Kazatomprom updates national president on performance and plans
The head of Kazakhstan's national nuclear company has briefed the country's president on its long-term "value over volume" approach with the focus firmly on its core uranium business - but expects 2025 production from its Inkai project to be down on previous expectations following a temporary suspension in January.
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Announcing Kazatomprom's 2024 full-year financial results on Wednesday, CEO Meirzhan Yussupov said the company's Board of Directors had approved an 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 company's strategic objectives will focus on uranium mining as Kazatomprom's core business, with efforts concentrated on replenishment and efficient use of resource base: in 2024 alone, the company has obtained new licenses for exploration of promising territories with an estimated resource potential of roughly 170,000 tU, Yussupov told the president. It also plans to expand its footprint in the nuclear fuel cycle; develop and expand its rare and rare-earth metals segment; diversify sales and enhance its trading function, as well as working to "improve and strengthen" business and ESG (environmental, social, and governance) practices "in order to ensure and uphold integrity of business".
Consolidated revenue reached a record level of KZT1.8 trillion (about USD2 billion) in 2024, a year-on-year increase of 26%, with attributable adjusted net operating profit of KZT577 billion, 38% higher than in 2023. "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," Yussupov told shareholders.
Inkai update
The company reiterated that it still expects JV Inkai - its joint venture with Canadian company Cameco - to decrease its production plans for 2025 "as a result of not achieving its target production in 2024, and the temporary suspension of production in January 2025". The suspension, which was due to issues with permit approvals, was resolved and operations resumed in January. But the anticipated decrease in JV Inkai’s 2025 production target "is not expected to materially affect Kazatomprom’s production plans for 2025", which is expected to be 25,000-26,500 tU on a 100% basis and 13,000-14,000 tU on an attributable basis.
Kazatomprom securities are listed on the London Stock Exchange and Astana International Exchange. The majority of the company's share capital - about 63% - belongs to Kazakhstan's Samruk-Kazyna JSC national wealth fund, with about 12% belonging to Kazakhstan's Ministry of Finance.
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