Ann: Q1 2024 Conference Call on Rook I Project Developments, page-14

Full transcript - Nexgen (NXE) Q1 2024:

Operator: Good morning. My name is Julie and I will be your conference operator today. At this time, I would like to welcome everyone to the NexGen's Energy Q1 2024 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session at the end. [Operator instructions]. Before we begin, please note that the following caution respecting forward-looking statements, which is made on behalf of NexGen Energy and all of its representatives on this call. The statements made on this call will contain forward-looking information that involves risks and uncertainties. Actual results could differ materially from a conclusion, forecast or projection in the forward looking-information. Certain material factors or assumptions were applied in producing forecasts and projections are detailed in the forward-looking information. Additional information about those material factors and assumptions are contained in NexGen Energy's filings and they are available on Cedarplus website at www.sedarplus.ca. Mr. Leigh Curyer, CEO and Director of NexGen Energy, you may begin your conference.

Leigh Curyer: Thank you, Julie. Welcome and thank you to all our shareholders and stakeholders around the world for joining NexGen's Q1 2024 update and financial results call. I'm Leigh Curyer, Founder and Chief Executive Officer of NexGen Energy. Joining me on the call today is Travis McPherson, Chief Commercial Officer, and Ben Salter, Chief Financial Officer. From a company and industry perspective, it's been a great first quarter to 2024 and I'll commence by providing an update on the industry landscape and uranium market, which is entering into an unprecedented phase, with last night President of the United States, Joe Biden, signing into law legislation that bans the import of Russian uranium and unlocking $2.7 billion in spending to support the build-up of US domestic uranium supplies. This purely reflects the particularly high risk surrounding a large percentage of current mine sources and available supplies. We'll provide a progress in advancing the Rook I project, specifically federal permitting, which is in the final stages with the CNSC project development, with respect to front-end engineering design and detailed engineering progressive; exploration, which includes the early stage discovery of new mineralization in the first drill hole at the target on an entirely new conductor corridor 3.5 kilometres from the one that hosts the mighty Arrow deposit. And financing, including discussion related to two transactions in the last fortnight, the AUD250 million CDIs raised exclusively on the ASX, which closed this morning pre-market and the strategic purchase of 2.7 million pounds of [indiscernible], which, given last night's ban being passed into law, is ultimately very, very timely. NexGen, on closing, now has cash and liquid assets of approximately $930 million in preparation for construction of the Rook I project. After this discussion, I'll then move into a Q&A portion on the call, where I invite you all to ask questions. In the last six months, we're highly encouraged to see governments worldwide adopt energy policies and strategies that are aligning strongly with NexGen's recognition back in 2011 of the role, sustainable and cost effective nuclear energy will play in the 2020 decade and beyond. Increasingly, nuclear is being recognized as the critical component of the global energy mix, addressing the need for clean, efficient and secure energy sources. The world is on an aggressive path to bring more nuclear power online, tripling by 2050, both in the form of new builds in places like China, India, the UAE, UK and France, as well as restarts and extensions in large and key nuclear markets such as Western Europe, Japan, South Korea and the United States. This expansion is increasingly critical as the electrification of our world accelerates, notably through the expanding adoption of artificial intelligence and electric vehicles. Both need a reliable and baseload power source, leading to a paradigm shift in the energy market. We've seen this urgent need for a nuclear renaissance to continue, expressed by many thought leaders, including tech giants such as Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN), as well as the likes of Sam Altman, OpenAI and Brad Gerstner, legendary, venture investor. Demand is robust, sustainable and growing significantly faster than anyone forecast, causing the focus to shift to the ability of the industry to supply this key energy fuel. Supply however, tells a different story, a narrative of fragility and decline. The confluence of over a decade of extreme underinvestment, supply disruptions, dwindling inventories with the overlay of significant geopolitical risk is precipitating a new market reality; one in need of more dependable uranium sources and has led to uranium spot during this past quarter, reaching new 15-year highs at $107 a pound. In the face of supply challenges, new sources must be found through the purposeful exploration efforts and then developed, which take time, even for those companies doing their good work like ourselves and our Canadian development company colleagues, Denison, Fission, UEC and IsoEnergy in Canada. It's not simple, convenient or quick to find and develop any mineral project. It's at least a minimum of 15 years before new, undiscovered sources come online. It's more important than ever to advance the Rook I project into production this decade, and the NexGen team is delivering on that objective. In Canada, the federal government has recognised this importance and strongly emphasises commitment to expanding the nuclear sector, both domestically and globally. This includes efforts to expedite the approval process for nuclear projects in Canada and increased funding availability, as highlighted in the most recent federal budget. NexGen is Rook I project, and all its