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We came across a bullish thesis on NexGen Energy Ltd. on Case Resources’s substack. In this article, we will summarize the bulls’ thesis on NXE. NexGen Energy Ltd.’s share was trading at $13.92 as of January 28th. NXE’s trailing P/E was 47.82 according to Yahoo Finance.
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NexGen Energy Ltd., an exploration and development stage company, engages in the acquisition, exploration, evaluation, and development of uranium properties in Canada. NexGen Energy (NXE) has reported its highest-grade uranium assay results to date from the Patterson Corridor East (PCE) discovery, located 3.5 km east of its flagship Arrow deposit, reinforcing its position as a leading developer in the Athabasca Basin. Hole RK-25-256 intersected 21.4% U₃O₈ over 5.5 meters, including 46.1% U₃O₈ over 2.5 meters and an ultra-high-grade core of 74.8% U₃O₈ over 0.5 meters, while an additional intercept recorded 5.28% U₃O₈ over 1.5 meters.
These results demonstrate continuity with previous high-grade intercepts, extending mineralization over 215 meters and confirming NXE’s PCE discovery as a rare, world-class uranium deposit. The basement-hosted style mirrors the exceptional grades of the Arrow deposit, underscoring the potential for a large-scale, high-margin resource. Management emphasizes that the proximity to Arrow enables infrastructure synergies, while the frequency of bonanza-grade hits validates the district’s broader potential.
With uranium fundamentals remaining strong and NXE dual-listed on TSX and NYSE, the company is well-positioned to capitalize on increasing demand for clean energy and nuclear fuel. While deep underground mining and capital intensity represent development challenges, the quality and continuity of mineralization, combined with strategic location and market dynamics, present a compelling bullish case. NXE’s recent results not only enhance the asset’s intrinsic value but also set the stage for a significant re-rating as the project advances toward development, making it a standout opportunity in the tier-1 Athabasca Basin.
Previously, we covered a bullish thesis on Centrus Energy Corp. (LEU) by devolution_king in October 2024, which highlighted AI-driven nuclear demand, U.S. energy security concerns, and LEU’s undervalued uranium enrichment business. LEU’s stock price has appreciated by approximately 515.78% since our coverage due to a sharp re-rating in nuclear equities. Case resources shares a similar view but emphasizes NexGen Energy Ltd.’s (NXE) record-high uranium grades at Patterson Corridor East and its potential for a re-rating as a top-tier Athabasca Basin developer.