NexGen Energy Ltd. Q3 FY2025 Earnings Call

Thank you for standing by. This is the conference operator. Welcome to the NexGen Energy Third Quarter 2025 Results Conference Call. The conference is being recorded. I would now like to turn the conference over to Mr. Leigh Curyer, Chief Executive Officer and Director with NextGen Energy Limited. Please go ahead, sir.

Thank you, Gaileen. Good morning, and thank you for joining NexGen's Q3 2025 Financial Results and Investor Conference Call. My name is Leigh Curyer, and I am the Chief Executive Officer of NexGen Energy. I'm joined today by Travis McPherson, Chief Commercial Officer; and Benjamin Salter, Chief Financial Officer. During today's Q3 update, I'll provide the latest uranium market dynamics, which are unfolding faster than most industry observers anticipated, driven by an unprecedented uptake of nuclear energy across the globe and the strategic execution of NexGen's offtake marketing strategy. Furthermore, progress is being made as we prepare for our first of two commission hearings on the federal approval of Rook I in 13 days from now. In addition, I'll provide updates on all the Rook I site activities and preparations to execute this generational project that will set a new benchmark in economic, environmental, and social stewardship for the sector. At the conclusion of this presentation, we'll move to the Q&A portion of the call, where you are invited to ask Travis, Ben, and myself any questions. Throughout the course of today's call, we will be making forward-looking statements. Please visit our website for all the relevant disclaimers. In recent months, we've seen an unprecedented alignment of policy, capital, and geopolitical priorities in support of nuclear energy and a growing understanding of the constraints impacting uranium supply. As recently as last week, the Nuclear Energy Institute held its Annual International Uranium Fuel Seminar in Charleston, South Carolina, welcoming industry executives from across the globe. The clear message from utilities was that industry developments are advancing so rapidly that forecasts of electrical demand have increased over tenfold from just three years ago. There is crystal clear, unprecedented momentum behind restart efforts at a number of currently idled U.S. nuclear facilities, driven by additional layer demand from major tech companies. The full nuclear energy chain is undergoing rapid acceleration with utilities pursuing reactor upgrades, extended life cycles, and subsequent license renewals, all whilst evaluating SAMR deployment with major tech partners. This is forecasting uranium demand at an accelerating speed. Just last week, the U.S. government announced an $80 billion investment with Westinghouse to build new commercial reactors and additional commitments to restart currently idle reactors. But note that while recent mainstream headlines focus on the power generation component of this generational opportunity, the government, through the 2024 ADVANCE Act, has accelerated modernization within the Nuclear Regulatory Commission and shortened key licensing timelines. Additionally, Secretary of Energy Chris Wright's call to expand the strategic uranium reserve reinforces Washington's focus on fuel security and long-term nuclear capacity from allied sources such as Canada. Adding to this momentum, the U.S. and Australian governments recently signed a landmark critical minerals framework to strengthen cooperation across mining, processing, and supply chain security, demonstrating a shared strategy among allied nations to ensure stability and accessibility of key raw materials necessary for geopolitical security. The only way to achieve the goals of all allied nations is through cooperation, and we anticipate more announcements to follow demonstrating this approach. JPMorgan, one of the syndicated banks in our recent North American $400 million financing, is the latest major institution to announce a $1.5 trillion, ten-year plan to facilitate finance and invest in industries critical to economic security and resiliency to assist companies in boosting their growth, innovation, and accelerating strategic manufacturing—a concrete signal of finance backing nuclear and uranium, the key fuel in the value chain. Specifically for the uranium market over the third quarter, spot prices rose 16% to $83.25 a pound, driven by an increase in liquidity to the market during August and September. This highlights how quickly market prices react when demand enters the spot market. NexGen recognizes that as demand hits the spot market, price discovery begins to emerge, efficiently signaling true incentive pricing, which serves the interests of both sellers and buyers. The increased liquidity in the spot market coincided with supply disruptions globally, including current producers like Kazatomprom and Cameco, where production issues have persisted, reflecting challenges related to late-in-life mining. Healthy inventory levels from previous years are rapidly being exhausted, and borrowed inventory levels are soaring to meet offtake commitments at prices lower than current spot prices. These dynamics reinforce the need for a sustained higher price environment—a trend already materializing with the term price rising to $86 per pound, its highest level since May 2008. The shift toward a prolonged higher market is evident, arriving at a pivotal time for advanced build-ready projects like NexGen's Rook I. The work NexGen has accomplished over the last 12 years is aligning with all of these market dynamics. However, Rook I cannot service this gap alone. The forecast demand-supply deficit into 2030 requires multiple Rook-Is to come online, which simply do not exist. Substantially higher prices in the future will be the consequence, and all our advanced development company cohorts in Canada, the U.S., and Australia are incredibly well leveraged to the forecasted higher uranium prices of the future. In September, the