REG - JSC NAC Kazatomprom - KAP announces 2024 Full Year Financial Results
19/03/2025 08:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250319:nRSS2728Ba&default-theme=true
RNS Number : 2728B JSC National Atomic Co. Kazatomprom 19 March 2025
AIX: KAP, KAP.Y (GDR)
LSE: KAP (GDR)
19 March 2025, Astana, Kazakhstan
Kazatomprom announces 2024 Full Year Financial Results
National Atomic Company "Kazatomprom" JSC ("Kazatomprom", "KAP" or "the
Company") announces its consolidated financial results for the year ended 31
December 2024, prepared in accordance with the International Financial
Reporting Standards (IFRS).
"Nuclear energy is widely recognised as an integral part of global green
energy policies. Pursuing the necessity to achieve net zero, nuclear energy is
being increasingly adopted as a baseload power source by many countries. This
bolsters the uranium market fundamentals. Kazatomprom appreciates its
strategic importance in helping the world transition away from a reliance on
fossil fuels and is steadfast in delivering a long-term value for all
stakeholders.
"On the back of strong growth in uranium price throughout the year, our 2024
revenue grew by 26% exceeding 1.8 trillion tenge. Attributable to the Company,
adjusted net profit was 38% higher compared to the previous year amounting to
almost to 577 billion tenge. These impressive results reflect the growth of
the average annual uranium spot price over the past year, robustness of
long-term price dynamics, and of course the Company's strong position of the
lowest cost producer and largest seller globally.
"The key milestone is the update of our long-term strategy, which reiterates
the "Value over Volume" approach as its cornerstone. Kazatomprom's large-scale
exploration program aimed at replenishment and efficient use of resource base
is already yielding results. We were able to not only sustain our reserves
throughout the year, but also to significantly expand our exploration
portfolio. The exploration projects in our pipeline are fully attributable to
Kazatomprom, further enhancing our credibility as a reliable supplier of
natural uranium," - said Meirzhan Yussupov, Chief Executive Officer of
Kazatomprom.
Corporate Update
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, aimed at sustainable entrenchment of Kazatomprom's position and
leveraging opportunities emerging in the second nuclear renaissance.
The updated Development Strategy for 2025-2034 remains committed to the "Value
over Volume" principle, while adapting to changes in the nuclear fuel market
and taking into account the growing demand for uranium products, 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.
Kazatomprom remains committed to its core principles of creating sustainable
value, solidifying its reputation and credibility among investors, customers,
and partners. Concurrently, the Company significantly contributes to the
economic and social development of local communities, as well as the country
as a whole.
JV Inkai Operations
As was reported in the beginning of 2025, JV Inkai LLP has resolved the
approval issue and has resumed its mining operations at block No. 1 of Inkai
deposit that were suspended for short period of time. As a result of this
suspension, as well as due to not achieving its target production in 2024, JV
Inkai is expected to revise its production plans for 2025 downwards.
Anticipated decrease in JV Inkai's 2025 production target is not expected to
materially affect Kazatomprom's production plans for 2025 which might,
however, result at a lower range of current guidance. The Company remains
fully committed to fulfilling contractual obligations towards all existing
customers and has sufficient level of inventories to comfortably manage its
deliveries throughout 2025.
Adjustments to Free Cash Flow formula affecting dividends for results of
FY2025
In June 2024, the Company made dividend payment of nearly 315 billion tenge as
a result of 2023. This amount marks a record high since the Company's initial
public offering. As of the date of release, the Company is making adjustments
to the Free Cash Flow (FCF) calculation, which are subject to consideration at
the upcoming Annual General Meeting of Shareholders in May 2025.
The adjustments affect the method for calculating FCF, which is currently
calculated using the following formula: FCF = Cash flows from operating
activities minus (-) acquisition of fixed assets (FA, including advances) and
intangible assets (IA) - acquisition of mine development assets - acquisition
of exploration and evaluation assets plus (+) dividends from JVs and
associated companies, to be distributed before the annual general meeting of
shareholders (AGM) following the reporting year + dividends from JVs and
associated companies, distributed after the AGM and not accounted for in the
previous period + receipts/disposals (on a net basis) from the
sale/acquisition of shares, participation interests in subsidiaries and
dependent companies - acquisition of investments in JVs and associated
companies, other equity investments in cash.
