REG - JSC NAC Kazatomprom - Kazatomprom 4Q24 Operations and Trading Update
27/01/2025 08:15
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RNS Number : 7712U JSC National Atomic Co. Kazatomprom 27 January 2025
AIX: KAP, KAP.Y (GDR)
LSE: KAP (GDR)
27 January 2025, Astana, Kazakhstan
Kazatomprom 4Q24 Operations, Trading and JV Inkai Production Update
National Atomic Company "Kazatomprom" JSC ("Kazatomprom", "KAP" or "the
Company") announces the following operations and trading update for the fourth
quarter and year ended 31 December 2024.
This update provides a summary of recent developments in the uranium and
nuclear industries, as well as provisional information related to the
Company's key fourth quarter and 2024 operating and trading results, and 2025
non-financial guidance. The information contained in this Operations and
Trading Update may be subject to change.
Market Overview
The 29th United Nations Climate Change Conference COP29, held in November,
expanded the list of nations backing nuclear power. During the event, six more
countries - Kazakhstan, Kenya, Kosovo, Nigeria, Turkey and El Salvador -
joined the Net Zero Nuclear declaration, which calls for tripling global
nuclear capacity by 2050. The declaration was first initiated at COP28 in 2023
and signed by 25 countries with existing and emerging nuclear programs.
At the same time, the Idaho National Laboratory (INL) convened the leaders of
major technology corporations, such as Meta, Amazon, and Google, alongside
financial institutions, including Goldman Sachs, Morgan Stanley, and
BlackRock, at the Nuclear Investor Day. This event, organised in collaboration
with the U.S. Department of Energy (DOE), united 26 participants representing
more than 1 trillion US dollars in assets under management. Key topics of the
event were risk and supply chain management, and potential replacement of
decommissioned coal plants with nuclear. A few weeks later, Meta announced its
intention to issue a Request for Proposals to construct 1 - 4 GW of new
nuclear capacity in the United States, starting in early 2030s, to power
future data centers.
On 4 November, the French government approved a new 10-year Energy Plan in
which nuclear power plays a key role. The plan includes the construction of
six new EPR2 reactors, with the possibility of building eight more, as well as
extending the operational lifetime of existing nuclear power plants (NPP) to
50-60 years (subject to meeting safety standards and regulations). The
strategy also envisages a phased transition to a closed nuclear fuel cycle,
the deployment of small modular reactors (SMRs), further research into
fast-neutron reactor technology, and the establishment of a European Fuel
Supply Chain.
On 12 November, the U.S. President Administration introduced a comprehensive
program "Safe and Responsible Expansion of U.S. Nuclear Energy: Deployment
Goals and Action Framework". The program is outlining a roadmap to triple
national nuclear capacity by adding 200 GW of new nuclear power by 2050. The
framework emphasises that expanding nuclear energy will bolster national
security, improve energy reliability and restore the United States' global
leadership in the nuclear sector.
On 14 November, Russia imposed restrictions on exporting enriched uranium
product (EUP) to the United States in response to the earlier enactment of the
Public Law No. 118-62 (H.R.1042), which bans imports of Russian EUP to the
United States starting 2028. These restrictions are applicable to direct
shipments of uranium to the country and to exports conducted under agreements
with entities registered in the United States. However, deliveries under
one-time licenses issued by the Federal Service for Technical and Export
Control remain permissible.
Early December, Japan's Ministry of Economy, Trade and Industry published a
draft of the country's new Energy Plan, which excludes the post-Fukushima
commitment to "reduce dependence on nuclear power". The revised policy
stipulates that nuclear energy will account for 20% of Japan's energy mix by
2040 through both the restart of previously suspended NPPs and the
construction of new capacities.
Meanwhile, Sweden signalled that it may lift its ban on uranium mining under
the Mineral Act. Exploration and extraction of uranium have been prohibited in
Sweden since 2018, but based on the Government's latest assessment,
recommendations have been made for a legal framework that would allow uranium
mining at economically viable deposits. The corresponding legislation is
expected to be effective staring from 1 January 2026. Official estimates
indicate that the country's largest Häggån deposit contains approximately
800 million pounds of U(3)O(8) (307,718 tU), sufficient to meet more than 300
years of Sweden's current uranium requirements.
