NexGen Energy (NYSE:NXE) said construction of its Rook I uranium project remained on schedule and on budget during the third quarter of 2026, as the company advanced site infrastructure and prepared for shaft sinking next year.
Founder, President and CEO Leigh Curyer said NexGen had CAD 822 million in cash and short-term investments at the end of the quarter, enough to fund activities through the end of the third quarter of 2027. The company also held uranium inventory valued at CAD 341 million, although Curyer said it does not intend to sell that inventory to finance construction.
The update comes as NexGen seeks additional financing and negotiates uranium sales agreements with utilities. Curyer said the company expects to use a combination of financing alternatives, but did not provide a timetable for announcements.
Rook I construction advances
NexGen held a ceremonial groundbreaking for Rook I on Aug. 13, marking the start of major post-approval construction activities. Curyer said work accelerated during the third quarter, with earthworks and surface infrastructure progressing across the site.
Earthworks for an expanded, 5,840-foot airstrip were completed in October, while construction facilities pad foundations were substantially complete. The shaft-sinking contractor has mobilized to the site, and the freeze plant is scheduled to arrive in January 2027. Temporary freezing is set to begin in March, followed by the start of shaft sinking at the beginning of the third quarter, Curyer said.
Curyer said the signed shaft-sinking contract was in line with the project’s August 2024 cost estimate. He cautioned, however, that labor is a large component of the work and that NexGen would pay if those costs rise. The contractor has incentives tied to sinking rates, he said.
Asked about project spending, Curyer confirmed that 2027 remained the expected peak capital expenditure year. JPMorgan analyst Bill Peterson had estimated spending at approximately CAD 600 million for that year.
Curyer also said NexGen maintained its August 2024 production cost estimate of just under US$10 per pound and an all-in cost estimate of about US$14 per pound. He said hourly labor costs had not increased significantly over 2025 and 2026.
Financing and uranium sales
NexGen is considering strategic financing, prepayments and project financing as it advances Rook I. Curyer said the company was negotiating potential prepayments with entities both inside and outside the United States.
Any prepayment arrangement would be guided by NexGen’s aim of retaining exposure to uranium prices at the time of delivery, he said. The company’s sales strategy calls for shorter contract durations and prices tied to prevailing market levels when uranium is delivered.
Curyer said NexGen was in advanced discussions with utilities around the world and expected to execute additional sales agreements in coming periods. He said the long-term uranium price stood at US$99 per pound as of Oct. 31, while three- and five-year forward prices had reached US$105 and US$112 per pound, respectively.
Chief Commercial Officer Travis McPherson said the company had not seen a material change in utility conversations following the U.S. midterm elections. He said interest in NexGen’s project and product extended beyond the United States.
Exploration at Patterson Corridor East
NexGen also reported continued exploration progress at Patterson Corridor East, or PCE, about 3.5 kilometers east of the Arrow deposit. Curyer said the high-grade subdomain expanded by 17% during the quarter to 644 meters, prompting the company to add a fifth drill rig to the program.
The company is targeting an initial PCE resource statement around the start of the third quarter of 2027, subject to the timing of assay results. Curyer cautioned that resource estimation, engineering and environmental studies, and permitting would be required before development.
At Rook I, Curyer said no further geotechnical work was needed before excavation of the exhaust shaft begins. He said the company had drilled pilot holes through the planned exhaust and production shafts and completed broader testing across the project area.
About NexGen Energy (NYSE:NXE)
NexGen Energy is a Canadian uranium exploration and development company focused on advancing uranium projects toward potential production. Its activities include mineral exploration, project planning, engineering and permitting. The company’s flagship asset is the Rook I Project in Saskatchewan’s Athabasca Basin, a major uranium-producing region. Rook I contains the Arrow deposit, which NexGen is working to develop as a potential uranium mine. NexGen’s operations are centered in Canada. The company is in the development stage and is not currently a uranium producer.
