Financial Data and Key Metrics Changes - The company reported a significant increase in uranium spot prices, rising over 20% to close at $78.50 per pound, indicating a strong market response to supply constraints [14] - The current cash balance stands at CAD 375 million, providing sufficient funding for 2025 site programs and the initial development phase post-approval [15] Business Line Data and Key Metrics Changes - NextGen announced a new offtake agreement with a major US utility, doubling their contract booking volume, which reflects a strategic shift towards market-related pricing mechanisms [14][26] - The contract book now represents approximately 3% of total defined resources, highlighting a patient and strategic approach to building sales [15] Market Data and Key Metrics Changes - Corporate buyers, particularly in the tech sector, have committed over USD 100 billion in AI data center construction, driving demand for nuclear energy [6] - The International Energy Agency forecasts a 170% increase in electricity demand for data centers in China and a 130% increase in the US over the next five years, leading to a robust demand for uranium [7] Company Strategy and Development Direction - The company is focused on concluding approvals, finalizing funding, and beginning construction of a significant new uranium project, emphasizing environmental and social responsibility [22] - NextGen is preparing to transition from advanced development to construction, with a clear strategy to optimize financing opportunities while maintaining production flexibility [15][38] Management's Comments on Operating Environment and Future Outlook - Management highlighted a structural shift in global perceptions of nuclear energy, with increasing support from governments and corporations for nuclear power as a clean energy source [5][9] - The company anticipates that the current lack of supply will lead to structurally higher uranium prices in the foreseeable future, driven by increasing demand and regulatory support [12] Other Important Information - The company has consolidated its land package, acquiring a 10% production carried interest from Rio Tinto, enhancing its position in the district [18] - NextGen's sustainability initiatives have engaged over 500 participants in training programs, demonstrating a commitment to workforce development and community engagement [20] Q&A Session Summary Question: Can you confirm if there are floors and ceilings in the new contract? - The company confirmed that the new contract includes a blend of market-related prices at the time of delivery, with some contracts having embedded floors and ceilings [26][27] Question: Has the lending interest from banks changed? - The lending interest has grown, with more parties getting involved, indicating strong support for the company's growth initiatives [30] Question: What is the preferred path for financing? - The company is keeping an open mind regarding financing avenues, including strategic partnerships, debt, and equity, all of which are at various stages of advancement [36][38] Question: Are there any scope changes due to Bill C-5? - There have been no scope changes as a result of Bill C-5, and the company has exceeded environmental and social requirements from the outset [51] Question: Will financing be in place before CNSC approval? - Financing is related to the approval process, and the company is prepared to conclude financing shortly after receiving approval [71]

[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) NexGen's total assets decreased, liabilities increased, and equity declined by June 30, 2025, driven by reduced cash and increased convertible debentures Consolidated Statements of Financial Position (CAD '000) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :-------------------------- | :-------------------------- | :---------------- | | Cash | 371,556 | 476,587 | (105,031) | | Exploration and evaluation assets | 648,146 | 584,889 | 63,257 | | Property and equipment | 7,228 | 5,354 | 1,874 | | Investment in associate | 156,601 | 229,594 | (72,993) | | Strategic inventory | 341,150 | 341,150 | 0 | | Other non-current assets | 10,666 | 3,072 | 7,594 | | **Total assets** | **1,546,228** | **1,657,243** | **(111,015)** | | Accounts payable and accrued liabilities | 20,218 | 21,402 | (1,184) | | Convertible debentures | 488,520 | 455,783 | 32,737 | | Derivative liability | 3,024 | - | 3,024 | | Other non-current liabilities | 8,017 | 91 | 7,926 | | **Total liabilities** | **520,339** | **478,202** | **42,137** | | Share capital | 1,421,237 | 1,405,968 | 15,269 | | Reserves | 150,224 | 142,619 | 7,605 | | Accumulated other comprehensive income (deficit) | (26,381) | 12,017 | (38,398) | | Accumulated deficit | (519,191) | (381,563) | (137,628) | | **Total equity** | **1,025,889** | **1,179,041** | **(153,152)** | [Condensed Interim Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Net%20Income%20(Loss)%20and%20Comprehensive%20Income%20(Loss)) NexGen reported a significantly wider net loss for the six months ended June 30, 2025, driven by an impairment loss on associate investment and increased debenture interest Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) (CAD '000) | Metric | 3 months ended Jun 30, 2025 | 3 months ended Jun 30, 2024 | 6 months ended Jun 30, 2025 | 6 months ended Jun 30, 2024 | | :------------------------------------------ | :-------------------------------------- | :-------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Salaries, benefits and directors' fees | 2,484 | 2,628 | 5,695 | 5,369 | | Office, administrative, and travel | 4,967 | 4,612 | 11,031 | 9,765 | | Professional fees and insurance | 3,152 | 3,790 | 5,921 | 6,812 | | Share-based payments | 3,815 | 6,018 | 7,479 | 12,084 | | Finance income | 3,505 | 5,923 | 7,590 | 9,428 | | Mark-to-market gain (loss) on convertible debentures | (55,661) | 29,714 | 15,257 | 13,432 | | Interest expense on convertible debentures | (11,661) | (6,056) | (23,285) | (9,431) | | Share of net income (loss) from associate | (572) | (1,940) | 1,089 | (3,517) | | Impairment loss on investment in associate | - | - | (81,009) | - | | Mark-to-market loss on derivative instruments | (2,993) | - | (3,024) | - | | Foreign exchange gain (loss) | (1,988) | 68 | (2,043) | 797 | | **Net income (loss)** | **(86,693)** | **13,196** | **(137,628)** | **(21,424)** | | Change in fair value of convertible debenture attributable to credit risk | (8,547) | 12,425 | (47,994) | 11,277 | | Share of other comprehensive income (loss) from associate | (1,805) | (630) | (3,363) | 1,747 | | **Net comprehensive income (loss)** | **(94,737)** | **21,636** | **(176,026)** | **(11,445)** | | Basic earnings (loss) per share | (0.14) | 0.02 | (0.23) | (0.04) | | Diluted loss per share | (0.14) | (0.02) | (0.23) | (0.04) | [Condensed Interim Consolidated Statements of Cash Flows](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) Cash decreased for the six months ended June 30, 2025, driven by increased investing activities and reduced financing inflows from equity programs Consolidated Statements of Cash Flows (CAD '000) | Cash Flow Activity | 3 months ended Jun 30, 2025 | 3 months ended Jun 30, 2024 | 6 months ended Jun 30, 2025 | 6 months ended Jun 30, 2024 | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Net income (loss) for the period | (86,693) | 13,196 | (137,628) | (21,424) | | Operating cash flows before working capital | (7,396) | (5,107) | (15,376) | (12,518) | | **Cash used in operating activities** | **(10,927)** | **(2,380)** | **(12,070)** | **(11,723)** | | Expenditures on exploration and evaluation assets | (25,590) | (26,054) | (53,657) | (58,947) | | Investment in IsoEnergy | (12,000) | - | (18,250) | - | | **Cash used in investing activities** | **(37,906)** | **(26,741)** | **(72,223)** | **(60,692)** | | Proceeds from at-the-market equity program, net | - | - | - | 130,237 | | Proceeds from ASX CDI offering, net | - | 216,321 | - | 216,321 | | Proceeds from exercise of stock options | 4,268 | 6,756 | 4,825 | 11,737 | | Interest paid on convertible debentures | (14,780) | (4,536) | (14,780) | (4,536) | | **Cash provided by (used in) financing activities** | **(11,792)** | **218,284** | **(18,329)** | **353,244** | | Effect of exchange rates on cash and cash equivalents | (2,459) | 41 | (2,409) | 791 | | **Increase (decrease) in cash** | **(63,084)** | **189,204** | **(105,031)** | **281,620** | | Cash, end of period | 371,556 | 572,363 | 371,556 | 572,363 | [Condensed Interim Consolidated Statements of Changes in Equity](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased by June 30, 2025, primarily due to a net loss and other comprehensive loss, partially offset by share issuances Consolidated Statements of Changes in Equity (CAD '000) | Equity Component | Balance at Dec 31, 2024 | Share-based payments | Shares issued on exercise of stock options | Shares issued for convertible debenture interest payments | Net loss | Other comprehensive loss | Balance at Jun 30, 2025 | | :-------------------------------- | :-------------------------- | :------------------- | :----------------------------------------- | :-------------------------------------------------------- | :------- | :----------------------- | :-------------------------- | | Share Capital | 1,405,968 | - | 7,389 | 7,880 | - | - | 1,421,237 | | Reserves | 142,619 | 10,169 | (2,564) | - | - | - | 150,224 | | Accumulated Other Comprehensive Income (Loss) | 12,017 | - | - | - | - | (38,398) | (26,381) | | Accumulated Deficit | (381,563) | - | - | - | (137,628) | - | (519,191) | | **Total Equity** | **1,179,041** | **10,169** | **4,825** | **7,880** | **(137,628)** | **(38,398)** | **1,025,889** | [Notes to the Condensed Interim Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [1. Reporting Entity](index=6&type=section&id=1.%20REPORTING%20ENTITY) NexGen Energy Ltd. is a uranium exploration and development company listed on major exchanges, now holding a 30.9% investment in associate IsoEnergy - NexGen Energy Ltd. is an **exploration and development stage entity** engaged in the acquisition, exploration, evaluation, and development of uranium properties in Canada[7](index=7&type=chunk) - The Company is listed on the **Toronto Stock Exchange (TSX)**, **Australian Stock Exchange (ASX)**, and **New York Stock Exchange (NYSE)** under the symbol 'NXE' (TSX, NYSE) and 'NXG' (ASX)[8](index=8&type=chunk) - On December 5, 2023, NexGen deconsolidated IsoEnergy Ltd., now owning approximately **30.9%** of IsoEnergy's outstanding common shares as of **June 30, 2025**[10](index=10&type=chunk) [2. Nature of Operations](index=6&type=section&id=2.%20NATURE%20OF%20OPERATIONS) NexGen, an exploration and development stage company, has recurring losses and an accumulated deficit, requiring additional funding for mineral property development - As an **exploration and development stage company**, NexGen does not have revenues and historically has **recurring operating losses**[11](index=11&type=chunk) - As at **June 30, 2025**, the Company had an **accumulated deficit of $519,191 thousand**, a **working capital deficit of $126,861 thousand**, and **$371,556 thousand of cash**[11](index=11&type=chunk) - The Company has **sufficient working capital** (excluding convertible debentures) to meet current obligations for at least the **next fifteen months**, but will require **additional funding for mineral property development**[11](index=11&type=chunk) - The business of exploring for minerals and development involves a **high degree of risk**, including development and operational risks, policy changes, and securing adequate capital[12](index=12&type=chunk) [3. Basis of Preparation and Material Accounting Policies](index=6&type=section&id=3.%20BASIS%20OF%20PREPARATION%20AND%20MATERIAL%20ACCOUNTING%20POLICIES) Interim financial statements are prepared under IAS 34, consistent with IFRS, incorporating new policies for derivatives and decommissioning provisions [a) Basis of Presentation](index=6&type=section&id=3a)%20Basis%20of%20Presentation) Interim financial statements are prepared under IAS 34, consistent with IFRS, and should be read with annual financial statements - These condensed interim consolidated financial statements are prepared in accordance with **International Accounting Standard (\"IAS\") 34**, consistent with **International Financial Reporting Standards (\"IFRS\")**[14](index=14&type=chunk) - They should be read in conjunction with the consolidated financial statements for the years ended **December 31, 2024 and 2023**[14](index=14&type=chunk) [b) Adoption of Material Accounting Policies](index=7&type=section&id=3b)%20Adoption%20of%20material%20accounting%20policies) New material accounting policies adopted include derivative financial instruments and decommissioning and restoration provisions - **Derivative financial instruments** are now classified as **fair value through profit or loss**, used to reduce exposure to foreign currency exchange rates on convertible debenture US dollar interest payments[16](index=16&type=chunk) - **Decommissioning and restoration provisions** are recorded when a present obligation exists, with a provision of **$5,365 thousand** recorded for the quarter ended **June 30, 2025**[17](index=17&type=chunk)[18](index=18&type=chunk)[20](index=20&type=chunk) [4. Critical Accounting Judgments, Estimates and Assumptions](index=7&type=section&id=4.%20CRITICAL%20ACCOUNTING%20JUDGMENTS,%20ESTIMATES%20AND%20ASSUMPTIONS%20IN%20ACCOUNTING%20POLICIES) Critical accounting judgment focuses on impairment assessment of investment in associate, evaluating objective evidence of adverse changes or fair value decline - Significant judgments include the **impairment assessment of investment in associate**, considering objective evidence of adverse changes or prolonged fair value decline below cost[21](index=21&type=chunk)[22](index=22&type=chunk) [5. Exploration and Evaluation Assets](index=8&type=section&id=5.%20EXPLORATION%20AND%20EVALUATION%20ASSETS) Exploration and evaluation assets increased to $648,146 thousand by June 30, 2025, primarily due to deferred exploration costs at the Rook I project Exploration and Evaluation Assets (CAD '000) | Category | Balance at Dec 31, 2024 | Additions for 6 months ended Jun 30, 2025 | Balance at Jun 30, 2025 | | :-------------------------------- | :-------------------------- | :------------------------------------------ | :-------------------------- | | Rook I Deferred exploration costs | 559,193 | 63,257 | 622,450 | | Other Athabasca Basin Properties Deferred exploration costs | 24,002 | - | 24,002 | | **Total Deferred exploration costs** | **583,195** | **63,257** | **646,452** | | Total Acquisition Cost | 1,694 | - | 1,694 | | **Total Exploration and evaluation assets** | **584,889** | **63,257** | **648,146** | **Key Additions to Deferred Exploration Costs (Rook I) for 6 months ended Jun 30, 2025:** * General exploration and drilling: $14,439 thousand * Environmental, permitting, and engagement: $8,472 thousand * Technical, engineering and design: $16,967 thousand * Labour and wages: $14,704 thousand * Asset retirement obligation assets: $5,365 thousand [6. Property and Equipment](index=9&type=section&id=6.%20PROPERTY%20AND%20EQUIPMENT) Net book value of property and equipment increased to $7,228 thousand by June 30, 2025, driven by additions partially offset by depreciation Property and Equipment (CAD '000) | Category | Balance at Dec 31, 2024 | Additions for 6 months ended Jun 30, 2025 | Depreciation for 6 months ended Jun 30, 2025 | Balance at Jun 30, 2025 | | :----------------------- | :-------------------------- | :------------------------------------------ | :------------------------------------------- | :-------------------------- | | Cost | 18,691 | 2,953 | - | 21,644 | | Accumulated Depreciation | 13,337 | - | 1,079 | 14,416 | | **Net Book Value** | **5,354** | **2,953** | **(1,079)** | **7,228** | [7. Investment in Associate](index=9&type=section&id=7.%20INVESTMENT%20IN%20ASSOCIATE) Investment in associate decreased to $156,601 thousand by June 30, 2025, primarily due to an impairment loss, partially offset by additional acquisitions Investment in Associate (CAD '000) | Metric | Balance at Dec 31, 2024 | Changes for 6 months ended Jun 30, 2025 | Balance at Jun 30, 2025 | | :------------------------------------ | :-------------------------- | :------------------------------------------ | :-------------------------- | | Investment in associate | 229,594 | (72,993) | 156,601 | | Loss on dilution of ownership interest | - | (7,960) | (7,960) | | Share of net income from associate | - | 1,089 | 1,089 | | Share of other comprehensive loss from associate | - | (3,363) | (3,363) | | Acquisition of additional investment | - | 18,250 | 18,250 | | Impairment loss | - | (81,009) | (81,009) | - The fair value of the investment in associate (IsoEnergy) as at **June 30, 2025**, was **$158,506 thousand**[25](index=25&type=chunk) Summarized Financial Information for IsoEnergy (CAD '000) | Metric | Six months ended Jun 30, 2025 | Year ended Dec 31, 2024 | | :-------------------------- | :---------------------------- | :------------------------ | | Net income (loss) | 3,218 | (42,135) | | Other comprehensive income (loss) | (10,937) | 10,172 | | Total comprehensive loss | (7,719) | (31,963) | [8. Strategic Inventory](index=10&type=section&id=8.%20STRATEGIC%20INVENTORY) Strategic inventory of 2,702,411 pounds of U3O8 is valued at $341,150 thousand, acquired in May 2024 via US$250 million debentures - On **May 28, 2024**, the Company purchased **2,702,411 pounds of natural uranium concentrate (\"U3O8\")** for an aggregate purchase price of **$341,150 thousand (US$250 million)**[27](index=27&type=chunk) - The purchase was satisfied through the issuance of **US$250 million** aggregate principal amount of five-year, **9.0% per annum unsecured convertible debentures** (the \"2024 Debentures\")[27](index=27&type=chunk) - The strategic inventory is valued at the lower of cost and net realizable value of **$341,150 thousand** as at **June 30, 2025**[27](index=27&type=chunk) [9. Convertible Debentures](index=10&type=section&id=9.%20CONVERTIBLE%20DEBENTURES) Total fair value of convertible debentures increased to $488,520 thousand by June 30, 2025, due to fair value adjustments, including mark-to-market losses and gains [2023 Debentures](index=11&type=section&id=2023%20Debentures) Issued in September 2023 as US$110 million private placement, bearing 9% interest and convertible at US$6.76 per share - Issued on **September 22, 2023**, as a **US$110 million private placement** of unsecured convertible debentures, with gross proceeds of **$148,145 thousand (US$110 million)**[30](index=30&type=chunk) - Bear interest at **9% per annum**, payable semi-annually (6% cash, 3% common shares), convertible at **US$6.76 per share** into a maximum of **16,272,189 common shares**[31](index=31&type=chunk) 2023 Debentures Valuation Inputs | Input | June 30, 2025 | December 31, 2024 | | :------------------------ | :-------------- | :---------------- | | Volatility | 40.00% | 40.00% | | Expected life | 3.2 years | 3.7 years | | Risk free interest rate | 3.38% | 4.05% | | Credit spread | 16.40% | 22.89% | | Underlying share price | US$6.94 | US$6.60 | | Conversion exercise price | US$6.76 | US$6.76 | | Exchange rate (C$:US$) | 0.7349 | 0.6952 | [2024 Debentures](index=11&type=section&id=2024%20Debentures) Issued in May 2024 as US$250 million debentures for U3O8 strategic inventory, bearing 9% interest and convertible at US$10.73 per share - Issued on **May 28, 2024**, as **US$250 million unsecured convertible debentures** for **2,702,411 pounds of U3O8 strategic inventory**, with a fair value on issuance of **$330,916 thousand (US$242,500)**[33](index=33&type=chunk) - Bear interest at **9% per annum**, payable semi-annually (6% cash, 3% common shares), convertible at **US$10.73 per share** into a maximum of **23,299,161 common shares**[34](index=34&type=chunk) 2024 Debentures Valuation Inputs | Input | June 30, 2025 | December 31, 2024 | | :------------------------ | :-------------- | :---------------- | | Volatility | 40.00% | 40.00% | | Expected life | 3.9 years | 4.4 years | | Risk free interest rate | 3.38% | 4.04% | | Credit spread | 16.40% | 22.89% | | Underlying share price | US$6.94 | US$6.60 | | Conversion exercise price | US$10.73 | US$10.73 | | Exchange rate (C$:US$) | 0.7349 | 0.6952 | [10. Share Capital](index=12&type=section&id=10.%20SHARE%20CAPITAL) Share capital increased from stock option exercises and debenture interest payments, with the stock option plan allowing up to 10% of outstanding shares [a) Authorized Capital](index=12&type=section&id=10a)%20Authorized%20capital) Share capital increased from stock option exercises and shares issued for convertible debenture interest payments - For the six months ended **June 30, 2025**, the Company issued **1,030,000 shares** from stock options for **$4,825 thousand**, and **906,785 shares** for debenture interest payments at **$7,880 thousand**[36](index=36&type=chunk) - For the year ended **December 31, 2024**, the Company issued **13,000,800 shares** under its at-the-market equity program for **$134,948 thousand**, and **20,161,290 common shares** via an ASX CDI Offering for **$226,000 thousand**[37](index=37&type=chunk)[38](index=38&type=chunk) - Additional issuances in **2024** included **8,757,006 shares** from stock option exercises for **$20,160 thousand**, **909,090 shares** for 2024 Debentures establishment fee for **$10,235 thousand**, and **215,219 shares** for 2023 Debentures interest for **$2,088 thousand**[39](index=39&type=chunk)[40](index=40&type=chunk) [b) Share Options](index=12&type=section&id=10b)%20Share%20options) The stock option plan allows issuance of options up to 10% of outstanding common shares, with share-based payments expensed or capitalized - The Company's stock option plan allows for issuance of options up to **10% of issued and outstanding common shares**[41](index=41&type=chunk) Share Options Summary | Metric | As at Dec 31, 2024 | Changes (6 months ended Jun 30, 2025) | At Jun 30, 2025 | | :-------------------------- | :----------------- | :------------------------------------ | :-------------- | | Options outstanding | 48,616,795 | (1,549,999) | 47,066,796 | | Weighted average exercise price (C$) | 6.09 | 0.01 | 6.10 | | Options exercisable | - | - | 40,039,264 | | Weighted average exercise price (C$) for exercisable options | - | - | 5.62 | - **Share-based payments** for the six months ended **June 30, 2025**, amounted to **$10,169 thousand**, with **$7,479 thousand expensed** and **$2,690 thousand capitalized**[42](index=42&type=chunk) [11. Supplemental Cash Flow Information](index=13&type=section&id=11.%20SUPPLEMENTAL%20CASH%20FLOW%20INFORMATION) This section details non-cash investing and financing activities, including capitalized share-based payments and debenture issuances for strategic inventory Schedule of Non-Cash Investing and Financing Activities (CAD '000) | Non-Cash Activity | 3 months ended Jun 30, 2025 | 3 months ended Jun 30, 2024 | 6 months ended Jun 30, 2025 | 6 months ended Jun 30, 2024 | | :---------------------------------------------------------------- | :-------------------------------------- | :-------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Capitalized share-based payments | 1,251 | 976 | 2,690 | 1,814 | | Exploration and evaluation asset expenditures included in accounts payable and accrued liabilities | 980 | (4,528) | (762) | (6,628) | | Interest expense included in accounts payable and accrued liabilities | (11,755) | (596) | (132) | 2,801 | | Decommissioning and restoration provision included in exploration and evaluation assets | 5,365 | - | 5,365 | - | | Issuance of convertible debentures | - | 330,916 | - | 330,916 | | Purchase of U3O8 strategic inventory | - | (341,150) | - | (341,150) | [12. Related Party Transactions](index=13&type=section&id=12.%20RELATED%20PARTY%20TRANSACTIONS) Related party transactions include key management compensation and NexGen's participation in IsoEnergy's private placements to acquire additional shares Remuneration of Key Management (CAD '000) | Compensation Type | 3 months ended Jun 30, 2025 | 3 months ended Jun 30, 2024 | 6 months ended Jun 30, 2025 | 6 months ended Jun 30, 2024 | | :---------------------- | :-------------------------------------- | :-------------------------------------- | :-------------------------------------- | :-------------------------------------- | | Short-term compensation | 770 | 818 | 1,550 | 1,648 | | Share-based payments | 3,369 | 5,042 | 6,686 | 10,109 | | Consulting fees | 32 | 32 | 65 | 65 | | **Total** | **4,171** | **5,892** | **8,301** | **11,822** | - On **February 28, 2025**, NexGen purchased **2.5 million common shares** of IsoEnergy for **$6,250 thousand**, and on **June 24, 2025**, purchased **1.2 million common shares** for **$12,000 thousand**[48](index=48&type=chunk) [13. Financial Instruments and Risk Management](index=14&type=section&id=13.%20FINANCIAL%20INSTRUMENTS%20AND%20RISK%20MANAGEMENT) NexGen manages financial instruments and risks including credit, liquidity, foreign currency, equity, commodity price, and interest rate risks through policies and hedging [Fair Value Hierarchy](index=14&type=section&id=Fair%20Value%20Hierarchy) Financial instruments are classified into Level 1 (cash, receivables) and Level 2 (convertible debentures, derivatives) based on fair value hierarchy - **Cash**, amounts receivable, accounts payable, and lease receivable are classified as **Level 1 financial instruments**[50](index=50&type=chunk)[53](index=53&type=chunk) - **Convertible debentures** are re-measured at fair value (classified as **Level 2**), with changes due to credit risk recognized in other comprehensive income (loss); credit spread decreased from **22.89% to 16.40%**[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - **Derivatives (foreign currency contracts)** are classified as **Level 2**, measured using a market approach based on contracted and quoted forward exchange rates[53](index=53&type=chunk)[54](index=54&type=chunk) [Financial Risk](index=15&type=section&id=Financial%20Risk) The company manages credit, liquidity, foreign currency, equity and commodity price, and interest rate risks through various strategies - **Credit Risk**: The Company is not subject to significant credit risk, with maximum exposure of **$383,630 thousand** at **June 30, 2025**[55](index=55&type=chunk)[56](index=56&type=chunk) - **Liquidity Risk**: At **June 30, 2025**, NexGen had **cash of $371,556 thousand** against current liabilities of **$509,298 thousand** (including convertible debentures), with no obligation to cash settle debentures in the next twelve months[57](index=57&type=chunk) Undiscounted Commitments at June 30, 2025 (CAD '000) | Commitment | Less than 1 year | 1 to 3 years | 4 to 5 years | Over 5 years | Total | | :-------------------------------- | :--------------- | :----------- | :----------- | :----------- | :------ | | Accounts payable and accrued liabilities | 20,218 | - | - | - | 20,218 | | Convertible debentures | 488,520 | - | - | - | 488,520 | | Lease liabilities | 908 | 2,044 | 1,327 | 1,714 | 5,993 | | **Total** | **509,646** | **2,044** | **1,327** | **1,714** | **514,731** | - **Foreign Currency Risk**: Exposed to US dollar denominated debentures, a **10% change** in exchange rates would result in a **$46,151 thousand change** in net income; a forward contract hedges **$82.5 million (US$60 million)**[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - **Equity and Commodity Price Risk**: Exposed to **uranium and equity price risk**, impacting debenture valuation and long-lived assets[63](index=63&type=chunk)[64](index=64&type=chunk) - **Interest Rate Risk**: Cash earns variable rates with minimal impact; convertible debentures carry **fixed interest rates of 9.0% per annum**[65](index=65&type=chunk) [14. Earnings (Loss) Per Share](index=16&type=section&id=14.%20EARNINGS%20(LOSS)%20PER%20SHARE) Basic and diluted loss per share was $0.23 for the six months ended June 30, 2025, with anti-dilutive options excluded from diluted calculations Weighted Average Common Shares Outstanding (Basic and Diluted) | Metric | 3 months ended Jun 30, 2025 | 3 months ended Jun 30, 2024 | 6 months ended Jun 30, 2025 | 6 months ended Jun 30, 2024 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Weighted average number of common shares (Basic) | 570,022,148 | 551,519,415 | 569,559,568 | 544,020,730 | | Weighted average number of common shares (Diluted) | 570,022,148 | 613,813,089 | 569,559,568 | 544,020,730 | | Anti-dilutive options excluded (millions) | 47.1 | 23.9 | 47.1 | 46.6 |

Core Viewpoint - NexGen Energy Ltd. is set to host a conference call on August 7, 2025, to discuss developments related to its Rook I Project, including project updates and market insights [1][2]. Company Overview - NexGen Energy is a Canadian company focused on clean energy fuel, with its flagship Rook I Project aimed at becoming the largest low-cost uranium mine globally, adhering to high environmental and social governance standards [6]. - The Rook I Project is supported by a NI 43-101 compliant Feasibility Study, highlighting its elite environmental performance and industry-leading economics [6]. - The company is led by a team of experienced professionals in the uranium and mining industry, covering all aspects of the mining life cycle [6]. Conference Call Details - The conference call will take place on August 7, 2025, at 8:30 am Eastern Standard Time, featuring key executives including the Founder, President, and CEO, Leigh Curyer [2][3]. - Participants can join the call using a toll-free number for North America or a local number for Australia, with additional options for web access [3][4]. Financial Reporting - Prior to the conference call, NexGen will file its 2025 second quarter Financial Statements and Management Discussion & Analysis on August 5, 2025, which will be available on the company's website and SEDAR+ profile [4]. Market Position - NexGen is listed on multiple stock exchanges, including the Toronto Stock Exchange, New York Stock Exchange, and Australian Securities Exchange, allowing global investors to engage with the company's mission to address decarbonization, energy security, and access to power [8].

