NexGen Energy’s shares rise as Rook I moves to next stage in EA process

NexGen Energy (TSX: NXE; NYSE: NXE; ASX: NXG) has advanced its Rook I uranium project through a significant step in its environmental review.

The company submitted the final provincial Environmental Impact Statement (EIS) to the Saskatchewan Ministry of Environment for the project, located in the southwest of the Athabasca basin. It includes underground and surface facilities to support the mining and processing of uranium ore from the Arrow deposit. 

According to the company, the province confirmed the completion of its conformity review of NexGen’s EIS. The project will now advance to the public review stage.

NexGen CEO Leigh Curyer said the project is moving forward thanks in part to support from affected Indigenous communities.

“We are incredibly proud of the contribution and partnership of all four local Indigenous communities in the local project area who, through industry-leading benefit agreements, have all confirmed their formal and legal consent for the company and project throughout its entire lifespan,” Curyer said.

The next step under the Saskatchewan government’s environmental review process is a 30-day public review scheduled to begin by Sept. 2. Parallel to the provincial process, NexGen is in the final stages of completing responses to federal technical and public review comments received on the draft EIS through the federal environmental assessment review process.

In a research note on Monday, BMO Capital Markets uranium analysts Alexander Pearce and Colin Hamilton wrote that NexGen shares stand out in the uranium space amid improving sentiment in the underlying uranium price. The uranium spot price has risen by 18% since the end of last year to $56.38 on July 31. 

The analysts gave NexGen an outperform rating, noting that it trades at a discount compared to its developer peers and its Rook I project has the potential to become one of the largest uranium operations in the world. 

NexGen shares were up almost 6.3% to $7.00 apiece on Monday, valuing the company at $3.4 billion. Its shares traded in a 52-week window of $4.54 and $6.86.