Nexgen Energy Ltd. · TSX:NXE
Nexgen Energy — Investor Presentation (May 2018)
37 slides from Nexgen Energy's investor presentation, May 2018
Slide 1: Corporate Presentation May 2018
1 Corporate Presentation May 2018
Slide 2: Forward Looking Statement
Forward Looking Statement 2 Information Contained in this Presentation This presentation is a summary description of NexGen Energy Ltd. (“NexGen” or the “Company”) and its business and does not purport to be complete. This presentation is not, and in no circumstances is to be construed as a prospect
Slide 3: Corporate Overview
3 Corporate Overview
Slide 4: Summary
Summary 4 • NexGen Energy founded in 2011 after extensive 4 year global evaluation process of uranium assets leading to acquisition of Southwest Athabasca Basin project portfolio consisting of over 260,000 hectares today. – Rook I is NexGen’s flagship project which includes the 100% owned Arrow Depo
Slide 5: Select Diversified Base Metal Seniors: Current Market Multiples
Current Market Multiples 5 EV / 2018E EBITDA P / 2018E CFPS Glencore 6.5x Rio Tinto 7.3x Majors Vale 6.4x BHP 6.7x BHP 6.0x Glencore 6.2x Rio Tinto 5.8x Vale 5.8x Southern Copper 10.0x Southern Copper 14.2x Select Diversified Base Metal Seniors First Quantum 7.9x South32 7.8x South32 6.9x Lundin 7.7
Slide 6: Uranium Market Overview
6 Uranium Market Overview Tesla supercharging stations installed in Fort McLeod, AB (population 2,900)
Slide 7: The Facts
The Facts 7 Global population 2040 9 Billion Energy growth by 2040 50% Renewables growth by 2040 40% Nuclear growth by 2040 40% • Countries continue to rely on well diversified domestic energy mixes. • Clean, baseload power required as key component to these energy mixes. • Reliance on coal driven b
Slide 8: Return to Reliance on Nuclear
Return to Reliance on Nuclear 8 • Uranium spot and mid-term markets do not reflect fundamental industry cost curves. • Uranium forecasts currently do not reflect economic fundamentals of industry cost curves. • Currently in 8th year of uranium bear market which has resulted in structural, permanent
Slide 9: Changing Energy Mix
Changing Energy Mix 9 • Largest global economies changing their national power sources to address air pollution challenges and global warming concerns. • In developed economies such as North America (“N.A.”), reliance on coal shrinking rapidly in favor of renewables with nuclear maintaining 18% port
Slide 10: EVs Require Even More Power
EVs Require Even More Power 10 • Tesla – 500,000 EVs annually by 2018 versus 84,000 in 2016. • Volkswagen – 15-20% of global sales to be EVs by 2025 offering over 80 models. • Ford – Spending $11 billion by 2020 to develop 40 new EV models. 70% of all Ford’s sold in China to be electric by 2025. • B
Slide 11: Arrow Development
11 Arrow Development
Slide 12: Future Uranium District
Future Uranium District 12 • Focused in Southwest Athabasca Basin which is a future strategic source of uranium. • Largest land holder in this district with over 260,000 hectares held by NexGen. • 95% underexplored which offer unpriced optionality. Legend & [ Discovery ! ( Uranium Drill Intersection
Slide 13: The Arrow Advantage
The Arrow Advantage 13 100 m 10 m Sandstone-hosted deposits (egress type) Arrow is a basement-hosted Deposit tend to have challenges due to the (ingress type) which will not require mineralization being ‘perched’ within freezing to extract due to competent the unconsolidated and wet Athabasca ground
Slide 14: Strategic Global Positioning
Strategic Global Positioning 14 Recovered Uranium 30.0 27.2 28.4 27.7 27.6 27.0 24.9 4.00% 20.7 19.1 Head Grade (% U3O8) (M lbs U3O8) 3.00% 20.0 12.8 12.3 10.6 8.9 8.4 8.3 2.00% 10.0 3.2 1.00% - 0.00% Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Recovered U3O8 Hea
Slide 15: Positive PEA Results
Positive PEA Results 15 PEA Financial Highlights After-Tax Net Present Value (NPV8%) CAD $3.49 Billion After-Tax Internal Rate of Return (IRR) 56.7% After-Tax Payback 1.1 Years Pre-production Capital Costs (CAPEX) CAD $1.19 Billion Average Annual Production (Years 1-5) 27.6 M lbs U3O8 Average Annual
Slide 16: Resilient Project Economics
Resilient Project Economics 16 • Project economics are insensitive to capital and operating cost inflation given large operating margins and annual cash flow generation. See disclosures on pages 2, 4, 15 and 35 16
Slide 17: A Win-Win: Government Revenue
A Win-Win 17 Arrow Deposit PEA - Government Revenue • Potential of $5.9 700,000 7,000,000 Billion in total Government 600,000 6,000,000 Revenue over the life of asset. 500,000 5,000,000 Cumulative C$ '000 C$ '000 By Year 400,000 4,000,000 • Potential of $4.3 300,000 3,000,000 Billion in Saskatchewan
Slide 18: Surface Summary
Road Access ©NexGen ™«. Energy Ltd
Slide 19: Underground Summary
Underground Summary 19 • Conventional underground mining methods envisioned utilizing longitudinal and transverse stopes. • Enables relatively simple extraction and processing with constant emphasis on highest level safety and environmental measures. 19
Slide 20: Leading Edge Environmental Techniques
Leading Edge Environmental Techniques 20 • Set new standard in environmental protection and sustainability in mining industry. • Envision utilizing leading edge, proven techniques including underground tailings management (“UGTMF”) as well as many other innovations. 20
Slide 21: Conventional Mining and Milling
Conventional Mining and Milling 21 Process Schedule 600 3.50% Conventional processing facility: 500 3.00% 1. Crushing and Grinding Process Throughput (ktpa) 2. Acid Leaching (8 hour leach cycle) 2.50% 400 3. Liquid-Solid Separation via U3O8 Grade 2.00% Counter Current Decantation 300 (CCD) 1.50% 4.
