June 25, 2021
NexGen Energy Ltd. (TSX:NXE, Not Rated, David A. Talbot) has filed a prospectus with the Australian Securities and Investments Exchange (ASIC) in regards to its application for admission to the Australian Securities Exchange (ASX). The company plans to issue 400,000 shares which are to be broadly distributed to Australian investors. Next to Cameco (TSX:CCO, Not Rated), NexGen is the largest and most liquid uranium company in Canada, and about 30% of its stock is held by investors in Australia and the Asia Pacific region. This includes interest by its two largest strategic partners, CEF Holdings (Li Ka-Shing) and Queen’s Road Capital. We expect that NexGen is making this move to help improve access to its stock for investors, and perhaps access to capital. As it moves into the final permitting stages post FS at Arrow, we believe financing comes up next – but we expect approximately 20% of its $1.3B initial capital to be raised via equity. Management believes that Arrow’s high grades, large production rate, short payback period, and top jurisdiction should help it secure a larger proportion of debt than might be typical for a mining company. NexGen currently has C$200M in cash on the balance sheet, which should enable the company to fund its planned activities through this stage of final permitting and towards construction. Read more