scale and speed of this structural shift taking place in our industry was a key highlight from the World Nuclear Association Symposium in London. Attendance reached a record 1,300 participants, up from 800 a year earlier, and the biannual fuel report upgraded all three global nuclear growth scenarios upward. Over the next 15 years, the upper-case projects annual uranium demand reaching 530 million pounds per year, while the base case projects 391 million pounds. Today, demand is just under 180 million pounds. In 2024, primary supply is estimated to be 150 million pounds, with the deficit made up of continued inventory drawdowns, which only prolong and exacerbate the challenges facing the growth of primary uranium supply. With demand far outpacing supply and global mine supply at the same level as it was ten years ago, the need for both significantly higher uranium prices and policy support to address regulatory timelines and their impact on capital formation is clear. Notably, the WNA Symposium and its report observed an increase in engagement from the technology sector, with Microsoft formally joining the WNA, reflecting the growing nexus between AI-driven power demand and nuclear energy's crucial role as clean baseload generation to reliably power this insatiable demand. As the uranium market enters its seasonally strong contracting period, we expect continued strength in uranium prices. Against this favorable backdrop, NexGen remains uniquely positioned with the world’s most advanced, high-grade, build-ready uranium project to deliver a new secure supply that the world is depending on. Regarding contracting, negotiations with many utilities across North America, Europe, the Middle East, and Asia continue to progress. Utility activity has intensified markedly, with counterparties actively seeking to secure long-term supply beginning in 2030 and beyond—a clear reflection of tightening market fundamentals and the growing recognition that future supply will be challenging. Negotiations are advancing on offtake where these forward-looking utilities are seeking to finance NexGen into production. We expect multiple agreements to be finalized in the coming quarters as utilities move to lock in future delivery schedules. A consistent theme across these discussions is the strategic emphasis on supply diversification, and this is where NexGen is truly unique. NexGen is the most material source of supply globally that provides significant derisked diversification in both technical and sovereign terms, given its competent ground setting and location in Canada. Utilities are increasingly looking to reduce reliance on state-sponsored producers while also addressing the reality that legacy mines are depleting and encountering consistent late-in-mine-life production issues. With the first commission hearing only 13 days from now on November 19 in Ottawa, and the second scheduled for a single day between February 9 and 13 in 2026, NexGen is excited to transition from advanced development to building the greatest natural resources project in recent memory immediately upon receipt of federal approval. This milestone represents the culmination of over a decade of rigorous technical work, community and indigenous engagement, and a regulatory process where the curated expert team we have developed is construction-ready. The support we've received to date has been significant; all four indigenous nations in the local priority area are legally supportive and have publicly advocated for the immediate approval of the project, including the province of Saskatchewan, which continues to champion it as a priority project. The CNSC staff have recommended approval in their technical assessments, and the Canadian government has increasingly recognized the critical role of clean, reliable nuclear energy in meeting climate and energy security objectives. That alignment across regulators, government, and communities reinforces our unique and genuine approach to resource development. This is a story that Canadians are proud of, as it is redefining multiple ways in which resource projects can be developed, technically, environmentally, and socially. We'd like to express our gratitude to our investors for their support in our highly successful global equity offering this past month. With the close of our AUD 1 billion raise, NexGen has further strengthened its financial position to advance the development of the Rook I project immediately upon final federal approval. Interestingly, the majority of capital was raised from outside of Canada, predominantly in Australia, where our registry reflects an ever-increasing Australasian profile, demonstrating NexGen's unique ability to attract hundreds of millions in investment dollars into Canada that will directly benefit local communities, the province of Saskatchewan, and the broader Canadian economy. Proceeds will support the balance of detailed engineering, preconstruction activities, and general corporate purposes, positioning the company to deliver on its next phase of execution and growth. The Australian raise has also positioned NexGen to meet the market capitalization and liquidity thresholds for the ASX 200 Index eligibility, the preeminent equity index in the Australian market. Our current cash balance stands at approximately CAD 1.2 billion, with funding to complete the 2025 site program and initiate development for the first 18 months post-approval in engineering, procurement, training, and construction. We have purposely maintained full strategic optionality with a strong cash position and active negotiations with strategic investors and utilities, among others, resulting in various highly accretive financing alternatives. As we have done in the past, we will optimize financing alternatives while maintaining our patience concerning the market's recognition. Our production flexibility, combined with these strategies, will maximize the value of each pound of uranium we