Cantor analyst: 'This is the best uranium PEA we have ever seen'
August 6, 2017

NexGen Energy Ltd. announced its maiden preliminary economic assessment (PEA) of the "basement-hosted" Arrow Deposit on July 31. In its press release, the company outlined the following highlights:
· After-Tax Net Present Value (NPV8%) = CAD $3.49 Billion
· After-Tax Internal Rate of Return (IRR) = 56.7%
· Average Annual Production (Years 1-5) = 27.6 M lbs U3O8
· Average Annual Production (Life of Mine) = 18.5 M lbs U3O8
Based on a uranium price of $50/lb, the company anticipates Saskatchewan royalties over the life of the mine of CA$2.98 billion.
The PEA "is based on the mineral resource estimate announced by the Company in March 2017. . .that comprised an Indicated Mineral Resource of 179.5 M lb of U3O8 contained in 1.18 M tonnes grading 6.88% U3O8, and an Inferred Mineral Resource of 122.1 M lb of U3O8 contained in 4.25 M tonnes grading 1.30% U3O8," the company stated. "The PEA does not include the results of the Company's winter or summer 2017 drill programs, which will total over 66,000 m of additional drilling."
eacting to NexGen's announcement in an Aug. 1 research report, Cantor Fitzgerald analyst Rob Chang declared, "This is the best uranium PEA we have ever seen.
Moreover, the forecast annual production rate of 27.6M lbs U3O8 over the first five years would place Arrow as the largest uranium mine by production in the world and make NexGen the second largest producer behind only Kazatomprom. We are reiterating our Buy recommendation and increasing our target price to $5.65/share, or by 9%."
"The maiden PEA confirms our view that Arrow is a once-in-a-generation type of deposit."
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