NexGen Energy (NXE) Q3 2026 Earnings Call Transcript

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DATE

Tuesday, Nov. 10, 2026

CALL PARTICIPANTS

• Chief Executive Officer - Leigh Curyer
• Chief Commercial Officer - Travis McPherson
• Chief Financial Officer - Ryan Podrasky
• Project Director - Chris Copley

TAKEAWAYS

• Cash and Short-Term Investments -- CAD 821.6 million as of Sept. 30, 2026, providing sufficient liquidity to fund operations through the end of the third quarter of 2027.
• Strategic Inventory -- CAD 341.2 million in U3O8, which management stated it does not intend to sell as a source of financing for the Rook I project.
• Net Loss -- CAD 22.3 million for the quarter, compared to a net loss of CAD 129.2 million in the prior year period, primarily reflecting a CAD 25.6 million mark-to-market gain on convertible debentures.
• Uranium Long-Term Price -- USD 99 per pound, representing a historical high maintained during the quarter due to energy security and electrification demands.
• Forward Uranium Prices -- $105 per pound for three-year forwards and $112 per pound for five-year forwards, driven by a global supply-demand imbalance.
• 2027 Capital Expenditures -- approximately CAD 600 million, representing the anticipated peak expenditure year for the construction of the Rook I project.
• Airstrip Expansion -- 5,840 feet, with earthworks completed on Oct. 23, 2026, to provide capacity for large jet aircraft by the end of the year.
• Patterson Corridor East Exploration -- expanded the high-grade subdomain by 17% to 644 meters, resulting in the allocation of a fifth drill rig to the program.
• Camp Capacity -- 770 people, following the completion of an additional 200-person camp in June 2026 to support accelerating construction activities.
• Mineral Resources -- 3.75 million tonnes grading 3.10% U3O8, containing 257 million pounds of uranium at the Arrow deposit.
• Probable Mineral Reserves -- 240 million pounds of U3O8 contained in 4.6 million tonnes grading 2.37% U3O8, as stated in the feasibility study.
• Site Personnel -- 376 people currently on site, with recruitment supported by heavy equipment operator training programs that graduated 47 participants.
• Patterson Corridor East Drilling -- 28,712 meters completed out of a planned 42,000-meter program as of Sept. 30, 2026.
• All-In Production Cost -- approximately USD 14 per pound, as validated in the August 2024 financial cost update for the Rook I project.
• Production Shaft Pad -- scheduled for civil work completion on Dec. 16, 2026, in preparation for temporary freezing activities in March 2027.
• Effluent Pipeline -- 500 meters, with installation completed on Aug. 30, 2026, through a coordinated effort involving barges, cranes, and divers.
• Contracting Strategy -- prioritizing shorter contract durations tied to future prevailing market prices at the time of delivery to preserve leverage to uranium price upside.
• Finance Income -- CAD 5.7 million for the quarter, increasing from CAD 2.9 million in the prior year due to higher cash balances and interest rates.
• Convertible Debenture Conversion -- USD 40 million in principal from the 2023 debentures was converted into 5,917,159 common shares on Sept. 15, 2026.

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RISKS

• Curyer acknowledged that shaft sinking costs are susceptible to external pressures, stating, "we are all aware as widely reported that there's inflationary pressures and wage pressures," though he noted the company maintains transparency into these costs through its contract structure.

SUMMARY

NexGen Energy Ltd. (NYSE:NXE) transitioned to major post-approval construction activities at the Rook I project during the third quarter, following a ceremonial groundbreaking on Aug. 13, 2026. Management reported that the company achieved several critical infrastructure milestones, including the completion of earthworks for the project airstrip and the expansion of camp facilities to accommodate over 700 workers. The company is currently advancing a 42,000-meter drill program at Patterson Corridor East while maintaining a liquidity position that management stated is sufficient to support development through late 2027. Strategic focus remains on the development of the Arrow deposit and the diversification of global uranium supply chains through geopolitically stable Canadian sources.

