The Energy Report - Thu, Dec 14, 2017

New Uranium Assays Improve 'Resource Confidence'

David Talbot, an analyst with Eight Capital, outlined recent drill results from this energy company's flagship asset.

uraniumyellowcake580

In an Dec. 11 research note, Talbot wrote that NexGen Energy Ltd. (NXE:TSX; NXE:NYSE.MKT) had announced the findings from 21 holes of summer infill drilling at Arrow and among them were "the best assay results to date from the A3 shear."

A highlight hole, AR-17-147c3, showed 3.7% over 60 meters (60m), including 6.51% over 33m and 17.68% over 6m between depths of 597m and 657.5m. Generally, the A3 shear results "fall within," "confirm" and expand "slightly" the high-grade resource area, noted Talbot. "While somewhat expected, these results should help increase resource confidence from Inferred to Indicated upon the next resource estimate."

Drilling was successful, too, in filling some of the mineralization gaps to the southwest and northeast, Talbot said. "Mineralization isn't quite as strong in these areas, but zones remain relatively wide, suggesting ample hydrothermal fluid flow," he added. Further, the A3 shear remains open at depth.

Modest resource increases like these only minimally affect NexGen's stock, Talbot pointed out, because the Arrow deposit has a "+300 million pound U3O8 deposit already defined."

What has impacted the company's share price, asserted Talbot, is the recent upswing in the uranium price on the news that Kazakhstan will cut production by 20% between 2018 and 2020. The boosted uranium price, in turn, has caused the stocks of uranium firms like NexGen, "larger market cap names with longer time horizons," to increase. "We believe this trend will continue as NexGen becomes one of the sector's go-to names," said Talbot, adding that the company's market cap has surpassed $1.1 billion.

Eight Capital has a Buy rating and a CA$6.10 per share target price on NexGen Energy. The stock is trading now around $3.51/share.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: NexGen Energy. Streetwise Reports does not accept stock in exchange for its services. Click below for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

InvestorsGuru.com publishes interesting contributor articles in addition to its own content. We have not verified any of the above details.

Sign-up at InvestorsGuru.com (or blog.InvestorsGuru.com) for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or to post at our AnyTicker.com Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from InvestorsGuru.com is subject to the terms of our Privacy Policy and Disclaimer.

comments powered by Disqus

Detailed Quote Portal

symbol lookup | (TSX add :ca)

Membership Privileges

  • Investors Guru Small Cap Stock Observer - newsletter emailed monthly!
  • Featured Stock Profiles - emailed on occasion!
  • News by Email - as it's released, according to your My Preferences!
  • My Portfolio - login to view or update your holdings, or have it emailed daily!
  • My Watchlist & Alerts - login to view or update your stock radar list, and set price triggers for email alerts!
  • Bulletin Boards - no need to request boards, just Quote it! Social Sign-on & Share your ideas, observations & trends!
  • Find it all! Find it Fast! Comprehensive stock research webpages. No more endless clicking!

Email: (see Privacy Policy)
Password: (4-15 characters)
Username: (4-15, BB posts etc)

unsubscribe anytime


Bookmark and Share

 Subscribe in a reader

Our Mobile Site