produce and sell, making us the most leveraged company in the world to rising uranium prices. Regarding our site activities, since 2013, NexGen has successfully and safely delivered Rook I site activities covering all aspects of exploration, engineering, development, and supporting infrastructure totaling CAD 706 million. During Q3 2026, we constructed exploration accommodation and infrastructure, including the exploration airstrip, dual-way access road upgrades, and expanded exploration camp facilities. This $98 million program is meeting precise design scope within budget and on schedule, with completion expected in early Q2 2026, all while maximizing local indigenous sustainable commerce and employment. There is simply no better preparation for after federal approval construction, and the NexGen team is in place and ready to expand the same disciplined, safe, on-budget, and on-schedule execution in the construction of Rook I. Regarding procurement, upcoming critical path items are being secured and ready for deployment immediately following federal approval. We are also seeing exceptional interest in participating in many of our training programs and joining the NexGen team. We recently received over 1,300 applicants for only 20 open positions, a clear signal that the highly experienced team we’ve assembled is attracting professionals eager to be part of NexGen's unique elite standards culture. Turning to our exciting exploration program, drilling at our basement-hosted Patterson Corridor East (PCE) discovery continues to deliver. Reported results validate the continuity of our high-grade subdomains and confirm that the system remains open for expansion in multiple directions. The profile emerging at PCE is incredibly exciting and signals the exploration potential for additional Arrow type discoveries on our dominant land position. Assay and scintillation results are set to be released in the coming months as we receive them. This exploration, the largest reported in the Athabasca Basin for 2025, is both strategic and forward-looking. With a typical discovery to production timeline of 15 to 20 years, identifying and advancing high-quality and technically superior deposits today is essential to sustaining long-term production optionality alongside Arrow. This is essential to meet the nuclear industry's needs and the key role NexGen will play in stabilizing energy infrastructure globally. We are undertaking to meet global demand-supply deficits for the next 50 years, not just the next 5 years. That is NexGen's differentiator from the current uranium producers, and we are delivering it through developing Rook I into production post-approval and concurrently through the drill bit at PCE. As we transition into the next phase, our priorities are clear: receive final federal approvals and mobilize to build the most strategic and significant new mining project globally. We approach this with the same principles we've always held, marked by accountability, honesty, a continuous improvement mentality, and the confidence to execute effectively. Our indigenous community, our partners, the environment, regulators, Canada, and the global population, all our shareholders, are essential in this efficient, highly accretive manner. Through years of dedicated effort, the NexGen team has transformed an under-explored area into a national champion and a strategic asset of global significance. The macro backdrop has never been stronger. The rise of AI, the push towards energy security, and the need for economic growth through natural resource development have positioned NexGen as the epitome of the solution. The size of the opportunity has never been bigger. Upon final federal approval, we are approximately T-minus four years from after-tax cash flows that will propel us into the top 10 of global mining companies. The government of Canada recognizes the urgency and is taking meaningful steps forward with the passing of Bill C-5, the Building Canada Act. This act aims to prioritize projects of national interest to advance Canada’s economic resilience and independence while leveraging its unique position as the world's critical minerals deposit. The success of this approach relies on translating verbal commitments into accelerated execution, and we are focused on doing our part. Canada has the opportunity to lead the world in critical minerals exports, and with the commitments made in Ottawa to support accountability and timeliness, the expected economic and social growth will benefit Canadians for generations to come. The outlook is unprecedented regarding actioning such a positive generational opportunity for NexGen and all those advanced development companies in the sector that have developed their projects to meet the insatiable demand. The nuclear industry environment is changing rapidly. Evolving market fundamentals in the uranium market are set to provide unprecedented upside. Companies that will succeed are those that recognize the changing environment and exhibit the courage to embrace it and lead it, looking towards tomorrow and the next 50 years rather than relying on historical practices for comfort. The best way to deliver in the future is to create it. That’s exactly what NexGen has been doing since 2011 when a group of dedicated industry professionals explored the overlooked side of the Athabasca Basin to discover what is now recognized as the world’s best uranium project. From a geological perspective, NexGen has rewritten what is possible and continues to evolve the story with PCE and beyond at Rook I. From an environmental and social perspective, we've set new standards in what can be achieved through genuine innovation and engagement. From a shareholder return perspective, we are poised to deliver returns per dollar spent that sets a new watermark for the sector. I want to thank everyone on the team committed to this company. We’re full of good energy. Now we will open the call to questions.

