NexGen Energy Targets 2030 First Ore as Rook I Eyes $1.3B Annual Cash Flow

NexGen Energy is targeting first ore from its Rook I uranium project in Saskatchewan in the third quarter of 2030. Construction milestones include freeze-plant activation in early 2027, shaft sinking beginning in 2028 and underground development starting in 2029. Rook I is designed as a conventional underground mine with planned annual production of approximately 30 million pounds of uranium and a 30 million-pound-per-year processing capacity. The project will use underground tailings storage, avoiding a surface tailings dam, and incorporate automation and remote operations. At an $85-per-pound uranium price, management projects roughly $1.3 billion in annual after-tax free cash flow , rising to about $2.3 billion at $150 per pound. NexGen says the project could repay its capital expenditure after 12 months of full production under a $90-per-pound price assumption. NexGen Energy NYSE: NXE used its inaugural Investor Day to outline the construction plan, operating design and projected economics for its Rook I uranium project in Saskatchewan, with management targeting first ore in the third quarter of 2030. Founder and Chief Executive Officer Leigh Curyer positioned the project against a backdrop of growing expected nuclear-power demand and constrained mine supply. He said global nuclear generating capacity is about 400 gigawatts, while more than 88 gigawatts of new capacity is under construction. Curyer also said 38 countries had pledged as of 2026 to triple global nuclear capacity by 2050. “The next decade in uranium won't be defined by demand. Demand is already here,” Curyer said. “The question is: Who can deliver new supply?” Curyer said the uranium supply deficit stands at approximately 60 million pounds annually and is growing as legacy mines deplete. He said the long-term uranium price had reached a record $97 per pound, compared with $17 per pound a decade earlier, while new mine development can take 15 to 20 years from discovery to production. Project Director Chris Copley said Rook I is designed as a conventional underground mine expected to move an average of 1,300 tons of ore to surface daily. The operation is planned to use gravity ore and waste passes, underground conveyors and shaft hoisting systems. NexGen has completed an early works program valued at C$100 million, which Copley said was materially completed on time and on budget. Existing site infrastructure includes an occupied accommodation complex, a 13-kilometer dual-lane access road and a 3,000-foot exploration airstrip. The company’s near-term construction focus during the second half of 2026 includes site earthworks, shaft-pad preparation, temporary facilities and utilities, runway expansion, water-management infrastructure, and foundations for shaft-related buildings and freeze plants. Freeze plants are expected to be activated in the first quarter of 2027. Pre-sinking of the production and exhaust shafts is scheduled to begin in mid-2027. Main shaft sinking is expected to begin in 2028, with the exhaust and production shafts reaching basement rock in June and August 2028, respectively. Underground development is planned to begin after the exhaust shaft reaches bottom in early 2029. The company expects surface and underground features to be completed by the third quarter of 2030, when first ore is targeted for commissioning and production. Copley said the project’s geology differentiates Rook I from o...