REG - JSC NAC Kazatomprom - KAP 1H2025 Results and 2026 Production Strategy
22/08/2025 07:00
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RNS Number : 4136W JSC National Atomic Co. Kazatomprom 22 August 2025
AIX: KAP, KAP.Y (GDR)
LSE: KAP (GDR)
22 August 2025, Astana, Kazakhstan
Kazatomprom 1H2025 Financial Results and 2026 Production Strategy
National Atomic Company "Kazatomprom" JSC ("Kazatomprom", "KAP" or "the
Company") announces its consolidated financial results for six months ended 30
June 2025, prepared in accordance with International Financial Reporting
Standards (IFRS).
"As the world's largest producer and seller of natural uranium, Kazatomprom
fully recognises the critical role the Company has in supporting the global
energy transition. We remain committed to delivering long-term value to all
stakeholders. Kazatomprom is currently undertaking a large-scale exploration
in Kazakhstan, which is a top priority for replenishing its resource base and
maintaining its leading position as a global nuclear fuel supplier," said
Meirzhan Yussupov, CEO of Kazatomprom.
"Despite the volatility in the spot uranium market and the broader capital
markets, some of which may be due to uncertainty brought by the tariff wars,
uranium long-term price has remained stable at 80 US dollars per pound proving
that fundamentals remain strong. However, the Company does not view the
current market developments to be sufficient to return to the Company's
initial 100% levels at this time, which are now being decreased by roughly 8
million pounds, cutting about 5% of the world's primary supply.
"Kazatomprom takes its role in strengthening global energy policy seriously.
Its leadership in ESG, combined with the scale of its operations, enables the
Company to remain a reliable and responsible supplier of natural uranium
globally. We are ready to participate in diversification of utilities' supply
sources, and our strong position in this new cycle of long-term contracting
reflects the trust and confidence the market places in us."
2026 Production Strategy
Following a comprehensive review of operational progress, market conditions,
and construction timelines at the newly launched mines, Kazatomprom presents
the following information related to its 2026 production plans.
The Company continues to adhere to its established market-centric approach,
ensuring that uranium supply remains closely aligned with demand and that
production decisions are driven by long-term value considerations rather than
volume growth targets. In line with this approach, the Company does not view
the current supply-demand balance and existing uncovered demand as sufficient
to incentivise a return to its 100% levels at this time.
Therefore, as part of ongoing operational enhancements, a number of Company's
mining subsidiaries are in process of amending their Subsoil Use Agreements.
These amendments establish new nominal licensed production levels for the
affected entities, thereby changing the reference benchmarks against which
actual production is measured and decided. Concurrently, negotiations with
joint venture partners, aimed at refining final 2026 production plans, remain
in progress.
Detailed in the newly published 2024 Competent Person's Report on the mineral
assets of the Company (CPR), 2026 nominal production level (on a 100% basis)
is expected to change from 32,777 tonnes (around 85 million pounds) of
U(3)O(8) (as per previous Subsoil Use Agreements) to 29,697 tonnes (about 77
million pounds), representing about 3,000 tonnes (~8 million pounds) or
roughly a 10% decrease, most of which is attributable to JV Budenovskoye's
production adjustments.
In line with the updated Development Strategy for 2025-2034, which emphasises
efficient use of the resource base, the Company expects to exercise its
downflex opportunity within the acceptable 20% deviation under the updated
2026 Subsoil Use production levels. Actual 2026 production guidance remains
subject to ongoing negotiations with JV partners and broader market
considerations, and will be provided within the 2026 operational guidance
disclosure.
Sulphuric acid supplies for 2026 are estimated to be stable. Diverse
geological characteristics of the Company's assets, combined with residual
effects from past supply constraints, may lead to variations in uranium
recovery rates and different percentage rate decreases compared to the levels
stipulated in the Subsoil Use Agreements across individual mining operations.
The Company maintains a robust inventory position and a disciplined sales
strategy, ensuring that all delivery obligations will be met in full while
retaining flexibility to respond quickly to market developments. Worth
highlighting that Kazakhstan's intentions to build three nuclear power plants
could create a substantial domestic demand in the future. With each plant
requiring around 400 tonnes (1.04 Mlbs) of uranium annually, over the entire
operational lifetime, this may translate to a cumulative demand of 72 thousand
tonnes (187.2 Mlbs). A portion of the Company's production could be therefore
allocated to national needs over time.