shareholders and stakeholders are extremely well positioned for this Canadian Government commitment. The importance and reality for the need of allied supply chains was bluntly reflected last night with the signing prohibiting Russian Uranium Imports Act. This is set to take effect 90 days, banning US imports of Russian uranium in a phased manner through 2028. This legislation begins a new, unprecedented era in the uranium market and is expected to tighten the market considerably, leading to significant and long term upward pressure on uranium prices. Consequently, for all these reasons, utilities are seeking to diversify their highly concentrated nuclear fuel supply chains in allied jurisdictions. The Rook I project stands out as the world's largest and lowest cost future producer for an exceptionally sound technical and environmental setting, evident by its vertically stacked ore body that is large, high grade and located in our ideal hard rock conditions with clean ore, making it truly unparalleled in the global uranium landscape. We're encouraged to know that our valued government partners and local communities acknowledge the importance of Rook I's generational profile and recognize that Rook I will cement Canada as a global leader in the delivery of uranium as part of the green energy solution. Looking ahead, NexGen is energised to progress the Rook I project into construction and production through our innovative culture, deep expertise, operational excellence and our collective commitment to being a key contributor to the essential, global, clean energy transition. Over the first quarter, we continue to execute our strategy to permit Rook I for construction. After receiving Saskatchewan Provincial Environmental Approval of the Rook I project on November 08, 2023, which was the first greenfield uranium mine and mill project in Canada to receive provincial EEA approval in over 20 years, we immediately submitted responses to the CNSC technical comments. On February 12, 2024, at conclusion of the prescribed 90 days following that submission, NexGen received only 49 comments remaining to address and once done so successfully, will have concluded the federal environmental impact study. We're extremely pleased with this CNSC review and have been finalising our subsequent responses to these remaining 49 comments, which we will be submitting imminently this week or early next and will be reflected in a news release at that time. This is all in the backdrop of full support from our local indigenous community partners, who have all signed impact benefit agreements with NexGen on the full lifecycle of the Rook I project. On project development, the 2023 site confirmation program is informing and validating the final detailed design of the production exhaust shafts, water treatment, underground tailings management facility, mill and surfer surface infrastructure. This work is estimated to be completed at or around the end of Q2, where we will then provide an updated cost summary on CapEx, OpEx and project economics. Regarding procurement, we are finalising details of the shaft sinking contract award and advancing the procurement of the mine hoist system, which will be awarded in the near future. Additionally, we are awarding various ancillary site contracts, including the LNG power plant, during the second half of this year. As we shared earlier this year, our 2024 Winter Exploration program has returned successful results at a brand new discovery on the Patterson Corridor East, which lies 3.5 kilometres east of Arrow on a separate conductor package. The intense mineralisation discovered in RK-14-183 meant that we focused the balance of winter exploration solely in this area to first understand the extent of the system. The geological similarities between Patterson Corridor East and Arrow and have dictated the summer program will focus on this area for a considerable period of time. The early exploration holes at Arrow in early 2014 were hitting the top of the strong and large mineralisation below. This discovery and the holes drilled to date suggest a similar setting of an extensive mineralizing event in the vicinity. Results of the remaining 2023 program are imminently pending and the 2024 summer drilling program will be commencing late May and will be an expanded program from winter and all on this new discovery. All discoveries have their own unique nature and this will be no different, but note the execution of this drilling program is incorporating the same industry-leading technical approach and discipline as deployed at Arrow on discovery and in a manner, which was the most time and cost efficient per meter drilled in the discovery of a plus 100 million pounds deposit in the world. Regarding contracting, our discussions continue to advance well with respected nuclear power utilities. We have been recognised as a significant producer in the future with a strong understanding of NexGen's key positioning in any utility's future supply portfolio. As evidenced in industry market commentary, contract negotiations for 2028 and beyond are occurring now. Last week, NexGen announced the purchase of 2.7 million pounds of physical uranium at USD92.50 per pound via the issuance of a 250 million convertible debenture at a 30% premium to our five-day VWAP share price. This debenture is on the same terms of which we have successfully executed in the past with CEF, Li Ka-shing in 2016 and '17. Queens Road Capital and more recently, Salt Pattersons in Australia, which all incorporate an Investor Rights Agreement that contains shareholder voting alignment, standstill, sale and transfer restriction covenants and anti-hedging through short selling options, swaps or derivatives. The rationale to procure uranium now is logical, given our stage of development in approaching final permitting, then construction and more so, the contracting cycle for delivery from 2028 and beyond is occurring now. That's right, right now. Last