[Condensed Interim Consolidated Financial Statements](index=1&type=section&id=Condensed%20Interim%20Consolidated%20Financial%20Statements) [Condensed Interim Consolidated Statements of Financial Position](index=2&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) As of March 31, 2025, NexGen Energy's total assets decreased to $1.57 billion from $1.66 billion at the end of 2024, primarily due to reduced cash and a significant decrease in investment in an associate Financial Position Summary (in thousands of CAD) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,566,970** | **$1,657,243** | | Cash | $434,640 | $476,587 | | Exploration and evaluation assets | $613,758 | $584,889 | | Investment in associate | $146,982 | $229,594 | | **Total Liabilities** | **$463,559** | **$478,202** | | Convertible debentures | $424,313 | $455,783 | | **Total Equity** | **$1,103,411** | **$1,179,041** | [Condensed Interim Consolidated Statements of Net Loss and Comprehensive Loss](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Net%20Loss%20and%20Comprehensive%20Loss) For the three months ended March 31, 2025, the company reported a net loss of $50.9 million, an increase from the $34.6 million loss in the same period of 2024, primarily due to an $81.0 million impairment loss on its investment in an associate, partially offset by a $70.9 million mark-to-market gain on convertible debentures Quarterly Performance Summary (in thousands of CAD, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Mark-to-market gain (loss) on convertible debentures | $70,918 | $(16,282) | | Impairment loss on investment in associate | $(81,009) | $- | | **Net Loss** | **$(50,935)** | **$(34,620)** | | **Net Comprehensive Loss** | **$(81,290)** | **$(33,081)** | | Basic and Diluted Loss Per Share | $(0.09) | $(0.06) | [Condensed Interim Consolidated Statements of Cash Flows](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) In the first quarter of 2025, the company experienced a net decrease in cash of $42.0 million, ending the period with $434.6 million, contrasting with a $92.4 million increase in the same period of 2024, driven by reduced cash used in operating activities and a large inflow from financing activities in the prior year Cash Flow Summary (in thousands of CAD) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash used in operating activities | $(1,143) | $(9,344) | | Cash used in investing activities | $(34,317) | $(33,951) | | Cash (used in) provided by financing activities | $(6,537) | $134,961 | | **Increase (decrease) in cash** | **$(41,947)** | **$92,416** | | **Cash, end of period** | **$434,640** | **$383,159** | [Condensed Interim Consolidated Statements of Changes in Equity](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased from $1.18 billion at the beginning of the period to $1.10 billion as of March 31, 2025, primarily due to a net loss of $50.9 million and an other comprehensive loss of $30.4 million for the quarter - **Total equity decreased by $75.6 million** during Q1 2025[6](index=6&type=chunk) Key Changes in Equity - Q1 2025 (in thousands of CAD) | Item | Amount | | :--- | :--- | | Balance at December 31, 2024 | $1,179,041 | | Net loss | $(50,935) | | Other comprehensive loss | $(30,355) | | Share-based payments | $5,103 | | Shares issued on exercise of stock options | $557 | | **Balance at March 31, 2025** | **$1,103,411** | [Notes to the Condensed Interim Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [Note 1: Reporting Entity](index=6&type=section&id=1.%20REPORTING%20ENTITY) NexGen Energy Ltd. is a Canadian-based exploration and development company focused on uranium properties in Canada, publicly traded on the TSX, ASX, and NYSE, and now accounts for its approximate 31.8% stake in IsoEnergy using the equity method after losing control in December 2023 - The company is engaged in the acquisition, exploration, evaluation, and development of uranium properties in Canada[8](index=8&type=chunk) - The company is listed on the Toronto Stock Exchange (TSX), Australian Stock Exchange (ASX), and New York Stock Exchange (NYSE)[9](index=9&type=chunk) - As of March 31, 2025, NexGen owns **approximately 31.8%** of IsoEnergy's outstanding common shares and accounts for it using the equity method since losing control in December 2023[11](index=11&type=chunk) [Note 2: Nature of Operations](index=6&type=section&id=2.%20NATURE%20OF%20OPERATIONS) As a development-stage company, NexGen currently generates no revenue and has a history of operating losses, with an accumulated deficit of $432.5 million as of March 31, 2025, though management asserts its cash balance of $434.6 million is sufficient to meet obligations for at least the next fifteen months despite inherent mining industry risks - The company is in the exploration and development stage and does not have revenues, resulting in recurring operating losses[12](index=12&type=chunk) - As of March 31, 2025, the company had an **accumulated deficit of $432.5 million** and **cash of $434.6 million**, which is considered sufficient to fund operations for at least the next fifteen months[12](index=12&type=chunk) - The business involves a high degree of risk, including development, operational, regulatory, and commodity price volatility[13](index=13&type=chunk) [Note 5: Exploration and Evaluation Assets](index=8&type=section&id=5.%20EXPLORATION%20AND%20EVALUATION%20ASSETS) The carrying value of exploration and evaluation assets increased to $613.8 million as of March 31, 2025, up from $584.9 million at the end of 2024, reflecting $28.9 million in additions during the first quarter, all directed towards the Rook I project Additions to Deferred Exploration Costs - Q1 2025 (in thousands of CAD) | Category | Amount | | :--- | :--- | | General exploration and drilling | $7,149 | | Environmental, permitting, and engagement | $4,986 | | Technical, engineering and design | $6,160 | | Labour and wages | $8,781 | | Share-based payments | $1,439 | | Other | $354 | | **Total Additions** | **$28,869** | [Note 7: Investment in Associate](index=9&type=section&id=7.%20INVESTMENT%20IN%20ASSOCIATE) The company's investment in its associate, IsoEnergy, decreased significantly from $229.6 million to $147.0 million during Q1 2025, primarily due to an $81.0 million impairment loss recognized due to a significant and prolonged decline in the fair value of IsoEnergy's shares - An **impairment loss of $81,009 thousand** was recorded on the investment in IsoEnergy during the three months ended March 31, 2025[22](index=22&type=chunk) - The impairment was triggered by a significant and prolonged decline in the fair value of IsoEnergy shares due to macroeconomic circumstances[22](index=22&type=chunk) - The carrying value of the investment was adjusted to its **fair value of $146,982 thousand** as of March 31, 2025[22](index=22&type=chunk) [Note 8: Strategic Inventory](index=10&type=section&id=8.