Core Insights - Centrus Energy (LEU) and NexGen Energy (NXE) are positioned to significantly contribute to the global nuclear energy supply chain [1] Company Overview - Centrus Energy, based in Bethesda, MD, has a market capitalization of $4.7 billion and supplies nuclear fuel components internationally [2] - NexGen Energy, located in Vancouver, Canada, is valued at $6.2 billion and is developing the Rook I Project, expected to be the largest low-cost uranium-producing mine globally [2] Market Conditions - Uranium prices have recently rebounded to around $80 per pound due to renewed buying from major funds and expanding nuclear ambitions [3] - The long-term outlook for uranium remains favorable, driven by rising electricity demand and the transition to clean energy [4] Centrus Energy Analysis - Centrus Energy's revenues for Q3 2025 reached $75 million, a 30% increase year-over-year, with the Low-Enriched Uranium segment contributing $44.8 million [7] - The company reported an operating loss of $16.6 million but achieved a net income of $3.9 million due to tax benefits and higher investment income [8] - Centrus has a $3.9 billion revenue backlog from long-term contracts with major utilities through 2040 [9] - The company is the only licensed U.S. producer of High-Assay, Low-Enriched Uranium (HALEU) and plans to expand its enrichment plant in Piketon, OH [10][11] NexGen Energy Analysis - NexGen Energy's Rook I Project covers approximately 35,065 hectares and aims to produce up to 30 million pounds of uranium annually at a low cost of C$13.86 [12][13] - The Arrow Deposit within the Rook I Project has measured resources of 3.75 million tons at a grade of 3.10%, containing 257 million pounds of uranium [14] - NexGen has secured contracts to supply 1 million pounds of uranium annually from 2029 to 2033, providing financial stability [15] - As a development-stage company, NexGen reported an adjusted loss of three cents per share in Q3 2025 [16] Earnings Estimates - Centrus Energy's earnings estimate for 2025 is $4.66 per share, reflecting a 4.2% year-over-year growth, while the 2026 estimate is $3.85 per share, indicating a decline of 17.2% [18] - NexGen Energy's earnings estimate for 2025 is a loss of 35 cents per share, wider than the previous year's loss, with a similar loss projected for 2026 [19] Price Performance & Valuation - Centrus Energy shares have increased by 273.8% over the past year, while NexGen Energy shares have risen by 36.4% [21] - Centrus Energy trades at a forward price-to-book multiple of 12.94X, compared to NexGen Energy's 9.24X [23] Investment Outlook - Centrus Energy is better positioned in the near to medium term due to its unique status as the only licensed HALEU producer in the U.S. and its substantial backlog [24] - NexGen Energy, while having strong margin potential, remains in the development phase and continues to incur losses [25]

Core Insights - L1 Long Short Fund achieved a return of 13.3% in Q3 2025, with a year-to-date performance of 28.7% driven by dovish Fed commentary, strong U.S. earnings, and momentum in A.I. investment [1] - The portfolio benefited from rising Gold and Copper prices, with 19 stocks contributing over 0.5% to returns [1] Company Highlights - NexGen Energy Ltd. (NYSE:NXE) is a key investment in the L1 Long Short Fund, focusing on uranium properties in Canada [2][3] - NexGen Energy Ltd. reported a one-month return of 15.42% and a 52-week gain of 25.73%, with a closing stock price of $9.43 and a market capitalization of $6.173 billion as of December 11, 2025 [2] - The fund emphasizes investing in companies with tier one projects in Western jurisdictions, considering them as globally strategic assets [3]

Core Thesis - NexGen Energy Ltd. is positioned favorably in the uranium sector with multiple catalysts aligning to enhance its market standing, supported by bullish analyst sentiment and raised price targets indicating potential double-digit upside from current levels [2][6]. Company Overview - NexGen Energy Ltd. focuses on the acquisition, exploration, evaluation, and development of uranium properties in Canada, with its shares trading at $8.96 as of November 28th and a trailing P/E of 47.82 [1][2]. Key Projects - The flagship Rook I Project in the Athabasca Basin is recognized as a tier-1 uranium asset due to its high grade, large scale, and strong economic profile, positioning NexGen ahead of competitors in lower-grade or riskier regions [3][5]. Exploration and Development Progress - Recent high-grade results from the Patterson Corridor East zone indicate significant growth potential, with mineralization extending in multiple directions, suggesting further resource expansion beyond current estimates [4][5]. Market Dynamics - The global uranium supply remains tight while demand is increasing due to nuclear restarts, new reactors, and geopolitical factors, which favor advanced developers like NexGen with high-grade assets [4][6]. Regulatory and Institutional Support - NexGen is advancing through critical project milestones, including ongoing engineering efforts and a key regulatory hearing with the Canadian Nuclear Safety Commission, which is essential for full construction approval [5][6]. Investment Outlook - With favorable fundamentals, high-grade discoveries, and positive market dynamics converging, NexGen is expected to differentiate itself significantly from peers, potentially leading to a re-rating and substantial upside for investors [6].

