In January, we had the opportunity to learn about a founder's passion and drive to…
A Builder and His Mine
The heightened news-flow in recent weeks surrounding energy prices and government mandated carbon-zero targets, coupled with the entry of Sprott into the physical uranium market has created much interest in the uranium and nuclear space. We do believe the increased discussion surrounding a “nuclear renaissance” is warranted, and GreenWood’s preferred way to play the future uranium bull market is through NexGen Energy.
In June, GreenWood investors had the opportunity to dive deep with a uniquely high-quality mining executive to explore what drives him to be different in an industry notorious for questionable capital allocation skills. Founder of NexGen Energy, Leigh Curyer, sits atop an organization which holds the rights to Arrow, which is the preeminent global uranium deposit. Along with our friend, Arthur Hyde of Segra Capital, we discuss many aspects of Leigh’s capital allocation priorities which differ greatly from others in the junior mining world who often prefer to exaggerate the asset quality and issue equity at the expense of shareholders.
NexGen’s Arrow deposit is a top-tier global asset that we believe can survive, and thrive, in practically any future uranium price environment due to how low it falls on the global cost curve. This enviable long-term competitive position leaves NexGen in prime position to maximize shareholder value optionality which likely ends in a take-out.
Exhibit 1: Global Cost Curve
With a mantra of People, Process, then Project – Leigh is a very different mining executive than any we’ve come across before. Our conversation with Leigh touched on all three P’s and ended with his upbeat outlook for uranium prices. We believe the company has a very bright future ahead and NexGen management will find unique ways to maximize shareholder value in a cyclical industry. We’ve put together the best parts of the conversation with Leigh to share with you.
This article has been distributed for informational purposes only. Neither the information nor any opinions expressed constitute a recommendation to buy or sell the securities or assets mentioned, or to invest in any investment product or strategy related to such securities or assets. It is not intended to provide personal investment advice, and it does not take into account the specific investment objectives, financial situation or particular needs of any person or entity that may receive this article. Persons reading this article should seek professional financial advice regarding the appropriateness of investing in any securities or assets discussed in this article. The author’s opinions are subject to change without notice. Forecasts, estimates, and certain information contained herein are based upon proprietary research, and the information used in such process was obtained from publicly available sources. Information contained herein has been obtained from sources believed to be reliable, but such reliability is not guaranteed. Investment accounts managed by GreenWood Investors LLC and its affiliates may have a position in the securities or assets discussed in this article. GreenWood Investors LLC may re-evaluate its holdings in such positions and sell or cover certain positions without notice. No part of this article may be reproduced in any form, or referred to in any other publication, without express written permission of GreenWood Investors LLC.
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