%20STRATEGIC%20INVENTORY) In May 2024, NexGen acquired 2.7 million pounds of natural uranium concentrate (U3O8) for US$250 million, financed through the issuance of convertible debentures, and as of March 31, 2025, this strategic inventory is carried on the balance sheet at its cost of $341.2 million - On May 28, 2024, the company purchased 2,702,411 pounds of natural uranium concentrate for **US$250 million**[24](index=24&type=chunk) - The acquisition was funded by issuing **US$250 million** in unsecured convertible debentures[24](index=24&type=chunk) - The strategic inventory is valued at its **cost of $341,150 thousand** as of March 31, 2025[24](index=24&type=chunk) [Note 9: Convertible Debentures](index=10&type=section&id=9.%20CONVERTIBLE%20DEBENTURES) The company has two series of unsecured convertible debentures (issued in 2023 and 2024) with a total fair value of $424.3 million as of March 31, 2025, down from $455.8 million at year-end 2024, with a Q1 2025 fair value adjustment resulting in a $70.9 million gain in net loss and a $39.4 million loss in other comprehensive loss Fair Value of Convertible Debentures (in thousands of CAD) | Description | Fair Value | | :--- | :--- | | Balance at December 31, 2024 | $455,783 | | Fair value adjustment | $(31,470) | | **Balance at March 31, 2025** | **$424,313** | - The fair value adjustment for Q1 2025 was split between a **$70.9 million gain** in net loss and a **$39.4 million loss** in other comprehensive income (related to credit risk)[25](index=25&type=chunk) [2023 Debentures](index=11&type=section&id=9.1%202023%20Debentures) These are US$110 million debentures issued in September 2023, carrying a 9% annual interest rate (6% cash, 3% common shares), convertible at the holder's option at a price of US$6.76 per share Valuation Inputs for 2023 Debentures | Input | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Volatility | 42.00% | 40.00% | | Credit spread | 17.69% | 22.89% | | Underlying share price | US$4.49 | US$6.60 | [2024 Debentures](index=11&type=section&id=9.2%202024%20Debentures) These are US$250 million debentures issued in May 2024 to fund the strategic uranium purchase, with the same 9% interest structure (6% cash, 3% shares) and convertible at a price of US$10.73 per share Valuation Inputs for 2024 Debentures | Input | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Volatility | 42.00% | 40.00% | | Credit spread | 17.69% | 22.89% | | Underlying share price | US$4.49 | US$6.60 | [Note 10: Share Capital](index=12&type=section&id=10.%20SHARE%20CAPITAL) As of March 31, 2025, the company had 569.2 million common shares outstanding, with minimal share capital activity in the first quarter (100,000 shares issued from stock option exercises), and maintains a stock option plan with 48.3 million options outstanding [Share Issuances](index=12&type=section&id=10.1%20Share%20Issuances) In Q1 2025, the company issued 100,000 shares for gross proceeds of $557 thousand from stock option exercises, following a very active 2024 which included raising $135 million from an ATM program and $226 million from an ASX offering - During Q1 2025, **100,000 shares** were issued from the exercise of stock options for gross proceeds of **$557 thousand**[33](index=33&type=chunk) - In 2024, the company raised significant capital through a **13 million share ATM program ($135M gross)** and a **20.2 million share ASX offering ($226M gross)**[34](index=34&type=chunk)[35](index=35&type=chunk) [Share Options](index=12&type=section&id=10.2%20Share%20Options) The company's stock option plan allows for granting options up to 20% of outstanding shares, with 48.3 million options outstanding at a weighted average exercise price of $6.08 as of March 31, 2025, and a share-based payment expense of $5.1 million for Q1 2025 Share Option Activity | Date | Options Outstanding | Weighted Avg. Exercise Price (C$) | | :--- | :--- | :--- | | Dec 31, 2024 | 48,616,795 | $6.09 | | Mar 31, 2025 | 48,268,462 | $6.08 | - **Share-based payments for Q1 2025 totaled $5,103 thousand**, with $3,664 thousand expensed and $1,439 thousand capitalized to exploration assets[39](index=39&type=chunk) [Note 12: Related Party Transactions](index=13&type=section&id=12.%20RELATED%20PARTY%20TRANSACTIONS) Remuneration for key management personnel in Q1 2025 was $4.1 million, a decrease from $5.9 million in Q1 2024 primarily due to lower share-based payments, and in February 2025, the company invested $6.25 million in a private placement by its associate, IsoEnergy Key Management Compensation (in thousands of CAD) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Short-term compensation | $780 | $830 | | Share-based payments | $3,317 | $5,067 | | Consulting fees | $32 | $32 | | **Total** | **$4,129** | **$5,929** | - On February 28, 2025, the Company participated in an IsoEnergy private placement, purchasing 2.5 million shares for **$6.25 million**[43](index=43&type=chunk) [Note 13: Financial Instruments and Risk Management](index=14&type=section&id=13.%20FINANCIAL%20INSTRUMENTS%20AND%20RISK%20MANAGEMENT) The company's primary financial instruments include cash, receivables, payables, derivatives, and convertible debentures, with the debentures being the most significant risk factor measured at fair value (Level 2) and sensitive to the company's share price and credit spread, exposing the company to liquidity, foreign currency, and commodity price risks, with a portion of its US dollar exposure hedged [Fair Value Hierarchy](index=14&type=section&id=13.1%20Fair%20Value%20Hierarchy) The company's convertible debentures and foreign currency derivatives are classified as Level 2 in the fair value hierarchy, with the Q1 2025 fair value gain on the debentures driven by a lower company share price, partially offset by a reduction in the company's credit spread from 22.89% to 17.69% - **Convertible debentures are classified as Level 2 fair value instruments**[45](index=45&type=chunk) - The reduction in the company's credit spread was partly due to the de-risking of the Rook I Project as hearing dates were set by the Canadian Nuclear Safety Commission[45](index=45&type=chunk) [Financial Risks](index=14&type=section&id=13.2%20Financial%20Risks) The company manages several financial risks, including liquidity risk (current liabilities of $460.8M exceed cash of $434.6M), foreign currency risk from US dollar-denominated debentures (a 10% CAD/USD change could impact net loss by $37.8 million, partially hedged), and equity and commodity price risk through its share price and uranium prices - Liquidity Risk: As of March 31, 2025, the company had **cash of $434.6 million** to settle **current liabilities of $460.8 million** (which includes convertible debentures)[50](index=50&type=chunk) - Foreign Currency Risk: The company has **US dollar net financial liabilities of US$262.9 million**. A **10% change** in the CAD/USD exchange rate would change net loss by **$37.8 million**[54](index=54&type=chunk) - Hedging: On January 22, 2025, the company entered into a USD/CAD forward contract with a notional amount of **US$60 million** to hedge future interest payments on its convertible debentures[53](index=53&type=chunk)