The first question is from Ralph Profiti with Stifel Financial.

Leigh, firstly, there's been some commentary by a competitor on the prudence of certain contracting strategies as it pertains to the ability to deliver pounds, and that it's a risk being brought forward by the utility themselves at a growing rate. I'm just wondering what's been your experience in dealing with utilities and building sort of a mutual confidence in delivery of targets?

Thank you for the question. We are very active on the contracting side, engaging in multiple negotiations with utilities across the U.S., Europe, Asia, and the Middle East. A significant point to note is the growing need for a diversified primary mine supply, and NexGen is positioned as a leader in fulfilling this more varied supply chain for their requirements. We have already signed four contracts and are negotiating another six. The pricing terms we have secured are higher than market reports, averaging two million pounds over the first five years. Our breakeven point is 3.5 million pounds at Arrow. The criticism we face reflects our ability to adapt to this changing landscape, and we are taking action accordingly. Whatever that criticism means to them is their concern, but we are effectively aligning our project with market demands in a way that benefits NexGen stakeholders while addressing key technical and sovereign risks for the utilities. We are committed to this straightforward strategy, which is gaining substantial traction with major utilities both in the U.S. and worldwide.

I think it's an important answer. Also, I'd like to ask a follow-up on your experience with the procurement of technically skilled labor and the experienced upper-tier construction management that NexGen is going to have in-house. Are there any important hiring gaps that still concern you?

Yes. We have our philosophy that there's a NexGen team member responsible for each key aspect of our operations, both when it comes to mining, exploration, and also the non-technical aspects, including finance, legal, communications, and others. We are experiencing huge demand to join NexGen, with over 1,300 applicants for just 20 open positions in September. This, coupled with our training programs in the local project area, is a key aspect we are ahead of. I think the project itself plus the company culture is attracting the right type of people to our organization. We have done extensive planning around that, and we’re currently ahead. Labor availability tends to be unfairly used as an excuse for many mining projects globally. We have been planning for seven years since we submitted the project description, with a very simple project in a great location. Thus, we aren't facing some of the same labor challenges as other companies in the sector. So, on the risk registry, I’m very, very comfortable with our current and forecasted position as we progress into construction and production.

The next question is from Katie Lachapelle with Canaccord Genuity.

During the prepared remarks, you noted that you have forward-looking utilities that are looking to finance NexGen into production. Can you expand on what you mean by that? Is that through the traditional term contract negotiations you're discussing right now, or potentially prepayments for offtakes? Also, as it pertains to term contracts, we've seen the base escalated price go higher over the last couple of months. How are you seeing a change in terms under your negotiations—any floors or ceilings?

Sure. I'll just hand over to Travis for that one, Katie.