Eastern European countries have also contributed to the positive industry
developments. The Government of Serbia has lifted a 35-year moratorium on
nuclear energy, originally introduced following the Chernobyl accident in
1986. Based on the Government estimates it could take up to two decades to
build and commission the first planned NPP in the country. Romania government
approved a new Energy Strategy for 2025-2035 intended to resume uranium mining
to enhance the country's energy security and gradually reduce reliance on
imports.
Early January, President of the Republic of Kazakhstan Kassym-Jomart Tokayev
in an interview to the Kazakh newspaper "Ana Tili" mentioned that the
Government expects to conduct tender procedures in 2025 to finalise its
decision on members of international consortium for building the country's
first NPP. Furthermore, in light of Kazakhstan's growing economy, the
President has outlined the possibility of a second or even a third NPP
construction in near future.
According to the draft of Thailand's new Electricity Power Development Plan
for 2024-2037, the country may build and commission two SMRs with a capacity
of 300 MW each. Furthermore, on 14 January 2025 Thailand and the United States
signed an Agreement for Cooperation in Peaceful Uses of Nuclear Energy (the
"123 Agreement"), which enables transfer of nuclear materials and technology
between the countries.
On 15 January, Sweden commenced the construction of the world's second Deep
Geological Repository (DGR) for Spent Nuclear Fuel (SNF). The facility,
located in Forsmark, will accommodate 12,000 tonnes of SNF at a 500
meters-depth. Construction is expected to be completed in the 2030s, with
final expansion scheduled for the 2080s. Currently, a similar DGR is under
construction in Olkiluoto, Finland.
Turning to demand-related developments, the following are worth mentioning:
· China's first Guohe One (CAP1400) reactor with a capacity of
1,400 MW was connected to the grid at Huaneng Group's Shidaowan NPP on 4
November. The CAP1400 is a scaled-up version of the CAP1000 reactor based on
the AP1000 design developed by the Westinghouse.
· On 21 November, Brazil's National Nuclear Energy Commission
extended Eletronuclear's operating license for Unit 1 of the Angra NPP by 20
years, now valid until 2044.
· In December, EDF Energy announced extensions to the operational
life of 4 nuclear power sites in the United Kingdom. Heysham 1 and Hartlepool
Advanced Gas Cooled Reactor have been authorised to continue operating until
March 2027, while Heysham 2 and Torness AGR plants will operate until March
2030.
· Swiss utility Axpo announced its decision to secure the operation
of the Beznau NPP by investing CHF 350 million (USD 400 million), thus
extending the operations of the Unit 2 until 2032 and Unit 1 until 2033.
· Chugoku Electric Power Co. announced the restart of Unit 2 at the
Shimane NPP in Japan, following a 12-year shutdown after the Fukushima
accident in 2011.
· EDF reported that Flamanville 3, featuring a 1,630 MW EPR
reactor, initially slated for commercial start-up in 2013 has been finally
connected to the French grid.
· Tohoku Electric Power Co. announced that Unit 2 at the Onagawa
NPP has commenced commercial operation, marking it the first BWR restarted in
Japan since the Fukushima accident in 2011.
· Ontario Power Generation (OPG) announced that Unit 4 of the
Pickering NPP, with a 500 MW CANDU reactor, was permanently shut down after
more than 50 years of operation. Simultaneously, OPG is working on
refurbishment of the Pickering Units 5-8 to bring them back online by the
mid-2030s.
· On 2 January, China National Nuclear Corporation announced that
Zhangzhou NPP Unit 1, with a capacity of 1,000 MW, entered commercial
operation just over five years after the start of construction. It is the
first of six Chinese-designed Hualong One (HPR1000) reactors planned at the
site.
On the supply side:
· Paladin Energy Ltd. announced revised production plans for its
Langer Heinrich mine in Namibia for 2025. Following ongoing challenges and
operational variability, the company lowered its 2025 output forecast from
4.0-4.5 million lbs U(3)O(8) to 3.0-3.6 million lbs U(3)O(8).
· Canadian GoviEx Uranium, along with its subsidiary GoviEx Niger
Holdings Ltd., commenced legal action against the Government of the Republic
of Niger regarding the revocation of its mining license at the Madaouela
deposit. The lawsuit was filed under the Convention on the Settlement of
Investment Disputes between States and Nationals of Other States.