It is proposed to adjust the current FCF calculation as follows:
• exclude from the cash flows from operating and investing
activities proportionate share of cash flows of a non-controlling interest
(NCI);
• include cash flows from the sale of fixed assets, intangible
assets and other long-term assets, less proportionate share of cash flows of
NCI;
• include cash receipts from dividends received by the Company's
subsidiaries in the reporting period from associates, joint ventures and other
investments of third-tier enterprises in which the Company has equity
shares/participation interests indirectly through direct interests in
subsidiaries, joint ventures and associates, less proportionate share of cash
flows of NCI.
Since the approval of the existing FCF formula, the following events have
occurred in the structure of the Group, increasing the share of
non-controlling interest in FCF, thereby reducing the share of Kazatomprom, as
the parent company:
• sale of a 49% stake of the Company in Ortalyk LLP in July 2021;
• inclusion of JV Budenovskoye LLP in the Group line-by-line
consolidation perimeter through the gain of control with a 51% stake in
January 2024.
Adjustments to the FCF calculation formula, if approved by the Annual General
Meeting of Shareholders, will be applied on the results of FY2025 and onwards.
Dividends for 2024 will be distributed in accordance with the dividend policy
in effect on the reporting date.
Key financial metrics
(KZT billion unless noted) 2024 2023 Change
Group's consolidated revenue 1,813 1,435 26%
Operating profit 807 681 19%
Net profit 1,132 580 95%
Earnings per share attributable to owners (basic and diluted), KZT/share(1) 3,363 1,616 108%
Adjusted net profit (net of one-time effects), attributable to: 836 580 44%
Owners of the Company 577 419 38%
Adjusted EBITDA(2) 1,097 829 32%
Attributable EBITDA(3) 789 639 23%
Cash flow from operating activities(4) 516 432 19%
(1) Calculated as: Profit for the year attributable to owners of the Company
divided by Total share capital, 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 amortisation + Impairment losses - reversal of impairment +/- one-off or
unusual transactions.
(3) Attributable EBITDA (previously "Adjusted Attributable EBITDA") is
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, Turanium (previously -
JV Khorasan-U) 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 Audited Consolidated Financial
Statements provide detailed explanations of Kazatomprom's results for the year
ended 31 December 2024, as compared to the same period in 2023, and the
Company's guidance for 2025. All abbreviations, links and references provided
below are related to respective abbreviations and sections used in the
Operating and Financial Review. This press release should be read alongside
these documents, which are available at www.kazatomprom.kz
(https://www.kazatomprom.kz/) .
Update on geopolitical events
The Company continues to constantly monitor international sanctions' regimes
and packages assessing potential sanctions risks. To date, events in Ukraine
have not affected the Group's financial position. The majority of the Group's
revenues are received in US dollars, and financing is also raised in US
dollars, creating a natural hedging effect against currency risks.
Accordingly, fluctuations in the exchange rate of the national currency do not
have a significant impact on the Group's financial results.
The Group exports goods through Russia, which creates risks associated with
both transit through Russia and the delivery of goods by sea. The Group
continuously monitors potential impact that sanctions may have on the ability
to transport material. At the date of the Group's financial statements, there
are no restrictions on the Group's activities related to the supply of the
Group's products to end customers. Kazatomprom also transports uranium along
the Trans-Caspian International Transport Route (TITR), which the Company has
successfully used since 2018 in order to mitigate the risk of the northern
route being unavailable for any reason. To date, both transport routes are
fully operational.
In August 2024, Act No. 118-62 (formerly referred to as H.R. 1042) came into
force on a ban on the import from the Russian Federation to the United States
of unirradiated low-enriched uranium produced in the Russian Federation or by
a Russian enterprise (the law was signed by US President Joe Biden on 13 May
2024). At the same time, the US Department of Energy notes that Russian
enrichment capacities provide approximately 35% of the US import of nuclear
fuel, and therefore the United States allows the possibility of importing some
types of low-enriched uranium from Russia "for a limited period of time" in
order to avoid possible disruptions.
In November 2024, the Russian Federation imposed restrictions on the export of
enriched uranium to the United States in response to the previously adopted
Act No. 118-62 of May 13, 2024, banning the import of Russian enriched uranium
product to the United States starting from 2028. The restrictions apply both
to direct export of uranium to the United States and to exports conducted
under agreements with entities registered in the United States. At the same
time, deliveries under one-time licenses issued by the Federal Service for
Technical and Export Control of the Russian Federation remain possible.
