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NexGen Energy Ltd. Shs Chess Depository Interests repr 1 shs (AU:NXG)
:NXG
Australian Market
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NexGen Energy Ltd. Shs Chess Depository Interests repr 1 shs (NXG) AI Stock Analysis

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AU:NXG

NexGen Energy Ltd. Shs Chess Depository Interests repr 1 shs

(Sydney:NXG)

Rating:52Neutral
Price Target:
NexGen Energy Ltd.'s overall stock score is primarily influenced by its strong balance sheet and the recent positive price momentum. However, the lack of revenue generation and negative profitability metrics weigh heavily on the score. The technical indicators suggest short-term bullishness, but longer-term challenges remain. The negative valuation metrics reflect the company's current operational losses and lack of dividend yield.

NexGen Energy Ltd. Shs Chess Depository Interests repr 1 shs (NXG) vs. iShares MSCI Australia ETF (EWA)

NexGen Energy Ltd. Shs Chess Depository Interests repr 1 shs Business Overview & Revenue Model

Company DescriptionNexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, and evaluation and development of uranium properties in Canada. It holds 100% interest in the Rook I project comprising 32 contiguous mineral claims totaling an area of 35,065 hectares located in the southwestern Athabasca Basin of Saskatchewan. The company is headquartered in Vancouver, Canada.
How the Company Makes MoneyNexGen Energy Ltd. generates revenue primarily through the exploration and development of uranium resources. Its main revenue stream is expected to come from the sale of uranium extracted from its projects, particularly the Rook I Project. NexGen's business model involves advancing its uranium deposits through stages of exploration, development, and eventually production, which will enable it to sell uranium to energy producers and utilities worldwide. Additionally, the company may engage in partnerships or joint ventures with other energy firms to enhance its operational capabilities and market reach. NexGen's earnings are influenced by uranium market prices, global energy demand, and its ability to efficiently bring its projects to production.

NexGen Energy Ltd. Shs Chess Depository Interests repr 1 shs Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant advancements in NexGen's projects and favorable market conditions for nuclear energy, supported by strong government policies and financial readiness. However, regulatory delays and supply challenges remain concerns.
Q2-2025 Updates
Positive Updates
Rook 1 Project Advancements
Significant progress in the Rook 1 Project readiness and Patterson Corridor East results indicating a significant uranium mineralizing event.
Uranium Market Developments
NexGen doubled the volume in its offtake book with market-related pricing mechanisms, indicating strong future leverage to uranium prices.
Strong Industry Support
Nuclear energy is gaining global support with major investments, including Amazon's $20 billion data center spend and Meta's 20-year power purchase agreement for nuclear-generated electricity.
Favorable Government Policies
Canadian and U.S. governments are fast-tracking nuclear development, with the U.S. aiming to quadruple nuclear capacity by 2050.
Financial Readiness
Current cash balance stands at CAD 375 million, with funding to complete site programs and initiate development post-approval.
Patterson Corridor East Discovery
Drill hole RK-25-232 returned an incredible 15 meters at 15.9% U3O8, indicating strong potential for additional high-grade mineralization.
Negative Updates
Regulatory Delays
The Rook 1 project is ready, but progress is being delayed by the regulatory approval process.
Supply Challenges
Current mine supply is not keeping up with existing uranium demand, necessitating higher prices and more projects.
Company Guidance
During the NexGen Energy Q2 2025 Results Conference Call, CEO Leigh Curyer provided several key metrics and insights regarding the company's progress and future outlook. He detailed the company's ongoing advancements, particularly highlighting the Rook 1 Project Readiness and the significant findings at the Patterson Corridor East, which suggest a substantial uranium mineralizing event. In Q2, NexGen doubled its offtake volume, focusing on market-related pricing mechanisms, and secured a new offtake agreement with a major U.S. utility, doubling its contract book to 10 million pounds. The company anticipates uranium spot prices to rise, with recent prices closing at USD 78.50 per pound, driven by increased demand from corporate buyers like Amazon, Meta, and Google committing over USD 100 billion in AI data center construction. Additionally, NexGen's financial position remains strong, with a CAD 375 million cash balance to support ongoing site programs and the start of post-approval construction. The company is poised for construction upon the conclusion of the CNSC commission hearing process, with strategic financing options in place and continued exploration successes at Rook 1, including the impressive drilling results at the PCE discovery.

NexGen Energy Ltd. Shs Chess Depository Interests repr 1 shs Financial Statement Overview