Core Viewpoint - NexGen Energy Ltd. has filed a Management Information Circular and mailed a Notice of Meeting to shareholders for the Annual General and Special Meeting scheduled for June 17, 2025, at 2:00 p.m. Pacific Time [1][2]. Company Overview - NexGen Energy is a Canadian company focused on delivering clean energy fuel, with its flagship Rook I Project being developed into the largest low-cost uranium mine globally, adhering to high environmental and social governance standards [8][9]. - The company is headquartered in Vancouver, British Columbia, and operates primarily in Saskatchewan, Canada [9]. Meeting Details - Shareholders are encouraged to review the meeting materials available on SEDAR+ and the company's website [2]. - The meeting will include a Q&A session following the formal business presentation [3]. Voting Matters - Shareholders will vote on several key items, including: 1. Election of directors, including a new proposed member, Sharon Birkett [6]. 2. Approval of the continuation of the Stock Option Plan, reducing the maximum from 20% to 10% of outstanding common shares [6]. 3. Re-appointment of KPMG as the independent auditor and authorization for directors to fix their remuneration [6]. 4. Setting the number of directors at ten [6]. Voting Instructions - Shareholders must submit their votes before the proxy deposit deadline of June 13, 2025, at 2:00 p.m. Pacific Time [8].

Core Viewpoint - NexGen Energy (NYSE: NXE) is perceived to have significant potential for future growth, especially given its current undervaluation and declining stock price [1] Company Analysis - The company is identified as a value dividend investment opportunity, appealing to long-term investors focused on compounding returns [1] - The emphasis is placed on the company's potential for substantial upside, making it an attractive target for investment [1] Investment Strategy - The investment approach highlighted is centered around identifying heavily undervalued companies that can provide long-term growth and dividend income [1] - The article reflects a strategy aimed at capitalizing on market inefficiencies to secure wealth through dividends over time [1]