night's signing of the Russian uranium ban, fully enforced by 2028, means the importance of procurement for this time and beyond has even more significantly elevated in the last 24 hours. Nuclear fuel is unique, in the sense it's a highly specialized input of production for power utilities that takes many years to procure and not commonly available if caught short. The producers and spot market is no longer flush with inventory levels to accommodate any unexpected shortfalls. Given the supply side dynamics of fragility, utilities are rightfully focused on security of supply now. This purchase shows utilities NexGen has their back and is a responsible, reliable supplier, reflecting respect and understanding of their risks and requirements for successful operation. With respect to the price of $92.50 per pound, based on recent spot market purchases over the last six months, 100,000 pounds has been resulting in greater than $1.50 upward price movement. We are confident, we have purchased extremely diligently and at the same time as enhancing our contracting and debt financing approach. With respect to the debt package, which we will continue to advance through due diligence and schedule, concluding shortly after federal approval, this includes many different potential avenues and significant capacity is being evaluated with maintaining leverage to future uranium prices, evidenced by expressions of interest from lenders, which now totals approximately USD1.4 billion, which provides substantial, excessive capacity to fund and execute the project. We continue to experience strong institutional and retail shareholder support from Australia and the broader Asia Pacific region, who exhibit strong demand for unhedged uranium development opportunities. Our listing and subsequent inclusion in the ASX 300 index on March 18 marked a significant milestone, reflecting our company's continual commitment to finding new shareholder markets, exposure and in the process, leveraging optimal outcomes for our shareholders and stakeholders. In line with this objective, two weeks ago, NexGen issued a $224 million placement to ASX investors, which together with the issuance of the $250 million convertible, takes our cash and liquid assets to approximately $930 million Canadian and that is excluding our investment in ISO energy. We have significantly addressed the equity component of funding construction of Rook I, providing the market with clear visibility of our objective of taking Rook I immediately into construction on receiving federal approval with the value of that milestone unencumbered. In September of 2023, NexGen has raised approximately $540 million with a discount to market being an industry leading 1.5% to 4% discount while still mining [ph] sector-leading share price performance. Further the this has been during a period CES have liquidated their shareholding. This represented approximately 18% at the beginning of last September to only yesterday being advised is now holding less than 0.1%. We are very proud of this investment return to CEF since 2017 of over 500% and equally excited it has been replaced with new, predominantly large Australian based shareholders with an affinity for a new world mining company delivering exceptional returns. By the end of Q1 2024, we will have invested approximately $459 million in the successful exploration and development of the Rook I project and this has resulted in a current market capitalisation of $5.4 billion. The day prior to the announcement of the uranium purchase last week, NexGen hit a new all-time high market capitalisation at $12.14 per share and led all year-to-date one year rolling tables relative to its peers. The 2.7 million pound purchase of uranium represented approximately 4% dilution to that market cap and is placed NexGen in a far stronger position than what it was prior to announcement. Before we turn to the Q&A, I'd like to mention Susannah Pierce's nomination for election to our board of directors at our upcoming AGM in June and this is referenced in the NexGen management information circular issued last week. Susannah currently presides as President and Country Chair of Shell (LON:SHEL) Canada. Her expertise and experience in the global energy industry and genuine engagement with local indigenous communities and government stakeholders makes her a natural fit for our organization. I encourage everyone to read the NexGen management information circular, which details all aspects of our approach, governance and diligence in delivering the world's largest, environmentally, socially and elite economic uranium development project. Our team's strength lies in its diverse composition, enriched by top tier talent from a variety of backgrounds, reflecting a wide reaching perspective that enhances our approach. In 2023, total employees by gender statistics were 66% male and 34% female, compared to a Canadian average of females in mining measuring 16% more than double. Proudly, 80% of Rook I signed employees were from the local priority area. Over 44 million has been spent on the local priority area supplies in 2023, which stimulates economic development within local communities and builds long lasting and self-sustaining community resilience. As we move forward with the project, we continue to add to our high performance team, building and investing in skilled talent poor is central to our continued success and local economies success. In summary, we are moving forward with the support of our valued indigenous partners, our shareholders, the regulatory and governmental authorities of our dedicated team. As we look toward the rest of 2024, our focus is on advancing the Rook I project. We are at a pivotal and exciting time for our company, and as always, it's a privilege to share our continued growth with you as we work together to secure the energy transition. Now, let's transition to the Q&A, and we encourage questions from all of you. I'll hand it over to the moderator.