Core Viewpoint - NexGen Energy Ltd. has announced its highest-grade uranium assay results to date from its 100%-owned Patterson Corridor East (PCE) project, indicating significant mineralization potential in the region [1][2][3] Group 1: Assay Results - Drill hole RK-25-256 returned 5.5 meters at 21.4% U3O8, including 2.5 meters at 46.1% U3O8 and 0.5 meters at 74.8% U3O8, marking a notable high-grade intersection [1][6] - The high-grade intersection in RK-25-256 is located 119 meters down-dip from drill hole RK-25-232 and 51 meters down-dip from RK-25-254, suggesting a continuous high-grade mineralization trend [2] Group 2: Mineralization Insights - The frequency of ultra-high-grade intercepts at both Arrow and PCE indicates a significant mineralizing event in the southwest Athabasca Basin [4] - The PCE project is interpreted to have a minimum dip extent of 215 meters of intense high-grade uranium mineralization from RK-25-254 to RK-24-222 [2] Group 3: Company Strategy and Positioning - NexGen is developing a uranium project portfolio aimed at providing a multi-generational nuclear fuel supply, emphasizing economic, environmental, and social outcomes [5] - The company controls over 190,000 hectares across 140 kilometers in the southwest Athabasca Basin, positioning itself as a leader in uranium exploration and development [5]

Core Viewpoint - NexGen Energy Ltd. is participating in the Canadian Nuclear Safety Commission hearings for the final approval of its Rook I Project, marking a significant milestone after over twelve years of environmental studies and community engagement [2][4]. Project Overview - The Rook I Project is designed to be the largest low-cost uranium mine globally, adhering to high environmental and social governance standards [5]. - A video presentation during the hearing highlights the project's low environmental impact and its positive effects on local communities [3]. Regulatory Process - The regulatory approval process began in 2019, with key milestones including the Draft Environmental Impact Statement submission in 2022 and the Provincial Environmental Assessment approval in November 2023 [4]. - The CNSC staff deemed NexGen's licence application sufficient in September 2023, and the Final Environmental Impact Statement was accepted in January 2025 [4]. Company Background - NexGen Energy is focused on providing clean energy fuel and is headquartered in Vancouver, British Columbia, with operations in Saskatchewan [8]. - The company is listed on multiple stock exchanges, including the Toronto Stock Exchange and the New York Stock Exchange, allowing global investor participation [8].

Core Insights - NexGen Energy Ltd. announced significant high-grade geochemical assay results from its 100%-owned Patterson Corridor East (PCE) discovery, indicating strong continuity of high-grade uranium mineralization [2][3][5] Group 1: Assay Results - The assay results confirm a high-grade subdomain over a vertical extent of 330 meters, with notable intersections including RK-25-231 (8.0m at 1.4% U3O8) and RK-25-241 (8.5m at 1.3% U3O8) [3][5] - Drillhole RK-25-254 returned 10.5 meters at 11.3% U3O8, including 4.0m at 29.4% U3O8 and 0.5m at 56.2% U3O8, showcasing the potential for high-grade mineralization [8][5] - A secondary high-grade subdomain was identified in RK-25-234 with 0.5m at 8.3% U3O8, indicating further exploration potential [3][5] Group 2: Project Development - The PCE drilling program is characterized by a systematic and impactful approach, similar to the successful Arrow deposit, which is located 3.5 kilometers west of PCE [5][6] - The overall mineralized footprint at PCE is currently defined as 600m along strike and 600m of vertical extent, with a high-grade subdomain measuring 210m in strike and 335m in vertical extent [5][6] - The company holds a significant land package of 190,000 hectares in the southwest Athabasca Basin, which is known for its uranium deposits [5][6] Group 3: Strategic Positioning - NexGen is well-positioned to leverage the growing demand for uranium, contributing to North America's critical mineral and energy security strategy [7][6] - The company emphasizes elite standards in environmental performance and social engagement, aligning with global trends towards sustainable mining practices [7][6] - The ongoing exploration and development efforts at PCE are expected to enhance NexGen's leverage in the uranium market for the coming decades [7][6]

Core Insights - The article emphasizes a versatile investment strategy suitable for various investor profiles, including dividend investors, value seekers, and those looking for growth opportunities [1] Summary by Categories Investment Strategy - The investment strategy described is adaptable, catering to different types of investors, whether they focus on dividends, value propositions, or growth opportunities [1]

