Kazatomprom boosts uranium production 6%, cuts sales 18% in H1
ASTANA. Aug 1 (Interfax) - Kazatomprom (KAP) boosted uranium production 6% year-on-year in H1 2024 to 10,857 tonnes, Kazakhstan's national nuclear company said in a press release.
Production on an attributable basis rose 7% to 5,797 tonnes.
"Production, both on a 100% and attributable basis, was slightly higher in the second quarter and the first half of 2024 compared to the same periods in 2023. This increase is due to modest adjustments in the annual and Q2 2024 production plans, driven by higher Subsoil Use Agreement requirements. The rise in production volume also results from resuming 2023 drilling work and the Company's efforts to catch up on production rates. Additionally, the Company has secured the necessary volumes of sulfuric acid for 2024 production, even with a 20% reduction compared to Subsoil Use Agreements," according to the press release.
However, Kazatomprom and its subsidiaries saw an 18% decrease in sales in the first half of the year, totaling 7,779 tonnes. At the same time, the average price of uranium concentrate increased by 41% to $66.22 per pound.
"In the second quarter of 2024, both Group and KAP sales volumes increased compared to the same period in 2023, mainly due to the timing of customer-scheduled deliveries. However, for the first six months of 2024, sales volumes were lower than in the same period of 2023, due to reduced sales guidance for 2024 and lower sales in the first quarter. Sales volumes can fluctuate significantly each quarter because of varying customer delivery requests and physical delivery schedules throughout the year," according to the press release.
The company said average realized prices for the second quarter and the first half of 2024 were higher than in the same periods of 2023, primarily due to an increase in the uranium spot price.
"The company's current contract portfolio pricing reflects uranium spot prices. However, some long-term contracts for 2024 include fixed pricing components and price ceilings that were set during a period of lower prices," the company said.
The company has revised its 2024 production forecast upwards from 21,000-22,500 tonnes to 22,500-23,500 tonnes on a 100% basis, and from 11,600-12,600 tonnes to 11,600-12,600 tonnes on an attributable basis.
"The company is increasing its 2024 full-year production guidance on both a 100% and attributable basis as the half-year results show that the production rates with which the mining entities are now progressing will result in higher than initially expected annual volumes," according to the press release.
Kazatomprom is the national operator responsible for exporting uranium and its compounds, rare metals, nuclear fuel for power plants, and specialized equipment. Following a recent acquisition of shares by the Finance Ministry using National Fund resources, the current shareholder structure is as follows: the Samruk-Kazyna Fund holds nearly 63% of the shares, the Finance Ministry holds 12%, and the fee float is 25%.
