Video News/Kitco Mining

Uranium prices remain too low to incentivize the new production needed to address a growing supply deficit, according to NexGen Energy Chief Commercial Officer Travis McPherson. Speaking with Kitco Mining's Paul Harris, McPherson said years of underinvestment have constrained global supply, while utilities face increasing pressure to secure future nuclear fuel. He argued that the shortage exists independently of rising electricity demand from AI data centers, even as uranium equities have struggled to keep pace with stronger commodity fundamentals. NexGen is preserving pricing flexibility as it advances its Rook I uranium project in Saskatchewan, favoring shorter contracts tied to market prices at delivery rather than committing most of its future output years in advance. Following federal approval in March 2026, construction is underway at the C$2.2 billion development, which targets first production around 2030 and annual capacity of up to 30 million pounds of U₃O₈. Upcoming milestones include shaft freezing and sinking, alongside continued exploration at Patterson Corridor East.