NexGen Provides Updated Economics for the Rook I Project
-
Revised Capital Cost
C$2.2 Billion /USD$1.58 Billion (C$/US$ 0.72 ) -
Average Annual After-Tax
Net Cash Flow (Years 1-5) ofC$1.93 Billion (atUS$95 /lb U3O8) -
Consistent
Mine Life and Production Capability up to 30 Million Pounds U3O8 Annually -
Elite Environmental Plan Incorporates Reclamation during Operations resulting in minimal
C$70 Million Closure Cost.
Unique to a mining project in the
Incorporating an average long-term uranium price of approximately
Sensitivity of Project Economics to Uranium Prices
The sensitivity of the economic model in the FS to the price of uranium is shown below:
|
|
Feasibility Study (2020 Dollars) |
Updated/ Revised Estimate (2023 Dollars) |
||||||
|
Uranium (US$/lb) |
Average Annual
Free Cash
( (C$ billion) |
Payback (Years) |
Internal (%) |
Net
("NPV") (C$ billion) |
Average Annual
Free Cash
( (C$ billion) |
Payback (Years) |
Internal (%) |
Net (C$ billion) |
|
|
3.19 |
0.4 |
101.8 |
12.80 |
3.13 |
0.7 |
61 |
11.52 |
|
|
2.11 |
0.6 |
81.6 |
8.13 |
2.04 |
1.0 |
46.9 |
6.79 |
|
|
2.01 |
0.6 |
79.2 |
7.67 |
1.93 |
1.0 |
45.2 |
6.32 |
|
|
1.68 |
0.7 |
71.5 |
6.27 |
1.61 |
1.2 |
39.6 |
4.89 |
|
|
1.04 |
0.9 |
52.4 |
3.47 |
0.97 |
2.0 |
25.2 |
2.10 |
|
|
Notes: |
|
1. |
The base case for the economic analysis in the FS (the "FS Base Case") is based on, among other things, the timing of a final investment decision and a discount rate of 8%. It assumes that 100% of uranium produced from the Project can be sold at a long-term price of |
2. |
The Updated/Revised Estimate reflects an internal Company assessment of CapEx and OpEx, as well as other currently expected Project costs, including estimated sustaining capital, royalties, and taxes. |
3. |
As noted in the FS, NPV, and IRR are most sensitive to metal prices, grade, metal recovery, and exchange rates. To demonstrate the sensitivities of NPV and IRR to uranium prices, alternatives to the uranium price assumption used in the FS Base Case are shown in the table for illustrative purposes. Readers are cautioned that such information may not be appropriate for other purposes, including an assessment of expected Project economics. Such illustrative prices were chosen to approximate long-term and various spot price assumptions but are not forecasts of expected uranium prices or prices at which uranium produced from the Project can be sold. |
4. |
There has been no material update to the estimates of Mineral Resources or Mineral Reserves. |
Leigh Curyer, Chief Executive Officer, commented: "NexGen's updated CapEx, OpEx and sustaining capital reflect the Company's focus on thorough planning and responsible financial management, ensuring that every aspect of the Project aligns for the development of a truly world-class resources project. The updated capital cost presents an all-encompassing spend to bring the
It is a very exciting time at NexGen as the Company advances the finalization of the Federal Environmental Assessment, readies for immediate commencement of construction on final Federal Approval, and in parallel continue to test the recently discovered Patterson Corridor East mineralization 3.5kms east of the Arrow deposit."
The Feasibility Study ("FS" or "Feasibility Study"), published
The updated costs reflect the advancement of Project engineering from 18% complete at the time of the Company's FS, to approximately 45% complete currently, within an accuracy range of +/- 10%. The Project is ready for major construction activities to commence immediately following final Federal Environmental Assessment approval with critical path detailed engineering and procurement advancing in parallel. Further, the Company is advancing well with the significant build out of the project development team that includes industry experts in shaft sinking, underground mining and development, and surface operations.
The Company is progressing discussions with various prospective financing entities – including commercial lenders, export credit agencies, and alternative sources to secure financing for the Project. The Company is receiving interest in significant new sources of potential project financing which would fully satisfy the capital requirements for the Project in combination with its current cash and liquid investments.
The Company is continually refining the current dollar cost estimates as engineering, procurement, and contracting activities advance over the coming months. In addition, NexGen's internal team is investigating areas of operational improvements, including enhanced recoveries, supplemental energy efficiency initiatives through kinetic heat recovery, and increased automation of material handling and processes throughout the operations.
About NexGen
NexGen is listed on the
Technical Disclosure
All technical information in this news release has been reviewed and approved by
The Feasibility Study referred to herein, entitled "Arrow Deposit,
Cautionary Note to U.S. Investors
This news release includes Mineral Reserves and Mineral Resources classification terms that comply with reporting standards in
Fo rward-Looking Information
The information contained herein contains "forward-looking statements" within the meaning of applicable
Forward-looking information and statements are based on NexGen's current expectations, beliefs, assumptions, estimates and forecasts about its business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions, including, among others, that
financing for the Project will be available in a timely manner and on terms acceptable to the Company, the results of planned exploration and development activities will be as anticipated and on time; the price of uranium; the cost of planned exploration and development activities; that, as plans continue to be refined for the development of the
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NexGen to differ materially from any projections of results, performances and achievements of NexGen expressed or implied by such forward-looking information or statements, including, among others, negative operating cash flow and dependence on third-party financing, uncertainty of additional financing, the risk that pending assay results will not confirm previously announced preliminary results, the imprecision of mineral reserve and resource estimates, the price and appeal of alternate sources of energy, sustained low uranium prices, aboriginal title and consultation issues, development risks, climate change, uninsurable risks, reliance upon key management and other personnel, risks related to title to its properties, information security and cyber threats, failure to manage conflicts of interest, failure to obtain or maintain required permits and licences, changes in laws, regulations and policy, competition for resources, political and regulatory risks, general inflationary pressures, industry and economic factors that may affect the business, and other factors discussed or referred to in the Company's most recent Annual Information Form under "Risk Factors" and management's discussion and analysis under "Other Risks Factors" filed on SEDAR+ at www.sedarplus.ca and 40-F filed on Edgar at www.sec.gov .
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or statements or implied by forward-looking information or statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers are cautioned not to place undue reliance on forward-looking information or statements due to the inherent uncertainty thereof. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
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