NexGen’s Rook 1 project to enter CNSC final stage approval, analysts cool on hearing delays

NexGen Energy’s (TSX, NYSE: NXE; ASX: NXG) Rook 1, Canada’s largest development-stage uranium project has reached the final stage of project approval, with the Canadian Nuclear Safety Commission (CNSC) setting hearing dates for later this year and next year.

After the wrap-up of the hearings, scheduled for Nov. 19, 2025, and Feb. 9-13, 2026, the commission is to render a final decision on the project, located in the southwest of Saskatchewan’s Athabasca Basin.

However, those hearings being scheduled later than expected spurred analysts to offer more cautious assessments of the project.

Delays

“We note this scheduling process was out of NexGen’s control (but) the extended timeline to receive a hearing date has led us to revise our production start at Arrow to 2031 (from 2029) based on a construction start in mid-2026,” Haywood Capital Markets analyst Marcus Giannini wrote on Thursday. “We also take a more conservative approach to account for any delays during the construction period itself.”

Giannini maintains his “buy” rating for NexGen but lowers his price target to $12.50 per share from $13.75 apiece previously.

NexGen’s Arrow deposit and the Rook 1 project. Credit: NexGen Energy

NexGen shares were down 0.3% to $6.89 apiece on Thursday morning, giving the company a market capitalization of $3.92 billion. Its shares traded in a 52-week range of $6.44 to $12.51.

The market anticipated the hearings would be held in the first half of this year, so the new dates amount to a one-year delay for the project, Red Cloud Securities managing director David Talbot said on Wednesday.

“(This) will have an impact on construction timing, additional working capital, and push the production start-up to late 2029,” he said.

‘Detrimental to interests’

Indigenous nations who have secured economic partnerships with NexGen for the project took harder positions on the hearing dates.

“For the CNSC now to indicate a delay of the approval until following the second hearing scheduled for Feb. 9 to 13, 2026, is beyond comprehension, inconsistent with previous direction from the CNSC and extremely detrimental to the interests of our communities, the people of Saskatchewan and Canadians across the country,” the Clearwater River Dene Nation and Metis Nation-Saskatchewan said in a joint statement on Tuesday.

“These delays that we have seen from the CNSC have delayed the critical employment and economic opportunities that our members are counting on to provide for their families,” Clearwater River Dene Chief Teddy Clark said. He urged the CNSC to reschedule the hearing to no later than this June.

11-year mine

NexGen has proposed Rook 1 as an underground mine and mill development, centred around the Arrow deposit.

A 2021 feasibility study outlined an initial 11-year mine capable of producing 21.7 million lb. of uranium oxide (U₃O₈) annually during the first five years, with production estimated to reach as high as 30 million lb. per year, according to an update last August. With $1.3 billion in capital expenditures, it is projected to be the largest and lowest-cost uranium mine in the world.

The project contains 3.7 million measured and indicated tonnes, grading 3.1% U₃O₈.

NexGen commenced the regulatory environmental assessment (EA) process for the project in April 2019. The company received provincial EA approval in November 2023 and has since successfully completed the federal technical review and the acceptance of the federal environmental impact statement as final. Local communities located in the project area have formally endorsed the project through the signing of impact benefit agreements covering the entire life and closure of operations.

NexGen’s Rook 1 project to enter CNSC final stage approval, analysts cool on hearing delays

Delays

‘Detrimental to interests’

11-year mine

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