Corporate Update
Commencement of a new processing plant at JV KATCO
As announced earlier in July, JV KATCO, the Company's joint venture with
Orano, launched the new uranium processing plant that marks the successful
implementation of the South Tortkuduk project. The new processing plant has an
annual capacity of 2,000 tU, dedicated to uranium solutions from the southern
area of the deposit, which is expected to gradually replace currently
exploited areas.
The commissioning of this plant will allow the South Tortkuduk mine to reach
its full nominal capacity, however the JV KATCO's actual 2026 production
targets will be determined based on aforementioned Kazatomprom's 2026
production strategy.
Budenovskoye-6,7 and TQZ project updates
As previously announced, Development Bank of Kazakhstan and Taiqonyr Qyshqyl
Zauyty LLP (TQZ) concluded an agreement on opening a credit line to finance
the construction of the sulphuric acid plant with a capacity of 800 thousand
tonnes per year in Taikonur, Turkestan region. The total cost of the
investment project is about 113 bln tenge, the amount of loan financing from
the Development Bank of Kazakhstan is expected at 85 bln tenge. At the moment,
the mobilisation and preparatory works have been completed.
The project on construction of a processing shop with an annual capacity of
6,000 tonnes of uranium at Budenovskoye 6,7 is progressing in accordance with
its schedule. Currently, the mobilisation of personnel, machinery and
equipment has been completed, as well as laying out communications.
Construction of auxiliary infrastructure is underway.
Completion of 2024 dividend payment and Amendments to the Dividend Policy
The Company has completed the payment of its 2024 dividends to shareholders on
22 July 2025. A total of KZT 327,857,875,304.96 (three hundred twenty seven
billion eight hundred fifty seven million eight hundred seventy five thousand
three hundred and four tenge 96 tiyn) or KZT 1,264.12 (one thousand two
hundred and sixty four tenge 12 tiyn) per one ordinary share (one GDR is equal
to one ordinary share) was paid out to the Company's shareholders, according
to the decision adopted by the Annual General Meeting of Shareholders (the
AGM) held on 27 May 2025.
The AGM also approved amendments to the Company's dividend policy in terms of
revising the approach to calculating consolidated free cash flow. The revision
mainly relates to excluding cash flows attributable to non-controlling
interests and taking into account proceeds from investment activities,
specifically the disposal of assets and dividends received by the Company's
subsidiaries from their associated and jointly controlled entities. The
amended calculation formula will be applied when determining the amount of
dividends to be distributed based on the results of 2025 and beyond.
Key financial metrics
Six months
ended 30 June
(KZT billion unless noted) 2025 2024 Change
Group's consolidated revenue 660.2 701.1 (6%)
Operating profit 253.7 226.7 12%
Net profit 263.2 571.7 (54%)
Earnings per share attributable to owners (basic and diluted), 779 1,857 (58%)
KZT/share(1)
Adjusted EBITDA(2) 363.1 377.0 (4%)
Attributable EBITDA(3) 302.4 273.9 10%
Operating cash flow(4) 532.9 322.3 65%
(1) Calculated as: Profit for the period attributable to owners of the Company
divided by Total share capital from Section 9.0 OUTSTANDING SHARES of the
Operating and Financial Review, rounded to the nearest KZT.
(2) Adjusted EBITDA is calculated by excluding from EBITDA items not related
to the main business and having a one-time effect. Calculation: Profit before
tax - finance income + finance expense +/- Net FX loss/(gain) + Depreciation
and amortization + Impairment losses - reversal of impairment +/- one-off or
unusual transactions.
(3) Calculated as: Adjusted EBITDA less the share of the results in the net
profit in JVs and associates, plus the share of Adjusted EBITDA of JVs and
associates engaged in the uranium segment, less non-controlling share of
adjusted EBITDA of Appak LLP, JV Inkai LLP, Baiken-U LLP, Ortalyk LLP, JV
Turanium LLP and JV Budenovskoye LLP less any changes in the unrealized gain
in the Group.
(4) Includes income tax and interest paid.