Yes. Thanks, Leigh, and thanks, Katie, for your question. With respect to financing and the utilities, we are negotiating and exploring all options, including prepayments and interest in the project itself. Importantly, this reflects a growing understanding of where the market is heading and the supply gap that exists today, which becomes even more challenging by 2030. There's a clear understanding that waiting around isn’t an option; they need to be proactive, and they are being proactive with us. Regarding offtake contract terms and discussions are obviously confidential by nature, but I can say that all our contracting is based on where the market will be in 2030 and beyond, not what the price is today. So the pricing and terms reflect that world, with significant buy-in from our counterparties around the world with whom we’re in discussions. We are extremely busy on this front, and there is growing recognition of where the market is going. These utilities are eager to secure new supply.

Understood. Just one quick follow-up. You noted a breakeven amount of 3.5 million pounds in your prepared remarks. Do you have a targeted percentage of coverage you would like to have before making a final construction decision? Or do you feel comfortable commencing construction and then during the build layering additional contracts?

Categorically, we are very comfortable starting construction with just the contracts we have in place today. As I mentioned, we're almost at breakeven, and we have another 26.5 million pounds fully exposed to the future price of uranium. Contracts we will sign will likely be tied to market prices at delivery, but that is a key principle driving our contracting strategy. We do not have a fixed component in that regard. We are merely leveraging our extremely low cost per pound and technical certainty around our production volumes. We can ramp production up to 30 million pounds from 3.5 million without requiring additional sunk CapEx. Our contracting strategy reflects the technical and sovereign profile of the mine, which is what all companies' strategies should reflect.

The next question is from Andrew Wong with RBC Capital Markets.

Just on the longer-term implications of contracting again. The Rook I project, obviously, is large and has implications for the long-term supply-demand outlook. Given that the approvals are getting there but not quite approved yet, are the utilities waiting to see how Rook I's timing plays out before they make decisions on contracting? How do you see the potential timing of the project affecting utility behavior overall?

Yes, Travis, go ahead.

No, the timing regarding permit approvals isn't relevant for the discussions we’re having with utilities, because all our contracts are based on the commencement of commercial production. There’s increasingly less uncertainty around the precise timeline for uranium production, given the advanced stage of the permitting process. But there is an understanding that we are developing a new mine, and delivery is subject to the commencement of that production. Utilities comprehend where the market stands and are eager to secure uranium from this new mine.

We’ll probably see an uptick from utilities we aren’t currently negotiating with; that’s a possibility. But to Travis’s point, that hasn’t been a determinative factor in the offtakes we’ve signed or those under negotiation.

Understood. Just on the assay results, they continue to look promising. So if the resource is reported and doesn't get fully reflected in the shares, would you consider some sort of spin-out?

Yes. That’s very possible. If we feel it’s not getting its fair value, that would certainly be something we would consider. But only time will tell. I think the way PCE is progressing, and there's still much more drilling to do before we fully understand its nature. Once we grasp its nature, that could become a possibility if we don’t feel it’s valued as it should be. So yes, that is a potential outcome. If it comes to that, we would ensure that PCE has the right to be extracted through the proposed production exhaust shafts at NexGen without any corporate structure inhibiting optimization of the deposit.

The next question is from Craig Hutchison with TD Cowen.

You mentioned in your opening remarks Bill C-5 and the potential benefits to NexGen. Given the timelines, your permits are well-defined. How could Bill C-5 benefit NexGen? Have you had direct discussions with the federal government? How do you see those benefiting you moving forward?

To clarify my earlier point about Bill C-5, it reflects the Canadian government's commitment to nuclear energy and expediting key projects. I agree; our project is so advanced through the existing regulatory process that any impact from Bill C-5 will be minimal for Rook I itself. However, this is exciting for advanced development uranium companies. The intent of Bill C-5 signifies a commitment to expedite approvals, and we are strong proponents of that. Congratulations is due to the federal government for recognizing the need for prompt action. While it may not specifically impact NexGen, it sends a clear signal for not only uranium mining but also for the development of small modular reactors in Canada and broader nuclear programs. It’s a general comment, but it’s positive for nuclear energy, which NexGen is part of.

Okay, great. Maybe just a follow-up. Last call, you indicated you were pretty well advanced on long-lead critical path items, procurement, etc. Can you give us a sense of your current status and whether there's more to accomplish there before receiving your permits next year?

