Mining News
Top uranium miner Kazatomprom posts 188% net profit growth in H122, raises production forecast for 2024
(Kitco News) - Kazakhstan's Kazatomprom (LSE: KAP), the world's largest uranium producer, announced today it expects to increase potential production by about 2,000 to 3,000 tU in 2024 compared to the company's planned range for 2023.
The company said that the decision to shift production from minus 20% in 2023 to approximately minus 10% in 2024 against its total Subsoil Use Contracts level is based primarily on the company's continued success in signing mid- and long-term contracts with new and existing customers.
“The current contract book provides sufficient confidence that the additional volume in 2024 will have a secure place in the market and be needed to fulfill future contractual obligations,” the company noted in a statement.
Kazatomprom's 2024 production is therefore expected to be between 25,000 tU and 25,500 tU (100% basis), compared to the total Subsoil Use Contracts level for 2024 of 28,691 tU.
KAP also reported that the company produced 5,414 tonnes of uranium (as U3O8) in H1 2022 on an attributable basis, which is 8% lower than in H1 2021 (5,864 tonnes) due to the impact of the COVID-19 pandemic on wellfield development in 2021.
The company said that its average realized price in the first half of 2022 was KZT 47,807 per kg (40.88 USD/lb), an increase of 46% compared to the same period of 2021 due to a higher average spot price for uranium products, and the weakening of the KZT against the USD.
During the first half of 2022, the company's consolidated revenue was KZT 493,716 million (~$1 billion), an increase of 110% compared to the same period of 2021 mainly due to a significant increase in sales volume in the first half of 2022, growth in the average realized price, and weakening of the KZT against the USD in the first half of 2022.
Operating profit in the first half of 2022 was KZT 172,818 million (~$363 million), an increase of 182% compared to the same period of 2021. The increase was mainly due to higher revenues in 2022.
Net profit in the first half of 2022 was KZT 167,374 million (~$351 million), an increase of 188% compared to the same period of 2021. The increase was mainly due to higher operating profit in the first half of 2022.
Kazatomprom is the world's largest producer of uranium, with the company's attributable production representing approximately 24% of global primary uranium production in 2021.
The company benefits from the largest reserve base in the industry and operates - through its subsidiaries, JVs and Associates - 26 deposits, located in Kazakhstan, grouped into 14 mining assets. All of the company's mining operations are located in Kazakhstan and extract uranium using in-situ recovery technology.
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