Business
NexGen Energy Announces First Uranium Sales Contracts for 5 Million Pounds with Major US Utilities
Contracts feature market-related pricing mechanisms at time of delivery aligned with NexGen's stated marketing strategy Strategic short-term agreements position
About this update from Nexgen Energy Ltd.
[{"type":"text","content":" Contracts feature market-related pricing mechanisms at time of delivery aligned with NexGen's stated marketing strategy Strategic short-term agreements position NexGen to maximize value in strengthening uranium market VANCOUVER, BC, Dec. 4, 2024 /CNW/ - NexGen Energy Ltd. (\"NexGen\" or the \"Company\") (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased to announce it has been awarded the first uranium sales agreements with multiple leading US nuclear utility companies. These inaugural awards all incorporate market-related pricing mechanisms at the time of delivery. They reflect NexGen's long stated focus of maximizing leverage to future uranium prices and the Company's positioning as a new reliable Western World source of nuclear fuel incorporating the highest standards of technical, environmental and social inclusion from the tier one jurisdiction of Saskatchewan Canada. The table below sets out the aggregate delivery quantities of uranium contemplated in the sales agreements, together with the expected gross sales revenue based on various assumed spot prices: Realised Weighted Volume Average Price Realised Table (excludes escalation): 1M lbs U3O8 per annum Uranium Price ($/lbs. U3O8) 2029 2030 2031 2032 2033 $80 $79 $79 $79 $79 $79 $100 $99 $99 $99 $99 $99 $150 $141 $141 $141 $141 $141 $175 $150 $150 $150 $150 $150 *excludes ancillary commissions and costs of delivery Uncommitted pounds of Probable Mineral Reserves remaining (as per NI 43-101 Rook I Project Feasibility Study): 231,660,000 lbs U3O8 Leigh Curyer, Chief Executive Officer, commented: \"These offtake awards with premier US utilities represents a pivotal moment for NexGen. They underscore the premier quality and scalability of the Rook I Project, whilst offering diversification of supply from existing centralised sources. Further, the terms of these awards reflect market related pricing mechanisms at the time of delivery reflecting NexGen's long-term stated strategy of optimizing the value of each pound produced. Energy demand from reliable sources is increasing by the week with the need to expand existing nuclear energy infrastructure and the construction of power consuming data centres at a time the security of uranium supply is under significant technical and sovereign risk. The contract awards are in parallel to ongoing discussions and negotiatio...