NexGen doubles contracted uranium sales volume, shares rise

NexGen Energy (TSX, NYSE: NXE) (ASX: NXG) announced Wednesday it has secured a new offtake contract with a major US-based utility for the delivery of 1 million lb. of uranium per year over a five-year period. Shares of the company rose.

This agreement follows the first sales contracts announced in December 2024 for the supply of 5 million lb. of uranium to multiple US nuclear utility companies.

The new contract, says NexGen, would double its existing contracted volumes to a total of 10 million. It includes market-related pricing mechanisms that provide “significant leverage” to future prices at time of delivery.

The deal, it adds, reflects the “significant materiality” of its Rook I project in the future supply of uranium, at a time when sovereign and technical risk surrounding current production sources is at unprecedented levels worldwide.

With the new offtake deal, analysts at Raymond James have maintained their “Outperform” rating for the stock with a target price of C$12, citing that NexGen is well-financed in the near-term to continue to develop Arrow and the firm’s positive view on uranium.

Shares of NexGen rose 3.1% to C$9.86 apiece by 1:30 p.m. ET in Toronto, for a market capitalization of C$5.5 billion ($4 billion). Its highest in the past 52 weeks was C$12.51.

Major uranium asset

Rook I — located within the uranium-rich Athabasca Basin of Saskatchewan — represents Canada’s largest development-stage uranium project.

The proposed underground mine and mill, anchored by the high-grade Arrow deposit, is currently at the final stage of approval. Hearings with the Canadian Nuclear Safety Commission for the final greenlight are set for later this year and early 2026.

Once in production, Rook I is expected to produce nearly 29 million lb. of uranium oxide (U₃O₈) per year over the first half of its approximate 10.7-year life, according to a feasibility study published in 2021. The Arrow deposit alone has nearly 4.6 million tonnes of measured and indicated resource grading 2.37% U₃O₈, containing 240 million lb. of U₃O₈.

According to NexGen, its deposit currently has 229.6 million lb. of uncontracted reserves to be sold optimally in the future.