NexGen Energy (NXE:V) the leading uranium exploration stock

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NexGen Energy (NXE:TSXV) is one of the hottest stocks on the TSX Venture in 2015. The share price has doubled this year based on positive exploration results at the Rook 1 project in Saskatchewan. With the recent merger of Fission Uranium and Dension NexGen is now the premier exploration stock in the uranium space.

Raymond James analyst David Sadowski is out with a new research report today with a strong buy and a $1.80 price target on NXE stock.

For a copy of the report please email a Raymond James broker.

Some of the highlights or Mr. Sadowksi’s research include:

  • The size and grade potential (+100 million lbs) of the NexGen’s project;
  • An easy mining target that could be suitable for bulk underground mining;
  • Consolidation potential in the area after Fission takeover;
  • Valuation still trading at a discount on a per pounds basis (assuming 80M lbs) compared to Fission and Denison);
  • Catalysts upcoming include drill results from a 25,000m summer program and a maiden resource estimate in Q1 2016.

Raymond James is currently modelling 80M-100M lbs of uranium at a grade of  ~1.8% in the A2 and A3 zones. The potential for north of 100 pounds is compelling if NXE has success with the drill bit on step outs.

Arrow appears to be similar to Cameco’s producing Eagle point underground mine.  Eagle has produced over 150M pound of uranium. Arrow mining according to the report would be similar to Eagle which means no lake, no shaft, no freezing, bulk extraction.

With very few uranium companies with large resources and good grades NexGen is likely to be high on the list of potential takeovers.

With a 25,000 m drill progam this summer NexGen will have steady news flow for investors. We will continue to cover the story as it unfolds for our readers.

NexGen is fully funded with $30 million as of the June presentation.

Read: NexGen Energy: a uranium legend in the making