developers.
The biggest catalyst arrived this month, when reports emerged that BHP is in regular discussions with NexGen and sharing technical information around Rook I, after previously assessing the company as a potential takeover target. The news sent NXG up more than 8% and adds strategic validation to what is expected to become one of the world’s largest uranium mines. This followed the groundbreaking of Rook I, while the recent Kazatomprom acid-plant delay has provided another tailwind by reinforcing expectations of constrained global uranium supply.
The key issue from here is funding. NexGen is looking to raise more than C$1bn over the coming nine months to advance Rook I, making the structure and potential dilution of that financing an important near-term consideration. Conversely, a formal BHP investment, partnership or offtake agreement could materially de-risk the project and provide a significant re-rating catalyst. With NexGen deliberately favouring shorter contracts to retain exposure to future spot uranium prices, NXG remains one of the higher-leverage ways to play a strengthening uranium market—but, like DYL, that leverage comes with substantial development and funding risk.
We’ve preferred NXG over DYL as an early-stage uranium miner due to its superior flagship asset despite DYL owning more uranium across its broader portfolio. Arrow combines extraordinary grades and substantially greater planned production scale. The distinction is effectively quantity versus quality: DYL has the larger diversified resource inventory, but NXG’s Arrow is the larger and more advanced development proposition.
- We like NXG as a strategic play on the global uptake of uranium to satisfy AI and overall increasing energy needs: MM owns NXG in the Emerging Companies Portfolio.
MM is long and bullish towards NXG
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