Nexgen Energy Ltd. · TSX:NXE
Nexgen Energy — Investor Presentation (November 2020)
36 slides from Nexgen Energy's investor presentation, November 2020
Slide 1: NexGen Energy Ltd. Corporate Presentation
NexGen Energy Ltd. Corporate Presentation PROUD PROUD PARTNER PARTNER November 2020
Slide 2: Forward Looking Statements
Forward Looking Statements 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 prospectu
Slide 3: NexGen Overview
NexGen Overview € ©NexGen Delivering the clean energy of the future. Energy Ltd
Slide 4: Arrow: A Disruptive Mineral Asset
Arrow: A Disruptive Mineral Asset Low Cost(1) Long Life Large (2,3) Arrow 25.4 Shaft #1 Surfac Shaft #2 (Production, e (Exhaust Air) $50 Access) Overburd Cigar Lake 15.3 en Bedrock McArthur River 13.7 Inferred $40 Resources Tortkuduk & Myunkum 7.8 Cash Cost (US$/lb) Olympic Dam 5.2 Inferred Resource
Slide 5: Summary
Summary NexGen Energy Ltd. • Corporate office in Vancouver with primary operations head office in Saskatoon. • Founded in 2011 with objective of discovering and developing the World’s next generation uranium mine to fuel global clean energy initiatives. • Secured global financing from pre-eminent in
Slide 6: NexGen History
NexGen History 2014 2016 2017 2018 2019 2020 • February 14, • NexGen expanded • NexGen announced • NexGen • Appointed former • NexGen 2014 discovery drill campaign and filing of 2nd updated announced filing Premier of announced of Arrow Deposit, published largest Mineral Resource of 3rd updated Sask
Slide 7: Investment Highlights
NexGen Energy Ltd. Investment Highlights • World-class generational • Highly experienced • Strong and well-respected • Back end of licensing and asset; management team with shareholder base; permitting phase of project; proven track record of • Arrow will deliver • Closed $110M USD • Feasibility Stu
Slide 8: Capital Structure
Capital Structure Shareholders 5% Insider Ownership 377M Shares Issued 38M Options 414M Institutional: 74% Retail: 26% Fully Diluted (1)(2) • CEF Holdings (Li Ka- Shing • Queens Road Capital • Mega Uranium 57M Conversions 2016 CEF Conversion Price: US $2.33 2017 CEF Conversion Price: US $2.69 C$65M
Slide 9: Sustainability
Winner of PDAC 2018 Bill Dennis Award For a Canadian Discovery Winner of PDAC 2019 Environmental & Social Responsibility Award Sustainability
Slide 10: Responsible Tailings Management
Responsible Tailings Management BEST-IN-CLASS • All processed waste streams to be stored in an Underground Tailings Management Facility (“UGTMF”). The UGTMF will significantly reduce the surface footprint of the Rook I project and represents continued and ongoing reclamation during operations, allow
Slide 11: Arrow Social Benefits
Arrow Social Benefits • Education • Summer student program which has seen 29 students attend since inception in 2016; • Students provided opportunity to learn a variety of mining related and non-mining related vocations; • NexGen provides bursary opportunities for post-secondary students that show e
Slide 12: Arrow Economic Benefits
Arrow Economic Benefits • Economic Capacity Building • Driller Training Program was initiated in 2018 to facilitate on job and technical training for drillers in the mining industry with 8 completing the program; • Supply chain management is key to developing local businesses to support the Project
Slide 13: Community Pandemic Response
Community Pandemic Response • Community Support during Pandemic: • Implemented Modified Breakfast Program o NexGen worked with local school administration, cooks and local grocery stores to ensure over 1,000 students continued to receive healthy and nutritious breakfast during school closure. o Impl
Slide 14: Uranium Market Overview
Uranium Market Overview é ©NexGen Delivering the clean energy of the future.
Slide 15: Uranium Demand: Drivers
Uranium Demand: Drivers Drivers: • Key global demand markets • Largest demand market is the US with 99 reactors operable in 30 states generating 55% of the clean energy capacity in the US. Significantly, the US reactors run at full capacity 92% of the time bringing large grid security implications i
Slide 16: Uranium Demand: Stats
Uranium Demand: Stats Nuclear Energy: 2016-2020: • 47 new reactors brought online globally (15% increase in reactor generation); • Based on 20 different reactor designs (9 of the 20 designs are being built for the first time; • Built in 11 countries; • 2 are newcomer countries (UAE and Belarus); • 5
Slide 17: Uranium Demand: Long-Term Contracting Market
Uranium Demand: Long-Term Contracting Market • 90% of global uranium demand is contracted under long-term negotiated offtake arrangements between miner and nuclear utility. • 10% of the market is transacted on the spot market which has, since 2011, become a carry market dominated by traders and fina
Slide 18: Focusing on Primary Supply
Focusing on Primary Supply Primary Supply Impacts • Significant mine shutdowns as a result of low prices has resulted in over 30% of global annual mined supply being removed from the market since 2016. • Significantly, a majority of the shutdowns have come from commercial companies in Western countr
Slide 19: Supply-Demand: Cycle Resolution
Supply-Demand: Cycle Resolution • 2018 Demand was ~195Mlbs U3O8 and Primary Supply was just ~135Mlbs U3O8 – the market is in a significant primary deficit which creates large inventory reductions and reliance on short-term secondary sources. This is an unstable market. • Typical year exhibits over c
Slide 20: Arrow Project
Arrow Project Chen : y= = € ©NexGen Delivering the clean energy of the future.