Operating and Financial Review and Financial Statements
The Operating and Financial Review, and Consolidated Financial Statements
(unaudited, reviewed) provide detailed explanations of Kazatomprom's results
for the first half-year ended 30 June 2025. This press release should be read
alongside these documents, all of which are available at www.kazatomprom.kz
(https://www.kazatomprom.kz/en/investors/finansovaya_otchetnost/page-1) .
Revenue, Net profit, EBITDA
For the first half of 2025 the Group's consolidated revenue amounted to
KZT 660,167 million, a decrease of 6% compared to the same period of 2024
(KZT 701,120 million for the first half of 2024) which is mainly
attributable to a decrease in sales volume.
Operating profit in the first half of 2025 was KZT 253,665 million, a 12%
increase compared to the same period of 2024 (KZT 226,723 million in the
first half of 2024), which was mainly due to a decrease in the cost of sales
related to lower share of purchased uranium from JV's and associates in the
total volume of sales to third-parties.
In the first half of 2025 other income amounted to KZT 4,525 million in
comparison to other income of KZT 336,423 million in the same period of
2024, originated primarily from a one-time effect - gain of
KZT 295,719 million from the consolidation of JV Budenovskoye starting from
1 January 2024.
Net profit in the first half of 2025 decreased by 54% compared to the same
period of 2024 amounting to KZT 263,233 million (KZT 571,746 million in
the first half of 2024), while net profit adjusted for one-time effects has
showed an insignificant decrease of 5%, amounting to KZT 263,233 million
(KZT 276,027 million in the first half of 2024). Higher 2024 net profit
results were mainly associated with the one-time gain from the consolidation
of JV Budenovskoye in 2024. In addition, adjusted Net profit for the reporting
period was negatively impacted by a net foreign exchange loss of
KZT 12,741 million (compared to an exchange rate gain of KZT 7,341 million
in the first half of 2024).
Adjusted EBITDA totalled KZT 363,111 million in the first half of 2025, an
insignificant decrease of 4% compared to the same period of 2024
(KZT 377,013 million in the first half of 2024), which is mainly
attributable to a decline in the share of results of JVs and associates for
the reasons stated above.
Attributable EBITDA was KZT 302,408 million in the first half of 2025, an
increase of 10% compared to the same period of 2024 (KZT 273,902 million in
the first half of 2024) mainly due to the decrease in EBITDA of the mining
subsidiaries with non-controlling interest as explained above.
Cost of sales
Cost of sales totalled KZT 373,666 million in the first half of 2025, a
decrease of 16% compared to the same period of 2024 (KZT 443,363 million in
the first half of 2024) primarily due to a decrease in the sales volume of
uranium purchased from JVs and associates and sold to third parties.
The cost of materials and supplies amounted to KZT 220,522 million in the
first half of 2025, a decrease of 26% compared to the same period of 2024
(KZT 296,869 million in the first half of 2024) due to the decrease in the
volume of sales of uranium purchased from JVs and associates. When such
uranium is sold, the cost of sales is predominantly represented by the cost of
purchased material at the prevailing spot price with certain applicable
discounts.
Selling expenses
Selling expenses totalled KZT 12,012 million in the first half of 2025, a
12% year-on-year increase (KZT 10,760 million in the first half of 2024).
The increase was mainly due to changes in the delivery destination points for
uranium products, an increase in transportation tariffs, as well as the
weakening of KZT against USD, as a significant portion of shipping,
transportation and storing expenses are denominated in foreign currency. A
notable increase in rent expenses in the first half of 2025 is also associated
with the changes in the delivery destination points for uranium products.
General & administrative expenses (G&A)
G&A comprised KZT 20,824 million in the first half of 2025, reflecting an insignificant increase compared to the same period of 2024 (KZT 20,274 million in the first half of 2024).
Liquidity
The Group manages its liquidity requirements to ensure the continued
availability of cash sufficient to meet its obligations on time, avoid
unacceptable losses, and settle its financial obligations without undermining
its reputation.
