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NexGen Energy 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) of C$1.93 Billion (at US$95/lb U3O8) Consi
About this update from Nexgen Energy Ltd.
[{"type":"text","content":" 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) of C$1.93 Billion (at US$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$70 Million Closure Cost. VANCOUVER, BC, Aug. 1, 2024 /CNW/ - NexGen Energy Ltd. (\"NexGen\" or the \"Company\") (TSX: NXE) (NYSE: NXE) (ASX: NXG) announced today an update to the initial capital, sustaining, and operating cost estimates for the Company's 100%-owned Rook I Project (or \"the Project\"). The estimated pre-production capital costs (\"CapEx\") are Canadian Dollar (\"C$\") C$2.2 billion / US Dollar (\"USD\") $1.58BN, with an average cash operating cost (\"OpEx\") over the life of mine (\"LOM\") estimated at an industry leading C$13.86/lb (USD$9.98/lb) U3O8. Sustaining capital costs (\"SusEx\") were also updated and are estimated at C$785 million (average of ~C$70 million per year), inclusive of closure costs of approximately C$70 million. The change in costs reflects both inflationary changes as well as the significant advancement of engineering and procurement, optimized constructability, and enhanced environmental performance. Unique to a mining project in the Athabasca Basin is the Project's incorporation of costs associated with the progressive reclamation of a tailings management facility into the CapEx, OpEx and sustaining capital costs, which totals approximately $900 million of spending over the LOM. The vast majority of Rook I's mine reclamation will occur concurrently with production through the design incorporating the underground tailings management facility (\"UGTMF\"). This will enhance the environmental performance of the operation and reduce the risk of ongoing reclamation, costly decommissioning at the end of the production period, and the post-closure risk to the local environment and communities. As a result of this incorporation of reclamation and the UGTMF at the outset of development, full closure costs are set to be approximately C$70 million at the end of the mine life, materially lower than other uranium mines in Canada, setting a higher standard for environmental performance and the safe disposal of tailings. Incorporating an average long-term uranium pric...