Q: Hi,
Thoughts on this company?
Thoughts on this company?
5i Research Answer:
NXE is a $2.7B company that is pre-revenue that operates in the exploration and development of uranium properties in Canada. It has a decent cash balance of $141.3M and an equity position of $481.9M. It does not generate free cash flow, and mostly issues shares and debt to fund its operations. It has performed well over the years, supported by a growing interest in nuclear energy. We like NXE as part of a play on nuclear energy, but would be mindful of its smaller size, that it is pre-revenue, and higher risks from the nuclear energy industry.