Start Time: 08:30 January 1, 0000 9:28 AM ET
NexGen Energy Ltd. (NYSE:NXE)
Q2 2024 Earnings Conference Call
August 08, 2024, 08:30 AM ET
Company Participants
Leigh Curyer - CEO and Director
Travis McPherson - Chief Commercial Officer
Ben Salter - CFO
Conference Call Participants
Andrew Wong - RBC Dominion Securities
Katie Lachapelle - Canaccord Genuity Group
Craig Hutchison - TD Securities
Gordon Lawson - Paradigm Capital
Alex Terentiew - Ventum Financial
Brian MacArthur - Raymond James
Operator
Good morning, ladies and gentlemen, and welcome to the NexGen Energy's Q2 2024 Financial Results Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions]. This call is being recorded on Thursday, August 8, 2024.
I would now like to turn the conference over to Mr. Leigh Curyer, CEO and Director of NexGen Energy. Please go ahead.
Leigh Curyer
Thank you, Calvin. Welcome, and thank you all for joining NexGen's Q2 2024 update and financial results call. I'm Leigh Curyer, Chief Executive Officer of NexGen Energy. Joining me is Travis MacPherson, Chief Commercial Officer; and Benjamin Salter, Chief Financial Officer. We will be making forward-looking statements throughout the call, so please visit our website for any relevant disclaimers.
Since we last spoke in May, there have been exciting developments in advancing the Rook I Project closer to production and actions within our industry that further underscore the need for a diversified and sustainable uranium supply chain, one that has more production capability and longevity in western jurisdictions, where there has been a tremendous underinvestment with the exception of the few in all aspects of the uranium industry for decades.
The uranium market continues to be dynamic, with demand for stable electricity in every country worldwide increasing whilst on the nuclear fuel supply side, current production continues to labor with significant production challenges regarding limited supply input availability, skilled labor and simply mine lives nearing the end of their resource life.
During the quarter, additional factors arose exacerbating these already significant supply side challenges. Movements largely influenced by legislative impacts, including taxation, [indiscernible] largest producers at Kazakhstan which simply results in their in-country production costs becoming higher and additional geopolitical impacts such as Indonesia canceling mining leases.
The focus on securing long-term supply in the face of these ongoing challenges continues to manifest amid the growing supply deficit which is currently estimated to be approximately 60 million pounds annually and growing to over 240 million pounds by 2040. Long-term prices for uranium over the quarter continued to rise as demand continues to outpace supply and investment in the sector is nowhere near the run rate to ensure long-term supply stability, particularly as governments continue to reinforce their clean energy commitments as energy security concerns grow materially with the advent of energy-hungry data centers.