# Nexgen Energy (NXE)



## james4beach (Nov 15, 2012)

I couldn't find a thread on this. Does anyone own it? It's a small stock, only $700 million market cap.

I just bought some shares for my Lowdiv portfolio. It was a bit frightening buying this on a rough day (the stock dropped 7% yesterday), so I'm already having some buyer's remorse.


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## gumb (Oct 19, 2016)

I have been in it since it was 1.72. Was up to around $4 at one point in the last few months but i didnt sell. Long term outlook for uranium demand is positive and thier results at the arrowroot deposit have been promising.
Thats about all i can say on it.
I know some folks think that it will get scooped up by Cameco at some point.....


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## james4beach (Nov 15, 2012)

NXE up 19% today -- not sure what the news is. One of the most active TSX stocks today.

My position is slightly positive, net +11%


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## spdr1812 (Apr 8, 2016)

Cameco suspended a couple mines and cut the dividend ..


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## james4beach (Nov 15, 2012)

Well this took a turn for the worse. Now hitting new one year lows 

http://schrts.co/49DXxm


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## splatapus (Nov 8, 2015)

I bought some NXE near the top of $4. While I feel like an idiot for chasing it up, I am more confident now at $2.30 than $4.

Arrow is a generational tier 1 deposit. I think this is one of those deposits (be it copper/nickel/uranium/gold) that is found only once every 1,2,3 decades. Break even cost of production at $8/lb uranium. Even at today's spot price of $22/lb, it would be ok (but you'd have to be an idiot to put this gem into production at today's low U prices). Low cost producer, with growing resource. If arrow was to come online today, it would be the 2nd biggest mine in the world.

So really only two factors to consider:
1. Will nuclear power still play a role in tomorrow's energy needs?
I believe so. Reliable base load, and relatively cheap. I know there are reports of wind and solar costing less, and nuclear construction budget over-runs + construction delays. But reading Germany's experiment of cutting nuclear and going with wind/solar, I seriously have my doubts. https://www.nytimes.com/2017/10/07/business/energy-environment/german-renewable-energy.html. Essentially by cutting nuclear and going wind/solar, electricity costs went up, and so did carbon dioxide emissions. Completely missed the point on both targets.
Risks: another Fukushima, or similar event.

2. Will arrow ever become a mine?
Hell yes I think. Reasons already stated above. Only problem is political risk. If ever Sask government becomes very against mining, then project is doomed, or will be delayed for long long time.

And by the way, Nexgen is not a small company by junior exploration standards, especially amongst Uranium junior explorers now that most of them have died off after the boom of 2011, and in a $22/lb spot price environment where there is no profit margin. Nexgen is really now a blue-chip exploration company ranked as a junior exploration company. I think even with increasing hits at Arrow south will not move the stock price much. At this point the macro environment for uranium is going to be key driver for NXE. So unfortunately this is a beta play now as opposed to the smart guys who got in at $0.30 for the junior exploration alpha play, where each news release with drill hole hits increased the deposit size massively.

I think you need to be patient with this one. My plan is to keep adding to it, don't let the share price frustrate me, and have a window of 2-3 years out at least. And dream of the day when Arrow is the 2nd largest uranium mine in the world.


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