Slide 21: Arrow Project Overview
Arrow Project Overview Overview Pre-Feasibility Study(1) (November 2018) • Largest to be developed high grade uranium deposit in the World Mine Life (years) 9 • Largest and lowest cost uranium mine. LOM Avg. Throughput (tpd) 1,039 Operations LOM Avg. Uranium Grade (%) 3.09% • Conventional mine and m
Slide 22: Arrow: A Resilient Project
Arrow: A Resilient Project Uranium Price (US$/lb U3O8) $200 $160 $120 $80 $40 Arrow Break-Even Cost - 1968 1973 1978 1983 1988 1993 1998 2003 2008 2013 2018 Nominal $ Real $ • Arrow has robust economics and is uniquely able to sustain throughout the long-term uranium cycles. • Additionally, due to u
Slide 23: The Arrow Advantage
The Arrow Advantage Phoenix Crystalline Basement Millennium Shea Creek 4 Centennial
Slide 24: Dominant Land Position in the Basin
Dominant Land Position in the Basin ! Gunnar ! ! Lorado • NexGen holds over NORTHWEST ATHABASCA 209,000 hectares of Athabasca Basin Projects Saskatchewan, Canada prospective exploration ground in the southwest Roughrider RADIO McClean Lake Athabasca Basin. Midwest Lake " "[ ! Eagle Point [ ! • Rook
Slide 25: Conventional Underground Mining
Conventional Underground Mining • The geometry of the Arrow Deposit enables decoupled production areas in both the A2 and A3, enabling flexibility of mine sequencing. • The ability to mine transverse longhole stopes through the A2 High Grade, will support significant scheduling flexibility enabling
Slide 26: Stage of Development
Stage of Development • The Project is in its 7th year of continuous technical and environmental assessment, with the majority of material requirements for submission of the EIS 100% complete, and the remaining items approaching 100% completion. 26
Slide 27: Team
€ ©NexGen Delivering the clean energy of the future.
Slide 28: Executive Team
Executive Team Name Experience Leigh Curyer • Founder of NexGen Energy and charter accountant with over 18 years of Chief Executive Officer, President & Director experience in the uranium mining sector having raised over $500M in equity • Former CFO of Southern Cross Resources where he led the permi
Slide 29: Advisory Board
Advisory Board Name Experience Charles Scorer • Served as the Chief Executive Officer of Accord Nuclear Resources in Special Advisor Uranium Marketing partnership with First Reserve Corporation. • 25+ years of commercial and operation experience in uranium and global nuclear fuel market. • Former Ch
Slide 30: Appendix
Appendix i energy of the future.
Slide 31: Resource Estimate Table
Resource Estimate Table Diff. Between Arrow 2018 & 2017 March 2017 Arrow Mineral Resource Estimate 2018 Arrow Mineral Resource Estimate Mineral Resource Estimate Tonnage Grade Metal U3O8 Tonnage Grade Metal U3O8 Tonnage Grade Metal U3O8 Structure (Tonnes) (U3O8%) (U3O8 lb) (Tonnes) (U3O8%) (U3O8 lb)
Slide 32: Arrow Project Economics Sensitivity Table
Arrow Project Economics Sensitivity Table Uranium Price ($ USD/lb After-Tax NPV8 After-Tax IRR After-Tax Cash Pay U3O8) (CAD $ Billions) (%) Back (Years) $80/lb U3O8 $6.62 80.4 0.8 $60/lb U3O8 $4.65 65.5 1.0 $50/lb U3O8 $3.66 56.8 1.2 $40/lb U3O8 $2.67 46.9 1.5 $30/lb U3O8 $1.69 35.6 1.9 $25/lb U3O8
Slide 33: Low All in Sustaining Costs
Low All in Sustaining Costs All-in Sustaining Cost PFS $ CAD/lb U308 Operating Cost 5.81 • Given the unique technical setting of the Arrow deposit combined with an innovative design regarding the Revenue Royalties 4.81 mining and milling at Arrow, creates industry leading low AISC. Reclamation Cost
Slide 34: Low Operating Costs
Low Operating Costs OPEX Per PFS PEA Variance OPEX Per PFS PEA Variance Tonne $ CAD/t $ CAD/t Pound $ CAD/lb $ CAD/lb U308 U308 U308 U308 Mining 157.31 131.87 19% Mining 2.35 3.61 (35%) Mineral 164.65 110.91 48% Mineral 2.46 3.03 (19%) Processing Processing General 67.11 63.20 6% General 1.00 1.73 (
Slide 35: Cumulative Revenue
Government Revenues Chart • Potential of CAD Arrow Deposit PFS - Government Revenue $5.4 Billion in total Government Revenue over the life of asset. • Potential of CAD $3.9 Billion in Cumulative Revenue Revenue by Year Saskatchewan Government revenue over the life of asset. • Average annual gross re
Slide 36: End Notes
End Notes Technical Disclosure The scientific and technical information in this presentation with respect to the PEA and PFS has been reviewed and approved by Paul O’Hara, P.Eng., P.Geo. of Wood, David Robson, P.Eng., M.B.A. and Jason Cox, P.Eng. of RPA, each of whom is a “qualified person” under Na
NexGen Energy — Investor Presentation (November 2020) on 6ix