• CEO Curyer stated, "August 13, 2026, will stand as a defining day in NexGen's history," marking the transition from a 12-year discovery and planning phase to active project construction.
• Management noted that the shaft-sinking contractor has mobilized to the site, with the freeze plant strategically procured in 2023 scheduled for delivery in Jan. 2027.
• The company expanded the Patterson Corridor East high-grade subdomain to 644 meters and is targeting an initial resource statement for the area by the third quarter of 2027.
• Management indicated that global nuclear capacity under construction has grown by 20% to over 88 gigawatts, driving what they described as an insatiable demand for secure uranium supply from Asian and Western utilities.
• The Clearwater Bridge was installed by the Saskatchewan Highways Department to support the heavy haulage vehicles required for major site equipment deliveries.
• CEO Curyer indicated that the company is evaluating a combination of financing alternatives, including prepayments and project financing, to preserve shareholder value while completing Rook I construction.

INDUSTRY GLOSSARY

• Arrow Deposit: The primary uranium deposit at NexGen's Rook I project, recognized as one of the largest undeveloped high-grade uranium deposits globally.
• CANDU: Canada Deuterium Uranium, a Canadian-designed pressurized heavy-water reactor technology exported globally for scaled nuclear power generation.
• PCE: Patterson Corridor East, a mineralized uranium system located approximately 3.5 kilometers east of the Arrow deposit currently undergoing intensive exploration.
• Rook I Project: NexGen's 100% owned uranium development project located in the southwestern Athabasca Basin of Saskatchewan.
• SMR: Small Modular Reactors, smaller-scale nuclear reactors designed for flexibility and rapid deployment compared to traditional large-scale nuclear stations.
• U3O8: A compound of uranium and oxygen, commonly referred to as yellowcake, which is the standard commercial form of uranium sold in international markets.

Full Conference Call Transcript

Operator: Thank you for standing by. This is your conference operator. Welcome to the NexGen Energy Third Quarter 2026 Results Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Mr. Leigh Curyer, Chief Executive Officer and Founder with NexGen Energy Limited. Please go ahead, sir.

Leigh Curyer: Thank you, Jason. Good morning, and thank you to our shareholders and stakeholders for joining NexGen Energy's Q3 2026 Financial Results and Investor Conference Call. Joining me today is Travis McPherson, Chief Commercial Officer; Ryan Podrasky, Chief Financial Officer; and Chris Copley, Project Director.

During today's call, the latest on our commercial activities, including the uranium market environment during the third quarter of 2026 and to date, the continued exploration success at Patterson Corridor East, or PCE, only 3.5 kilometers to the east of Arrow, and importantly, an update on the successful construction progress at our Rook I site, including a slide show highlighting the advancement at site, and then we'll move into the Q&A portion of the call, where you'll have the opportunity to ask myself, Travis, Ryan and Chris, any questions. We will be making forward-looking statements throughout the call today, so please visit our website for all the relevant disclaimers.

August 13, 2026, will stand as a defining day in NexGen's history. On that day, we held a ceremonial groundbreaking for the Rook I project symbolizing the commencement of major post-approval construction activities. August 13 was 12 years and 6 months from the initial discovery of the Arrow Deposit. This journey has been defined by the courage to test common geological convention, perseverance, resilience, genuine collaborations and partnerships with local communities, underpinned by rigorous planning, delivery of those stated objectives with elite safety and respect for the environment in which we conduct our operations. Simply, this approach, which never stops, has delivered better than the past.

The solid foundation of NexGen built on delivery over the past 16 years is today being directly reflected on the quality of work on the ground and the successful execution of construction at Rook I. The people who have stood alongside of us and shared their perspectives on August 13 at the groundbreaking ceremony all reflected what this project means.

Saskatchewan's Premier, Scott Moe, former Prime Minister, Stephen Harper; Secretary of State, Buckley Belanger; Metis Nation-Saskatchewan President Glen McCallum; Metis Local 39 President Keith Shewchuk; and leaders and members from all 4 of our local priority area communities, many of our international shareholders, Board of Directors, team members, among many others, some of whom were absent due to illness or family commitments. Their presence spoke to something larger than a single mine. Rook I is a provincial priority, a national champion and is being delivered in partnership with the local communities to set a new standard across the global resources sector.

Rook I in the southwestern section of the Athabasca Basin is the foundation of nuclear fuel supply for the world underpinning the trajectory of Northern Saskatchewan and Canada's nuclear energy objective for decades to come. And that time could not be more important than it is today. The uranium market is at unprecedented levels of demand and challenged supply. The long-term uranium price reached and has maintained its historical high during the quarter at $99 per pound and forecast to go considerably higher by the market observance. And as the world's existing producing mines are dominated by production downgrades, rising sustaining capital and increased cost of production as they move into the latter stages of mine life.

