Nexgen Energy

Nexgen now has all of the key permits that it needs to move forward with the development of the "king-maker" Rook 1 uranium project. The stock hasn't moved much since the last remaining permit approval – likely because there were a lot of people waiting for that news as a liquidity event. Overall, I'm noticing that NXE is correlated quite a bit with the broader market tape. As a result, the trader in me is a bit cautious here. This is the kind of name that I could flatten in a bad market if it looked like people were indiscriminately selling everything. NXE is pretty well-known and broadly owned, so there are more people to sell it if the market gets in a fit about something. I've said it before, and I'll say it again, Cameco should buy this with its paper.

NXE was the subject of a short report in early February, which was odd timing given that the company was heading into the hearings for its final permits. This is a project of national interest, has the backing of all First Nations in the area, and is in the can-do province of Saskatchewan. If the Federal permitting here somehow gets screwed up, all I can say is that you know what to do next election. With the hearings now complete and the support that the Rook 1 project has at all stakeholder levels, I think that final approvals are just a formality. There was recent press chatter that a data-centre builder was considering financing NXE's mine construction which would be a good move from a PR perspective, so maybe that happens. Personally, I really think that Cameco should make a bid for NXE soon after permits are in hand... the Athabasca basin is Cameco's sandbox and Cameco has the stock price and market cap to buy NXE. If CCO were to somehow miss NXE, I think it would be a big strategic error, so place your bets. The only question in that scenario is whether or not NXE holders get a spinco containing the emerging PCE (Patterson Corridor East) discovery – as a shareholder, I would certainly appreciate it.

It's all about receiving final government approvals for the Rook 1 Project in February 2026, which suddenly isn't that far away. Meanwhile, NXE has been having some very nice exploration success at what it calls Patterson Corridor East (PCE).

Cameco can't let this slip through its fingers and others would love to own it, so NXE is a very live card. For me, the dream scenario would involve seeing NXE get bought by a larger player with the PCE deposit spun out into a new vehicle.

Tick tock. We are now only about three months away from when final permits are expected for NXE. No change in my view here. The world has an insatiable need for power and more uranium will be needed for that. Long and strong.

My thesis on Nexgen is very simple. Nexgen's Rook project is the largest and highest grade development-stage uranium project in Canada and probably one of the best undeveloped mineral deposits in the world, of any commodity. Note that the Rook project is located in the Athabasca Basin, Saskatchewan, which is often referred to as the "Saudi Arabia of uranium". With a ~$7B market cap, NXE isn't exactly cheap or under the radar, but its main asset is an absolute King Maker in the uranium industry, so I believe it will eventually be acquired by a larger player. NXE is awaiting its final government approvals in or around February of next year (2026) at which point it will be one of the hottest permitted assets in the hands of an independent mining company in the market. The Rook project has been singled out by the Canadian government as a project of national interest and the project has strong support from the First Nations involved. This asset is truly unique and I see little reason to do anything other than patiently hold it in the current market environment. This is a stock that I would add to if it had a meaningful pullback into the $9.50-10.00 range, but I am content to hold my existing position at current levels.