Nexgen Energy Ltd. · TSX:NXE
Nexgen Energy — Investor Presentation (July 2017)
26 slides from Nexgen Energy's investor presentation, Jul 31, 2017
Slide 1: NexGen: Delivering the Energy of the Future
NexGen: Delivering the Energy of 1 the Future July July 31,2017 2017– –Corporate Presentation Maiden Preliminary Economic Assessment
Slide 2: Forward Looking Statement
2 Forward Looking Statement 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: Context and Methodology of PEA
3 Context and Methodology of PEA Completed by: Ø Roscoe Postle Associates Inc. (“RPA”) – Overall Project, Mining, Geology, Cost Compilation and Economics Ø BGC Engineering – Rock and Soil Mechanics Ø DRA – Processing and Infrastructure Ø Arcadis – Radiological Management & Considerations Ø Clifton &
Slide 4: Positive Results: PEA Financial Highlights
4 Positive Results 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 Prod
Slide 5: Strategic Global Position
5 Strategic Global Position Recovered Uranium 30.0 27.2 28.4 27.7 27.6 27.0 3.50% 24.9 Head Grade (% U3O8) 25.0 20.7 3.00% 19.1 2.50% (M lbs U3O8) 20.0 12.8 12.3 2.00% 15.0 10.6 8.9 8.4 8.3 1.50% 10.0 1.00% 5.0 3.2 0.50% - 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
Slide 6: Future Uranium Supply Deficit
6 Future Uranium Supply Deficit Estimated supply deficit of 40- 70Mlbs in 2023 • Estimated 1 billion pounds of uncontracted demand over next decade with majority of long- term contracts expiring in 2019/2020.
Slide 7: Powering Electric Vehicle Growth
7 Powering Electric Vehicle Growth • During January to March 2016 916,000 New Vehicles registered for the first time • At end of March 2016 36.7 million Vehicles licensed for use on roads in Great Britain Source: United Kingdom Department of Transport, 9 June 2016
Slide 8: Cash Flow Generation
8 Cash Flow Generation Unit Years 1-5 Years 1-10 LOM Recovered Production Tonnes per Day tpd 1,430 1,445 1,448 Average Annual Pounds U3O8 ‘000 lbs U3O8 27,591 22,771 18,549 Average Annual Grade U3O8 % 2.62 2.14 1.73 Total Pounds U3O8 ‘000 lbs U3O8 137,955 227,713 267,203 Unit Operating Cost per Tonn
Slide 9: Mining Method: Long Hole Stoping
9 Mining Method: Long Hole Stoping • Long Hole Mining: Transverse and Longitudinal • Shaft access • Internal decline • Cemented Paste Fill Tailings using Underground Tailings Management Facility (UGTMF) to reduce surface footprint
Slide 10: Conventional Processing
10 Conventional Processing Process Schedule 600 3.50% 500 3.00% Conventional processing facility: Process Throughput (ktpa) 2.50% 1. Crushing and Grinding 400 U3O8 Grade 2. Acid Leaching (8 hour leach cycle) 2.00% 3. Liquid-Solid Separation via Counter 300 Current Decantation (CCD) 1.50% 4. Solvent
Slide 11: Conservative Build Up of Capital Costs
11 Conservative Build Up of Capital Costs Total Capital Cost: • Initial C$1.19 B • Sustaining: C$0.47 B Initial Capital Costs Sustaining Capital 1400000 450000 400000 1200000 350000 1000000 300000 C$ '000 800000 250000 C$ '000 200000 600000 150000 400000 100000 200000 50000 0 0
Slide 12: Conservative Build Up of Operating Costs
12 Conservative Build Up of Operating Costs • Due to conventional underground mining methods, unit operating costs are well understood and established based on first principles. • Conservative underground mining cost per tonne. Notes: Unit operating costs are the sum of site-based mining, processing
Slide 13: Lowest Cost Conventional Mine
13 Lowest Cost Conventional Mine • Despite conservative per unit cost assumptions, due to technical setting and grade, per pound cost is estimated to be the lowest of any conventional mine globally. • Highlights the competitive advantage NexGen has with simple technical setting and high grade profil
Slide 14: Arrow is One of the Highest Return Mining Projects Globally
14 Arrow is One of the Highest Return Mining Projects Globally Uranium Other Commodities Athabasca Basin Undeveloped (1) U Cu Cu Cu Cu Cu Au Au Zn Ag Au Au Au Au Au Zn Au Au 106% $6.1bn $4.7bn $4,000 60% 57% $3,000 45% Project After-Tax NPV (US$mm) 42% 43% 43% Project After-Tax IRR (%) 37% 34% 35% 3
Slide 15: The Next 18 Months
15 The Next 18 Months H2/2017 2018 Complete Summer Update resource 2017 drill program. model. --- --- Advanced site Continue advanced characterization, engineering and baseline monitoring, environmental geotechnical, baseline studies. hydrogeological and --- metallurgical studies. Publish maiden Pre
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Slide 17: End Notes
17 End Notes 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
Slide 18: Appendix
18 Appendix
Slide 19: The Arrow Advantage
19 The Arrow Advantage 100 m 10 m competent Sandstone-hosted deposits (egress type) Arrow is a basement-hosted zone tend to have mining challenges due to (ingress type) which NexGen the mineralization is ‘perched’ within anticipates will not require freezing the unconsolidated and wet Athabasca to e
Slide 20: Conservative Build Up of Capital Costs
20 Conservative Build Up of Capital Costs 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
Slide 21: Capital Structure
21 Capital Structure Shares Issued 338,341,464 Fully Diluted 370,980,910 Cash ~C$190 million Insider Ownership 5% Options 32,639,446 CEF Conversion 48,083,337 *Share Structure and Cash as at July 27, 2017
Slide 22: NexGen's Projects
22 NexGen’s Projects ! Gunnar ! ! Lorado NORTHWEST ATHABASCA Athabasca Basin Projects Saskatchewan, Canada Scale - 1:1 600 000 Projection - NAD 1983 UTM Zone 12N Roughrider RADIO McClean Lake Midwest Lake " "[ ! Eagle Point Cluff Lake Natona Bay [ ! ! Collins Bay ! ! NORTH THORBURN " [ Rabbit Lake "
Slide 23: Rook I Project Overview
23 Rook I Project Overview Arrow is the largest undeveloped uranium deposit in the Basin. Opportunity for more zones of mineralization across the property which is currently being tested.
Slide 24: Arrow Mineral Resource Estimate
24 Arrow Mineral Resource Estimate Updated Indicated Mineral Resource Estimate Tonnes Grade % U3O8 Contained U3O8 A2 High Grade 400,000 18.84 164,900,000 A2 790,000 0.84 14,500,000 Total Indicated 1,180,000 6.88 179,500,000 Updated Inferred Mineral Resource Estimate Tonnes Grade % U3O8 Contained U3O
Slide 25: Arrow: Canada's Largest Uranium Deposit
25 Arrow: Canada’s Largest Uranium Deposit Source: All information is sourced from issuers websites and has not been verified. All amounts are net amounts owned by operator.
Slide 26: Highest Grade Uranium Deposits in Canada
26 Highest Grade Uranium Deposits in Canada Source: All information is sourced from issuers websites and has not been verified. Based on deposits with greater than 100Mlbs U3O8 in Indicated resources. *Cigar Lake and McArthur River grades are reserve grades.