Summary
NexGen Energy Ltd. faces significant challenges in profitability with no revenue generation and negative income metrics. The balance sheet is strong with increasing equity and a manageable debt-to-equity ratio, suggesting a solid capital structure. However, the ongoing operational losses and negative free cash flow highlight the need for strategic shifts towards revenue generation.
Income Statement
30
Negative
NexGen Energy Ltd. has not generated any revenue over the past years, which limits analysis of traditional income statement metrics like gross and net profit margins. The company consistently reports negative EBIT and EBITDA, indicating ongoing operational losses. The net income is also negative, reflecting challenges in achieving profitability. This lack of revenue generation is a significant weakness for the income statement evaluation.
Balance Sheet
65
Positive
The balance sheet shows a positive trend in stockholders' equity, which increased from $94.3 million in 2020 to $1.18 billion in the TTM period. This indicates strong equity growth, possibly from financing activities. The debt-to-equity ratio remains manageable, and the equity ratio is healthy, suggesting a strong capital structure. However, the absence of revenue limits the assessment of returns on equity.
Cash Flow
50
Neutral
The cash flow statement reveals that NexGen Energy has a negative free cash flow, primarily due to significant capital expenditures and operating losses. Despite negative operating cash flow, the company has managed to maintain a positive cash position, likely due to significant financing activities. The free cash flow to net income ratio is not favorable due to persistent losses, indicating challenges in achieving cash flow profitability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit0.000.000.000.000.000.00
EBITDA-133.60M-76.78M-83.72M-58.13M-50.04M-22.27M
Net Income-193.76M-77.56M80.82M-56.59M-119.09M-109.83M
Balance Sheet
Total Assets1.55B1.66B1.01B554.56M546.56M357.39M
Cash, Cash Equivalents and Short-Term Investments371.56M476.59M290.74M140.22M211.12M74.02M
Total Debt489.08M456.80M160.42M82.48M75.18M230.88M
Total Liabilities520.34M478.20M187.41M99.14M85.22M238.14M
Stockholders Equity1.03B1.18B820.02M417.88M433.61M94.25M
Cash Flow
Free Cash Flow-207.34M-154.77M-168.42M-20.53M-63.70M-28.86M
Operating Cash Flow-24.43M-24.09M-52.62M-20.18M-16.79M-10.62M
Investing Cash Flow-142.21M-130.68M-160.14M-68.05M-46.71M-18.24M
Financing Cash Flow-26.93M344.64M368.89M19.86M191.35M51.23M

NexGen Energy Ltd. Shs Chess Depository Interests repr 1 shs Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.75
Price Trends
50DMA
10.53
Positive
100DMA
9.69
Positive
200DMA
10.00
Positive
Market Momentum
MACD
0.20
Negative
RSI
65.94
Neutral
STOCH
91.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NXG, the sentiment is Positive. The current price of 11.75 is above the 20-day moving average (MA) of 10.64, above the 50-day MA of 10.53, and above the 200-day MA of 10.00, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 65.94 is Neutral, neither overbought nor oversold. The STOCH value of 91.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NXG.

NexGen Energy Ltd. Shs Chess Depository Interests repr 1 shs Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$6.43B-2.52-4.30%5.96%15.30%11.62%
52
Neutral
AU$6.87B27.36-17.60%-317.33%
$2.05B26.81-6.47%
£114.36M215.00-6.30%
$384.19M-4.30%
$1.15B-1.42%
$530.27M
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NXG
NexGen Energy Ltd. Shs Chess Depository Interests repr 1 shs
11.75
3.01
34.44%
PALAF
Paladin Energy Ltd
5.06
-0.90
-15.10%
GB:BKY
Berkeley Energia
26.40
8.15
44.66%
BNNLF
Bannerman Energy
1.83
0.39
27.08%
DYLLF
Deep Yellow Limited
1.18
0.51
76.12%
EGRAF
Energy Resources of Australia Class A
0.04
0.03
300.00%

NexGen Energy Ltd. Shs Chess Depository Interests repr 1 shs Corporate Events

NexGen Energy Ltd. Reports Increase in CDIs for April 2025
May 5, 2025

NexGen Energy Ltd. has announced an increase in the number of Chess Depository Interests (CDIs) issued over its quoted securities, with a net addition of 1,907,203 CDIs in April 2025. This change is attributed to net transfers of securities between CDIs and common shares, as quoted on the Toronto Stock Exchange and New York Stock Exchange. The announcement reflects the company’s ongoing adjustments in its securities management, which may impact its market positioning and stakeholder interests.

NexGen Energy Announces Annual Meeting Details
Apr 8, 2025

NexGen Energy Ltd. has announced details regarding its upcoming Annual General and Special Meeting of Security Holders. The meeting is scheduled for June 17, 2025, in Vancouver, BC, with a record date for notice and voting set for May 1, 2025. The company will be paying for the delivery of proxy-related materials to objecting beneficial owners, while notice and access requirements are applicable for both beneficial and registered holders.

NexGen Energy Ltd. Reports Increase in CDIs for March 2025
Apr 3, 2025

NexGen Energy Ltd. has announced an increase in the number of Chess Depository Interests (CDIs) issued over quoted securities, with a net addition of 6,393,022 CDIs for March 2025. This change is attributed to net transfers between CDIs and common shares listed on the Toronto Stock Exchange and New York Stock Exchange. The announcement reflects the company’s ongoing adjustments in its securities management, which could impact its market positioning and stakeholder interests.

NexGen Energy Unveils Landmark Uranium Discovery at Rook I Property
Mar 25, 2025

NexGen Energy Ltd. has announced a significant discovery at its Rook I property, marking the best drilling result to date with the RK-25-232 hole. This discovery has expanded the high-grade subdomain at Patterson Corridor East, doubling its size and indicating a rich uranium concentration. The development is seen as a transformative moment for the company, potentially rivaling its Arrow deposit, and underscores the importance of optimizing Canada’s energy fuel resources. The company is poised to commence construction on the Rook I Project, pending regulatory approval, highlighting its strategic positioning in the uranium market.

NexGen Energy Updates CDI Issuance for January 2025
Feb 5, 2025

NexGen Energy Ltd. has announced a change in the number of its CHESS Depositary Interests (CDIs) on issue for January 2025. The company reported a net decrease of 3,364,257 CDIs as a result of net transfers of securities between CDIs and common shares held on the Toronto Stock Exchange and New York Stock Exchange. This shift in securities could influence the company’s market presence and shareholder dynamics.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 01, 2025