November 10, 2021
NexGen Energy Ltd. (TSX:NXE, Not Rated, David A. Talbot) announced that it has awarded the engineering, procurement, and construction management (EPCM) contract for the FEED stage of the Rook I project to Hatch. Work is already well underway. We believe this is a major milestone for an advanced and world-class project which hosts the Arrow deposit in the Athabasca Basin. It is a signal that the project will be moving forward quickly, as the FEED stage will advance the overall engineering work to a 40-45% level of completion. It is expected to confirm cost estimates, determine requirements for long-lead items, and further outline plans to get to the construction stage. The FEED stage is scheduled for completion by Q3/22 and will be progressed concurrently with licensing and Environmental Assessment processes. We expect NexGen to start considering project financing in parallel with its permitting process, as the Arrow FS suggests C$1.3B in initial capital costs. We note that field and regional exploration drilling have commenced (read more), and positive assay results could help lift the stock in the meantime. Read more