· On 20 December, Orano confirmed that the ruling Government of the
Republic of Niger had taken control of SOMAÏR, in which French company owns a
63.4% share and runs the Arlit uranium project. Another Orano asset in Niger
had been facing challenges since June 2024, when the local government revoked
Orano's mining license for Imouraren, one of the world's largest uranium
deposits. In response, the French company initiated an arbitration procedure
against the State of Niger late December. Furthermore, on 21 January, Orano
has also initiated a second arbitration procedure against the State of Niger
regarding the loss of operational control over SOMAÏR.
· After a five-year suspension, operations resumed at the Lance
in-situ recovery (ISR) uranium mine in Wyoming, USA starting 21 December. The
project is owned by Australia's Peninsula Energy Ltd. through its U.S.
subsidiary, Strata Energy Inc. The first batch of yellowcake from the site is
expected in March 2025. Upon completion of construction, the mine's production
capacity is projected to reach 2 million lbs U(3)O(8) (769 tU) per year.
· On 27 December, the Government of Mongolia announced that
France's Orano Mining Group had submitted a preliminary development plan for
the Zuuvch Ovoo ISR deposit. Initial investment in the project is estimated at
USD 500 million, with total investment estimated at up to USD 1.6 billion.
The preparatory stage is scheduled until 2027, with the first production
expected in 2028 reaching its peak production of 2,600 tU (6.76 million lbs
U(3)O(8)) by 2044.
· On 10 January, the China Geological Survey announced that
following extensive geological exploration activities carried out since 2021 a
substantial uranium deposit was discovered in the Ordos Basin in the Jingchuan
region. The discovery will significantly increase and enhance the security of
China's uranium resources.
Market Pricing and Activity
* Average of UxC and TradeTech reported prices
In October, the spot price held firm in the low-$80s/lb U(3)O(8). As November
began, the spot price dropped below the $80.00/lb U(3)O(8) level rebounding at
$82.00/lb U(3)O(8) in the middle of the month and decreasing to $77.25/lb
U(3)O(8) at the month-end. In December, the spot price continued to experience
a downward pressure demonstrating the year's lowest point at $71.13/lb
U(3)O(8) during the holiday season. The average price for the year resulted in
$86.28/lb U(3)O(8).
According to third-party market data, a total of 36.75 million pounds U(3)O(8)
(~14,135 tU) were transacted at an average weekly spot price of US$86.28/lb
U(3)O(8) in 2024, compared to 42.8 million pounds U(3)O(8) (~16,400 tU) at an
average weekly spot price of US$60.53/lb U(3)O(8) in 2023. Overall, spot
market activity in terms of volume transacted in 2024 was almost 14% lower
than in 2023.
In the long-term market, 2024 contracting activity was notably lower than in
the previous year, with the third-party data indicating that contracted
volumes totaled about 106 million pounds U(3)O(8) (~40,800 tU) throughout
2024, compared to about 160 million pounds U(3)O(8) (~61,500 tU) in 2023.
Despite the tangible decline in contracted volume, the average long-term price
indicator has increased by US$12.50/lb U(3)O(8) year-over-year to US$80.50/lb
U(3)O(8) by the end of 2024.
Company Developments
ESG score update from S&P Global
S&P Global, an international rating agency, has assigned the Company a
Corporate Sustainability Assessment (CSA) score of 48/100, with a total ESG
score of 50/100 on 6 December 2024. Kazatomprom's CSA score is 7 points higher
compared to the previous year, and almost twice the industry average, which
confirms the success of the Company's sustainable development strategy. An
improvement of the ESG score by S&P Global reflects Kazatomprom's
effective ESG management practices and indicates the Company's strong
commitment to developing responsible business. The full ESG Evaluation report
from S&P Global Ratings is available at:
https://www.spglobal.com/esg/scores/results?cid=4351546
(https://www.spglobal.com/esg/scores/results?cid=4351546) .
Fitch Ratings confirmed at "BBB", Outlook Stable
In January, Fitch Ratings has affirmed Kazatomprom's credit rating at "BBB",
outlook Stable.
The rating reflects Company's strong financial position due to its
conservative financial policy and low-cost position on the global cost curve.
It also highlights Kazatomprom's global leader position in uranium production
and contracted production volumes along with long-term relationships with
utilities.
