$NXE : NexGen Energy — Independent Economic Analysis

Long-Term Price Case$65/lb. U308
Flagship ProjectRook I
Mineral Reserves234.1 Mlbs.
Shares Outstanding372,210,000
Market Cap$495,039,300
Average Annual Production25.4M lbs.
Payable Product228.4M lbs.
LoM9 Years
True All-in Cost (TAIC)$34.69/lb.
Gross Revenue$14,846,000,000
Transportation Costs($58,664,379)
Provincial Revenue Royalties($1,076,335,000)
Net Revenue$13,711,000,621
Total Operating Costs ($1,015,956,897)
Provincial Profit Royalties ($1,645,320,075)
Operating Cash Flow($11,049,723,649)
Income Taxes (27%)($2,983,425,385)
Total Capital Costs($‭1,143,580,221)
Net Income (LoM)$6,922,718,043
Net Profit Margin47%
Absolute Cost Structure (ACS)53%
MTQ Score (Higher is Better)0.9
True Value$18.60/sh.
True Value Discount (TVD)92%
Cash Flow Multiple10x
Annual Cash Flow$769,874,000
Future Market Cap$7,698,740,000
Future Market Cap Growth1,261%

Notes: All Values in U.S. Dollars

We are steady buyers of NexGen Energy on weakness and believe it represents the single best, liquid opportunity in the market whereby which to capitalize upon a future bull market in uranium.

NexGen Energy is the only development-stage uranium company with a projected Net Profit Margin approaching 50%. It also has a peer-crushing Absolute Cost Structure of 53%. Both of these already respectable values will improve at higher spot uranium prices.

MTQ Score — Global Study Group Comparison (Higher is Better)

Leave a Reply