At the time of reporting, the above events and/or sanctions have not had a
significant impact on the Group's operations, although the resulting market
uncertainty caused by the war in Ukraine has resulted in significant
volatility in the uranium spot price, domestic currency exchange rate and the
Company's share price.
ESG updates in 2024
In 2024, the Company's Board of Directors approved an updated Sustainable
Development Program for 2024-2030 (the "Program"). The document is aimed to
ensure implementation of the Company's development strategy in accordance with
the principles of sustainable development. The Program outlines the Company's
key goals, objectives and specific targets until 2030, grouped into three
components - environment, social responsibility and corporate governance.
Supporting global sustainable development agenda, in 2024, the Company has
successfully completed the UN Global Compact SDG Ambition Program. The Company
also continued improving non-financial information disclosure practices aimed
at enhancing transparency. Kazatomprom's integrated annual report is prepared
in compliance with SASB, GRI and TCFD information disclosure standards.
Along with the constant improvement of sustainable development practices, the
Company's priority is to obtain independent ESG ratings and scores. On 6
December 2024, S&P Global has assigned the Company a Corporate
Sustainability Assessment (CSA) score of 48/100, with a total ESG score of
50/100. 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. 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) .
In 2024, Kazatomprom disclosed data on "Climate Change" and on "Water
Security" for the first time as part of the CDP (Carbon Disclosure Project).
In October 2024, Kazatomprom was included in the list of the TOP-500 "World's
Best Companies - Sustainable Growth" according to the international TIME
Magazine jointly with the statistical organization Statista. Kazatomprom was
ranked 126th and was placed 6th among companies in the resource production and
infrastructure sector, being the only Kazakh company included in this ranking.
This significant achievement for Kazatomprom reflects the Company's successful
efforts in implementation of the best sustainable development practices.
Health, safety and environment (HSE) results
Health, safety, and environmental protection, including nuclear and radiation
safety, are priorities for the Company. The Company is continuously improving
the management system of its industrial HSE programs as it strives to a goal
of zero injuries.
None of the Company's plans and objectives can be achieved without its most
important resource: a team of over 22,000 dedicated employees. Kazatomprom
ensures they have the skills, access to training and equipment that is
necessary to work safely. The Company's business culture is built on a
foundation of personal and group responsibility where people are empowered to
make safe choices, voice any safety concerns, and report both actual incidents
and near misses, to ensure continual improvement. Kazatomprom's commitment to
safety and well-being is demonstrated by its membership in the International
Social Security Association's Vision Zero, initiative to reduce workplace
injuries and promote comfortable and safe working conditions guided by the
Vision Zero program's "Seven Golden Rules". These rules apply to all employees
of the Holding and their contractors, with the main purpose of achieving the
goal of zero injuries.
The Company conducts its production activities in compliance with both Kazakh
and international requirements for labour protection and industrial safety,
implementing comprehensive measures to prevent incidents and accidents. Health
and safety management systems that meet international standards (ISO 45001)
have been implemented and annually confirmed by external audit, and the
Company carries out systematic work to improve the safety culture among
employees and managers at all levels.
The measures undertaken in 2024 to enhance the focus on safety awareness
helped to prevent significant industrial accidents (e.g. uncontrolled
explosions, releases of hazardous substances, building destructions, and fatal
occupational injuries) at the Company's operations. In 2024, the Holding spent
approximately KZT 12.95 billion (2023: KZT 12.5 billion) on labour protection,
fire and industrial safety programs.
The table below reflects the safety results of 2024 and 2023:
Indicator 2024 2023 Change
Industrial accidents(1) - -
LTIFR (per million man-hours)(2) 0.09 0.15 (40%)
Unsafe conditions, unsafe actions, near-miss reporting 33,434 36,145 (8%)
Number of accidents(3) 3 4 (25%)
Fatalities - - -
(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.
Notwithstanding the continuing actions taken to improve workplace health and
safety, three accidents were recorded, in which three workers were injured.
The accidents included two slip-and-fall accidents and one case of exposure to
hazardous chemicals.
Following each accident, a thorough investigation was completed, the main
causes were identified, preventative measures were developed and additional
procedures implemented to prevent similar incidents in the future.
Investigation results were reported to other Group entities to ensure all
operations could learn from the event and adjust their processes accordingly.
The Company will continue working to increase the involvement and awareness of
employees in industrial safety.