Operator: [Operator instructions] Your first question comes from Andrew Wong from RBC. Please go ahead.

Andrew Wong: Hey, good morning. Thanks for taking the questions. So it's great to hear you're about to resubmit the EIS soon. Just kind of -- just wanted some clarity around the timeline. So after you submit, what are the specific steps and timeline that needs to happen before a public hearing can be scheduled and what actually happens during the public hearing? Could there be some public commentary that comes out that needs to be addressed during that process and then after that, like what's the timeline before the -- from the public hearing until you get a final decision from the Minister?

Leigh Curyer: Yes. Thanks, Andrew. Yeah, look, so we're very pleased with the response that we received from the CNSC. Like to have 277 questions in the first place, according to our consultants, was unprecedented for this stage of a project. We're down to 49 and they really -- whilst every aspect is very, very important and we're respectful of that, we are submitting imminently, either late this week or early next. Now, as prescribed by the rules and regulations, the CNSC is entitled to another 90 days to review and close out those remaining 49 aspects. On closing those 49 aspects out, the EIS will be deemed final. At that point, it will then establish a commission hearing date. Now every project that has gone to a commission hearing has been approved within 60 days. I think whilst all aspects are very, very important and material, it's very, very significant with respect to concluding the EIS and we are very much looking forward at the conclusion of this next 90-day period, which I think is at the end of July off the top of my head, and very much look forward to those 90 days, that's for sure. Now, with respect to other public comments that can arise, well, the federal government has already ran its 120-day public comment period back in 2022 and those questions that we've already addressed, were directed at those public and technical comments. So from our perspective, it's very, very well, has been very rigorous, has incorporated all stakeholders, and this is on the overlay of having 100% community support from the communities in the local project area who have all reviewed and signed off on the EIS as we have presented to the CMSC.

Andrew Wong: Okay, that's great. And then just talking about the Rook I project itself, you've been pretty clear on I think your intentions to bring it into production. It sounds like there's could potentially be a construction start within the next six months to 12 months. So you just talked about the technical team that you have in place already. What's the size of that team right now, and how much more do you need to build it out? How quickly can you hire the labor force that needs to build a project?