Core Viewpoint - NexGen Energy Ltd. is progressing towards the final stages of regulatory approval for its Rook I Project, with Commission Hearing dates set for November 2025 and February 2026, following successful Environmental Assessment processes [1][2]. Company Overview - NexGen Energy is focused on developing the Rook I Project into the largest low-cost uranium mine globally, emphasizing elite environmental and social governance standards [3]. - The company is headquartered in Vancouver, British Columbia, and operates primarily in Saskatchewan, Canada, aiming to address global challenges in decarbonization, energy security, and access to power [4]. Project Development - The Rook I Project has received Provincial EA approval in November 2023 and has completed the Federal technical review, with the Federal Environmental Impact Statement accepted as final [1]. - All local communities in the Project Area have endorsed the Project through Impact Benefit Agreements, ensuring support throughout the life and closure of operations [1].

Core Viewpoint - NexGen Energy Ltd. has initiated a significant exploration drill program of 43,000 meters at the Patterson Corridor East (PCE) to expand on the mineralization discovered in early 2024, marking a 9,000 meter increase from the previous year's program [1][3] Exploration Program - The 2025 drilling program aims to test the extents of the mineralized footprint and investigate high-grade zones within the PCE area [2] - Initial results from the 2024 campaign showed that 19 out of 30 holes intersected mineralization, with 10 holes revealing high-grade mineralization exceeding 10,000 counts per second (cps) [2] - The mineralized footprint at PCE has expanded to 600 meters along strike and 600 meters vertically since its discovery [1] Financial Position - NexGen Energy is well-funded with over $800 million in cash and liquid assets, supporting both the Rook I Project and the PCE exploration program [3] Company Overview - NexGen Energy is focused on developing clean energy fuel, with its flagship Rook I Project positioned to become the largest low-cost uranium mine globally, adhering to high environmental and social governance standards [4] - The company is headquartered in Vancouver, British Columbia, and operates primarily in Saskatchewan, Canada [5]

Core Viewpoint - NexGen Energy (NXE) has seen a 4.2% increase in share price over the past four weeks, closing at $7.20, with a potential upside of 38.9% based on Wall Street analysts' mean price target of $10 [1][9]. Price Targets and Analyst Estimates - The mean estimate consists of 10 short-term price targets with a standard deviation of $0.63, indicating variability among analysts [2]. - The lowest estimate of $8.76 suggests a 21.7% increase, while the most optimistic target is $10.80, reflecting a 50% surge potential [2]. - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement direction [7]. Earnings Estimates and Analyst Agreement - Analysts have shown increasing optimism about NXE's earnings prospects, with a strong consensus on revising EPS estimates higher, which correlates with potential stock price increases [9]. - Over the last 30 days, one estimate has increased, leading to a 27.3% rise in the Zacks Consensus Estimate for the current year [10]. - NXE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11]. Caution on Price Targets - While price targets are often sought after, they can mislead investors, as empirical research shows they rarely indicate actual stock price movements [5][6]. - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]. - Investors should treat price targets with skepticism and not rely solely on them for investment decisions [8].