Two forces are defining this era, energy security and electrification, and they point in the same direction. We need more power and it needs to be sovereign. The idea that Canada has what the world needs has taken on greater significance, most recently echoed by Prime Minister Mark Carney. And from a resource perspective and particularly uranium, that is certainly true. Having the resources is only one component, realizing Canada's opportunity depends on companies who recognize the opportunity, where the uranium market is heading tomorrow, not where it has been in the past and responsibly executing.

There is a new breed of future uranium producers in Saskatchewan and at a time of unprecedented market opportunity and full credit to our cohort of uranium companies with projects under construction as we speak, who in these inflationary times are structuring contracts with the same approach as NexGen tied to prices in the future at the time of delivery in order to mitigate inflation and cost increase risk whilst being financially astute, focused on maximizing financial returns for shareholders and maximizing royalties for the great province of Saskatchewan. Yes, uranium prices have risen 5x over the past decade, yet we are mining the same amount of uranium as we were 10 years ago.

Prices simply will rise substantially higher due to increasing cost of production and the depletion of the existing mines. Momentum across the nuclear sector continues. Over 88 gigawatts of nuclear capacity is now under construction with approximately 8 gigawatts more from restarts and uprates. That's over 20% growth, and that doesn't take into account the massive backlog of planned reactors as well as SMR deployments, which are making rapid advancements. This growth, which the industry hasn't seen since the '70s and '80s is being driven by the requirements of nations around the world to have reliable baseload power at scale to meet rapidly rising electricity demand. These massive investments in global energy infrastructure are happening right now.

In Canada, specifically, we've seen a massive resurgence in the demand for new nuclear power plants, including Saskatchewan, where Premier Moe announced plans for 2.6 gigawatts of nuclear power in Northern Saskatchewan by 2050. Further, we're seeing the federal government of Canada revitalize and recommit to the Canadian nuclear stalwart, CANDU, promising to export this homegrown proven technology around the world. It's an incredible situation developing in Canada. During the quarter, Prime Minister Mark Carney pitched the project a 4-reactor nuclear plant at Darlington, Ontario, funded by a $3 billion federal and provincial investment as part of Canada becoming master of its own destiny. A new chapter in Canada's nuclear history is being written.

As Prime Minister Mark Carney stated, "We are an energy superpower, and we are only getting stronger." Across Canada, nuclear power is having its moment. In Port Hope, Ontario, the provincial utility has proposed a new 10,000-megawatt nuclear station. While on the shores of Lake Huron, one of the world's largest nuclear plants, the Bruce Power Nuclear Power Plant is advancing to double the plant's output to 4,800 megawatts. In Alberta, a proposal to generate a similar amount of power via 4 large-scale reactors near the town of Peace River has begun its impact assessment process. While in New Brunswick, home to the only operating nuclear plant outside of Ontario, the province is investigating ways to expand nuclear.

This momentum was also evident at the industry's preeminent uranium conferences during the quarter, including the World Nuclear Symposium in London and the Global Uranium Conference in Adelaide, where strong interest in NexGen's offtake and supportive sentiment reinforce the highly constructive backdrop for NexGen and the uranium industry at large. This shift is increasingly tangible with major technology companies like Amazon, Microsoft, Meta, Google and many others financially backstopping the expansion of nuclear power and the supply chains required to support this growth. Further, governments are signaling the need for strategic reserves, Kazakhstan being the most recent during the quarter and increasing investment in nuclear fuel supply chains. Together, these trends continue to strengthen expectations for materially higher uranium requirements.

These dynamics are evident in uranium pricing today. As mentioned earlier, as at October 31, the term pricing is at a historical high USD 99 a pound. 3- and 5-year forward prices have reached USD 105 and USD 112 per pound, respectively. Uranium prices continue to rise higher, highlighting the strength of the fundamentals in our sector. Our Rook I project is one of only a couple of uranium projects globally under construction today. Together with Patterson Corridor East and our 190,000 hectares of prospective land, NexGen's foundation to the uranium required for the next phase of global nuclear growth. At Patterson Corridor East, the 2026 drill program is nearing completion.