Leigh Curyer: Yeah, sure. So we are on receiving federal approval. We'll be in a position to start immediately the following week. We have done 100% engineering of a lot of the site infrastructure aspects, the preliminary works in order to commence construction in earnest and all the early stage items are 100% engineered. The remaining engineered items around the specifics in the mill to put that into perspective around the wiring and so we're ready, subject to federal approval, to immediately start. With respect to the team, we have currently about 76 people in our Saskatoon head technical office and at NexGen, our culture is absolute responsibility, and so we have a dedicated NexGen person for every aspect of our operations. That's not just the construction of the project that exhibits in geology, the financial side, commercial side, everything. So we have been very, very strategic and well planned in acquiring the personnel and the technical expertise that we want ever since 2017. We knew at that stage we had a project, and we're taking it forward into production. That's elevating as we speak and to give you one example, like on the safety side of things, we're now breaking that out into very specific areas of safety at surface underground radiation experts and given the profile of the project and the culture that NexGen is exhibiting, we're very, very pleased with the calibre of the applicants that we're receiving, not just within Saskatoon and Saskatchewan, but also from outside of Saskatchewan and so Saskatchewan is going to be experiencing an inflow of skilled labour as a consequence. With respect to the labour force on the ground, well, our community team, led by Adam Angle and Dylan Smart in Saskatoon, have already been running training programs with the various government technical colleges in Saskatchewan and the take up of those training programs has been absolutely phenomenal and so we are well prepared on both fronts, and it exhibits our commitment to making as many of the jobs as local as achievable and so you're going to also be seeing an inflow of population into the local community area on the commencement of construction of the project.

Andrew Wong: Appreciate all of that. Thank you very much.

Operator: Your next question comes from Puneet Singh from Eight Capital. Please go ahead.

Puneet Singh: Hi. Good morning. Just a couple questions on the convertible, just regarding strategy, the way the uranium price has traded, why not do this a couple of years ago? And what specifically were you seeing in the market that made you pull the trigger now?

Leigh Curyer: Yeah, look, you're quite right. We've always been confident that the price of uranium is going higher, even five years ago, and it's going to go higher, but the decision to purchase pounds of uranium now is completely in line with our stage of development. We're about to -- we are in the final stages of federal approval. We are immediately on receiving approval, start construction, and the contracting cycle for 2028 and beyond is now and so that predicated, given the fragility around current production and available supplies, like the producers have had a significant drawdown of inventory on hand over the last two years and then also the spot market is incredibly tight. And dealing with the nuclear fuel, the utilities want a surety of delivery. So us acquiring 2.7 million pounds is very significant in our contract negotiations with utility and recognizes the utilities risks around security of supply and so the timing of that is evident today, and I would say the Russian ban introduced last night has elevated that significantly into a new era that is unprecedented, frankly.

Travis McPherson: Yeah. Hey, Puneet, it's Travis here. I would also just add that, yeah, with respect to the timing like, three, four, two years ago, even we weren't at the point of these negotiations with the utilities. We're there now and to Leigh's point, the world that the utilities live in is it's 2028 tomorrow and so that's where the decision in terms of the exact timing, it's not a -- while we extremely bullish on the uranium price obviously, for all the reasons and more that Leigh has outlined in the opening remarks, it wasn't purchased on the basis that we're speculating on the uranium price. It's really tied to the development of the Arrow project as it relates to contracting, which obviously feeds into the debt financing discussions that we're having as well.

Puneet Singh: Okay, got it. And then just building on that, then if it's tied to the utilities, would we, should we expect more purchases from you guys or how should we look at that in terms of a strategy, contracts versus physical inventory?

Leigh Curyer: Yeah, look, you're not going to see us like materially fill. Obviously, the production volumes that are coming out of Arrow and those contracts that we do sign will be filled predominantly by Arrow's production, like vast, vast majority of it. This again, to Leigh's point, these 2.7 million pounds and whether it grows from here or not, to be determined, I think we're very happy with 2.7 million pounds that we got because it does just provide a bit of an insurance policy to the utilities and again, really, I think demonstrates that the understanding of the supply challenges, meaning the available insurance that exists out in the market is very limited.