(KZT million) As at June 30, 2025 As at December 31, 2024 As at June 30, 2024 Change for six months of 2024
Cash and cash equivalents 583,885 294,385 152,100 98%
Term deposit (deemed as cash equivalents) 28 28 17 0%
Total cash 583,913 294,413 152,117 98%
Undrawn borrowing facilities 116,551 101,346 116,922 15%
As at 30 June 2025 total cash and cash equivalents, including current term
deposits, amounted to KZT 583,913 million, increasing by 98% compared to
KZT 294,413 million as at 31 December 2024 and more than 3.5 times higher
in comparison to KZT 152,117 million as of 30 June 2024, mainly due to the
accumulation of cash prior to the distribution of the 2024 dividends. Other
explanations are presented in the section 7.4 Cash Flows of The Operating and
Financial Review.
The Undrawn borrowing facilities as of reporting date amount to
KZT 116,551 million (USD 224 million) and consists of:
· corporate credit lines in the amount of KZT 108,791 million
(USD 209 million); and
· available for selection portion of the loan of JV Budenovskoye LLP
received from the Eurasian Development Bank (EDB) in the amount of
KZT 7,760 million (USD 15 million).
Corporate credit lines available to the Group are an additional liquidity
source payable within 12 months, primarily used to cover temporal cash
deficits related to uneven receipts of trade receivables.
Debt leverage ratios
The following table summarises the key ratios used by the Company's Management
to measure financial stability. Management targets a net debt to adjusted
EBITDA of less than 1.0.
(KZT million) As at June 30, 2025 As at December 31, 2024 As at June 30, 2024 Change for six months of 2025
Total debt (excluding guarantees) 192,025 149,953 131,665 28%
Total cash balances (see Section 7.1) (583,913) (294,413) (152,117) 98%
Net debt (391,679) (144,460) (20,452) 171%
Adjusted EBITDA* 1,082,809 1,096,711 874,389 (1%)
Net debt / Adjusted EBITDA (coefficient) (0.36) (0.13) (0.02) 177%
* For the purposes of Net debt/Adjusted EBITDA (coefficient) calculation
Adjusted EBITDA for the six-month 2025 and 2024 was calculated for 12 months
(the first half of the reporting period and the second half of the previous
period). Adjusted EBITDA is calculated as Profit before tax - finance income +
finance expense +/- Net FX loss/(gain) + Depreciation and amortisation +
Impairment losses - reversal of impairment +/- one-off or unusual
transactions.
Uranium segment production and sales metrics
Six months
ended 30 June
2025 2024 Change
Production volume of U(3)O(8) (100% basis) tU 12,242 10,857 13%
Mlbs 31.8 28.2 13%
Production volume of U(3)O(8) (attributable basis)(1) tU 6,431 5,777 11%
Mlbs 16.7 15.1 11%
U(3)O(8) sales volume (consolidated) tU 7,625 7,779 (2%)
Mlbs 19.8 20.2 (2%)
Including KAP U(3)O(8) sales volume(2) tU 6,987 6,717 4%
Mlbs 18.2 17.5 4%
Group inventory of finished goods (U(3)O(8)) tU 6,677 6,132 9%
Mlbs 17.4 15.9 9%
Including KAP inventory of finished goods (U(3)O(8))(3) tU 5,372 4,142 30%
Mlbs 14.0 10.8 30%
Group average realized price KZT/kg 77,928 77,261 1%
USD/lb 58.54 66.19 (12%)
KAP average realized price(4) USD/lb 57.27 62.47 (8%)
Average weekly spot price USD/lb 69.11 92.62 (25%)
Average month-end spot price(5) USD/lb 69.38 91.10 (24%)
( )
(1) The Production volumes of U(3)O(8) (attributable basis) are not equal to
the volumes purchased by KAP headquarters (HQ) in the Section 4.8 Transactions
with subsidiaries, JVs, JOs and associates. For JV Inkai LLP, annual share of
production on attributable basis is determined by the Implementation
Agreement, concluded between participants of the entity, according to which
the share of the second shareholder of JV Inkai LLP was recalculated based on
2024 production results.
(2) KAP U(3)O(8) sales volume (incl. in Group): includes only the total
external sales of KAP HQ and THK. Intercompany transactions between KAP HQ and
THK are not included. Yet, some part of Group U(3)O(8) production may go to
the production of EUP, fuel pellets and fuel assemblies (FA) at Ulba-FA LLP.
