NexGen Should be Core Holding of Uranium-Sector Investors

Dow Jones
3小時前

2237 GMT [Dow Jones]--NexGen Energy gets a new bull in Jefferies, which is drawn to the Rook I high-grade uranium project in Canada. Rook I, one of the world's largest undeveloped projects, hosts the Arrow uranium deposit. Jefferies says Arrow can underpin an operation producing 28 million lbs a year. A separate discovery, known as PCE, is around two miles away with the potential to share infrastructure. Analyst Daniel Roden says this would add scale and longevity. "At 28 million lbs Rook may supply 14% of global reactor demand," says Jefferies. "Shortfalls can influence incentive pricing on residual production, partially hedging execution risk." Jefferies says NexGen offers differentiated exposure to uranium, so should be a core sector holding of investors. It starts NexGen at buy, with a A$20.60/share price target. NexGen ended Thursday at A$14.30.

 

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