Core Insights - Nuclear energy is emerging as a vital solution for clean and reliable energy, particularly as the world shifts away from fossil fuels [2][9] - Innovations in nuclear technology, such as small modular reactors (SMRs) and portable microreactors, are enhancing the safety, efficiency, and accessibility of nuclear power [3][9] - The nuclear energy sector is supported by government initiatives and growing demand for stable energy sources, particularly from data centers and AI technologies [19][21] Uranium Miners - Cameco Corp. is one of the largest uranium producers globally, operating high-grade mines in Canada, the U.S., and Kazakhstan, positioning itself to meet rising global demand [7] - Denison Mines Corp. focuses on high-grade uranium projects in the Athabasca Basin, with its Wheeler River Project being a significant asset for low-cost production [8] - NexGen Energy is advancing the Rook I project in Canada, aiming for innovative mining techniques to enhance efficiency and environmental responsibility [10] Nuclear Industrials - Oklo Inc. is developing ultra-compact micro-reactors for remote locations and industrial sites, utilizing recycled nuclear fuel for sustainability [11] - BWX Technologies specializes in nuclear components and services, focusing on advanced reactors and small modular reactor technology [12] - Centrus Energy Corp. supplies low-enriched uranium and is developing high-assay, low-enriched uranium for advanced reactors, positioning itself strategically in the fuel supply chain [13] Nuclear Utilities - Constellation Energy Corp. is the largest producer of carbon-free energy in the U.S., operating nuclear plants and exploring partnerships for next-generation technologies [14] - Public Service Enterprise Group operates nuclear plants in the U.S. and is committed to a low-carbon future, supporting regional power demands [15] - PG&E Corp operates California's last nuclear power plant, the Diablo Canyon Power Plant, ensuring a stable, low-emission power supply [16]

Financial Data and Key Metrics Changes - Spot prices for uranium rose 16% to $83.25 per pound during Q3 2025, driven by increased market liquidity [7] - The term price for uranium increased to $86 per pound, the highest level since May 2008, indicating a shift towards a higher price environment [8][10] Business Line Data and Key Metrics Changes - The company has signed four contracts and is engaged in 600 additional negotiations with utilities, reflecting a strong demand for diversified uranium supply [26][27] - The company reported a cash balance of approximately CAD 1.2 billion, positioning it well for upcoming development activities [16] Market Data and Key Metrics Changes - The uranium market is experiencing unprecedented demand, with forecasts indicating annual uranium demand could reach 530 million pounds in the next 15 years, compared to current demand of just under 180 million pounds [10][11] - The U.S. government announced an $80 billion investment in new commercial reactors, further driving demand for uranium [4][5] Company Strategy and Development Direction - The company is preparing for its first commission hearing for the Rook I project, which is expected to set new benchmarks in economic, environmental, and social stewardship [2][13] - The company emphasizes the importance of supply diversification and is positioned as a key provider to allied nations' uranium needs [12][24] Management's Comments on Operating Environment and Future Outlook - Management highlighted a clear alignment of policy and capital in support of nuclear energy, with utilities actively seeking long-term supply contracts [3][11] - The company anticipates continued strength in uranium prices as it enters a seasonally strong contracting period [11] Other Important Information - The company successfully raised AUD 1 billion in a global equity offering, strengthening its financial position for the Rook I project [15][16] - The company has maintained a strong focus on community engagement and has secured support from local indigenous nations for the Rook I project [14][15] Q&A Session Summary Question: What has been your experience in dealing with utilities and building confidence in delivery targets? - The company is actively engaged in multiple negotiations with utilities and has signed four contracts, with pricing terms higher than reported market levels [26][27] Question: Can you expand on what you mean by utilities looking to finance NexGen into production? - The company is exploring various financing options, including prepayments and project interests, reflecting utilities' proactive approach to securing future supply [31][32] Question: How do you see the timing of the Rook I project affecting utility behavior? - The timing of permit approvals is not a significant factor in current negotiations, as contracts are based on the commencement of commercial production [37][38] Question: What is the current status of detailed engineering for the project? - Detailed engineering for the first 18 months of construction is complete, and the company is well-prepared for the next phases [45][46] Question: How do you plan to manage production levels in relation to uranium prices? - The company has a flexible production strategy, capable of adjusting output based on market conditions while maintaining profitability [49][50] Question: Are there plans for exploring additional acreage for future projects? - The company is focused on long-term exploration and development, with significant potential remaining in the Patterson Corridor [53][54]

