NexGen doubles uranium sales volumes with new US utility contract
Uranium developer NexGen Energy has doubled its contracted sales volumes to more than 10-million pounds, signing a second offtake agreement with a major US utility as the company advances its flagship Rook I project in Saskatchewan.
The new agreement secures the delivery of one-million pounds a year of uranium over a five-year period, beginning in the first year of commercial production. It follows NexGen’s inaugural sales contracts announced in December 2024.
“This contract reflects the significant materiality of NexGen’s Rook I project in the future supply of uranium at a time when sovereign and technical risk surrounding current production sources is at unprecedented levels worldwide,” the company stated.
The latest deal incorporates market-related pricing mechanisms that provide significant leverage to uranium prices at the time of delivery, a cornerstone of NexGen’s offtake strategy.
“NexGen’s stated strategy simply optimises the value and return on each pound produced. It reflects Rook I’s relative technical simplicity and high production volume certainty, which provides our utility clients confidence in the delivery of their future fuel requirements. At the same time, it provides NexGen shareholders unprecedented industry leading leverage to prices at the time of those deliveries,” said founder and CEO Leigh Curyer.
Curyer noted that the company is currently managing a “substantial increase in offtake activity and negotiation", describing NexGen as a “future cornerstone of the global nuclear energy market".
“In an era defined by the intersection of energy security and national security combined with surging demand for electrification, NexGen's role in enhancing energy security and independence for its power utility clients has never been more critical,” he said.
The Arrow deposit currently has 229.6-million pounds of uncontracted reserves that will be sold “optimally in the future".
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation