NexGen Energy .(NXE) - 2023 Q2 - Quarterly Report

Financial Performance - The company reported a net loss of CAD 17,498,000 for the three months ended June 30, 2023, compared to a net income of CAD 17,585,000 for the same period in 2022, indicating a significant decline in profitability[3]. - The company incurred total expenses of CAD 15,381,000 for the three months ended June 30, 2023, compared to CAD 11,584,000 for the same period in 2022, marking an increase of approximately 32.5%[3]. - The company experienced a net loss of CAD 25,950 thousand for the six months ended June 30, 2023, compared to a net loss of CAD 12,187 thousand for the same period in 2022[9]. - NexGen's total comprehensive loss for the six months ended June 30, 2023, was CAD 26,605 thousand, compared to CAD 12,815 thousand for the same period in 2022[5]. - For the three months ended June 30, 2023, NexGen reported a net loss attributable to shareholders of $19.292 million, compared to a net income of $13.484 million in the same period of 2022[67]. - Basic earnings per share for Q2 2023 was $(0.04), a decrease from $0.03 in Q2 2022[67]. - For the six months ended June 30, 2023, the net loss attributable to shareholders was $25.950 million, compared to a loss of $12.187 million in the first half of 2022[67]. - Diluted loss per share for the six months ended June 30, 2023 was $(0.05), compared to $(0.04) in the same period of 2022[67]. Assets and Liabilities - As of June 30, 2023, total assets increased to CAD 581,473,000 from CAD 554,560,000 as of December 31, 2022, representing a growth of approximately 4.9%[2]. - Total liabilities increased slightly to CAD 99,586,000 as of June 30, 2023, from CAD 99,143,000 at the end of 2022, reflecting a marginal rise of about 0.4%[2]. - The company’s share capital increased to CAD 758,463,000 as of June 30, 2023, from CAD 712,603,000 at the end of 2022, representing an increase of approximately 6.4%[2]. - The company had cash of $100,571 to settle current liabilities of $17,721 as of June 30, 2023[55]. - The company's maximum exposure to credit risk was $105,790 as of June 30, 2023, down from $136,248 at December 31, 2022[54]. - The company’s convertible debentures totaled $78,986 as of June 30, 2023, compared to $80,021 at December 31, 2022[48]. - The company’s total undiscounted commitments amounted to $99,141 as of June 30, 2023[56]. Cash Flow and Expenditures - Cash and cash equivalents decreased to CAD 100,571,000 from CAD 134,447,000, a decline of about 25.2%[4]. - Cash used in operating activities for the six months ended June 30, 2023, was CAD 22,720,000, compared to CAD 9,770,000 for the same period in 2022, indicating a significant increase in cash outflow[4]. - The company reported expenditures on exploration and evaluation assets of CAD 22,729,000 for the three months ended June 30, 2023, compared to CAD 20,121,000 for the same period in 2022, an increase of about 13.0%[4]. Exploration and Evaluation Assets - Exploration and evaluation assets rose to CAD 452,206,000 as of June 30, 2023, up from CAD 405,248,000 at the end of 2022, reflecting an increase of approximately 11.6%[2]. - The total acquisition cost for exploration and evaluation assets was CAD 28,325, with a balance of CAD 423,881 in deferred exploration costs[20]. - The total additions to deferred exploration costs for the six months ended June 30, 2023, amounted to CAD 46,954, including CAD 34,801 for general exploration and drilling[20]. Shareholder Information - The company issued 4,494,959 shares under its at-the-market equity program, raising CAD 27,566 thousand[5]. - The company issued 3,878,815 shares on the exercise of stock options for gross proceeds of $10,790 during the six months ended June 30, 2023[35]. - As of June 30, 2023, 46,188,408 options were excluded from the diluted weighted average number of common shares calculation[67]. - Subsequent to June 30, 2023, NexGen issued 314,137 shares under the ATM Program at a weighted average price of $6.30, resulting in net proceeds of $1.96 million[68]. - Additionally, 93,334 stock options were exercised for gross proceeds of $450,000 after June 30, 2023[69]. Risks and Future Outlook - The company has sufficient working capital to meet its current obligations for the next twelve months, but will require additional funding for ongoing exploration and development[9]. - NexGen is subject to various risks including capital acquisition challenges and global uranium price volatility, which may impact its operations and financial performance[10].