Yes. We have a detailed execution schedule dependent on receiving final federal approval. Where feasible, we've ordered long-lead procurement items, like the freeze plant for the temporary shaft sinking for the first 100 meters. It's currently in a warehouse awaiting shipment to site on final approval. We are well-prepared, having spent extensive time on planning, revising, and preparing throughout the long permitting process. We know what we'll be doing every day during construction, and our execution will continue throughout the entire construction phase. We’re far ahead of where we need to be as we speak.

The next question is from Mohamed Sidibe with National Bank Capital Markets.

Could you please give us some color on where detailed engineering is currently sitting for the project and where you expect it to be by the time you make your final investment decision?

Yes. So detailed engineering is progressing. I would say that detailed engineering is complete for the first 18 months of construction, and will continue for the next 18 months involving more surface infrastructure and the mill. It depends on which aspect of construction you refer to, but all items for the first 18 months are fully engineered. I want to make it clear; we made our final investment decision back in 2017, when we identified we had a world-class project, subject to financing and regulatory approval. There won’t be any pause post-final federal approval while we make a final investment decision, as that has already been made.

So as it relates to the shaft sinking process, that detailed engineering process is already completed?

That is correct, yes.

And given the recent strengthening of your balance sheet post-quarter, can you remind us of the financing mix you expect for the remaining funds required to bring the project forward? You mentioned everything is on the table in terms of potential interest at the project level or debt, so any color on that would be appreciated.

Sure. Travis?

Yes. Thanks, Leigh. Everything is on the table, and we have tremendous interest— not surprising as it's a world-class project and company. Interest comes from many sources globally and spans from strategic project-level equity, project finance, converts, prepayments, and more. The positive is that this interest continues to grow. Discussions are in advanced negotiation stages. What the $1 billion raised did was relieve any time pressure we previously had regarding determining the optimal financing mix with all these great options available. We are in a privileged position and plan to finalize that over the next 6 to 8 months, likely around mid-year.

The next question is from Grace Symes with Energy Intelligence.

The 30 million pounds per year production target is quite flexible. Is there a plan to raise and lower that production to match uranium prices or contracting, or to store produced pounds dependent on prices to avoid flooding the spot market?

Yes. Firstly, the mine has exceptional flexibility. With a breakeven point of 3.5 million pounds and a capacity to reach 30 million pounds per annum easily. We will produce in line with market conditions and optimize returns on every pound produced. The simplest mine plan requires us to remove the least amount of dirt from underground, resulting in a 30 million pound per annum output with just 1,300 tonnes per day. I foresee no scenario where we won’t reach maximum production levels from 2030 onwards, given the strong current demand—which is expected to increase—amid fragile mine supply from current producers. Our forecast for 2025 is around 135 million pounds, whereas consumption is over 200 million pounds. Producers are borrowing pounds to meet commitments. Therefore, I see little chance we won't reach maximum capacity by 2030. We are, however, equipped to go down to 3.5 million pounds and still profit; we leverage the technical and economic profile of the mine.

Just one follow-up. There's been speculation in the uranium market about a potential buyout before production begins. Can you comment on that?

With all due respect, those comments are absurd. This project is guided by a committed team in place for over ten years. Looking back, permitting was always the largest risk due to many diverse interest groups involved. We have successfully brought all those interest groups together over the last decade. The advocacy for this project is incredibly strong. We are eager to start construction because then everything will be in our hands, which we prefer at NexGen. Such projects are rare, and we possess the in-house expertise and financing capabilities. We are committed to constructing a technically simple mine, and everything we’ve done has set a new standard in the sector during construction and production. I believe no other group has demonstrated efficient capital use along the development path without wasting a day. Under NexGen’s leadership, this project will be in production as soon as we meet the planned scope, and we will implement it in a way that incorporates various stakeholder engagements authentically. Yes, there’s no intention from the NexGen Board, executive, or team to sell the company; we would be bored within two days if we did.

The next question is from Graham Tanaka with Tanaka Capital Management.