Core Viewpoint - NexGen Energy Ltd. has announced promising assay results from its Patterson Corridor East (PCE) project, indicating high-grade uranium mineralization and significant potential for resource expansion in the region [2][4][5]. Group 1: Assay Results - The assay results from drill hole RK-25-227 show 12.0 meters at 3.46% U3O8, including 2.5 meters at 14.9% U3O8 and 0.5 meters at 31.0% U3O8, demonstrating the continuity of high-grade mineralization [3][6]. - Completed assays for 2024 include notable intercepts from holes RK-25-232 (15.0 meters at 15.9% U3O8) and RK-24-222 (17.0 meters at 3.85% U3O8) [6][12]. Group 2: Project Development - The PCE project is emerging as a second major high-grade mineralized system, mirroring the characteristics of the Arrow project, with ongoing drilling to explore the extent of the mineralization [4][5]. - The company aims to continue its efficient discovery and delineation of uranium resources, with a focus on expanding the PCE project [5][17]. Group 3: Market Context - The demand for nuclear power is increasing rapidly, driven by global policy makers and industries, positioning the Athabasca Basin as a key supplier for this demand [5][17]. - NexGen's Rook I Project is being developed to become the largest low-cost uranium mine globally, emphasizing environmental and social governance standards [17][18].

Core Insights - Centrus Energy (LEU) and NexGen Energy (NXE) are positioned to benefit from the global transition towards nuclear energy as a clean power source [1] - Uranium prices have recently declined, impacting the market, but the long-term outlook remains positive due to increasing demand for clean energy [3][4] Company Overview - Centrus Energy has a market capitalization of $4.1 billion and supplies nuclear fuel components internationally, while NexGen Energy, valued at $4.2 billion, is focused on developing the Rook I Project, which aims to be the largest low-cost uranium mine globally [2] - Centrus Energy's existing process buildings can host 3.5 million Separative Work Units (SWU) per year, with potential expansion to 7 million SWU per year [6] Financial Performance - Centrus Energy reported total revenues of $73.1 million in Q1 2025, a 67% year-over-year increase, with the LEU segment revenues surging 117% to $51.3 million [8] - NexGen Energy, still in the exploration stage, reported an adjusted loss of six cents per share in Q1 2025, compared to a loss of four cents in the previous year [16] Project Developments - NexGen's Rook I project is expected to produce up to 30 million pounds of uranium annually at a low cost of C$13.86, potentially tripling Canada's uranium output [13] - Centrus Energy has a $3.8 billion revenue backlog, including long-term contracts with major utilities through 2040 [11] Market Outlook - The U.S. government aims to quadruple domestic nuclear energy capacity by 2050, which is expected to drive long-term demand for uranium [4] - Centrus Energy's earnings growth has not kept pace with revenue growth, raising concerns about margin pressure [11][26] Valuation and Investment Considerations - Centrus Energy's shares have surged 261.8% year-to-date, while NexGen Energy's shares have gained 10.6% [22] - Centrus Energy is trading at a forward price-to-book multiple of 19.20X, while NexGen Energy's multiple is 5.43X, indicating better value for NexGen [23] - Centrus Energy is the only company licensed to produce High-Assay Low-Enriched Uranium (HALEU), providing a strategic advantage [26]

Core Viewpoint - NexGen Energy Ltd. has exercised its Right of First Refusal to acquire a 10% production carried interest from Rio Tinto over 39 mineral claims, achieving 100% ownership of its portfolio, including the Arrow deposit [1][7]. Group 1: Company Actions - The acquisition allows NexGen to consolidate its portfolio in the Southwest Athabasca Basin, aligning with its strategic objective of becoming a leading uranium producer globally [2]. - The company has agreed to match a cash payment offered to Rio Tinto for the interest, although the terms remain confidential [1]. Group 2: Market Context - The uranium market is currently in a structural deficit, with significant commitments from tech companies for nuclear-powered AI data centers, highlighting the increasing demand for uranium [3]. - NexGen's uranium assets, including the Arrow and PCE deposits, position the company to meet the growing need for a secure supply of uranium from reliable jurisdictions [3]. Group 3: Historical Context - The 10% production carried interest from Rio Tinto was established before NexGen acquired the land package in 2012, allowing for a joint venture upon the commencement of commercial production [4].