We are seeing continued growth and strength of the mineralized system with more to come. Results published during the quarter once again highlighted a significant basement-hosted uranium system that continues to grow. During the quarter, the high-grade subdomain expanded by 17% to presently 644 meters and given results allocated an additional fifth rig to the program. More results will be received and released imminently. Whilst the subsequent resource estimation, engineering, environmental studies and permitting will be required, these results are pointing to PCE as a highly advantageous avenue for NexGen and Canada's nuclear energy objectives. On contracting, we are in advanced discussions with many utilities around the world.

Global utilities recognize NexGen's unique value proposition in terms of materially diversifying their supply chains to reliable, technically sound and geopolitically stable new sources of uranium. We will continue to advance negotiations and forecast executing additional sales agreements in the coming periods as we deliver construction of the Rook I project. Our contracting strategy is simple and remains the same, to realize the most value per pound produced with every pound that is produced and sold by shortening contract durations, tying them to the prevailing market prices at the time of delivery. This approach has proven to be right, particularly in light of what is occurring in other major supply centers.

Today, NexGen is the world's most levered western world company to the future price of uranium and will continue to always be so. Our balance sheet is strong with CAD 822 million in cash and short-term investments at the end of Q3 2026 as well as an additional CAD 341 million worth of inventory in U3O8, providing significant financial flexibility as we advance Rook I. NexGen's strategic positioning and unique exposure to the future uranium price upside has provided access to a broad range of attractive and accretive financing alternatives. These include strategic financings, prepayments, project financing.

Importantly, our existing liquidity allows us to be highly disciplined in assessing these alternatives and selecting the optimal funding package to preserve flexibility and continue to maximize long-term shareholder value by successfully executing the construction of the Rook I project. Importantly, we continue to achieve key construction milestones to scope, on schedule, on budget and safely. Construction activity accelerated materially during the third quarter with earthworks and critical surface infrastructure advancing right across the site. The critical path exhaust shaft pad, civil and concrete foundational work has commenced. Earthworks for the airstrip expansion to 5,840 feet is complete, providing the capacity to accommodate large jet aircraft by the end of the year.

The construction facilities pad civil foundations are substantially complete, supporting temporary construction facilities and the primary batch plant. The shaft sinking contractor has been mobilized to site, along with the freeze plant, which we strategically procured in 2023, that will be delivered to site in January 2027 with temporary freezing commencing in March '27, a key milestone on the critical path. We will go into more detail during the visual slide show at the conclusion. Detailed engineering continues to progress in alignment with the overall project schedule with a focus on civil packages, shaft infrastructure and site-wide utilities. NexGen have also awarded key construction contracts across aggregate crushing, earthworks, concrete, shaft sinking, steel buildings and power generation.

Procurement activities continue to accelerate with procurement for over 50 process plant long lead items in progress as we speak, along with the procurement for underground equipment. The progress achieved through Q3 reflects the consequence of significant detailed planning over many years during permitting and our focus on safe execution. Let's walk through the last construction photos through the link included in today's news release. They provide a clear visual update on the significant progress being made across the site, scale and work now underway as we continue advancing Rook I toward production. Just running through the slides here. This is the eastern end of the extended runway of 5,840 feet, which was completed on October 23, 2026.

Permanent access road is on schedule for November 26, and the runway electrical systems are on schedule for February 15, 2027. This slide is 2 pictures of the exhaust shaft and temporary power facility pads. All, as we discussed during the call, the civil works are largely completed for both of these activities in preparation for the arrival of the batch plant and the foundations to support the freezing for the freeze plant and the subsequent freezing of the exhaust shaft in Q2 2027. The production shaft pad, they're already complete and ready for civils that are scheduled for completion on December 16 of this year. Slide 6 is showing construction facility pad.

That is including the primary batch plant area, the temporary facilities area as well. As you can see, snow started falling at site as well. Moving to the secondary batch plant already arrived or being prepared for arrival at site and first concrete pour is scheduled for December 16, 2026. This is a picture of the primary batch plant, which will support project construction by producing and supplying concrete for the foundation, structural works and other critical site infrastructure. It's currently being uploaded in the Port of Houston and then making its way to site. All components are scheduled to arrive at site by December 4, 2026, with installation occurring during the first quarter of 2027.