Revenue, net profit, EBITDA
The Group's consolidated revenue continued to show sustainable growth
amounting to KZT 1,813,352 million in 2024, an increase of 26% compared
to 2023 (in 2023 the Group's consolidated revenue was
KZT 1,434,635 million). The increase is mainly due to:
· the growth in the average realized price associated with an
increase in the market spot price for U(3)O(8);
· an increase in revenue from sale of enriched uranium related to
the growth of FA deliveries by Ulba-FA LLP in 2024.
Operating profit in 2024 was KZT 806,849 million, an increase of 19% compared
to 2023 (in 2023 was KZT 680,812 million). The increase was mainly due to a
higher gross profit in 2024.
In 2024 other income amounted to KZT 402,700 million (2023:
KZT 50,855 million loss), originated primarily from a net result from
business combination (one-time effect), namely control obtained over
JV Budenovskoye LLP for KZT 295 719 million (2023: nil) in accordance
with the independent valuation report. The Group obtained control over JV
Budenovskoye LLP through having majority of the voting rights and
representation in the Supervisory Board as of 1 January 2024. Excluding the
one-time effect of net gain from business combination, other income is mostly
represented by gain from revaluation and disposal of inventory loan returned
until March 2024 to ANU Energy OEIC for KZT 14,332 million (2023: loss on
revaluation for KZT 37,977 million). Also, in Q4 2023 the Group accrued a
provision amount of KZT 15,692 million on receivables from Dioxitek S.A.
(Argentina) for the sales of uranium. The payment was received as of the
reporting date, thus reversal of impairment was recognised.
Net profit in 2024 amounted to KZT 1,132,115 million, an increase
of 95% compared to 2023 (2023: KZT 580,335 million). The increase was
mainly due to the gain from control acquired over JV Budenovskoye LLP, a
higher operating profit, as well as due to higher share in results of
associates in 2024, primarily driven by an increase in the average realized
price of associates due to an increase in the spot price for U(3)O(8).
Adjusted EBITDA amounted to KZT 1,096,711 million in 2024, a 32% increase
year-on-year (KZT 828,623 million in 2023), while attributable EBITDA was KZT
788,681 million in 2024, an increase of 23% compared to previous year (KZT
639,407 million in 2023). The changes were mainly driven by higher operating
profit on consolidated level, higher EBITDA of JVs and associates, and growth
in the average realized price associated with an increase of the spot price
for U(3)O(8).
Operating cash flows in 2024 totalled KZT 516,487 million, a significant
increase compared to KZT 432,225 million in 2023 mainly due to:
· KZT 314,230 million increase in cash receipts from customers and
under swap transactions during 2024 compared to 2023, due to a growth in the
average realized price associated with an increase in the spot price for
U(3)O(8);
· KZT 29,501 million increase in 2023 inflows from VAT refunds from
the budget.
Offset by:
· KZT 72,642 million increase in cash payments to suppliers and
under swap transactions during 2024 compared to 2023, due to a growth in the
spot price for U(3)O(8) as well as inflationary pressure on materials and
supplies;
· KZT 77,717 million due to an increase in other taxes paid,
primarily from the higher amount of accrued value-added tax resulting from an
increase in intra-group sales within the territory of Republic of Kazakhstan,
along with an in increase in the mineral extraction tax ("MET");
· KZT 76,110 million increase in income tax paid due to an increase
in profit before tax.
Cost of sales
Cost of sales totalled KZT 931,621 million in 2024, an increase of 39% compared to previous year (2023: KZT 671,862 million) mainly due to a higher cost for purchased uranium (as described below) and a higher production cost for uranium produced by consolidated subsidiaries and JOs.
The cost of materials and supplies was KZT 518,578 million in 2024, an increase of 42% compared to 2023 (2023: KZT 364,841 million) due to an increase in spot price of U(3)O(8) affecting the cost of uranium purchased from JVs and associates, as well as from third parties (when such uranium is sold, the cost of sales is predominantly represented by the cost of purchased materials and supplies at the prevailing spot price with certain applicable discounts). The growth of cost of materials and supplies was also due to an increase of purchase price of production materials, supplies and reagents (including sulphuric acid), due to an inflationary pressure.
Selling expenses
Selling expenses totalled KZT 26,216 million in 2024 and decreased
by 9% compared to 2023 (in 2023 was KZT 28,851 million). The decrease is
mainly due to a decrease in sales volumes and a change in transportation
routes.
General & Administrative expenses (G&A)
G&A expenses comprised KZT 48,666 million in 2024 and decreased by 8%
compared to 2023 due to the following reasons.