Group 1 - NexGen Energy (NXE) shares have increased by 5.6% over the past four weeks, closing at $7.79, with a mean price target of $9.97 indicating a potential upside of 28% [1] - The average price target consists of 10 estimates ranging from a low of $8.76 to a high of $10.80, with a standard deviation of $0.65, suggesting a relatively high agreement among analysts [2] - Analysts have shown increasing optimism regarding NXE's earnings prospects, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][9] Group 2 - Over the last 30 days, two earnings estimates for NXE have been revised upward, resulting in a Zacks Consensus Estimate increase of 27.6% [10] - NXE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [11] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a useful guide for potential price movement [12]

Commodity Supercycle and Investment Opportunities - The Natural Resources Hub offers exclusive access to high-impact investment opportunities in the ongoing commodity supercycle, focusing on hidden gems with multi-bagger potential [1] - The platform provides weekly newsletters, in-depth analyses, trade alerts, model portfolios, and a community for sharing investment ideas [2] NexGen Energy Ltd (NXE) Uranium Sales Agreements - NexGen Energy Ltd signed its first uranium sales agreements with multiple US utilities on December 4, 2024, to supply 1 million pounds per year of U3O8 from 2029 to 2033 from its Rook I project [2] - The company aims to uncover undervalued opportunities in the energy and mining sectors with multi-bagger potential [2] Investment Focus and Resources - The platform emphasizes identifying dividend growth opportunities in long-term growth industries [2] - Members gain access to proprietary research, trade alerts, and direct interaction with the analyst [2]

Core Viewpoint - NexGen Energy Ltd. has secured its first uranium sales agreements with leading US nuclear utility companies, which incorporate market-related pricing mechanisms, aligning with the company's strategy to maximize value in the strengthening uranium market [1][2][5]. Company Overview - NexGen Energy is focused on delivering clean energy fuel, with its flagship Rook I Project positioned to become the largest low-cost uranium mine globally, adhering to high environmental and social governance standards [6][7]. - The company is headquartered in Vancouver, British Columbia, and operates primarily in Saskatchewan, Canada, providing long-term economic, environmental, and social benefits [6][7]. Sales Agreements - The newly awarded contracts reflect NexGen's strategy to leverage future uranium prices, with expected gross sales revenue based on various assumed spot prices for uranium [2][3]. - The agreements include a total of 1 million pounds of U3O8 per annum, with realized weighted average prices projected to range from $79 to $150 per pound from 2029 to 2033 [3]. Market Context - There is an increasing demand for reliable energy sources, particularly in expanding nuclear energy infrastructure and data center construction, amid significant risks to uranium supply [4]. - Ongoing discussions with additional US, European, and Asian utilities indicate a strong market position for NexGen, enhancing its financial stability and readiness for construction at the Rook I Project [5].

Group 1: Stock Performance and Price Targets - NexGen Energy (NXE) shares have increased by 10.8% over the past four weeks, closing at $8.31, with a mean price target of $10.47 indicating a potential upside of 26% [1] - The mean estimate consists of 11 short-term price targets with a standard deviation of $1.79, where the lowest estimate is $8.76 (5.4% increase) and the highest is $15.54 (87% increase) [2] - A tight clustering of price targets, indicated by a low standard deviation, suggests a high degree of agreement among analysts regarding the stock's price movement [7] Group 2: Analyst Sentiment and Earnings Estimates - There is increasing optimism among analysts about NXE's earnings prospects, as evidenced by strong agreement in revising EPS estimates higher, which correlates with potential stock price increases [9] - Over the last 30 days, three earnings estimates for NXE have moved higher, resulting in a Zacks Consensus Estimate increase of 38.2% [10] - NXE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside [11] Group 3: Caution on Price Targets - While consensus price targets are often sought after, their reliability as indicators of stock price direction is questionable, and investors should approach them with skepticism [3][8] - Analysts may set overly optimistic price targets due to business incentives, which can lead to inflated expectations [6]