In the first half of 2025 there were no sales transactions to Ulba-FA LLP.
(3) KAP inventory of finished goods (incl. in Group): includes the inventories
of KAP HQ and THK.
(4) KAP average realized price: the weighted average price per pound for the
total external sales of KAP and THK. The pricing of intercompany transactions
between KAP and THK are not included.
(5) Source: UxC, TradeTech. Values provided represent the average of the
uranium spot prices quoted at month end, and not the average of each weekly
quoted spot price, as contract price terms generally refer to a month-end
price.
Production on both a 100% basis and an attributable basis were higher in the
first half of 2025 compared to the same period in 2024, due to an increase in
2025 production plan in line with the Company's guidance for 2025 compared to
2024.
As was reported in the beginning of 2025, JV Inkai has resolved the approval
issue and has resumed its mining operations at block No. 1 of the Inkai
deposit that were suspended for a short period of time in January 2025.
Anticipated decrease in JV Inkai's 2025 production target is not expected to
materially affect Kazatomprom's production plans for 2025, which might,
however, end up closer to the lower limit of the current guidance. The Company
remains fully committed to fulfilling its contractual obligations towards all
existing customers and has sufficient level of inventories to comfortably
manage its deliveries throughout 2025.
In the first half of 2025, sales for the Group were slightly lower compared to
the same period in 2024, while KAP sales exceeded the 2024's first half
volumes. The variation in sales volumes at both the Group and KAP levels is
due to the timing of customers' request of scheduled deliveries. Sales volumes
can vary substantially each quarter, and quarterly sales volumes vary year to
year due to variable timing of customer delivery requests during the year, and
physical delivery activity.
Consolidated Group inventory of finished goods (U(3)O(8)) as at 30 June 2025
amounted to 6,677 tonnes (17.4 Mlbs), a 9% year-on-year increase
(6,132 tonnes / 15.9 Mlbs as at 30 June 2024). At the Kazatomprom HQ and THK
level, the inventory of finished U(3)O(8) products increased by 30% to
5,372 tonnes (14.0 Mlbs) compared to 4,142 tonnes (10.8 Mlbs) as at
30 June 2024. The increase in inventory in the first half of 2025 was mainly
due to the higher planned production levels in comparison to the previous
period.
The 24% decline in the spot price during the reporting period had a limited
effect on the Group's and Kazatomprom's average realized prices, with them
decreasing by 12% and 8%, respectively, compared to the same period in 2024.
The Company's current sales portfolio includes long-term contracts linked to
the uranium spot prices. Certain deliveries under long-term contracts in 2025
incorporated a portion of fixed pricing components, including price ceilings
that were negotiated during a different price environment.
In the uranium market, the trends in quarterly metrics and interim results are
rarely representative of annual expectations; for annual expectations, please
see the Company's guidance metrics, as well as its price sensitivity table
from section 10.1 Uranium sales price sensitivity analysis of the Operating
and Financial Review.
Uranium segment costs and capital expenditures
Six months
ended 30 June
(KZT million unless noted) 2025 2024 Change
C1 Cash cost (attributable basis) USD/lb 17.86 16.80 6%
Capital cost (attributable basis) USD/lb 12.95 11.26 15%
All-in sustaining cash cost (attributable C1 + capital cost) USD/lb 30.81 28.10 10%
Capital expenditures of mining companies (100% basis)(1) 160,546 125,906 28%
(1) Excludes liquidation funds and closure costs. Note that in Section 6.0
CAPITAL EXPENDITURES REVIEW total results include liquidation funds and
closure cost.
C1 Cash cost (attributable) and All-in-sustaining cash costs, AISC
(attributable C1 + capital cost) for the first half of 2025 increased by 6%
and 10%, respectively, in USD equivalent compared to the same period of 2024.
The increase in C1 Cash cost was primarily due to an increase in the MET tax
rate (see section 4.4 Taxation and Mineral Extraction Tax ("MET") of the
Operating and Financial Review, as well as increase in the cost of sulphuric
acid (see section 4.5 Cost and availability of sulphuric acid of the Operating
and Financial Review).