Travis McPherson: And while it is very, very unique to the nuclear fuel market in respect to mining, it is a necessity of a start-up operation, but it's not unique when you would have seen other developers do a similar thing as they approach production. Boss Energy have done it, Denison have done it as well. So it's not unique in that sense and it does reflect, though, the aspect of commencing a uranium mine. It really does reflect, we are taking this project into production.

Operator: Your next question comes from Katie Lachapelle from Canaccord Genuity. Please go ahead,

Katie Lachapelle: Hey guys. Thanks for taking my question. I have two, but I just want to quickly follow up on Puneet's question. With respect to the contract negotiations that you're having right now, what sort of volumes or tenor would you be looking to lock down when you are looking to sign contracts?

Leigh Curyer: Well, I'll start with the question and hand over to Travis. We are -- our current negotiations with four main utilities at the moment, all varying degrees. We've been very, very clear that we are looking for three year off-take arrangements that are tied specifically to market prices at the time of delivery. Volume levels at the moment are commercially sensitive, but given the supply and demand gap that all market commentators are seeing 2028 and beyond, and I see this morning that an Australian bank came out with $150 uranium price forecast for the year end 2025. I've got no doubt that we're going to be filling contracts to the tune of what Arrow's capable of producing annually.

Travis McPherson: Yeah. And I might just add, yeah, there's no urgency. We need to sign some contracts or it's optimal to sign some contracts in this kind of timeframe that we're in now. In terms of the specific volumes, say, day one when we look out, for the foreseeable, say, three to five years of Arrows production, to the extent we take on and finance it with the debt, which we're again going down that path right now, there'll be a minimum level. I think, in order of magnitude, it's minimal in the context of Arrow's overall production to shore up the cash flows necessary to make those debt service payments and make it comfortable for utilities or the lenders and then as we progress from today onwards, I think you'll just see contracts and off-take negotiations and deals get done progressively as we march from today through to ultimate start-up of production.

Katie Lachapelle: Got it. That's super helpful. Maybe just one other question, in the prepared remarks, you mentioned that you guys are going to provide updated capital as well as operating costs around the end of this quarter or early Q3, can you provide any detail on where you guys are seeing some of the largest impacts on the cost side?

Leigh Curyer: Yeah, I'll start and again hand over to Travis, but on the cost side, and as I explained in an earlier call, the inflationary impact on the $1.3 billion as estimated in the 2021 feasibility study to date is at around $320 million. Labor wages has been probably the biggest one out of everything on a weighted basis, but we're also experiencing some decreases in raw materials as well. The biggest cost component of the construction is the two shafts, and we'll be entering into a contract, which limits subsequent inflationary pressure on the construction of both the production exhaust shafts, but to answer your question, Katie, it's predominantly around labor.

Travis McPherson: Yeah, yeah and I think, just on the inflationary thing, I think it's important as well that that is not some kind of -- that is not calculated based on some kind of market indices. Like we went unit cost by unit cost comparison from the feasibility site to today to make sure that we understand exactly what that is and then the remaining aspects over and above the inflationary impacts are being finalized now through some ongoing test work and finalization there.

Leigh Curyer: With respect to -- we got under just, just shy of a billion dollars Canadian in the treasury now. And with the debt process over expressions of interest, over 1.4 billion US, we have got more than enough capacity with respect to even taking into account the impact of inflation on to the feasibility study. We are very, very well financed in order to execute this project with our current cash and liquid assets, including the debt expression of interest.

Katie Lachapelle: Awesome. Thank you, guys. I appreciate the detailed response.

Operator: Your next question comes from Craig Hutchison from TD Cowen. Please go ahead.

Craig Hutchison: Good morning, guys. Just a follow up question regarding the timing of the purchases that you did like, from my perspective, I thought, your tier one asset, tier one jurisdiction that you guys would be in the driver's seat with regards to off-take discussions and that you would not have to enter into purchase agreements now. Can you just talk to those discussions? Are you seeing the utilities not that rushed right now to enter into contracts? Are they not short material? Just some sense on that because I think in previous discussions you guys have talked about potential to do even like a forward sale of uranium. Thanks.