Fitch's publication can be accessed at the following link:
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-jsc-national-atomic-company-kazatomprom-at-bbb-outlook-stable-15-01-2025
(https://www.fitchratings.com/research/corporate-finance/fitch-affirms-jsc-national-atomic-company-kazatomprom-at-bbb-outlook-stable-15-01-2025)
.
KASE Bond redemption
Kazatomprom announced full redemption of its ISIN KZ2C00006153 bonds that were
excluded from the Kazakhstan Stock Exchange's official list due to reaching
their maturity on 28 October 2024. Total payments for these bonds amounted to
KZT 87,791,666,666.67.
AIX Bond Placement
On 2 December, Kazatomprom's ISIN KZX000003371 bond issuance was admitted to
the Astana International Exchange (AIX), admission type - "Exempt", segment -
"Main". The placement took place the same day on the unorganised securities
market of AIX through a targeted bond purchase and sale transaction between
Kazatomprom as the "Seller" and "Samruk-Kazyna" JSC as the "Buyer". Total bond
issue volume amounted to USD 200 million with maturity period of 2 December
2024 - 2 December 2027. The purpose of this bond issue is to replenish
working capital.
EGM Results
As announced
(https://www.kazatomprom.kz/en/media/view/voting_results_of___the_extraordinary_general_meeting_of_shareholders)
on 15 November 2024, Kazatomprom's Extraordinary General Meeting of
Shareholders approved to conclude the spot contract for the sale and purchase
of natural uranium concentrates between Kazatomprom and CNNC Overseas Limited
and the long-term agreement for the sale and purchase of natural uranium
concentrates between Kazatomprom and China National Uranium Corporation
Limited.
Severnoye exploration license
In November, the Company has obtained the subsoil use license for uranium
exploration at Severnoye block of Budenovskoye deposit, located in the
Shu-Sarysu uranium province of Turkestan region, for a period of 6 years with
a possibility of a 5-year extension. Subsoil use license for uranium
exploration at this block is exclusive to Kazatomprom. Preliminary data shows
that inferred uranium resources in categories P1 and P2 are estimated at more
than 100 thousand tonnes, and indicate significant prospects for detailed
exploration.
Change of the partners in some JVs
As was previously announced
(https://www.kazatomprom.kz/en/media/view/announces_the_change_of_the_partners_in_some_lvs__)
, in December, Uranium One Group JSC, a subsidiary of the Rosatom State
Corporation, has sold its 49.979% share in JV Zarechnoye JSC to SNURDC Astana
Mining Company Limited, the ultimate beneficiary of which is State Nuclear
Uranium Resources Development Co., Ltd. (China). Kazatomprom's equity stake in
this joint venture remains unchanged at 49.979%.
The Company also reported that Uranium One Group JSC had plans to sell its 30%
equity stake in the charter capital of JV Khorasan-U LLP and the 30% equity
stake in the charter capital of Kyzylkum LLP to China Uranium Development
Company Limited, the ultimate beneficiary of which is China General Nuclear
Power Corporation (CGN, China).
As of today, the abovementioned deal is closed by the parties. Following the
deal closure, JV Khorasan-U LLP was renamed into Turanium LLP effective 22
January 2025. Kazatomprom's shares remain unchanged and the Company continues
to hold 50% in Turanium LLP (former JV Khorasan-U LLP) and 50% (indirectly)
in Kyzylkum LLP.
Updated Development Strategy for 2025 - 2034
As a result of the early achievement of key strategic goals set for
2018 - 2028 and fundamental changes in the nuclear industry the Company's
Board of Directors has approved the updated Development Strategy for the years
2025 - 2034. The Strategy defines the Company's mission, vision, and
strategic objectives for the next 10 years, aiming to sustainably strengthen
the Company's position and use arising opportunities amid new nuclear
renaissance.
Kazatomprom's 2025 - 2034 Strategy remains committed to the "Value over
Volume" principle, further reflecting changes in the nuclear fuel market and
addressing the growing demand for both uranium products and rare and
rare-earth metals.
The Company's Board of Directors has identified the following strategic
objectives for 2025 - 2034:
• Enhance focus on uranium mining as our core business, with efforts
concentrated on replenishment and efficient use of resource base;
• Expand our footprint in the nuclear fuel cycle, given the arising
opportunities, substantiated by economic value;
• Develop and expand rare and rare-earth metals segment under the
critical minerals agenda;
• Continue to diversify sales and further enhance trading function;
• Improve and strengthen leading business and ESG practices in order
to ensure and uphold integrity of business.