Generally, AISC increased due to an overall increase in capital cost on an
attributable basis; capital expenditures of mining entities (100% basis) in
the first half of 2025 totalled KZT 160,546 million (compared to
KZT 125,906 million in the first half of 2024). A 28% CAPEX increase is
primarily due to expansion of wellfield development activities, increase in
costs of construction of wells and infrastructure, as well as a rise in
purchase prices for materials, supplies, equipment and cost of drilling (see
section 6.0 Capital Expenditures Review of the Operating and Financial
Review).
Health, safety and environment (HSE) results in the first half of 2025
The table below shows key labour protection and industrial safety metrics for
the first half of 2025 and 2024:
Six months
ended 30 June
Indicator 2025 2024 Change
Industrial accidents(1) - - -
LTIFR (per million man-hours)(2) 0,06 0,12 (50%)
Unsafe conditions, unsafe actions, near-miss reporting 16,263 16,931 (4%)
Number of accidents(3) 1 2 (50%)
Fatalities 1 - -
(1) Defined as uncontrolled explosions, emissions of dangerous substances, or
destruction of buildings.
(2) Lost-Time Injury Frequency Rate (LTIFR) per million hours.
(3) Defined as impact on the employee of a harmful and (or) dangerous
production factor in performance of his work (job) duties or tasks of the
employer, which resulted in an industrial accident, sudden deterioration of
health, or poisoning of the employee that led to temporary or persistent
disability, or death.
In the first half of 2025, active measures were continued in the field of
industrial safety, which made it possible to prevent major industrial
accidents, including uncontrolled explosions, emissions of hazardous
substances, and the destruction of buildings.
The Group continues to pay great attention to improving health and safety in
the workplace. However, despite the set of measures taken in the first half of
2025, one (1) fatal accident occurred with a driver at Volkovgeologia JSC due
to a road traffic accident. In accordance with the legislation of Republic of
Kazakhstan a special state investigation is being conducted chaired by the
Labour Inspector of the Turkestan Region.
Following the special state investigation, a thorough internal investigation
will be conducted, the root causes will be identified, corrective/preventive
measures will be developed and procedures will be revisited to prevent similar
incidents in the future. The results of the investigation will be communicated
to all Group enterprises so that they can learn from the incident and adjust
their processes accordingly. The Company will continue to work to increase the
level of involvement and awareness of employees in matters of industrial
safety.
Kazatomprom's 2025 Updated Guidance
Updated Guidance for 2025 Previous Guidance for 2025
520 KZT/1 USD 520 KZT/1 USD
Production volume U(3)O(8) tU 25,000 - 26,500 25,000 - 26,500
(100% basis)(1, 2)
Mlbs 64.99 - 68.89 64.99 - 68.89
Production volume U(3)O(8) tU 13,000 - 14,000 13,000 - 14,000
(attributable basis)(2,3)
Mlbs 33.79 - 36.40 33.79 - 36.40
Group sales volume tU 17,500 - 18,500 17,500 - 18,500
(consolidated)(4)
Mlbs 45.50 - 48.10 45.50 - 48.10
Incl. KAP sales volume tU 13,500 - 14,500 14,000 - 15,000
(included in Group sales volume)(5)
Mlbs 35.10 - 37.70 36.40 - 39.00
Revenue - consolidated(6) KZT bln 1,600 - 1,700 1,600 - 1,700
Revenue from Group U(3)O(8) sales(6) KZT bln 1,400 - 1,500 1,400 - 1,500
C1 cash cost (attributable basis)* USD/lb 16.50 - 18.00 16.50 - 18.00
All-in sustaining cash cost USD/lb 29.00 - 30.50 29.00 - 30.50
(attributable C1 + capital cost)*
Total capital expenditures of mining entities KZT bln 385 - 415 385 - 415
(100% basis)(7)
(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) The duration and full impact including, but not limited to sanctions
pressure due to the Russian-Ukrainian conflict and limited access to some key
materials are not known. As a result, annual production volumes may differ
from internal expectations.
(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 as disclosed in IPO Prospectus. Actual drummed
production volumes remain subject to converter adjustments and adjustments for
in-process material. 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.
(4) Group sales volume: includes Kazatomprom's sales and those of its
consolidated subsidiaries (according to the definition of the Group provided
on page one of this document). 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).
(5) KAP sales volume (included in Group sales volume): includes only the total
external sales of KAP HQ and THK. Intercompany transactions between KAP HQ and
THK are not included.