Leigh Curyer: Yeah. So Craig and good morning. In terms of the description box seat, well, we're working with the utilities to get contracts in place and arrangements in place which meet win-wins. So it's not like we're going to flex our muscles and have a win loss situation. We are developing relationships with these key utilities for the long term and that uranium purchase reflected us and understanding their sensitivities around a start-up operation, which exists for any start-up operation. And as we've seen, Dennison and Boss, etcetera have done a similar thing, which is very, very astute and reflects their understanding of the contracting process. There's no doubt that the focus on the security supply is now significantly elevated and elevating week by week with these market developments, we are entering into an unprecedented stage. Yes, there is a possibility of a forward sale of a contract, but that may not necessarily be with a utility. We are receiving expressions of interest from not just utilities, but also financial players with respect to that possibility. So our approach is one that is understanding the utilities specific requirements and one which is about a win-win for both the producer and the utility, taking into account the risks around producing nuclear energy.

Travis McPherson: Yeah, I might just add, Craig, that this is really about optimization and our view of how to do that best, we can get contracts without necessarily having purchased uranium. That's obviously been done before. But this is around -- really I think the best way of thinking about it is we're trying to maximize the value of the plus 350 million pounds we have in the ground and buying some uranium now, like 2.7 million pounds to help us potentially optimize what those contracts look for the sale price of that plus 350 million pounds is a really good and astute move. So. Yeah, it's not, look, you're right and we're all right. Like this asset is what it is and it represents what it represents in the uranium market, which is unique and of scale and quality, but this is around optimizing that. We're not just sitting back and saying well, we have the best, so take it or leave it. This is about working with the utilities and evolving the market over time.

Craig Hutchison: Okay, thanks for that, guys. Maybe just follow up. Just given the expressions of interest you've had on debt and the finances you guys have done in the last couple of weeks here, you had talked previously about potential due project equity with a non-mining partner. Is that still on the table or is that sort of off the table, just given the recent financings?

Leigh Curyer: No, it's still a possibility, but I would say maybe less so given the recent finance and look, and I get the commentary about, well, why would you do it now when you've got such a significant milestone coming up with federal permitting, but similar to the uranium purchase of 2.7 million pounds, having the treasury in place prior to approval is a necessity to give the CNSC and the federal government of Canada knowledge that we have the funds in place. It's a very important aspect and so doing it prior to that federal approval news coming through and obviously subject to concluding the process respectfully, we now have that in place and on receiving that approval, well financed in order to construct the Rook I project. So I think that's very, very clear. And we appreciate the opportunity to really provide the color behind that because on face value, as I said, we get, well, it's less dilutionary post a milestone, but this way we've got it in front of it and it reflects the practicality of building a mine with regulators, but also gives that significant milestone that the company's going to deliver on federal approval. Absolutely clear air for it to be reflected in the value of the organisation at that time. So it's very, very exciting for all shareholders and stakeholders.

Travis McPherson: Yeah. And Craig, just with respect to the joint venture you referenced, and it's true for the debt and everything else, I think all these things are negotiations. And being in a negotiation, demonstrating that you have other options is really important. So by having a really robust balance sheet today, helps optimize, again, the debt discussions that we're having because we're not -- it's not a -- we're not in a weak position there. Like, we have other options, similar with the joint venture discussion. Like we can then work to actually optimize those. We show we have other paths and other opportunities to fund it and we do. It's true. We have lots. It shouldn't be surprising anyone. There's lots of ways to fund this project under our stewardship.

Craig Hutchison: Okay, thanks for that, guys. Maybe just a quick question, just on the early works, I think your budget, it spent about $46 million to the end of last year. Could you just give us an update, kind of where that's at and then I think on the last conference call, you said your budget for this year was around $170, excluding expiration and is that still the case? Thanks.

Leigh Curyer: Yeah, it's subject to the timing of the federal permit. Yeah. The deployment of capital will increase significantly on immediately receiving that federal approval. So we're well under budget, frankly, for 2024 and incredibly well financed through into 2027, frankly, based on the cash we have on hand at just under $1 billion as we see.