Update on JV Inkai Operations
As was announced on 2 January, JV Inkai LLP had to temporarily suspend its
production activity at block No. 1 of Inkai deposit since 1 January due to
absence of required approvals from the state authorities, resulted from
delayed submission of the corresponding documentation.
As of the publication date of this report, JV Inkai LLP has resolved the
approval issue and has resumed its mining operations at block No. 1 of Inkai
deposit. Potential impact of JV Inkai's production suspension on Kazatomprom's
2025 production plans is currently being assessed.
Kazatomprom remains fully committed to fulfilling contractual obligations
towards all existing customers and has sufficient level of inventories to
comfortably manage its deliveries throughout 2025.
Kazatomprom's Fourth-Quarter and 2024 Operational Results(1)
Three months ended Year ended December 31
December 31
(tU as U(3)O(8) unless noted) 2024 2023 Change 2024 2023 Change
U(3)O(8) Production volume (100% basis)(2) 6 519 5 795 12% 23 270 21 112 10%
U(3)O(8) Production volume (attributable basis)(3) 3 378 3 066 10% 12 286 11 169 10%
Group U(3)O(8) sales volume(4) 5 030 5 863 -14% 16 670 18 069 -8%
KAP U(3)O(8) sales volume (incl. in Group)(5) 2 918 3 817 -24% 12 769 14 915 -14%
Group average realized price (USD/lb U(3)O(8))(6)* 74.92 68.49 9% 69.72 55.09 27%
KAP average realized price (USD/lb U(3)O(8))(7*) 73.31 64.20 14% 65.73 52.10 26%
Average month-end spot price (USD/lb U(3)O(8))(8*) 76.75 82.21 -7% 85.14 62.51 36%
(1) All values are preliminary.
(2) U(3)O(8) Production volume (100% basis): Amounts represent the entirety of
production of an entity in which the Company has an interest; it therefore
disregards the fact that some portion of that production may be attributable
to the Group's joint venture partners or other third party shareholders.
Precise actual production volumes remain subject to converter adjustments and
adjustments for in-process material.
(3) Production volume U(3)O(8) (tU) (attributable basis): Amounts represent
the portion of production of an entity in which the Company has an interest,
corresponding only to the size of such interest; it excludes the portion
attributable to the JV partners or other third-party shareholders, except for
JV Inkai LLP, where the annual share of production is determined as per
Implementation Agreement. JV Inkai LLP's 2024 annual production was lower than
expected, altering the attribution ratio. Q4 and 12 months' attributable
production figures use the corrected attribution ratio that corresponds to JV
Inkai LLP's actual annual production volume in 2024. Adjusted Q1, Q2 and Q3
production volumes on attributable basis for 2024 will be disclosed along with
FY2024 financial results.
(4) Group U(3)O(8) sales volume: includes the sales of U(3)O(8) by Kazatomprom
and those of its consolidated subsidiaries (companies that KAP controls by
having (i) the power to direct their relevant activities that significantly
affect their returns, (ii) exposure, or rights, to variable returns from its
involvement with these entities, and (iii) the ability to use its power over
these entities to affect the amount of the Group's returns. The existence and
effect of substantive rights, including substantive potential voting rights,
are considered when assessing whether KAP has control over an entity). For
consistency, Group U(3)O(8) sales volumes do not include other forms of
uranium products (including, but not limited to the sales of fuel pellets and
enriched uranium product (EUP)). Yet, some part of Group U(3)O(8) production
goes to the production of EUP, fuel pellets and fuel assemblies (FA) at
Ulba-FA LLP.
(5) KAP U(3)O(8) sales volume (incl. in Group): includes only the total
external sales of U(3)O(8) of KAP HQ and Trade House KazakAtom AG (THK).
Intercompany transactions between KAP HQ and THK are not included.
(6) Group average realized price (USD/lb U(3)O(8)): average includes
Kazatomprom's sales and those of its consolidated subsidiaries, as defined in
parenthesis in footnote 4 above.
(7) KAP average realized price (USD/lb U(3)O(8)): the weighted average price
per pound for the total external sales of KAP HQ and THK. The pricing of
intercompany transactions between KAP HQ and THK are not included.