Financial Performance - The company recorded a net loss of CAD 129,220 for the three months ended September 30, 2025, compared to a net income of CAD 10,252 for the same period in 2024[3]. - For the nine months ended September 30, 2025, the net loss was CAD 266,847, significantly higher than the loss of CAD 11,172 in the prior year[3]. - The company incurred total expenses of CAD 21,986 for the three months ended September 30, 2025, compared to CAD 18,712 in the same period of 2024, an increase of approximately 12.2%[3]. - Share-based payments for the three months ended September 30, 2025, were CAD 11,066, up from CAD 8,236 in the prior year, representing a rise of approximately 34.3%[3]. - The company reported a net loss of $266,847 thousand for the nine months ended September 30, 2025, with an additional other comprehensive loss of $39,633 thousand[10]. Assets and Liabilities - As of September 30, 2025, NexGen Energy Ltd. reported total assets of CAD 1,566,177, a decrease from CAD 1,657,243 as of December 31, 2024, representing a decline of approximately 5.5%[2]. - Current liabilities increased to CAD 637,861 from CAD 478,111, marking a rise of approximately 33.4%[2]. - Cash and cash equivalents at the end of the period were CAD 305,985, down from CAD 476,587 at the beginning of the period, indicating a decrease of approximately 36%[4]. - As of September 30, 2025, NexGen Energy Ltd. reported an accumulated deficit of $648,410 thousand and a working capital deficit of $319,990 thousand, including convertible debentures[10]. - The company had cash reserves of $305,985 thousand as of September 30, 2025, and completed an equity financing with gross proceeds of approximately $953 million subsequent to this date[10]. Exploration and Evaluation - Exploration and evaluation assets increased to CAD 731,611 from CAD 584,889, reflecting a growth of approximately 25.1%[2]. - Total deferred exploration and acquisition costs increased to $731,611 thousand as of September 30, 2025, up from $584,889 thousand at the end of 2024, reflecting an addition of $146,722 thousand during the period[22]. - NexGen Energy Ltd. is engaged in the exploration and development of uranium properties in Canada and does not have revenues, historically incurring recurring operating losses[10]. Share Capital and Financing - The balance of share capital increased from $1,009,130 thousand at December 31, 2023, to $1,405,968 thousand at December 31, 2024[5]. - The company issued 5,186,669 shares for stock options, resulting in proceeds of $23,586 thousand, and recorded share-based payments of $23,227 thousand[10]. - The company raised $134,948,000 from the issuance of 13,000,800 shares under its at-the-market equity program in 2024, with share issuance costs of $4,993,000[37]. - The company completed a non-brokered private placement of 2.5 million common shares at $2.50 per share for gross proceeds of $6,250 on February 28, 2025[47]. - On October 15, 2025, the Company closed an equity financing offering 33,112,583 common shares and 45,801,527 common shares at a price of $12.08 per share, resulting in gross proceeds of approximately $953 million[66]. Investments and Impairments - The investment in associate decreased to $158,131,000 as of September 30, 2025, down from $229,594,000 at December 31, 2024, primarily due to an impairment loss of $81,009,000[24]. - The company reported a fair value of $231,032,000 for the investment in associate as of September 30, 2025, based on the closing market price of IsoEnergy[24]. - IsoEnergy reported a net income of $3,506,000 for the nine months ended September 30, 2025, compared to a net loss of $42,135,000 for the year ended December 31, 2024[25]. Cash Flow and Financial Position - The company reported cash used in operating activities of CAD 10,437 for the three months ended September 30, 2025, compared to CAD 2,836 in the same period of 2024, indicating a significant increase in cash outflow[4]. - The company's cash position as of September 30, 2025 was $305,985, down from $476,587 as of December 31, 2024[55]. - The total current liabilities as of September 30, 2025 were $637,861, including convertible debentures[56]. - The company recognized a loss of $79,980 in the consolidated statement of net income (loss) for the nine months ended September 30, 2025, due to changes in the fair value of convertible debentures[51]. Risk Management - The company has a notional amount of approximately $82.5 million in a USD/CAD forward contract to hedge foreign currency risk associated with US dollar interest payments on convertible debentures[59]. - The Company is exposed to equity price risk, which may adversely impact earnings due to significant movements in share prices and the valuation of convertible debentures[62]. - The Company closely monitors commodity prices, particularly uranium, as future declines may affect the valuation of long-lived assets[63]. - The Company holds cash in bank accounts with variable interest rates, and fluctuations in market rates do not significantly impact the estimated fair value of cash balances as of September 30, 2025[64]. Shareholder Information - The weighted average common shares outstanding for the three months ended September 30, 2025, were 573,112,202, compared to 564,693,987 for the same period in 2024[3]. - Basic net earnings per share for the three months ended September 30, 2025, was calculated using a weighted average of 573,112,202 common shares, compared to 564,693,987 for the same period in 2024[65]. - The diluted weighted average number of common shares for the three months ended September 30, 2025, was 573,112,202, while for the nine months it was 571,247,290[65]. - As of September 30, 2025, the company had 47,041,793 outstanding share options with a weighted average exercise price of C$6.70[42]. - Share-based payments for options vested for the three months ended September 30, 2025 amounted to $14,309, an increase from $9,337 in the same period of 2024[42].