The stockpile facility, clearly, all the earthworks have been completed on October 15, 2026. Moving along to the waste pad or the waste management facility pad. That's temporary storage of the site waste prior to the treatment or disposal. Clearing and grubbing of those activities are complete with cut and fill operations underway and scheduled for completion on December 18, 2026. This is the installation of the effluent diffuser, which is a 500-meter pipeline that was completed on August 30, 2026. Highly complex operation involving multiple contractors, all working together under the project management of the NexGen team with successful installation, which require barges, cranes, and divers to deploy.

The pad and road finishing activities are underway and are on schedule for completion by December 18, 2026. The exploration core yard expansion and mineralized cutting tents, that core yard is being expanded to accommodate or be prepared ready for the total 2027 drilling campaign for PCE. That is clearly indicative of our confidence around the PCE resource and how much core is going to be required or core storage is going to be required as a result of our drilling program at PCE in 2027. Expanded temporary accommodation at the camp expansion. Again, this was completed on June 2026 on time and budget. Accommodation is now on site for 570 people, including an additional 200-person camp as well.

So we have capacity for over, well, 770 people with respect to the construction activities at site. Septic tank absorption filled as well on schedule and completion for December. And the Clearwater Bridge, this was installed by the Saskatchewan Highways Department, greatly appreciated by NexGen and reflecting that the government's commitment to the project in ensuring that appropriate transport infrastructure is in place to support the more heavy haulage vehicles coming to and from site going forward. Thank you. And I will hand over to the operator to open the call for any questions that anyone may have.

Operator: [Operator Instructions] And our first question comes from George Eadie from UBS.

George Eadie: Can I ask on the cash spend. So the run rate stepped up in 3Q as expected. Can you maybe help us think about that sort of run rate from here for the next couple of quarters? And then just in regards to that, sort of some of the bigger elixir capital come and thinking about your current liquidity buffer when you sort of need to at latest finalize the sort of next funding strategy?

Leigh Curyer: Yes. Thanks, George. Yes. Look, we're funded through to the end of Q3 2027 as we speak with our cash and short-term investments. We have been spending more like over the last quarter and construction is well underway. The bigger drawdown on our cash reserves starts commencing as we start sinking the shafts, and they are scheduled for the beginning of Q3 2027. So yes, we've got plenty of runway. We've got plenty of options in front of us with respect to financing, and we'll be answering that question in a manner that keeps the optimization of project construction intact, and we'll be reporting on that in due course.

George Eadie: Yes. Great. And just the strategic inventory, you still don't view that as a source of funds. Is that right? And then if I can squeeze one more into that as well. Just some of the bigger CapEx spend with the shaft sinking, like, are those -- can you remind us the contracts, are they fixed yet? Or are they in terms of price? Or are they still TBD?

Leigh Curyer: Yes. Firstly, we won't be selling the inventory at all or as a source of financing. With respect to your second question around the shaft sinking contract, we have signed that contract. That contract has come out right in line with our August 2024 financial cost on the Rook I project. Now that purely validated because costs have gone up over that time that we were ultra conservative in our financial cost calculation with respect to the sinking of the shaft. Shaft sinking a large component of it is labor. And we are all aware as widely reported that there's inflationary pressures and wage pressures.

Now the way we've got the contract set up is that we have complete transparency and management of those costs. If they go up, we will pay them. The shaft contractor is strongly incentivized around its sinking rates with respect to those shafts. And those sinking rates have had an enormous amount of analysis and validation around them with respect to the rock conditions. So as everything we've done at NexGen throughout our 16-year history, we have been conservative and met market expectations in everything we've done and the construction of this project will be no different.

I would also just add -- I would just also add that where we have already locked in the purchase of a number of items of equipment where we have identified even if there were to arrive in year 4 of the construction period, we've already ordered some significant items to ensure that they arrive on time and at the cost that we expect. So as I said, we've been planning the construction of this project for over 7 years.

We know exactly what we're doing on every day over that 4-year construction period, and I basically need to date that back because we're already well into it, and who's doing it and which contractors are going to support NexGen in doing it. And by virtue of the slides that we went through, you'll see the dates are very specific as to the day as to when things start and finished. And that is indicative of the level of planning that we've gone to.