(8) Source: UxC LLC, TradeTech. Values provided are the average of the
month-end uranium spot prices quoted by UxC and TradeTech, and not the average
of each weekly quoted spot price throughout the month. Contract price terms
generally refer to a month-end price.
* For some JVs the Company has a right to purchase additional volumes beyond
its attributable share if the JV partner chooses to forgo its entitled share.
** For JV Budenovskoye LLP, 100% of the 2024-2026 annual production is fully
committed for supplying the needs of the Russian civil nuclear energy
industry, under an offtake contract at market-related terms.
*** Please note the conversion of kgU to pounds U3O8 is 2.5998.
Kazatomprom's 2024 production results were within the guided ranges.
Production volumes on a 100% basis and on attributable basis were slightly
higher throughout 2024 compared to 2023 due to an increase in the production
plan in accordance with the commitments under the Subsoil Use Agreements.
Group and KAP sales volumes were guided lower in 2024 in comparison to 2023
due to higher sales of EUP to "Ulba-FA" LLP for subsequent production of fuel
assemblies and Company's efforts to ensure sufficient level of inventories for
the future periods. That said, in 2024, both Group and KAP sales volumes
slightly exceeded guidance due to an increase in physical deliveries
associated with additional requests from customers to flex up their annual
delivery quantities within the frame of existing contracts, as well as due to
prior periods' adjustments associated with conversion facility certification
and weighing procedures.
Average realized prices for both the fourth quarter and throughout 2024 were
higher compared to the same periods in 2023 due to higher uranium spot prices.
The Company's current contract portfolio pricing correlates with the spot
uranium prices, however some deliveries in 2024 were made under long-term
contracts, which include fixed pricing components, including price ceilings
that were negotiated during a comparatively lower price environment.
Kazatomprom's 2025 Production and Sales Guidance
2025 2024
Production volume U(3)O(8) (tU) (100% basis)(1) 25,000 - 26,500 22,500 - 23,500
Production volume U(3)O(8) (tU) (attributable basis)(2) 13,000 - 14,000 10,900 - 11,900
Group U(3)O(8) sales volume (tU) (consolidated)(3) 17,500 - 18,500 15,500 - 16,500
Incl. KAP U(3)O(8) sales volume (incl. in Group) (tU)(4) 14,000 - 15,000 11,500 - 12,500
(1) Production volume U(3)O(8) (tU) (100% basis): Amounts represent the
entirety of production of an entity in which the Company has an interest; it
disregards that some portion of production may be attributable to the Group's
JV partners or other third-party shareholders. Precise actual production
volumes remain subject to converter adjustments and adjustments for in-process
material.
(2) Production volume U(3)O(8) (tU) (attributable basis): Amounts represent
the portion of production of an entity in which the Company has an interest,
corresponding only to the size of such interest; it excludes the portion
attributable to the JV partners or other third-party shareholders, except for
JV Inkai LLP, where the annual share of production is determined as per
Implementation Agreement. Precise actual production volumes remain subject to
converter adjustments and adjustments for in-process material.
(3) Group sales volume: includes the sales of U(3)O(8) by Kazatomprom's sales
and those of its consolidated subsidiaries (companies that KAP controls by
having (i) the power to direct their relevant activities that significantly
affect their returns, (ii) exposure, or rights, to variable returns from its
involvement with these entities, and (iii) the ability to use its power over
these entities to affect the amount of the Group's returns. The existence and
effect of substantive rights, including substantive potential voting rights,
are considered when assessing whether KAP has power to control another
entity). For consistency, Group U(3)O(8) sales volumes do not include other
forms of uranium products (including, but not limited to, the sales of fuel
pellets and EUP).
(4) KAP sales volume: includes only the total external sales of U(3)O(8) of
KAP HQ and THK. Intercompany transactions between KAP HQ and THK are not
included.
* For some JVs, the Company has a right to purchase additional volumes beyond
its attributable share if the JV partner chooses to forgo its entitled share.
** For JV Budenovskoye LLP, 100% of the 2024-2026 annual production is fully
committed for supplying the needs of the Russian civil nuclear energy
industry, under an offtake contract at market-related terms.
*** Please note that the conversion of kgU to pounds U(3)O(8) is 2.5998.
Kazatomprom's 2025 uranium production volume is expected to be in the range of
25,000 - 26,500 tU on a 100% basis and 13,000 - 14,000 tU on an
attributable basis.