NexGen Announces Voting Results for Election of Directors and Appoints Sharon Birkett to Its Board of DirectorsJune 18, 2025 6:30 AM EDT | Source: NexGen Energy Ltd.Vancouver, British Columbia--(Newsfile Corp. - June 18, 2025) - NexGen Energy Ltd. (TSX: NXE) (NYSE: NXE) (ASX: NXG) ("NexGen" or the "Company") is pleased to announce the voting results for the election of the Company's Board of Directors and the appointment of Sharon Birkett to the Company at its annual general and special meetin ...

Core Viewpoint - NexGen Energy Ltd. has released its 2024 Sustainability Report, highlighting significant achievements in environmental, social, and governance (ESG) practices while advancing its Rook I Project, which is set to be the world's largest high-grade uranium project [1][2]. Group 1: Sustainability and Environmental Achievements - The 2024 Sustainability Report marks the fifth year of reporting on the company's ESG profile, aligning with Global Reporting Initiative (GRI) Standards and the Task Force on Climate-related Financial Disclosures (TCFD) [1][11]. - NexGen completed a historic regulatory milestone by finishing the Canadian Nuclear Safety Commission (CNSC) Environmental Assessment technical review, the first for a greenfield uranium mine in Canada in 20 years [3]. - The company minimized its environmental footprint during exploration, achieving a 73% reduction in overall land disturbance and reclaiming 83% of land disturbed by exploration activities in 2024 [8]. Group 2: Community Engagement and Economic Impact - NexGen received the 2024 ABEX Community Involvement Award for its commitment to building resilient communities through innovative programs [4]. - The company exceeded its employment and procurement targets, with 82% of Rook I site employees being local residents and 94% of cash expenditure awarded to local suppliers [6]. - An economic impact study forecasts a total economic impact of $37 billion to Saskatchewan and Canada over the development and 11-year production period, with an average of 1,400 annual jobs [9]. Group 3: Training and Development Initiatives - The company launched the 'Pathways to Your Future' career development program, equipping over 500 local participants with essential skills for careers in uranium mining since 2023 [5]. Group 4: Energy Efficiency and Climate Strategy - NexGen optimized power generation at the Rook I Project by implementing a centralized power generation system and installing a pilot 24-kilowatt solar power system [7]. - A comprehensive TCFD gap analysis and climate-related risk assessment were completed to integrate climate-related risks and opportunities into the company's broader risk management and strategic planning [10].

Core Viewpoint - NexGen Energy Ltd. has received regulatory approval for its 2025 Site Program at the Rook I Property, which includes infrastructure enhancements to support exploration activities in the Athabasca Basin, Saskatchewan [2][6]. Infrastructure Enhancements - The 2025 Site Program will establish a temporary exploration airstrip, expand accommodation facilities by 373 beds, and improve site access roads [2][8]. - The program aims to enhance health and safety for workers and accommodate an increase in regional exploration activities [8][12]. Exploration Focus - The program is designed to support the ongoing exploration at Patterson Corridor East (PCE), which is showing significant mineralization potential, located 3.5 km east of the Arrow deposit [4][8]. - Planning is already underway for future programs at PCE, with drilling activities set to recommence in June [8]. Community Engagement - The program will prioritize local business opportunities, generating employment and contracting for Indigenous and community members, reflecting NexGen's commitment to local communities [5][7]. Strategic Importance - The 2025 Site Program is viewed as a strategic milestone for NexGen, optimizing safety, environmental protection, and operational efficiency [6][9]. - The Saskatchewan government recognizes the Rook I Project as a significant opportunity for the province to lead in uranium mining [6].

Core Insights - NexGen Energy Ltd. announced exceptional assay results from drillhole RK-25-232, reporting 15.0 meters at 15.9% U3O8, with a peak intercept of 0.5 meters at 68.8% U3O8, marking it as one of the highest-grade basement-hosted uranium vein intercepts globally [2][8][5] - The results from RK-24-222 and RK-25-232, located 200 meters apart, confirm the scale and continuity of high-grade mineralization in the Patterson Corridor East (PCE) area [3][8] - The winter drilling program added nine new high-grade intercepts, bringing the total to 13, reinforcing confidence in the materiality of the emerging mineralization [3][8] Company Developments - The company has completed 64 drillholes totaling 47,425.9 meters since the discovery phase began, with 35 of these intersecting mineralization that remains open in most directions [3][4] - Drilling at PCE is set to resume on June 1, 2025, with ongoing reporting of assay results for 2025 [4][8] - The CEO highlighted the significance of the assay results, emphasizing that the program is still in the early evaluation stages of PCE [5] Industry Context - The scale of the 2025 drilling program at PCE reflects the company's commitment to advancing new sources of uranium supply amid a global push for nuclear energy deployment [7][9] - The U.S. aims to increase nuclear energy output from 100 GW to 400 GW by 2050, underscoring the importance of projects like Rook I and PCE in meeting future nuclear fuel requirements [9]