Operator: And the next question comes from Ralph Profiti from Stifel.

Ralph Profiti: Just one question from me on the geotechnical side. You actually just touched on it in your previous answer. And the 60-hole program was very successful in identifying sort of rock quality and compressor strength and things like that. I'm just wondering what follow-up work is being done? And what happens now on the geotechnical side? And what comes next between now and, say, initiation of temporary freezing in March of 2027?

Leigh Curyer: I'll answer the first bit. And if I've left any gaps, I'm sure Travis or Chris will be happy to jump in. But holistically, we have completed a full geotechnical assessment of the shaft conditions themselves. So we've drilled pilot holes right down the middle of the exhaust and the production shafts. We've drilled geotechnical holes right throughout the ore body, right throughout where the underground tailings management facility is going to be located and also in a broader sense around the project as well. I dare say or I will say, I am unaware of another project that's had such geotechnical testing to this extent prior to actual construction.

And we are very aware of every millimeter that we're drilling through with respect to the exhaust and the production shafts. Now they are the 2 most critical items of this entire construction process. As we highlighted in our webinar on September 1, we've been extremely transparent as to the ground conditions that we expect, the reasons for them. And for those who have been fortunate enough to go to site have seen the core firsthand and can attest to the competency of that and the consistency. So to answer your question, Ralph, there's no further geotechnical work to be done prior to the commencement of excavating the exhaust shaft commencing at the start of Q3 2027.

Operator: And the next question comes from Mohamed Sidibe from National Bank Financial.

Mohamed Sidibe: Good to see the progress at site. Maybe in terms of your procurement packages and contracts, the shaft seeking contract has been signed, but could you remind us of any other procurement packages or contracts that are yet to be awarded that may be kind of driving maybe the biggest cost of schedule risk in your opinion?

Leigh Curyer: Well, I'll start. The major ones have been issued. We've got over 50 at the moment that we're currently issuing and there's a significant number of more. But around the major items of construction, we have the batch plant for the foundations. We have the freeze plant, which we procured back in 2023 over 3 years ago. It's been located in a shed, ready for transportation at the site for quite a number of years now. And the other one would be the power plant, which we have -- we don't need until year 4, but we've already procured that. We'll put the order in and got the contract terms around it.

So I would say they would be the major ones as we speak. We haven't encountered any elevation of risk around delivery in accordance with our construction schedule at all. And I think that's a result of the level of detailed planning that we've conducted in the 7 years prior to actually being approved to start construction of this project. You can see by virtue of how quickly the runway has gone in, the expansion of that camp to 770 people in an elite environmental manner that we are incredibly busy at site at the moment. There's 376 people.

It's -- there's an enormous amount of activity on site and everything is going -- and it's in this order, I want to be very clear on this. Everything is to scope. We will not compromise the scope, which is in the long-term, highly economic interest of this project whilst maintaining absolute elite environmental and safety standards, incorporating or optimizing as much community contracting and employment as achievable, where we're currently leading Canada in respect of that. It's well under management. And the major items we've put a lot of work into, and we're focused on them and it is going according to our schedule, scope and cost as we speak. And we're constantly reviewing it.

It's not like one and done and everything is finished every day. We're constantly reviewing it, constantly mitigating and that will continue. I can tell you now this project will be built to scope and in the most efficient time and cost achievable. And as I said, it's a function of the team that we've got at NexGen that we've assembled over the past 7 years and the granular detail that we've put into the planning and the risk mitigation around it.

So I'd just encourage everyone to keep watching our progress, go back to the webinar on September 1 to see when things are happening and how that compares to what we're presenting in every quarterly call and hold us accountable to that. There's no fear there whatsoever. There's huge excitement at site, and it's accelerating as we speak.

Mohamed Sidibe: And maybe for my second question, if I may, for Travis, maybe just on the contracting front and uptakes, I think just given the recent policy shift in -- well, not policy, but the midterm election won by the Democrats and questions around data centers and hyperscalers. Just wondering, from a utilities perspective, has anything changed in terms of your conversations and how they're approaching long-term contracting? Or it's the same kind of strength and bullishness that we've seen since the last few years?