As was disclosed earlier, it is expected that in 2025 mining entities will
have different percentage rate decreases compared to the levels stipulated in
the Subsoil Use Agreements within the acceptable 20% deviation. If changes to
Subsoil Use Agreements of certain mining entities are approved and
corresponding amendments to Subsoil Use Agreements are signed, these entities
are expected to be producing at a 100% level of their revised Subsoil Use
Agreements.
For 2025, the Group's sales volume is expected to be in the range of 17,500 -
18,500 tU, including KAP sales volume in the range of 14,000 - 15,000 tU.
Financial guidance for 2025 will be published in the FY2024 Operating and
Financial Review.
Conference Call Notification - FY2024 Operating and Financial Review
Kazatomprom expects to schedule a conference call to discuss the FY2024
financial results after they are released on Wednesday, 19 March 2025. Further
details will be provided closer to the date of the event.
For further information, please contact:
Investor Relations Inquiries
Botagoz Muldagaliyeva, Director, Investor Relations
Tel: +7 7172 45 81 80/69
Email: ir@kazatomprom.kz
Public Relations and Media Inquiries
Altynay Karibzhanova, Chief Expert, Public Relations
Tel: +7 7172 45 80 63
Email: pr@kazatomprom.kz
A copy of this announcement is available at www.kazatomprom.kz
(https://www.kazatomprom.kz/) .
About Kazatomprom
Kazatomprom is the world's largest producer of uranium with the Company's
attributable production representing approximately 20% of global primary
uranium production in 2023. The Group benefits from the largest reserve base
in the industry and operates, through its subsidiaries, JVs and Associates, 27
deposits grouped into 14 mining assets. All of the Company's mining operations
are located in Kazakhstan and extract uranium using ISR technology with a
focus on maintaining industry-leading health, safety and environment standards
(ISO 45001 and ISO 14001 certified).
Kazatomprom securities are listed on the London Stock Exchange and the Astana
International Exchange. Kazatomprom is the national atomic company in the
Republic of Kazakhstan, the Group's primary customers are operators of nuclear
generation capacity, the principal export markets for the Group's products are
China, South and Eastern Asia, Europe and North America. The Group sells
uranium and uranium products under long-term contracts, short-term contracts
as well as in the spot market, directly from its headquarters in Astana,
Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House
KazakAtom AG (THK).
For more information, please see the Company website at www.kazatomprom.kz
(https://www.kazatomprom.kz/en) .
Forward-looking statements
All statements other than statements of historical fact included in this
communication or document are forward-looking statements. Forward-looking
statements give the Company's current expectations and projections relating to
its financial condition, results of operations, plans, objectives, future
performance and business. These statements may include, without limitation,
any statements preceded by, followed by or including words such as "target,"
"believe," "expect," "aim," "intend," "may," "anticipate," "estimate," "plan,"
"project," "will," "can have," "likely," "should," "would," "could" and other
words and terms of similar meaning or the negative thereof. Such
forward-looking statements involve known and unknown risks, uncertainties and
other important factors beyond the Company's control that could cause the
Company's actual results, performance or achievements to be materially
different from the expected results, performance or achievements expressed or
implied by such forward-looking statements. Such forward-looking statements
are based on numerous assumptions regarding the Company's present and future
business strategies and the environment in which it will operate in the
future.
THE INFORMATION WITH RESPECT TO ANY PROJECTIONS PRESENTED HEREIN IS BASED ON A
NUMBER OF ASSUMPTIONS ABOUT FUTURE EVENTS AND IS SUBJECT TO SIGNIFICANT
ECONOMIC AND COMPETITIVE UNCERTAINTY AND OTHER CONTINGENCIES, NONE OF WHICH
CAN BE PREDICTED WITH ANY CERTAINTY AND SOME OF WHICH ARE BEYOND THE CONTROL
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REALISED, AND ACTUAL RESULTS MAY BE HIGHER OR LOWER THAN THOSE INDICATED. NONE
OF THE COMPANY NOR ITS SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, ADVISORS
OR AFFILIATES, OR ANY REPRESENTATIVES OR AFFILIATES OF THE FOREGOING, ASSUMES
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limited to forward-looking statements, applies only as of the date hereof and
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make to the Information that may result from any change in the Company's
expectations, any change in events, conditions or circumstances on which these
forward-looking statements are based, or other events or circumstances arising
after the date hereof.
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