(6) Revenue expectations are based on uranium prices taken at a single point
in time from third-party sources. The prices used do not reflect any internal
estimate from Kazatomprom, and 2025 revenue could be materially impacted by
how actual uranium prices and exchange rates vary from the third-party
estimates.
(7) Total capital expenditures (100% basis): includes only capital
expenditures of the mining entities, includes significant CAPEX for investment
and expansion projects. Excludes liquidation funds and closure costs. For 2025
includes development costs for mining infrastructure of JV Budenovskoye LLP,
JV Katco LLP (South Tortkuduk) and MC Ortalyk LLP (Zhalpak) for a total amount
of approximately KZT 153 billion.
* Please note that the conversion ratio of kgU to pounds U(3)O(8) is 2.5998.
** 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
of production (beyond the production volume attributable to Company).
As previously reported in Kazatomprom's 2Q25 Operations and Trading Update,
the Company leaves all guidance metrics for 2025 unchanged, except for the KAP
sales volume range, which is reduced by 500 tonnes. This adjustment resulted
from a shift in 2025 delivery schedule, where a contract delivery has been
re-scheduled to a later period as per the customer's request.
Revenue, C1 cash cost (attributable basis) and All-in Sustaining cash cost
(attributable C1 + capital cost) may vary from the ranges shown, to the extent
that the USD/KZT exchange rate and uranium spot price differ significantly
from the Company's assumptions.
The Company only intends to update annual guidance in relation to operational
factors and internal changes that are within its control. Key assumptions used
for external metrics, such as exchange rates and uranium prices, are
established using third-party sources during the Company's annual budget
process in the previous year; such assumptions will only be updated on an
interim basis in exceptional circumstances.
Conference Call Notification - 2025 Half-Year Operating and Financial Review
(22 August 2025)
Kazatomprom has scheduled a conference call to discuss its 2025 half-year
operating and financial results, after they are released on 22 August 2025.
The call will begin at 17:00 (AST) / 13:00 (BST) / 08:00 (EDT). Following
management remarks, an interactive English Q&A session will be held with
investors.
For the English live webcast registration and conference call dial-in details,
please visit:
https://sparklive.lseg.com/JSCNationalAtomicCoKazatomprom/events/17cf86b5-f50b-4456-917f-8452ef2714db/2025-half-year-operating-and-financial-review-conference-call
(https://sparklive.lseg.com/JSCNationalAtomicCoKazatomprom/events/17cf86b5-f50b-4456-917f-8452ef2714db/2025-half-year-operating-and-financial-review-conference-call)
For the Russian live webcast registration and corresponding dial-in details,
please visit:
https://sparklive.lseg.com/JSCNationalAtomicCoKazatomprom/events/22de6fed-41f8-434d-989b-40d64f104146/2025
(https://sparklive.lseg.com/JSCNationalAtomicCoKazatomprom/events/22de6fed-41f8-434d-989b-40d64f104146/2025)
A recording of the webcast will be available at www.kazatomprom.kz
(https://www.kazatomprom.kz/) shortly after it concludes.
For more information, please contact:
Investor Relations Inquiries
Botagoz Muldagaliyeva, Director, Investor Relations
Tel: +7 7172 45 81 80 / 69
Email: ir@kazatomprom.kz (mailto:ir@kazatomprom.kz)
Public Relations and Media Inquiries
Daniyar Oralov, Director, Public Relations
Tel: +7 7172 45 80 63
Email: pr@kazatomprom.kz (mailto: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 21% of global primary
uranium production in 2024. 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.
Kazatomprom securities are listed on the London Stock Exchange and 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
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) .
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
OF THE COMPANY. THERE CAN BE NO ASSURANCES THAT THE PROJECTIONS WILL BE
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
RESPONSIBILITY FOR THE ACCURACY OF THE PROJECTIONS PRESENTED HEREIN.
The information contained in this communication or document, including but not
limited to forward-looking statements, applies only as of the date hereof and
is not intended to give any assurances as to future results. The Company
expressly disclaims any obligation or undertaking to disseminate any updates
or revisions to such information, including any financial data or
forward-looking statements, and will not publicly release any revisions it may
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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