NexGen Energy Secures First Uranium Sales Contracts

Shares of NexGen Energy Ltd. (TSX:NXE) saw a 4% increase on Wednesday morning following the company's announcement of securing its first uranium sales contracts. These contracts, totaling 5 million pounds of uranium, were made with major US utilities.

The company, which trades on the Toronto Stock Exchange (TSX:NXE), New York Stock Exchange (NYSE:NXE), and Australian Securities Exchange (ASX:NXG), highlighted that the contracts are in line with its marketing strategy, implementing market-related pricing mechanisms at the time of delivery. This strategy aims to leverage the strengthening uranium market to maximize value.

The sales agreements are a significant milestone for NexGen Energy, establishing it as a reliable source of nuclear fuel from the Western world. The company's Rook I Project in Saskatchewan, Canada, is recognized for its high standards in technical, environmental, and social practices.

NexGen provided a table indicating the expected gross sales revenue from these contracts based on various assumed spot prices for uranium, ranging from $80 to $175 per pound. Deliveries are scheduled from 2029 to 2033 at an annual volume of 1 million pounds of U3O8.

Leigh Curyer, CEO of NexGen, expressed that these contracts with leading US utilities represent a pivotal moment for the company. Curyer emphasized the importance of diversifying supply sources and aligning contract terms with market-related pricing at the time of delivery. He also pointed to the growing energy demand and the need to expand nuclear infrastructure, underlining the significance of a secure uranium supply.

The Rook I Project, supported by a NI 43-101 compliant Feasibility Study, is positioned to become a major environmentally sustainable uranium operation. NexGen continues discussions with utilities across the US, Europe, and Asia.

NexGen Energy is committed to developing its flagship Rook I Project into a leading low-cost uranium mine, focusing on exceptional environmental and social governance. The company's experienced team aims to deliver a project that sets a benchmark in the mining industry, providing long-term benefits to various stakeholders.

The announcement of these contracts underscores NexGen's strategic vision and its role in the global nuclear fuel supply chain, as the company works towards addressing key global challenges such as decarbonization and energy security.

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