Slide 22: Conservative Build Up of Costs
Conservative Build Up of Costs 22 Pre-Production Capital Summary C$ '000 US$ '000 Underground Mining UG Mobile Equipment 32,082 25,666 UG Fixed Equipment 55,355 44,284 Horizontal Development 41,186 32,949 Vertical Development 168,576 134,861 Capitalized Pre-Production Operating Costs 26,934 21,547 I
Slide 23: Timeline
Timeline 23 • Winter drill program testing regional scale (completed). • Bulk metallurgical testing, engineering compilation work. H1/2018 • Summer drill program designed for development and near-Arrow exploration. • Maiden Pre-Feasibility Study including an Updated Mineral Resource Estimate (Q3/201
Slide 24: Rook I Exploration
24 Rook I Exploration
Slide 25: Dominant Strategic Land Position
Dominant Strategic Land Position 25 ! Gunnar ! ! Lorado • NexGen holds over NORTHWEST ATHABASCA Athabasca Basin Projects 260,000 hectares of prospective exploration Saskatchewan, Canada ground in the southwest Roughrider RADIO Athabasca Basin. McClean Lake Midwest Lake " [[ ! Eagle Point " ! • Rook
Slide 26: Recent Results Highlight Growth
Recent Results Highlight Growth 26 • New shear discovered called “A0” • New intense mineralization discover 160 m northwest of A0 shear • Material expansion of the A1 and A2 shears along strike to northwest and southwest. • 2018 summer program to focus on following up exciting growth prospects as we
Slide 27: Endowed Mineral Belt
Endowed Mineral Belt 27 • Systematically drill testing regional geological model to optimize potential. • Drilling proximal – within 2 km radius - to Arrow will remain high priority • Maintaining optionality with strategic land position. 27
Slide 28: Community Relations
28 Community Relations
Slide 29: Community Relations
Community Relations 29 • NexGen is committed to building strong relationships with local Saskatchewan communities and stakeholders. • The Three Pillars seen here are implemented to build a strong, lasting foundation within the community by supporting NexGen’s Vision. Education Health Economic Develo
Slide 30: Contact Information
Contact Information 30 For more information please visit: www.nexgenenergy.ca or contact: Travis McPherson – Vice President Corporate Development Phone: +1.604.428.4112 Email: tmcpherson@nxe-energy.ca 30
Slide 31: Appendix
31 Appendix 31
Slide 32: Capital Structure
Capital Structure 32 Shares Issued 343,352,690 Fully Diluted 377,606,023 Cash ~C$150 million Insider Ownership 5% Shareholders • CEF Holdings (Li Ka-shing) • Global X Management • CI Investments • 1832 Asset Management • Blackrock (UK) • Connor Clark & Lunn • Segra Capital Management LLC • CQS Manag
Slide 33: Senior Executives
Senior Executives 33 Name Experience Leigh Curyer • Chartered Accountant with over 20 years experience and ex-CFO of Southern CEO Cross Resources (now Uranium One) • Managed exploration, feasibility and permitting of Honeymoon Uranium Project in South Australia • Ex-Head Corporate Development at Acc
Slide 34: Project Development Team
Project Development Team 34 Name Experience James Hatley, P.Eng. • Professional engineer with +25 years experience in metals and mining SVP, Project Development • Ex-Senior Geotechnical Engineer at Cigar Lake, Chief Mine Engineer of McArthur River Operations, Superintendent Resource Development at M
Slide 35: Board of Directors
Board of Directors 35 Name Experience Christopher McFadden • Lawyer with +20 years experience in exploration and mining (Chairman) • Commercial General Manger for Rio Tinto Richard Patricio • Lawyer with +15 years capital markets experience • CEO and President of Mega Uranium Trevor J. Thiele • Char
Slide 36: Advisory Board
Advisory Board 36 Charles Scorer • Over 25 years commercial and operational experience in nuclear fuel market (Uranium Marketing) • Founder and ex-CEO of Nufcor International Andrew Browne (Technical • Uranium geologist with +43 years experience Advisory Head) • Key member of exploration teams at Ja
Slide 37: End Notes
End Notes 37 Technical Disclosure The scientific and technical information in this presentation with respect to the PEA has been reviewed and approved by David Robson, P.Eng., M.B.A. and Jason Cox, P.Eng. of RPA, each of whom is a “qualified person” under National Instrument 43-101 – Standards of Di