NexGen Energy (TSX: NXE) (NYSE: NXE) (ASX: NXG) announced on Wednesday that it has signed agreements with multiple US utility companies to supply 5 million pounds of uranium.
The agreements outline the delivery of 1 million pounds of U3O8 annually between 2029 and 2033.
The company also stated that it is in discussions with additional utilities in the U.S., Europe, and Asia for similar contracts.
“Energy demand from reliable sources is increasing by the week, driven by the need to expand existing nuclear energy infrastructure and the construction of power-consuming data centers, at a time when the security of uranium supply is under significant technical and sovereign risk,” said Leigh Curyer, Chief Executive Officer of NexGen Energy.
The U.S. Energy Information Administration (EIA) forecasts record-high power consumption in 2024 and 2025, fueled by growing demand from AI usage, data-center expansion, and residential and commercial consumers.
NexGen’s Rook I project in Saskatchewan is considered one of the largest development-stage uranium deposits in Canada.
A 2021 feasibility study outlined an initial 11-year mine capable of producing 21.7 million pounds of uranium oxide (U3O8) annually during the first five years, with production estimated to reach as high as 30 million pounds per year, according to an update in August. With a C$1.3 billion capital expenditure, it is projected to be the largest and lowest-cost uranium mine in the world.
The project contains 3.7 million measured and indicated tonnes, grading 3.1% U3O8.
Last month, NexGen successfully completed the final federal technical review for the project. It is now eligible to schedule a federal commission hearing, the final step before securing federal project approval.
Shares of NexGen Energy rose 4.5% in New York by 10:28 a.m. EDT. The company currently has a market capitalization of $4.79 billion.
Source: MINING.COM – Read More