Why fund managers call NexGen Energy the standout uranium developer

NexGen Energy's Arrow project in Saskatchewan is approaching final approval, with fund managers pointing to its scale, grade and cost position as best-in-class among uranium developers.

30 Jun 2026 · 5 min read

Uranium developer NexGen Energy is preparing to develop what L1 Capital's September 2025 Quarterly Report calls the world's largest undeveloped uranium deposit, Arrow, located in Saskatchewan, Canada, with the company approaching the final stage of Canadian federal approval and a commission hearing expected to conclude in the first half of 2026.

A tier-one deposit heading toward final approval

L1 Capital's report detailed the scale of the opportunity: once developed, Arrow has the potential to produce nearly 30 million pounds of uranium per annum for the first five years at an operating cost of around US$10 per pound, among the lowest on the cost curve, with a published post-tax internal rate of return of approximately 40% at a US$80 per pound uranium price, below spot at the time. L1 Capital, a major shareholder since 2021, valued the project at an EV/EBITDA multiple of only around 3.3 times at that uranium price, compared with roughly 27 times for established producer Cameco.

NexGen is definitely our favourite stock in the uranium space, listed in Australia, Canada and the US and is the number one undeveloped uranium project on a global basis, both in terms of size and grade.

— L1 Capital, Webinar, November 2025

The company completed a roughly C$950 million equity raise in 2025 to fund the equity portion of Arrow's estimated C$2.2 billion total project capital expenditure, leaving it, per L1 Capital, funded through to first production once project finance debt is secured. Milford Asset Management's September 2025 Monthly Report attributed a 17.4% rally to improving sentiment toward nuclear power, driven by big technology companies seeking reliable, low-carbon energy sources to support the artificial intelligence investment wave.

What managers are watching next

L1 Capital's reporting also flagged a new exploration discovery, Patterson Corridor East, located 3.5 kilometres from Arrow, with early drilling results showing pockets of extremely high-grade mineralisation that could provide long-term optionality for additional production or mine life extension near the existing mill. With Ten Cap participating in the capital raise and Firetrail Investments among other managers tracking development milestones, the key near-term catalyst remains the outcome of the final federal approval hearing expected in the first half of 2026, after which full-scale project construction can begin.