Topic: How To Invest

Pat: What do you think of NexGen Energy? They seem to be finding more uranium with every hole they drill.

Article Excerpt

NexGen Energy, $0.67, symbol NXE on Toronto (Shares outstanding: 221.4 million; Market cap: $167.8 million, www.nexgenenergy.ca), continues to drill at its 100%-owned Rook I uranium property in Saskatchewan’s Athabasca Basin. The company has reported positive results at the property’s Arrow zone, which it discovered in February 2014. In March 2015, NexGen discovered a new mineralized area, called Bow, 3.7 kilometres northeast of Arrow. Recent drilling at the Arrow zone included hole AR-15-57c3, which returned 5.0 metres of a very high 49.60% uranium oxide. On September 30, 2015, NexGen held cash of $20.7 million, and it’s now selling 35.9 million shares at $0.64 each to raise a further $23.0 million. That gives it the funds it needs to continue its extensive drilling program. It’s a long way from positive uranium showings in early-stage drilling, to defining a uranium resource large enough to support a mine. In addition, anti-nuclear sentiment remains high following the March 2011 earthquake and tsunami that led to a release…