Top uranium miner Kazatomprom ups revenue and cash flow in H1 2021, warns of supply chain issues
(Kitco News) - Kazakhstan's Kazatomprom (LSE: KAP), the world's largest uranium producer, announced today that in the first half of 2021 (H1 2021), its attributable U3O8 production of 5,864 tonnes was 1% higher compared to the same period of 2020 (5,790 tonnes).
In H1 2021, the group's consolidated revenue was KZT 235,501 million (~$552 million), an increase of 54% compared to the same period of 2020, primarily due to a significant increase in sales volume, growth in the average realized price associated with an increase in the market spot price for U3O8, and weakening of the KZT against the USD in the first half of 2021.
Operating profit in the first half of 2021 was KZT 61,315 million (~$144 million), an increase of 29% compared to same period of 2020. The increase was mainly due to higher revenues in 2021.
Net profit in the first half of 2021 was KZT 58,086 million (~$136 million), a decrease of 12% compared to the same period of 2020. In the first half of 2020, KAP net profit included the gain from the sale of the investment in the joint venture Uranium Enrichment Center. Adjusted net profit for the first half of 2021 of KZT 58,086 million represented an increase of 32% compared to the same period of 2020 mainly due to the increase in operating profit in 2021.
The company added that its operating cash flows for the first half of 2021 totalled KZT 80,833 million (~$189 million), an increase of 111% compared to KZT 38,220 million during the same period of 2020.
Kazatomprom pointed out that its 2021 guidance remains fundamentally unchanged at this time, except for adjustments in the attributable share of U3O8 production and all-in sustaining cash cost to account for the sale of a 49% share in "Ortalyk" LLP to CGNM UK Limited (CGNPC subsidiary) in July 2021.
The company noted that despite COVID-19 challenges, the group is maintaining its 2021 production plan and making every effort to achieve it, though final year-end volumes may fall short if the wellfield development and supply chain issues continue throughout the second-half of the year.
Kazatomprom is the world's largest producer of uranium, with the company's attributable production representing approximately 23% of global primary uranium production in 2020.