Congratulations on your progress so far. I'm curious about your plans for exploring the additional acreage and whether you might accelerate exploration and development of a second, third, or fourth project. What dynamics will influence your decision to expedite or maintain the current pace of exploration? Also, how is the Patterson Corridor East progressing?

Yes, thanks, Graham, and thank you for your ongoing support. We are exploring to solve global uranium challenges for the next 50 years, not just the next five. We found Arrow with the 21st drill hole within a 4.5-kilometer radius, and PCE is 3.5 kilometers from Arrow. A highly significant mineralizing event has occurred not only on our project at Arrow and PCE but also at several locations along the Patterson Corridor. As you mentioned, we have yet another seven corridors to explore, with plenty of drilling left on the Patterson Corridor. The mineralization suggests we have much more to discover. We were not so fortunate that we found the best deposit with the first drill hole within a 4.5-kilometer radius. We also have two additional land packages adjacent to Rook I, SW1 and SW3. That's why we built an expanded accommodation camp for exploration. We could deploy 20 drill rigs for 20 years without completing the geological evaluation. We anticipate producing around 23% of the global mine supply from Arrow post-approval in four years. There’s a backup forming at PCE, which looks very analogous to Arrow in every respect. We believe a significant mineralizing event has occurred in the area and feel we are just beginning to uncover it. Our results validate that; assays will be coming imminently, along with scintillometer results as the 2025 program concludes. We’ll be back up and running with a similarly sized program in 2026, reinforcing our commitment to further understanding of PCE.

I'm curious about what conditions will lead you to accelerate the development of a second Arrow at PCE or elsewhere. What kind of pricing might expedite your exploration development process for another Arrow?

We are focused on executing what we do best. The exploration team is akin to a division within NexGen. Four rigs at PCE represent a solid program, and you will see that continue in 2026. However, results could potentially change our trajectory. All I can say is to stay tuned. We will execute well.

If there’s pricing and interest from utilities that suggest a need for another Arrow, how quickly could you bring PCE or any other prospect online? Are we talking 10 to 12 years?

Yes, look, PCE. I won't preempt anything just yet, but conceptually, there’s enough evidence to suggest if developed, PCE would come out through the same production shaft proposed at Arrow. That would require additional permitting. However, given our permit is based on an understanding of the area's influence, we wouldn't be starting from scratch. First, we want to get Arrow into production, fully operational at its capacity. It will then inform future decisions based on market conditions. I also believe the demand will be substantial beyond 30 million pounds annually at Arrow; we won't bridge the gap that currently exists on an annual basis. Bill C-5 could benefit NexGen when it comes to PCE, as Craig previously mentioned. Thus, it remains on our radar, but for now, we want to excel on Arrow and Rook I, moving them into construction and subsequent production.

The next question is from an unknown analyst.

Are you hearing me?

Yes, I can hear you.

Okay. Last week, we saw the Saskatchewan approval of the Denison Mine Willow River uranium project, citing inadequate consultation on Treaty 10, right? So I have two questions. Is your mine on their territory? Secondly, do you foresee that something similar could happen to you, potentially delaying mine opening?

I cannot comment on that situation out of respect for Denison, as I haven’t been involved with the consultation and engagement regarding their project. Regarding our project, it's clear that the four communities identified in our local project area by the federal government and the government of Saskatchewan are very clear. We underwent study agreements in 2019 that laid the groundwork for collecting all cultural studies, which we incorporated into the project design while respecting cultural sensitivities. Furthermore, we executed legally binding impact benefit agreements with those four communities, covering the entire life of the project. Thus, I’m highly confident in our position and the conclusion of our approval process from that perspective.

This concludes the question-and-answer session. I’d like to turn the conference back over to Leigh Curyer for any closing remarks.

Yes. Thank you, Gaileen. I’d like to thank everyone for their participation today and the excellent questions. It's an incredibly exciting time for the company, and I welcome any additional questions you may have. Please contact Monica, Paula, Stacy, or Travis and myself, and we’ll be happy to answer them. We sincerely appreciate everyone’s support and look forward to this fourth quarter and 2026 in what is going to be an incredibly exciting time, not just for the market, but for the company as well. Thank you, everyone.

This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.