Travis McPherson: Yes. Thanks, Mohamed. Yes, short answer is no, we haven't seen any change with respect to that. We wouldn't forecast any -- or any material anyways. There's still -- there's announcements today out of some of the SMR companies and how they're advancing. And again, the midterms are obviously specific to the United States. That's obviously a very important jurisdiction, one that's supportive really across the aisle of nuclear power and has been for a long time now. And -- but we're not just talking to U.S. utilities. We're talking to utilities all over the world. And so there's a ton of interest there for our projects, as we said earlier, and our products and with urgency.

So yes, no change there as a result of the midterms.

Leigh Curyer: No, I'll just add, at the Global Uranium Conference in Adelaide, it was normally a conference where you don't have -- or in the past, there haven't been a lot of utilities. Asian utilities were well represented. And they are very open about accessible supply of uranium from 2030 onwards. They've got a real concern over it. And that demand is insatiable. They are well aware that Kazakhstan are building their own strategic inventory to support their own nuclear initiatives. And the takeaway was that they've got basically all they're going to be allowed to procure is pretty well done. So it's materializing. And whilst you're not going to see that directly in the spot price, spot price is rising.

Long-term price is at a historic high and going further. The 3- and 5-year is well into the hundreds and going higher. So it's happening. People should look at all of those components when trying to gauge these market fundamentals and how they're playing out. But as NexGen and having been in the sector since 2002, but particularly as NexGen's history, this market opportunity is, I think, the most compelling in all commodities without a doubt. And as everyone knows, I bang on about it. I'm very technically and financially fact-driven. And that assessment is based on that technical and financial fact. And it's incredibly exciting for investors in NexGen and also the other uranium cohort.

Operator: [Operator Instructions] And the next question comes from Bill Peterson from JPMorgan.

William Peterson: Thanks for taking the questions and all the progress updates. So you're hiring a lot of people, you're going through training and so forth. How should we think about manpower additions over the next 12 to 18 months? What type of inflation are you seeing with such additions? And I guess more broadly, how should we think about expenses, salaries given the big step-up in 2026?

Travis McPherson: Yes. Look, the training programs have always been -- or have been a big focus of ours going back to 2022 because frankly, before everyone was talking about it being hard to hire people and labor shortages and this and that. We've always found it hard to find people because we're looking for the right people. And so we've always taken time to train them, identify them and onboard them the right way. We're not finding any challenges with respect to that. Any time we put out for applications, we literally get thousands of interested people for each one of those positions. So yes, we're not seeing any issues there. We're on top of it.

We have been for a long time. We're seeing the fruits of those early investments now. We just, as an example, did a heavy equipment operator training program and had 47 people enter it, 47 people graduate, and 10 immediately got hired at our site with the rest working with various contractors of ours to fill out their employment. So that's just a small example of these training programs ongoing. With respect to wages and that sort of thing, like you said, I mean, as Leigh said, we're focused on the scope and the schedule #1 and 2. And so we're willing to pay people to actually do the work and do it really well.

But that doesn't take a ton of people when you get the right people. So you pay the right people, the right amount, and you don't hire 5 people to do one person's job.

Leigh Curyer: Yes. We've even actually reduced the level or the overall G&A cost as well over the quarter and going into 2027. So at a managerial level, the scale of activity or the spend over the course of Q3 and going into full year 2027, the G&A component is actually going to decrease as a percentage. So we have a very highly focused -- focus on every dollar we spend. And I've got to say at the moment, in terms of labor rates, the actual cost on a per hour basis, we haven't experienced a significant increase in costs over the 2026 and '25.

So I think that's a combination of a couple of aspects, very strong management of them, but also people are wanting to come and work at NexGen given the project that we're working on and the conditions at NexGen and the advancement. So it's another factor that you've got to really manage closely and be ahead of. And with the training programs that we've put in place early, we are starting to bear the results and benefits of that planning.

William Peterson: And then maybe stepping back and thinking about the bigger CapEx picture. On the Investor Day, you pointed out that 2027 looks to be the peak CapEx year. First of all, I want to confirm at least 2 months on, that's still the case. And I guess if you do the math, it looks around CAD 600 million. Is that the right way to think about it as of now, especially taking into account the commentary you just made?

Leigh Curyer: Yes. That's still completely valid, and we expect it to be during 2027.

Operator: And the next question comes from Graham Tanaka from Tanaka Capital Management.