G&A in 2023 included compensation paid to the government in the amount of
KZT 11,404 million due to unauthorised volume of uranium mined
(about 162 tonnes) at the Zhalpak field for the period from June 2018 to
April 2020.
The decrease of G&A was partially offset by financial assistance
of KZT 3,032 million provided to support the regions of the Republic of
Kazakhstan affected by the floods.
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 jeopardizing
its reputation.
(KZT million) 2024 2023 Change
Cash and cash equivalents 294,385 211,912 39%
Term deposit (deemed as cash equivalents) 28 8 250%
Total cash 294,413 211,920 39%
Undrawn borrowing facilities 101,346 115,004 (12%)
Total cash, including term deposits, at 31 December 2024 amounted to
KZT 294,413 million, compared to KZT 211,920 million at 31 December 2023,
due to increase in cash flows from operating, investing and financing
activities.
Undrawn borrowing facilities are the credit lines available to the Group and
considered as an additional liquidity source payable within 12 months,
primarily used to temporarily cover cash deficits related to uneven receipts
of trade receivables.
As of 31 December 2024, the total limit on the Group's undrawn revolving
credit lines was KZT 101,346 million (USD 194 million), which was fully
available for use at the Company's discretion (December 31, 2023:
USD 253 million).
Debt leverage ratios
The following table summarises the key ratios used by the Company's management
to measure financial stability in 2024 and 2023. Management targets a net debt
to adjusted EBITDA of less than 1.0.
(KZT million) 2024 2023 Change
Total debt (excluding guarantees) 149,953 86,377 74%
Total cash balances (294,413) (211,920) 39%
Net debt (144,460) (125,543) 15%
Adjusted EBITDA* 1,096,711 828,623 32%
Net debt / Adjusted EBITDA (coefficient) (0.13) (0.15) (13%)
*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
amortisation + Impairment losses - reversal of impairment +/- one-off or
unusual transactions.
Uranium segment production and sales metrics
2024 2023 Change
Production volume of U(3)O(8) (100% basis) tU 23,270 21,112 10%
Production volume of U(3)O(8) (attributable basis)(1) tU 12,286 11,169 10%
U(3)O(8) sales volume (consolidated) tU 16,670 18,069 (8%)
Including KAP U(3)O(8) sales volume(2, 3) tU 12,769 14,915 (14%)
Group inventory of finished goods (U(3)O(8)) tU 6,334 7,242 (13%)
Including KAP inventory of finished goods (U(3)O(8))(4) tU 5,431 6,108 (11%)
Group average realized price KZT/kg 84,733 65,344 30%
Group average realized price USD/lb 69.48 55.09 26%
KAP average realized price(5) USD/lb 65.78 52.10 26%
Average weekly spot price USD/lb 86.28 60.53 43%
Average month-end spot price(6) USD/lb 85.14 62.51 36%
(1) The Production volumes of U(3)O(8) (attributable basis) are not equal to
the volumes purchased by KAP headquarters (HQ)
(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 goes to the
production of EUP, fuel pellets and fuel assemblies (FA) at Ulba-FA LLP.
(3) Group sales volume and KAP sales volume (incl. in Group) does not include
approximately 1,800 tonnes of natural uranium equivalent used for the supply
of EUP in 2024 for the project of "Ulba-FA" LLP (2023: 1,300 tonnes).
(4) KAP inventory of finished goods (incl. in Group): includes the inventories
of KAP HQ and THK.
(5) 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.
(6) 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.
Kazatomprom's 2024 production results were within the guided ranges.
Production volumes on a 100% basis and on attributable basis were higher
throughout 2024 compared to 2023 due to an increase in the production plan in
accordance with the commitments under the Subsoil Use Agreements.
Both Group and KAP sales volumes slightly exceeded guidance in 2024 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.
Consolidated Group inventory of finished U(3)O(8) products amounted to 6,334
tonnes as at 31 December 2024, 13% lower than at 31 December 2023. At the KAP
HQ and THK level, inventory of finished U(3)O(8) products amounted to 5,431
tonnes, 11% lower than at 31 December 2023. Overall, the decrease in inventory
is due to higher sales of EUP to Ulba-FA LLP, as well as return of U(3)O(8)
under inventory loans and swap deals. Inventory loans and swap deals are part
of the Group's normal inventory management activity, required to mitigate
potential logistical risks that could affect the timely delivery of Kazakh
uranium to Western conversion enterprises due to heightened geopolitical
instability.
