Q: Hi, Please compare NXE to URE. I see NXE has a market cap that is about 9x URE. What are your thought on these companies going forward. Thanks
5i Research Answer:
Both companies are in the business of exploration and development of uranium. NXE is pre revenue, while URE has started generating revenue and production. NXE's operations are primarily located in Canada while URE is primarily mined in the United States. Although earlier in the production process, NXE's Rook I project along with other mines appear to have more potential and overall production capabilities compared to URE which explains the size difference between the two. NXE is our favourite pure-play uranium miner due to it's potential as well as recognizing that it is nearing production.