Graham Yoshio Tanaka: Congratulations on your progress. I'm glad things are proceeding on schedule and budget. Could you confirm or again repeat what you think the all-in cost per pound will be at production? And maybe give us a little hint as to what might happen with that curve as you go from the first to second to third year cost per pound. And also I have questions on your reserves and basically mine life plans with scalability upwards and flexibility going forward.

Leigh Curyer: Thank you, Graham. I'll start and then hand over to Travis. But the cost estimate, the production rate, and all of that as per the definitive feasibility study is maintained in that. With respect to PCE, obviously, there's a lot of interest in it given the obvious upside to the NexGen story that it will deliver. That is still subject to future resource calculation, engineering studies, environmental studies as well and obviously subject to permitting.

I'll just say that the likely development scenario would be, and as I said, qualified with respect to it would be subject to permitting, et cetera, but we would not foresee any material challenges around that given that we have already received the permit for the Arrow Deposit, there is still extensive mineralization that we have intersected through the drill bit that is outside the current grade shells and mine plan of Arrow.

So I think the logical development scenario is Arrow as detailed in the definitive feasibility plan, ongoing production at Arrow as we prove up additional increase the drill density of those intersections in and around Arrow and also below the current Arrow grade shell and then also looking at how PCE is optimized once we have an initial resource statement on PCE, which we'll be aiming for in -- around the start of Q3 2027, obviously, subject to the timing of receiving assays. So very exciting. NexGen is clearly much bigger than just Arrow itself, even though Arrow is #1 in the world. And it's a great position to be.

And I think the exploration team is doing a magnificent job with the 5 rigs on PCE. And they'll be having a short break over Christmas and then getting right back into it at the start of 2027.

Graham Yoshio Tanaka: And yes, and what the cost per pound getting back to that, what is that looking like relative to your plans even 7 years ago? I'm just wondering how much that comes through per pound.

Leigh Curyer: Well, cost per pound as validated in the August 2024 financial cost was just under USD 10 a pound with an all-in cost at about USD 14.

Graham Yoshio Tanaka: Okay. And today, what would that estimate be?

Leigh Curyer: Well, it is maintained as we -- as per the August 2024 financial cost that we published. It's the same.

Operator: [Operator Instructions] And our next question comes from Craig Hutchison from TD Cowen.

Craig Hutchison: Just on the financing piece, you guys mentioned that you're financed through Q3 of next year. But just can you talk to what the cadence is around the financing? Like do you expect to announce a series of financing measures together? Or can we expect maybe some of these announcements to come independently? And just curious on your recent thoughts around prepays as well.

Leigh Curyer: Yes. Look, it's dependent on a number of things, market conditions at the time, et cetera. Look, I think as we stand, it will be a combination of those various alternatives, not just one of them. Rising uranium price certainly assists in getting a lower cost of finance, be it whatever form it may be in. So yes, I would like to be more specific, but that is as specific as we can get at this point in time. As I said, as we sit here, we would be expecting like a combination of one or more of those activities that we're looking at.

We are in negotiation for a prepayment with entities both in and outside of the U.S. as we speak. And so it's not just -- there's a number of prepayment options that we're looking at. Very importantly, any decision around that is tied to maintaining leverage to the future price of uranium at the time of delivery. So that is our approach and our guiding principle in those prepayment negotiations.

Operator: This concludes the question-and-answer session. I would like to turn the conference back over to Leigh Curyer for any closing remarks.

Leigh Curyer: Thank you, and thank you, everyone, for attending today and joining our call. Look, we are in construction mode, and we are working on what is the world's highly important newest uranium project. The timing is perfect. We see a market where supply remains structurally constrained while demand for secure, reliable nuclear power continues to accelerate, precisely as Rook I is advancing construction and will be in production in a few short years from now. In closing, the safe and successful execution and community advancement remain at the core of everything we do.

We're delivering Rook I to the highest standards, importantly, to scope and within the most efficient time and cost achievable, while we continue to grow the opportunity across our broader district in creating long-term value for our stakeholders. We invite and expect better and always will be delivering better in everything we do. So with that, it's an exciting time in the industry, incredibly exciting time at NexGen. I'd like to take the opportunity for the team that is on the call and the team out at site. They're doing a magnificent job in the delivery of this hugely material project on a world scale. Thank you.

Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

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