The Group's average realized price in 2024 was KZT 84,733 per kgU (69.48
USD/lb U(3)O(8)), a 30% increase on KZT/kgU (26% on USD/lb U(3)O(8)) compared
to 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.
The Company's current contract portfolio price is correlated to uranium spot
prices. For short-term deliveries to end-user utilities, the spot price can
vary between the time contract pricing in accordance with Kazakh transfer
pricing regulations, and the spot market price i when the actual delivery
takes place. The impact of market volatility during the time lag between
price-setting and delivery becomes more pronounced as volatility increases, in
both rising and falling market conditions. At the same time, pricing
mechanisms for some long-term contracts include fixed basic price components
that were set in lower price conditions.
Uranium segment costs and capital expenditures
(KZT million unless noted) 2024 2023 Change
C1 Cash cost (attributable basis) USD/lb 16.59 13.27 25%
Capital cost (attributable basis) USD/lb 11.06 8.10 37%
All-in sustaining cash cost (attributable C1 + capital cost) USD/lb 27.65 21.37 29%
Capital expenditures of mining companies (100% basis)(1) 317,540 201,321 58%
(1) Excludes liquidation funds and closure costs.
C1 Cash cost (attributable) for 2024 was within the 2024 guided ranges ($16.50
- $18.00/lb), while All-in-sustaining cash cost (attributable C1 + capital
cost, "AISC") was slightly below the 2024 guided range ($27.75 -
$29.25/lb), caused by the factors listed below.
C1 Cash cost (attributable) increased by 25% and AISC increased by 29% in
USD equivalent for 2024 compared to 2023. The increase in C1 Cash cost was
primarily due to an increase in spot prices affecting MET as well as
increasing inflationary pressure on materials and supplies (including
sulphuric acid).
Kazatomprom's attributable C1 cash cost categories are generally broken down
as follows (proportions vary year-to-year, and vary between operations,
deposits and regions):
General Attributable Cash cost (C1) Categories 2024 2023
MET 30% 28%
Material and supplies 23% 21%
Payroll costs 17% 18%
Processing and other services 13% 15%
General and administrative expenses 5% 5%
Selling expenses 3% 4%
Others 9% 10%
Total 100% 100%
AISC increased due to an overall increase in capital cost on an attributable
basis, driven by factors as specified below.
Capital expenditures of mining entities (100% basis) in 2024 totalled
KZT 317,540 million, an increase of 58% compared to 2023
(KZT 201,321 million) and were higher than the updated guidance range
provided for 2024 (KZT 285 - 305 billion). The increase was attributable
to:
• capital investments for the wells construction and building
infrastructure for new facilities commissioned at JV Katco LLP, Ortalyk LLP
and JV Budenovskoye LLP for an aggregate amount of KZT 108 bln (previously
guided - KZT 97 billion);
• an increase in purchase prices for materials, supplies, equipment
and cost of drilling and preparation of wellfields for 2025 increase (compared
to 2024 volumes) as per 2025 guidance.
Kazatomprom's 2025 Guidance
Guidance for 2025
520 KZT/1USD
Production volume U(3)O(8), (tU) (100% basis)(1, 2) 25,000 - 26,500(2)
Production volume U(3)O(8), (tU) (attributable basis)(3) 13,000 - 14,000(2)
Group sales volume, (tU) (consolidated)(4) 17,500 - 18,500
Incl. KAP sales volume (included in Group sales volume), (tU)(5) 14,000 - 15,000
Revenue - consolidated, (KZT billions)(6) 1,600 - 1,700
Revenue from Group U(3)O(8) sales, (KZT billions)(6) 1,400 - 1,500
C1 cash cost (attributable basis) (USD/lb) ** $16.50 - $18.00
All-in sustaining cash cost (attributable C1 + capital cost) (USD/lb)** $29.00 - $30.50
Total capital expenditures (KZT billions) (100% basis)(7) 385 - 415
(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 product).
(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.
* Note that the conversion 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).
Production in 2025 is expected to be in the range of 25,000 - 26,500 tonnes of
uranium on a 100% basis and in the range of 13,000 - 14,000 tonnes of uranium
on an attributable basis. The JV Inkai LLP is expected to revise its
production plans for 2025 downwards, as a result of not achieving its target
production in 2024, and the temporary suspension of production in January
2025.
