NexGen Energy Ltd. reports third-quarter results on Wednesday, with analysts expecting a loss of 3 cents per share as the uranium developer advances construction of the Rook I mine in Saskatchewan. The anticipated loss reverses the prior quarter, when NexGen posted earnings of nearly 8 cents per share in August despite generating zero production revenue.
JPMorgan initiated coverage of the stock in September with a Buy rating and $14 price target, implying 77% upside from the current $7.89 share price. NexGen shares have fallen roughly 36% from the 52-week high of $13.96 and sit just above the 52-week low of $7.33, even as uranium spot prices recently touched $96 per pound, the highest level since 2007.
The company broke ground in June on the C$2.2 billion Rook I project, targeting first production in the third quarter of 2030 with annual capacity of up to 30 million pounds of uranium. A Red Cloud Securities site visit found early work consistent with management's assessment that the build remains on schedule and on budget.
In October, NexGen announced that drilling in the Patterson Corridor East expanded the high-grade uranium zone to 644 metres vertically, a 17% increase. One hole recorded 19.5 cumulative metres above 10,000 counts per second.
NexGen has contracted roughly 12 million pounds for its first five years of production. The company noted that 96% of its reserve base remains available for future sale.
Investors watching NexGen Energy (NXE) should monitor execution updates on Rook I construction timelines, resource expansion results, and management's contracting strategy amid uranium prices at 17-year highs.