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.
Sales volume guidance for 2025 is fully aligned with the Company's
market-centric strategy. The Group expects to sell between 17,500 tU
and 18,500 tU, including KAP sales of between 14,000 tU and 15,000 tU.
Increase in 2025 sales volume guidance in comparison to 2024 at both the Group
and KAP levels is attributed to the growth in U(3)O(8) sales commitments under
existing contracts, along with the pipeline of discussions for new U(3)O(8)
sales contracts underway.
Revenue, C1 cash cost (attributable basis) and All-in Sustaining cash cost
(attributable C1 + capital cost) may vary from the guidance provided if the
KZT to USD exchange rate fluctuates significantly during 2025. Increase in
spot market price for U(3)O(8) affecting the MET as well as procurement and
supply chain issues, including inflationary pressure on production materials
and reagents, are expected to continue throughout 2025. This may affect the
Company's financial metrics for 2025. Guidance will be updated if the
aforementioned uncertainties persist throughout 2025.
The Company foresees significant increase in its 2025 total capital
expenditures of mining entities on 100% basis in comparison to 2024. This
growth is mainly attributed to the expected capital expenditures of
KZT 153 billion for development of mining infrastructure and ensuring
production at JV Budenovskoye LLP, JV Katco LLP (South Tortkuduk) and Ortalyk
LLP (Zhalpak), as well as to the higher volume of wellfield preparation and
development works (drilling and well construction) in 2025 for future
production periods. In this regard guidance range for capital expenditures of
mining entities on 100% basis has been widened, which translates into the
increase in guidance for All-in Sustaining cash cost (attributable C1 +
capital cost) in comparison to 2024 results.
The Company may purchase uranium from the spot market, while continuing to
monitor market conditions for opportunities to optimise its inventory.
Conference Call Reminder - 2024 Full-Year Operating and Financial Review
Kazatomprom has scheduled a conference call to discuss its 2024 year operating
and financial results later today, 19 March 2025. The call will begin at 17:00
(Astana) / 12:00 (GMT) / 08:00 (ET). Following Management remarks, an
interactive English Q&A session will be held with investors (remarks in
English, with a simultaneous Russian translation of the remarks and the
Q&A available on a listen-only line).
For the English live webcast (participants on the webcast can also submit
questions during the event), conference call dial-in details and for
information on how to participate in the Q&A, please visit:
https://sparklive.lseg.com/JSCNationalAtomicCoKazatomprom/events/dcec8e05-2f16-4323-9f6e-44269eab46f5/2024-full-year-operating-and-financial-review-conference-call
(https://sparklive.lseg.com/JSCNationalAtomicCoKazatomprom/events/dcec8e05-2f16-4323-9f6e-44269eab46f5/2024-full-year-operating-and-financial-review-conference-call)
For the Russian live webcast (listen-only, no Q&A) and
corresponding dial-in details, please visit:
https://sparklive.lseg.com/JSCNationalAtomicCoKazatomprom/events/f78f3a91-48d5-4a51-a3c2-1ca2c4bc09b3/2024
(https://sparklive.lseg.com/JSCNationalAtomicCoKazatomprom/events/f78f3a91-48d5-4a51-a3c2-1ca2c4bc09b3/2024)
A recording of the webcast will also be available at www.kazatomprom.kz
(https://www.kazatomprom.kz/) shortly after it concludes.
For further information, please contact:
Kazatomprom Investor Relations Inquiries
Botagoz Muldagaliyeva, Director of Investor Relations
Tel: +7 (7172) 45 81 80
Email: ir@kazatomprom.kz
Kazatomprom Public Relations and Media Inquiries
Altynay Karibzhanova, Chief Expert, Public Relations
Tel: +7 (7172) 45 80 63
Email: pr@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. As the national atomic company in the Republic of
Kazakhstan, the Group's primary customers are operators of nuclear generation
capacity, and 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)
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR QKLBFEXLXBBZRecent news on Stroeer SE & Co KGaA
See all newsREG - JSC NAC Kazatomprom - KAP announces 2024 Full Year Financial Results
AnnouncementRCS - Invest in Bogotá - Invest in Bogota joins Web Summit in Portugal
AnnouncementRCS - BlackDice Cyber Ltd. - BLACKDICE: PIONEERING AI-POWERED CYBERSECURITY
AnnouncementREG - Competition and Mkts - CMA Update: Amazon Marketplace Investigation
Announcement